AJJ Medtech Holdings Limited: 2Q & 1H 2025 Financial Performance Review

AJJ Medtech Holdings Limited, a provider of integrated medtech solutions based in Singapore and listed on the Catalist Board of SGX, has released its condensed interim financial statements for the second quarter (2Q2025) and six months ended 30 June 2025 (1H2025). Below, we present a structured analysis of the company’s key financial metrics, performance trends, and business outlook based solely on the disclosed report.

Key Financial Metrics and Performance Table

*QoQ calculations are inferred based on 1H numbers and may be approximate due to lack of explicit Q1 data in the report.

Summary of 1H2025 vs 1H2024 (Six Months)

Historical Performance Trends

• Revenue: The Group recorded a 27.3% YoY increase in revenue for 1H2025, primarily due to the introduction of franchise fee income (S\$0.31 million) from the Corporate and Healthcare wellness education segment and improvements in the Healthcare products and services segment.
• Gross Profit: Gross profit nearly doubled YoY, with a margin boost from franchise fees, which carry minimal associated costs.
• Net Loss: The net loss narrowed by 21.3% YoY, reflecting improvements in operational efficiency and revenue mix.
• Expenses: Selling and distribution expenses fell sharply due to streamlining in manpower, while administrative expenses remained largely stable, with higher product registration and audit costs offset by lower courier/logistics charges.

Exceptional Earnings or Expenses

• Other Operating Income: Decreased significantly (down S\$245,000 YoY for 1H2025) due to lower government grants, fewer liabilities written off, and no reversal of accruals compared to the prior year.
• Finance Costs: Increased, attributed to higher interest expenses on lease liabilities and additional director loans.

Assets, Liabilities, and Cash Flow

• Assets: Non-current assets decreased due to depreciation, while current assets rose on higher receivables and cash balances, reflecting improved sales activity.
• Liabilities: Both current and non-current liabilities increased, mainly from higher payables and new director loans.
• Net Asset Value: The Group remains in a net liability position (NAV per share: -0.158 cents as at 30 June 2025, down from -0.107 cents at end-2024), while the Company (standalone) is still positive (0.082 cents per share).
• Cash Flow: 1H2025 saw a net cash outflow from operating activities (S\$0.23 million), offset by a net inflow from financing (S\$0.34 million, mostly from director loans).

Dividend

• No dividend was declared or recommended for 1H2025, consistent with the prior period. The Board cited ongoing losses and the focus on business expansion in the healthcare products and services segment as the reason.

Share Capital and Dilution

• No new shares were issued in 1H2025. The share count remains at 1,502,938,302, following significant issuances in 2024 for loan capitalization and employee share plans. There are no treasury shares or subsidiary holdings reported.

Business Outlook and Industry Conditions

• The Group highlighted ongoing sector challenges, including digital transformation, cost pressures, and supply chain uncertainties (notably US tariffs). Proactive measures are being taken, such as alternative sourcing and inventory optimization.
• The Company is focusing on stabilizing its core diabetes management platform and medical device lines, optimizing pricing, developing bundled solutions for aged care, and reinforcing partner relationships to maintain service reliability and manage costs.
• Operational resilience will be enhanced via strategic inventory management and process improvements, leveraging a strong understanding of Singapore’s healthcare needs.

Related-Party Transactions and Other Corporate Actions

• Director loans increased in the period, but all such transactions are disclosed as unsecured, non-interest bearing, and not repayable within a year. No general mandate for interested person transactions (IPTs) has been obtained.
• No divestments, IPOs, fundraising, asset sales, or share buybacks were reported for the period under review.

Chairman’s/CEO’s Statement

• CEO Zhao Xin signed off the report, but no extended Chairman or CEO’s narrative was included beyond the structured outlook and operational commentary. The tone of management’s disclosures is cautiously optimistic, emphasizing the Group’s commitment to “sustainable long-term growth” and operational resilience, despite continued losses.

Conclusion

AJJ Medtech Holdings Limited’s 1H2025 performance demonstrates modest revenue growth and improved gross margins, primarily due to new income streams and tighter cost controls. While the Group remains loss-making, net losses have narrowed, and operational improvements are evident. The balance sheet remains weak, with net liabilities persisting at the Group level, though cash flow is supported by director loans.

The outlook is neutral-to-cautiously positive: management is proactively addressing sector challenges and focusing on operational resilience and market positioning. However, the absence of dividends, the net liability position, and continued reliance on director financing highlight ongoing risks. Investors should monitor the execution of strategic plans and improvements in profitability over the coming quarters.

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