SINGAPORE (Sept 23): Metech International’s wholly-owned subsidiary in China, Nolash Tech (Shanghai) Co., has entered into service agreements with five companies to provide international supply-chain management-related services for a fee of RMB 10 million ($2 million) each a year.
Each service agreement is for a period of one year and can be renewed up to a maximum of four years.
Under the agreements, Nolash, formerly known as Metech Global (Shanghai) Co., will provide technical, operation and procurement (TOP) services to each client as the exclusive TOP service provider.
The group will be responsible for international sourcing of technical know-hows and specialised equipment, as well as for the supply of the required management and operational personnel.
The successful implementation of all five committed service agreements is expected to have a positive impact on the group for the current financial year ending June 30, 2020.
For the FY19 ended June this year, Metech saw its revenue climb 24.6% to $85.8 million, as it narrowed its full-year losses to $1.9 million, compared to losses to $7.9 million in FY18.
FY19 revenue was derived solely from the supply chain management business, after Metech disposed of its electronic waste management business in April, which has since been accounted for under “discontinued operations”.
With the disposal, the company has reorganised its recycling business – which involved collecting, sorting, processing and extracting metals from wastes – to a business that provides consulting and management services.
In its FY19 results announcement in August, the company said in its supply chain business has always been asset-light as it uses third-party logistics services, which allows it to now enjoy a much lower risk profile with reduced capital investment and a low-cost structure.
Shares in Metech closed flat at 14.2 cents on Monday – more than double compared to a low of 5.8 cents in January this year.
