Nanyang New Development Limited EGM: Key Highlights and Investor Implications

Introduction

Nanyang New Development Limited (formerly Matex International Limited) convened an Extraordinary General Meeting (EGM) on 13 January 2026 at Suntec Singapore Convention & Exhibition Centre. The meeting, chaired by James Kho Chung Wah, addressed multiple strategic resolutions that may significantly impact the company’s direction, operations, and potentially its share price.

Key Resolutions and Shareholder Approvals

1. Approval of Cessation Payments as Interested Person Transactions
   Shareholders approved cessation payments to Tan Pang Kee and Tan Guan Liang, classified as interested person transactions. The resolution empowers directors to take necessary actions and ratifies any prior acts in connection with these payments. This reflects a significant governance step, ensuring transparent handling of related party transactions.
2. Diversification into Commodities Trading Business
   The most critical development is the approval for the Group to diversify its core business to include commodities trading. Shareholder queries centered on the experience and track record of CEO Mr. Chen Hong Bo, the funding model for the new venture, and the operational focus.
   • Management’s Response: Mr. Chen brings decades of investment experience in China and has extensive networks with buyers and sellers, particularly in metal ores. However, the company clarified he is not a seasoned commodities trader. The business model will be order-driven with procurement only upon receipt of confirmed buy orders, minimizing speculative risk and inventory exposure.
   • Funding: The venture will leverage internal resources and external (likely bank) financing, primarily using Letters of Credit (LCs) from buyers. No immediate capital injection or asset acquisition is planned; any major funding will require further shareholder approval.
   • Rationale and Roadmap: The management highlighted declining revenues and lack of profitability in recent years as a key driver for diversification. Commodities trading is seen as a lower-capital, quicker-turnaround segment compared to other potential new ventures. The company will continue its core textile dyeing business, with commodities trading as a supplementary segment.
   • Geographical Focus: Initial procurement will focus on China, not Southeast Asia. The company intends to act mainly as an agent, matching buyers and sellers, thus minimizing capital outlay and cash flow risk.

   Potential Impact: This diversification could significantly affect the company’s earnings profile, depending on execution and market conditions. Any early success or failure in this segment may have a material impact on share price.

3. Diversification into Strategic Investments Business
   Shareholders also approved expanding into strategic investments, allowing the Group to invest in, acquire, or dispose of various assets and interests. The directors are given broad powers to manage these investments as deemed fit. This enhances the company’s flexibility to pursue growth opportunities beyond its traditional business lines.
4. Change of Company Name
   The company will officially change its name from “Matex International Limited” to “Nanyang New Development Limited”. The management explained that “Nanyang” reflects the company’s strategic base in Singapore and its forward-looking aspirations to pursue new opportunities in Singapore and beyond. The name change is part of a broader rebranding strategy, but management emphasized this alone does not guarantee the resumption of trading.
5. Adoption of a New Constitution
   A new Constitution was adopted following a review to clarify provisions, particularly around shareholders’ rights to call EGMs. This aligns the company’s governance with prevailing market standards, potentially improving investor confidence.

Shareholder Q&A: Key Insights

• Trading Resumption: The company is in discussions with SGX-ST regarding the resumption of trading. The key requirement is to demonstrate forward-looking business viability and a clear business plan. The suspension was not due to concerns about viability. No fixed timeline for trading resumption has been provided by SGX-ST.
• Management Depth Post-Founder Departure: Dr. Liu Shen, Executive Director and Chief Technical Officer, will lead the core textile business, leveraging his extensive industry experience and leadership in Shanghai Matex Chemicals Co., Ltd.
• Commodities Focus: The initial commodities trading focus will be on metal ores, with transactions undertaken selectively to minimize risk. The company’s major shareholder and investor have significant experience in this sector in China.
• Funding and Investment: The company currently does not plan significant asset injections or major investments. Expansion will be gradual and cautious, with further capital raising subject to shareholder approval.

Voting Results

All resolutions were overwhelmingly approved, with support ranging from 96.25% to 99.88% of votes cast. This strong backing underscores broad shareholder support for the company’s strategic direction and restructuring.

Potential Price-Sensitive Issues

• Approval for business diversification into commodities trading and strategic investments opens near-term catalysts for revenue improvement, but also exposes the company to execution risk and market volatility in these sectors.
• The company’s ability to resume trading on SGX-ST hinges on successfully demonstrating business viability and operational turnaround—an event that, if achieved, could significantly re-rate the stock.
• No immediate capital raising or asset injections are planned, signaling a prudent approach but also implying limited near-term financial leverage for expansion.
• The rebranding and adoption of a new constitution may boost investor confidence and market perception, but tangible improvements in business performance will ultimately drive share value.

Conclusion

Nanyang New Development Limited is undertaking substantial strategic shifts, aiming to restore profitability and reposition itself for growth. Investors should closely monitor management’s execution of the commodities trading and strategic investment ventures, as well as progress towards trading resumption on SGX-ST. These developments carry both upside and downside risks and are likely to influence future share price movements.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The information presented is based on official company minutes and may be subject to change.

View Nanyang NewDev Historical chart here