AJJ Medtech Holdings Secures S\$3 Million Long-Term Biodegradable Medical Consumables Contract with Singapore Healthcare Institutions

Key Highlights

• AJJ Healthcare Management Pte. Ltd., a wholly-owned subsidiary of AJJ Medtech Holdings, has secured a substantial long-term supply contract with a network of Singapore healthcare institutions.
• Contract Value: Approximately S\$3 million over an initial two-year period commencing 1 June 2026, with an option to extend for an additional two years.
• Total Institutional Revenue Pipeline: With this and other awards, AJJ Healthcare now has a contracted institutional pipeline exceeding S\$8 million, to be recognized over three to five years.
• ESG Impact: The contract is set to significantly support the Group’s Environmental, Social and Governance (ESG) strategy, with a projected annual avoidance of over 600 tonnes of fossil-based CO₂ emissions – equivalent to removing more than 100 passenger vehicles from the roads each year.

Details of the Contract

The newly awarded contract involves supplying biodegradable medical consumables to a network of Singapore healthcare institutions. The initial term is two years starting from 1 June 2026, with the possibility of a two-year extension subject to contract terms. This deal aligns with AJJ Medtech Holdings’ broader strategy to expand its portfolio of sustainable healthcare solutions and deepen its presence within the institutional healthcare segment.

The contract follows a series of recent institutional agreements, including multi-year supply deals for medical and laboratory consumables to both healthcare and academic partners across Singapore. These collective awards have built a robust pipeline, with a total contracted value now exceeding S\$8 million, to be recognized over periods ranging from three to five years.

Business Impact and Shareholder-Relevant Information

• Recurring Revenue Visibility: The contract provides consistent and predictable revenue over its duration, a positive for long-term financial stability.
• Strengthened Customer Base: The deal further entrenches AJJ Healthcare’s position as a key supply partner within Singapore’s national healthcare ecosystem.
• Alignment with Sustainability Strategy: The contract is a clear step in executing the Group’s long-term ESG and sustainability objectives.
• Financial Impact: While the contract is not expected to materially affect the Group’s Net Tangible Assets or Earnings Per Share for the current financial year, it is expected to contribute positively to financial performance over the full contract period.

Environmental, Social and Governance (ESG) Disclosure

According to the Group’s internal lifecycle carbon accounting model, the contract is projected to reduce fossil-based CO₂ emissions by more than 600 tonnes annually, equivalent to removing over 100 passenger vehicles from the road each year. The calculation is based on substituting approximately 252 tonnes per annum of material, a fossil carbon content ratio of 0.75, and a CO₂ conversion factor of 3.67. These estimates are subject to actual usage, product mix, and operational variations. Further details, including the methodology and assumptions, will be published in the Group’s ESG report scheduled for April 2026.

Calculation Framework

The emission reduction is calculated as follows:

Emission Reduction = Substituted Material Mass × Fossil Carbon Content Ratio × CO₂ Conversion Factor

• Substituted Material Mass: ~252 tonnes per annum
• Fossil Carbon Content Ratio: 0.75
• CO₂ Conversion Factor: 3.67

These figures may be adjusted depending on the actual consumption patterns and operational conditions during the contract period.

Potential Price-Sensitive Information

• This contract represents a significant institutional win, underlining the Group’s competitive positioning in the sustainable healthcare supply sector.
• The growing revenue pipeline (now over S\$8 million in contractual value) and the Group’s enhanced profile among Singapore’s healthcare institutions may influence investor sentiment and share valuation.
• Strong ESG credentials, backed by quantifiable carbon emission reductions, could attract ESG-focused investment and support share price appreciation.
• While immediate impact on current year earnings is limited, the multi-year nature of the contract provides future revenue assurance and positive cash flow visibility.

Next Steps

Further announcements will be made in the event of material developments, including contract extensions or changes to financial forecasts.

Disclaimer: This article is based on official disclosures by AJJ Medtech Holdings Limited and is for informational purposes only. It does not constitute investment advice or an offer to buy or sell any securities. Investors are advised to conduct their own due diligence and consult with professional financial advisers before making investment decisions.

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