Nanyang New Development Limited (Formerly Matex International Limited) FY2025 Financial Results Review

Nanyang New Development Limited, listed on the Singapore Exchange (SGX), released its full-year and six-months ended 31 December 2025 financial statements. The company, primarily engaged in specialty chemicals focusing on dyestuff and auxiliaries for the textile industry, faced a challenging year marked by declining revenue, margin compression, and significant one-off costs.

Key Financial Metrics

NC = No Change; N/A where not disclosed.

Financial Performance and Trends

• Revenue: Revenue dropped 16.3% YoY to S\$5.9 million in FY2025, attributed to weak demand, global consumption slowdowns, and competition from low-cost imports. Quarter-over-quarter revenue also fell by 5.75% in 2H2025.
• Gross Profit: The gross profit margin declined to 14.8% (FY2025) from 20.9% (FY2024), impacted by intense price competition, reduced volumes, and inventory write-downs.
• Bottom Line: Net loss attributable to owners widened sharply to S\$6.8 million, compared to S\$2.7 million in the prior year, driven by lower sales, higher impairment charges, and one-off restructuring costs.
• Earnings per Share (EPS): EPS fell to a loss of 1.34 cents, from a loss of 0.73 cents in the prior year.
• Net Asset Value (NAV): NAV per share nearly halved to 1.17 cents, reflecting the cumulative losses and equity dilution.

Balance Sheet & Cash Flows

• Cash Position: Cash and cash equivalents declined marginally to S\$8.4 million, despite a S\$4.2 million share placement, as operating losses and working capital needs weighed.
• Working Capital: The group maintained a positive working capital position of S\$3.7 million, down from S\$6.2 million a year prior.
• Borrowings: Term loans increased from S\$1.1 million to S\$1.8 million, reflecting additional drawdowns for working capital. Lease liabilities fell due to the termination of certain leases.

Exceptional Items and One-Offs

• Impairment Losses: The group recorded S\$1.06 million impairment on financial assets (trade receivables and bills) and S\$651,000 on non-financial assets (PPE, right-of-use, intangibles).
• Restructuring & Settlement Costs: S\$876,000 in cessation payments to former key executives were recognized.
• Legal and Professional Fees: S\$745,000 in higher fees, mainly related to the settlement with former management and other corporate exercises.
• Other Income: S\$332,000, including a S\$134,000 gain from the disposal of a car license plate in Shanghai and one-time trading gains.

Corporate Actions and Events

• Share Placement: 154 million new shares were issued in January 2025, raising net proceeds of S\$3.9 million, earmarked for market expansion, sourcing strategies, new businesses, and working capital.
• Convertible Notes: In January 2026, the company entered into an agreement to raise S\$4.1 million via convertible notes for working capital and new investments. As of the report date, S\$2.1 million had been received.
• Leadership Changes: Settlement payments were made to departing CEO and directors. Dr. Liu Shen was appointed as Executive Director, and Dr. Fu ShaoHai joined as Independent Director and Committee Chairman.
• Subsidiary Incorporation: A new PRC subsidiary, Shanghai JingCaiYuan New Materials Co., Ltd., focusing on membrane materials, was incorporated in December 2025.
• Legal Entity Name Change: The group rebranded from Matex International Limited to Nanyang New Development Limited in January 2026.

Related Party Transactions

• Significant cessation payments totaling S\$678,000 (plus a company vehicle at S\$107,000) were made to former CEO and a director, as approved by shareholders.
• No other interested person transactions above S\$100,000 were disclosed for the year.

Dividend

• No dividend was declared for FY2025 or FY2024 as the group posted operating losses.

Industry and Outlook

The company highlights ongoing structural change and competitive pressures in the PRC dyestuff market. Key trends include:

• PRC producers seeking overseas growth amid domestic saturation.
• Potential for price normalization after a period of intense competition.
• Industry shift toward differentiated products, integrated value chains, and digital textile printing inks.
• Continued need for innovation and R&D to maintain competitiveness.

Management notes that these trends pose both challenges and opportunities, with the ability to innovate and expand being critical for recovery.

Conclusion and Investment Recommendation

Overall Assessment:
Nanyang New Development Limited’s FY2025 results reflect a weak performance. The group faced declining revenue, shrinking margins, heavy impairment provisions, and significant one-off costs related to restructuring and settlements. While the balance sheet remains liquid due to fund-raising, continued operating losses erode shareholder value. The outlook remains clouded by industry overcapacity, weak demand, and the need for strategic repositioning.

For Current Shareholders: If you currently hold this stock, consider reassessing your position. The company is in a transition phase with ongoing losses and no immediate catalyst for recovery. Unless you have a high risk tolerance and confidence in management’s ability to execute a turnaround and capture new business opportunities, it may be prudent to reduce exposure.

For Prospective Investors (Not Holding): If you do not currently hold this stock, it is advisable to stay on the sidelines until there is concrete evidence of a turnaround—such as a return to profitability, sustained revenue growth, or successful execution of new strategic initiatives. The risks currently outweigh the potential rewards.

Disclaimer: This analysis is based solely on the company’s published FY2025 statements and does not constitute investment advice. Past performance is not indicative of future results. Please consult your own financial advisor before making any investment decisions.

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