Temasek subsidiary increases stake in Nanofilm Technologies

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Singapore state-owned investment company Temasek Holdings’ deemed interest in Nanofilm Technologies International increased to 6.04 percent from 5.93 percent after indirect subsidiary Venezio Investments acquired 764,100 shares in the market for around S$3.05 million, according to a filing to SGX Wednesday.

Venezio has a total interest in 5.655 percent of Nanofilm’s shares, according to the filing. Venezio is a wholly owned subsidiary of Napier, which is a wholly owned subsidiary of Tembusu, which in turn is a subsidiary of Temasek.

In addition, Tembusu has a deemed interest in the 0.335 percent of Nanofilm’s shares held by its indirect subsidiary Fullerton Fund Management, which holds the shares as an investment manager for various funds, the filing said.

SeaTown Holdings, an indirect subsidiary of Tembusu, also holds 0.055 percent of Nanofilm via a subsidiary which manages an investment fund, the filing said.

Both Fullerton and SeaTown are independently managed Temasek portfolio companies, and Temasek isn’t involved in their operating decisions, the filing said.

Last week, Nanofilm issued explanations to address concerns raised by analysts and investors after its first half earnings release and the resignation of its chief operating officer, not long after its CEO stepped down, spurring a share price tumble of more than 30 percent.

Nanofilm Technologies had reported first half net profit slipped 17.9 percent on-year to S$17.9 million on revenue of S$96.6 million, up 24.2 percent on-year; gross profit margins fell 6.5 percentage points on-year to 46.1 percent, amid higher costs associated with the new Shanghai Plant 2, equipment qualification costs and higher new-product introduction costs, the company said.

Nanofilm said in an SGX filing that the new Shanghai Plant 2 had incurred higher utility costs related to the rental of diesel power generators and diesel consumption for power, which was required as the application to the Chinese municipal government for high-tension power had taken longer than expected on contractor delays and the associated approval process due to the Covid-19 situation.

Shares of Nanofilm ended Wednesday up 1.38 percent at S$4.41.