Nanofilm net profit slips 2.3% to S$18.1m in H1 2021
This is due to higher expenses in the new Shanghai Plant 2 and new product introduction projects.
Nanofilm Technologies International Limited reported a 2.3% decline in net profit after tax to S$18.1m from S$18.5m in the same period last year.
The decline is due to increased expenses related to the new Shanghai Plant 2, equipment qualification costs, and new product introduction (NPI) projects worth S$5.4m.
The group’s revenue rose 24.2% to S$96.6m from the first six months of the year from S$77.8m in the same period last year due to its Advanced Material Business Unit (AMBU) and Industrial Equipment Business Unit (IEBU).
The group's profit attributable to equity holders slid 3.1% to S$17.9m from S$18.5m in the first half of 2021.
The AMBU saw an 18.5% increase in revenues to S$76m during the first half compared to S$64.1m in the same period last year. IEBU revenue surged 80.8% to S$19m from S$10.5m in the first half of 2020 on the back of a strong project order book execution for industrial equipment in manufacturing industries, “driven by the return of capital expenditure spending this year.”
The Nanofabrication Business Unit slowed in the first half as projects “entered into an end of life with no equivalent or bigger new projects executed” during the period, with revenue crashing 47.8% year-on-year to S$1.6m in the first half.
Shi Xu, executive chairman of the company, said they posted revenue growth despite a challenging environment due to global supply chain disruptions because of “increasing adoption of our proprietary nanotechnology solutions.”
“Looking ahead, apart from entering into a typical high activity season in the second half of 2021, we are building our business pipeline with strategic projects in existing and new markets that aim to take shape beyond 2021,” the chairman said.
“We will continue to execute our strategy to accelerate the connection of deep tech with the commercial world in multiple markets with a purpose to integrate our nanotechnology solutions, offering social food, in our daily lives in a sustainable manner,” he added.
He also noted that they have prepared for future growth in the first half with the new Shanghai Plant 2 and NPI projects that have yet to reach mass production.