Nanofilm Technologies International MZH has responded to SGX RegCo's query after its shares surged 10% on July 10 before it called for a trading halt at 3.15pm.
In a bourse filing, Nanofilm attributes the surge to an announcement that its subsidiary Sydrogen Energy had entered into an exclusive collaborative partnership with Shanghai Hydrogen Propulsion Technology in connection with the development of a 250 kilowatt hydrogen fuel cell power module system for use in the shipping industry.
"The news could have triggered some investors to start to focus on the possible financial gains to Sydrogen arising from a commercialisation of the power module system," reads Nanofilm's response to SGX RegCo, issued at 8.36pm on July 10.
Nanofilm further highlights in its response that the development of the power module is one of the fuel cell systems product development projects which Sydrogen is advancing, as Nanofilm previously announced in its results presentation for FY2023.
It is also one of the many development projects it and its subsidiaries undertake on an ongoing basis as part of their ordinary course of business, adds the Mainboard-listed company.
According to a July 10 announcement, the fuel cell power module system is expected to be scalable from kilowatt to megawatt for small and large vessels. It will convert hydrogen from various sources and produce zero-emission electricity, and will also be capable of accepting reformed fuels.
The system is expected to be market-ready in 2025.
Nanofilm had entered into a joint venture with Temasek back in 2021 to invest in Sydrogen's new energy solutions, particularly in hydrogen.
Earlier that evening, Nanofilm announced the appointment of Cho Form Po as joint company secretary of the company with effect from July 10.
According to a July 10 bourse filing issued after trading hours, Cho replaces Zhan Aijuan, who has resigned with effect from the same day.
Cho is now joint company secretary of the company with Eunice Hooi.
Nanofilm had called for a trading halt at 3.15pm on July 10. Earlier that afternoon, Nanofilm announced that it had triggered an SGX RegCo query on trading activity after its share surged more than 10% after the midday lunch break to a intra-day high of 92 cents.
In February, Nanofilm posted earnings of $3.1 million for the FY2023 ended Dec 31, 2023, 92.8% lower than its earnings of $43.8 million in the FY2022. Earnings for the 2HFY2023 fell by 56.9% y-o-y to $10.8 million from $25.0 million previously.
In April, Nanofilm posted 1QFY2024 revenue of $39 million, an increase of 19% y-o-y. 1QFY2024 gross profit improved to $12.8 million from $9.8 million in 1QFY2023. The business update did not reveal net profit figures.
Prior to the trading halt, shares in Nanofilm were trading 7 cents higher, or 8.3% up, at 91 cents.
Nanofilm has requested to lift the trading halt, according to a 7.23am bourse filing on July 11.
