NanoFilm Shares Fall by Nearly 30% on Resignation of COO

On Monday, investors dropped shares of NanoFilm Technologies, weakened by the resignation of the chief operating officer, announced last Friday.

Last Friday, the nanotechnology company published a 2.4 percent drop in net profit that missed analyst expectations.

On Monday, its stock closed at $4.26, down $1.73, or 28.9 percent.

Speaking at results announced on Monday, Yi-Hsen Gian, a deputy chief executive, said that the COO’s resignation was a part of a corporate restructuring. Under these circumstances, a business unit head oversees each division of the company. In fact, he added that this would help accelerate business growth effectively as Mr. Tan oversees the company’s divisions directly.

Overview

Mr. Tan’s resignation came almost two months after chief executive Lee Liang Huang left in June for health reasons.

Mr. Lee became chief executive four years ago, in November. Since then, Shi Xu, the executive chairman and NanoFilm founder has received the role of interim chief executive.

Dr. Shi recently joined Forbes’ Singapore’s Richest list with a net worth tagged at US$1.9 billion (S$2.5 billion).

The 57-year-old professor who turned entrepreneur created his wealth after listing his company. In fact, the company makes high-tech carbon coating used in smartphones, cars, and computers.

Moreover, he holds a 54 percent stake in NanoFilm.

Chinese Dr. Shi, who arrived in Singapore in 1991, now has citizenship. While engaging in the Nanyang Technological University’s School of Electrical and Electronic Engineering, he started NanoFilm.

NanoFilm’s revenue increased by 24.3 percent to $96.7 million for the first half of the year, compared with a year ago. The company also received a large number of expenses on its new product introduction projects, contributing materially to revenue. The board announced an interim distribution of one cent per regular share for the financial year at the end of December.