Metech International Limited has released its monthly update for December 2025, outlining several significant corporate developments that may impact investor sentiment and the company’s share price. The following key points from the report merit close attention from shareholders and potential investors:

1. Appointment of Chief Financial Officer (CFO)

• The Company has identified a candidate for the CFO position after conducting due diligence and internal evaluation.
• Required documents have been submitted to Metech’s continuing sponsor for assessment.
• An official announcement will be made if the appointment is confirmed.
• Shareholder Impact: The appointment of a new CFO could bring strategic financial leadership, potentially influencing the company’s direction and performance.

2. Business Operations Update

(a) Lab-Grown Diamond Business

• Metech has proposed to dispose of its 80% stake in Asian Eco Technology Pte. Ltd. to Wuhan Xilu Trading Co., Ltd.
• Crucially, Metech will retain ownership of five Chemical Vapour Deposition (CVD) machines post-disposal.
• This strategic retention signals continued capabilities in diamond production technology, offering optionality for future business ventures.
• Further updates will be provided upon material developments.
• Price Sensitivity: The disposal and retention of assets could alter Metech’s asset base and strategic positioning, potentially impacting future revenue streams and valuation.

(b) Food Waste Business

• Pilot trial biomass carbon reduction system machines have arrived at the factory and have successfully completed testing and commissioning.
• Metech is actively engaged in discussions with multiple corporations to expand into new regional markets.
• Discussions with MLF Ingredients Sdn. Bhd. continue regarding pricing for premium protein powder and black soldier fly biomass products, targeting both South Korea and the United States markets.
• Relevant announcements will be made as material developments occur.
• Shareholder Impact: Successful market expansion and product development could present significant revenue growth opportunities, especially in the high-potential sustainable protein and biomass segments.

(c) Health Supplements Business

• Sales efforts are being ramped up, leveraging a new supplier license to expand reach across various regions of China.
• The company is working to boost production capacity via factory expansion and new machinery investments, alongside repackaging and production activities.
• Metech is in advanced discussions with Burpple 2021 Pte. Ltd. to potentially collaborate in Q1 2026, targeting integration of Metech’s health supplement products into Burpple’s ecommerce platform and sales channels.
• Ongoing business model reviews and restructuring are underway to facilitate this strategic collaboration.
• Price Sensitivity: Entry into large-scale ecommerce distribution (Burpple) and expansion in China could drive substantial sales growth and improve market visibility.

3. Proposed Disposal/Strike-Off of Wholly-Owned Subsidiaries

• Zhongxin Minghua (Shanghai) International Trade Co., Ltd. (ZXMH): Discussions continue with a prospective purchaser for the disposal of ZXMH. No conclusion yet.
• Metech Dynamics Pte. Ltd. (MDY): MDY is dormant, with the company reviewing whether to dispose or strike off the entity. Decision pending.
• Announcements will follow upon material developments.
• Shareholder Impact: The rationalisation of non-core or dormant subsidiaries may improve operational efficiency and align resources towards growth segments.

4. Second Loan Agreement with Mr. Cao Shixuan

• Outstanding amount under the S\$3.0 million interest-free loan stands at approximately S\$1.45 million.
• Although the loan matured in October 2025, the lender has verbally agreed to keep the facility available for drawdown.
• Metech and the lender have largely agreed to convert part of the loan into equity, subject to a cap of 30%, with an extension for the remaining balance.
• Formal agreement pending; further announcements to be made.
• Price Sensitivity: Debt-to-equity conversion and extension of loan maturity may strengthen Metech’s balance sheet and liquidity, reducing financing risks and potential dilution concerns.

5. Regulatory Review and Sponsor Statement

• The announcement has been reviewed by Novus Corporate Finance Pte. Ltd., Metech’s sponsor, but not by the Singapore Exchange, which assumes no responsibility for its content.

Key Takeaways for Investors

• Multiple strategic actions underway: leadership appointment, asset disposals, business expansion, and financial restructuring.
• Potential for positive share price movement if proposed disposals, collaborations, and debt capitalisation are successfully executed.
• Shareholders should closely monitor official announcements for confirmation of deals, appointments, and financial changes.
• Any failure or delay in these initiatives may also impact investor sentiment and valuation.

Disclaimer: This article is based on Metech International Limited’s December 2025 monthly update. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should consult their financial advisor and review official company disclosures before making any investment decisions.

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