Nanoveu’s “rapid transformation” sets the scene for future growth

Nanoveu Ltd (ASX:NVU) has reported a whopping six-fold increase in its revenue from ordinary activities for the financial year ended December 31, 2020, as changes in strategy helped the company overcome COVID-19 challenges. The company’s decision to launch an anti-viral protection product for digital screens and surfaces amid the ongoing global pandemic boosted its revenue from ordinary activities by 503% to $368,000 in FY2020. However, despite facing the COVID-19 impact, which crippled business activities across the world, the company was able to reduce overall net loss by 48% to $1.76 million for the period under consideration. NVU chairman Alfred Chong said: “The past 12 months has been an unprecedented period in which not only businesses but broader society has faced significant challenges brought on by the ongoing COVID-19 pandemic.” 2020 operational highlights According to the company, its greatest strengths is its ability to be nimble and agile, and as a result, Nanoveu conducted due diligence into an opportunity to create an antiviral product before the global pandemic. As COVID-19 proliferated around the globe, the company quickly pivoted to take advantage of this unique technology. Chong said: “The June quarter, in particular, was transformational for Nanoveu in which the company was able to develop a viable antiviral product (accompanied by some impressive independent test results), launch the product and sign our first commercial distribution agreement. “This rapid transformation allowed the Company to set the scene for future growth, regardless of the turbulent conditions.” Distribution agreement After the June quarter, Nanoveu has gone on to sign distribution agreements across the UK, Singapore, Thailand, Malaysia, Australia and New Zealand as well as make sales in markets such as the US and Vietnam. Chong said: “Sales of our antiviral product continue to expand as we work with quality distribution partners that offer a growth pipeline without Nanoveu needing to invest in capital-intensive sales teams. “Our goal is to continue these partnerships in new markets as well as target key multinational businesses which could benefit from the advanced protection of the Nanoshield product.” Future product pipeline Chong added: “We are also making great progress on our EyeFyx vision correction technology. “Towards the end of the calendar year 2020, the company launched an impressive new prototype which allows people suffering farsightedness to view a 14-inch screen without the aid of glasses. “As we head into the new year, I am optimistic about the potential for even more powerful prototypes and the potential for EyeFyx to unlock new revenue streams.” Principal activities Nanoveu is a technology company developing a range of products for mobile phones and other digital displays. The company’s wholly-owned, flagship product is its Nanoshield antiviral protector which is available in a variety of mobile phone screen covers, mobile phone cases and as a commercial film capable of being applied to a number of surfaces. The product is a clear plastic containing a layer of charged copper nanoparticles that have antiviral and antimicrobial properties. Nanoveu also produces EyeFly3D, which converts 2D digital displays into 3D without the need for 3D glasses and is currently available for Apple iPhones and Google Pixel 3 phones. Business strategies and prospects With distributors engaged in Australia, Malaysia, Singapore, Thailand and the United Kingdom, the company is actively seeking to expand its distribution network while pursuing sales directly with customers with a global presence and retail customer base. Development of the EyeFyx vision correction product for digital displays is targeted to progress to product development following which products are intended to be brought to market and distributed via the distribution channels currently being built for the ant-viral protection product, as supplemented by additional distributors. Additionally, the company is seeking to deploy vending machines to enable its screens to be installed on mobile phones in a non-touch, clean environment.