In its business update for the 4QFY2021 ending Dec 31, released on Dec 20, Nanofilm Technologies says the investments it has made via building its long-term production capacities and business pipeline in FY2021 are “expected to benefit” the group in the longer term.
The investments were made to meet the increasing demand for the group’s advanced materials and nanofabrication solutions, it adds.
Within its Advanced Materials Business Unit, Nanofilm’s Consumer Electronics, Communication and Computers (3C) segment saw a rebound in its production output after the beginning of its peak period in 4QFY2021.
According to the group, the momentum is expected to go through into the 1QFY2022.
Its other segments, which include Automotive, Precision Engineering and Printing & Imaging within the unit, have also continued to deliver strong growth in the 4QFY2021, says Nanofilm.
Nanofilm’s Nanofabrication Business Unit has begun mass production of its first micro-lens array (MLA) project for its new-generation wearables, which is ramping up according to schedule.
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Barring unforeseen circumstances, the MLA project is on track to contribute positively to the unit’s performance in the 4QFY2021 and beyond.
The group’s Industrial Equipment Business Unit has continued to see robust demand from external customers with a “visible order book” going into FY2022 on the back of the resumption of its customers’ capital expenditures to expand production capacities.
Nanofilm’s Sydrogen Energy unit will be focused on building its production capacities and infrastructure in Shanghai and Singapore to “better position itself to capture the promising opportunities in the hydrogen fuel cell market”.
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In terms of research and development (R&D), the group says it will be speeding up its efforts to develop core technologies and new product offerings in 2022.
“Over the last three financial years, the group has incurred approximately 5.9% of revenue per year in R&D and Engineering expenses. As indicated in its sustainability report, the group is committed to maintain its investment in R&D and Engineering to more than 5% of revenue,” it adds.
On the same day, Nanofilm announced the release of its inaugural sustainability report for the FY2020 ended Dec 31.
The report sets out the group’s strategy on sustainability which is based on four pillars, sustainable innovation, environment, social and governance.
“The group considers sustainability issues as part of its strategic formulation to determine the material environment, social, and governance (ESG) factors and has committed to a set of ambitious but realistic targets to be achieved by 2030,” says the group in a statement.
Within the report, Nanofilm says it aims to achieve 100% of its total R&D spend that meets its ESG criteria by 2030. It is also looking to reduce its carbon footprint intensity by 30% in 2030, among its other goals.
The efforts will be tracked and reported on an annual basis, says the group.
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In addition, Nanofilm has invested into ultrafiltration and reverse osmosis filtration systems to recycle its production water in a bid to improve its overall environmental performance.
It also has plans to install solar panels at its production facilities to gradually transit to renewable energy sources, and in the longer term, will explore the use of green hydrogen fuel cells to complement its energy requirements of its production facilities, it adds.
Finally, the group has rejigged its organisational chart, in which its structure will now be more streamlined.
This is done to “leverage on all the strengths and capabilities of its management team, so as to optimise efficiency and enhance performance”, says the group.
“Nanofilm embeds sustainability as part of its everyday life and culture. Our proprietary deep-technologies create innovative products and solutions that contribute to a sustainable world. While the current operating environment is challenging with supply chain disruptions, the market has rebalanced and readjusted to keep up with the strong underlying demand,” says executive chairman Dr Shi Xu.
“Nanofilm has a proven track record of overcoming challenges, emerging stronger with each challenge. With our BU-driven strategy in accelerating the commercialisation and increasing adoption of our nanotechnology solutions across multiple existing and new areas, underpinned by deep technologies, engineering production capabilities, systems and people, we are confident of our growth outlook,” he adds.
Shares in Nanofilm closed 16 cents lower or 4.12% down at $3.72 on Nov 20.
Photo: Albert Chua/The Edge Singapore