Metech International Limited: March 2026 Investor Update

Metech International Limited has released its comprehensive monthly update for March 2026, outlining several key developments across its business units, strategic investments, and capital structure. Below, we detail the most significant updates for shareholders and potential investors.

1. Appointment of Chief Financial Officer (CFO)

The Company has identified a candidate for the CFO position and completed internal due diligence. This appointment, pending assessment by Metech’s continuing sponsor, is critical for strengthening corporate governance and financial management. Shareholders should monitor SGXNet for confirmation, as this leadership change may signal greater operational stability and fresh strategic direction.

2. Business Operations Updates

(a) Lab-Grown Diamond Business – Proposed Major Disposal

Metech is preparing to dispose of its 80% stake in Asian Eco Technology Pte. Ltd. (AET), its core lab-grown diamond business. The company is preparing a circular for shareholder approval at an Extraordinary General Meeting (EGM). This proposed disposal represents a significant pivot in Metech’s operational focus and may materially impact revenues and future prospects. The outcome of the EGM will be a major price-sensitive event, as it could transform the company’s asset base and cash flow profile.

(b) Food Waste Business – Biomass Carbon Reduction System Machines

• Pilot Trial Success: The biomass carbon reduction system machines have arrived at Metech’s factory and successfully completed testing and commissioning.
• Market Expansion: Metech is actively engaging with corporations worldwide to expand its market presence.
• Taiwan Grant Support: The Company’s joint venture partner in Taiwan, Colorful Paradise Agricultural Cooperation Co., Ltd. (CPAC), has secured grant support from Taiwan authorities, underscoring regulatory backing and market demand.
• Order Book: 80 machines have already been ordered, validating commercial viability and revenue potential. Metech is in discussions with CPAC to refine business and commercial models, aiming to scale deployment internationally.

These developments are highly positive and reflect strong growth prospects for Metech’s food waste business. The large order book and government support may significantly boost investor confidence and share price.

Premium Protein Powder Initiative

• Metech is negotiating pricing and commercial terms with MLF Ingredients Sdn. Bhd. for animal protein system products targeting South Korea and the US markets.
• The company is exploring partnerships with regional vendors to leverage established sales networks, and is considering Malaysia as a manufacturing base to optimize costs.
• Metech is planning to manufacture and assemble key machine components in Singapore, and has reached an in-principle understanding with a factory vendor for a potential investment aimed at reducing operational costs.

Any definitive agreements or material developments will be promptly announced. These efforts to enter new markets and streamline production could materially impact revenue streams and cost structures.

Health Supplements Business

• Metech is working with suppliers to increase manufacturing capacity for health supplements and ramp up sales efforts.

While early-stage, increased capacity and sales efforts are positive, significant updates here may become price-sensitive as new contracts or market entries are secured.

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

• Zhongxin Minghua (Shanghai) International Trade Co., Ltd. (ZXMH): Metech has reached mutual consensus with a prospective purchaser in China and is advancing discussions for its disposal. This move aims to streamline operations and focus on core businesses.
• Metech Dynamics Pte. Ltd. (MDY): MDY, dormant for years, is under review for potential disposal or strike-off.

These actions are part of Metech’s ongoing restructuring efforts to optimize its corporate structure and enhance efficiency. Material developments will be announced, and the successful disposal of ZXMH could unlock capital and refocus management resources.

4. Capital Structure – Loan Conversion and Transfer of Controlling Interest

• Interest-Free Loan Update: As at 1 April 2026, S\$1.76 million remains outstanding under the S\$3.0 million second loan from Mr. Cao Shixuan.
• Debt Capitalisation: On 24 March 2026, Metech entered into a loan conversion agreement to repay S\$1.5 million via issuance of 62,500,000 new shares at S\$0.024/share. This conversion will result in Mr. Cao Shixuan acquiring a controlling interest, subject to shareholder approval at the upcoming EGM.

The conversion of debt into equity and resulting transfer of controlling interest is a highly significant, price-sensitive event. This could fundamentally alter Metech’s capital structure, governance, and ownership, with direct implications for share value, dilution for existing shareholders, and potential strategic realignment.

Key Takeaways for Investors

• Potential Leadership Change: Appointment of a new CFO could signal renewed focus on financial discipline.
• Strategic Pivot: Proposed disposal of lab-grown diamond business may transform Metech’s operational focus.
• Growth in Food Waste Business: Successful pilot, large order book, and government support in Taiwan signal strong revenue potential.
• Expansion Plans: Entry into South Korea and US markets for protein powder products, and investment in manufacturing capabilities, could drive future growth.
• Corporate Restructuring: Disposal/strike-off of subsidiaries to streamline operations.
• Capital Structure Changes: Debt conversion and transfer of controlling interest may significantly impact share value and future strategy.

Disclaimer

This article is based on the latest corporate update from Metech International Limited and is intended for informational purposes only. It does not constitute investment advice. Shareholders and investors should exercise their own judgment and consult professional advisors before making any investment decisions. The Singapore Exchange Securities Trading Limited (SGX) assumes no responsibility for the contents herein.

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