Metech International reported Friday a net loss of S$972,000 for the fiscal first quarter, widening from a year-ago net loss of S$946,000 amid start-up expenses.
“The lab-grown diamond segment and wastewater treatment segment only commenced operation since December 2021 and September 2021 respectively. However, setup costs were already incurred for both segments during the financial period,” Metech said in the statement.
Revenue for the six months ended 31 December jumped 47 percent on-year to S$3.60 million, the company said in a filing to SGX.
The increase was mainly due to the trading sale of S$1.06 million from the lab-grown diamond segment in December, and S$310,000 from the waste-water treatment services segment, which commenced in September 2021, Metech said.
That was offset be revenue from the supply-chain management segment dropping by S$220,000 to S$2.23 million in the six-month period, the filing said.
The supply-chain management segment provides wholesale trading of metal products, management of recycling and supply-chain services.
Administrative expenses climbed 27.5 percent on-year to S$945,000 in the fiscal first half, mainly on expenses related to business development, Metech said.
In its outlook, Metech said the shipment of lab-grown diamond equipment has been approved by China customs and is under shipping arrangement by the forwarder. The company noted it has entered strategic collaboration agreements for the business.
The company noted the wastewater treatment segment has achieved profitability, as expected, and is projected to continue contributing a good profit margin ahead.
Other than a delay in renovating the industrial property located at Kallang, in Singapore, due to the Covid-19 pandemic, the pandemic isn’t expected to have a material impact on the company’s existing operations, Metech said.