This is the second loan obtained for the unit in less than two years

[SINGAPORE] Nanofilm Vacuum Coating (Shanghai), a wholly owned subsidiary of mainboard-listed Nanofilm Technologies : MZH 0%, has obtained a 50 million yuan (S$9.2 million) loan to fund working capital purposes.

 

This is the subsidiary&rsquo s second loan in less than two years. Previously in December 2023, it obtained another 50 million yuan loan with a three-year tenure for similar reasons.

 

In a bourse filing on Tuesday (Mar 25), Nanofilm said the latest loan facility will be secured by the mortgage over two plants in Shanghai. The plants are owned by Nanofilm Renewable Energy Technology (Shanghai), another wholly owned subsidiary of the group.

 

The three-year loan will also be secured by a corporate guarantee from Nanofilm, and two utility patents owned by Nanofilm Vacuum Coating.

 

Under the loan agreement, the bank could demand early repayment if there is a change in who controls the company or if executive chairman Shi Xu ceases to be the subsidiary&rsquo s de facto controller. This refers to an individual, who although is not a shareholder of the company, is able to dominate the company&rsquo s actions through investment relationships, agreements or other arrangements.

 

Nanofilm does not expect the loan facility to have any material impact on its consolidated earnings and net tangible assets per share for the financial year ending Dec 31, 2025.