The strategy seems to have paid off so far, with the share price gaining 500% over the past year to 0.6 cents, translating to a market capitalisation of $10.3 million as of April 14.
In an interview with The Edge Singapore, Alice Zhao, CEO of AJJ Medtech, shares that the company previously faced numerous challenges due to the industry downturn.
“Following the exit of our legacy business, we have since ventured into the healthcare space back in 2020 mainly due to the global trends, such as ageing population, high medical cost and shortage of healthcare personnel,” Zhao shares.
To support the company’s venture into the healthcare space, it has established AJJ Healthcare, which is a wholly owned subsidiary of AJJ Medtech, to manage its healthcare business.
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Last October, the company appointed William Ong Hon Hsing, who was previously the director of strategic procurement for medical devices at ALPS, as CEO of AJJ Healthcare.
ALPS, commonly known as the Agency for Logistics and Procurement Services, is the agency responsible for managing Singapore’s public healthcare supply chain, partnering with the Ministry of Health (MOH) and the three healthcare clusters here.
Growing quantum of medical consumable supply contracts
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Given that the company is a new entrant to the healthcare industry, its revenue is not yet substantial. For FY2020, revenue was a mere $260, growing to $1.6 million in FY2023.
Zhao recalls that during the first few years of the transformation, the company struggled to build a reputation and without a track record, it was unable to secure medical consumable contracts from healthcare institutions.
However, as time went by and the market began to accept the AJJ branding, revenue grew tremendously. Between FY2023 and FY2025, revenue grew at a CAGR of 77%, from $1.6 million in FY2023 to $3.2 million in FY2025.
With the growing revenue, AJJ Medtech managed to shrink its losses. For FY2025, losses were at $2.9 million, down from $3.9 million a year earlier. Further improvements are expected in the future.
On April 15, the company announced that its auditor, UHY Lee Seng & Co, noting net current liabilities of $3.172 million versus cash balances of $414,000 as at Dec 31 2025, has flagged “material uncertainty” related to the going concern. In response, AJJ MedTech says that chairman and executive director Zhang Jian, who is the single largest shareholder with around 27%, has committed to support with additional working capital when required. AJJ MedTech points out that since the end of FY2025, it has won a $3 million contract to supply biodegradable consumables to a network of Singapore healthcare institutions, as announced on March 9. Also, key management will defer their pay until April 2027, enabling them to meet their obligations for the coming year.
Including this $3 million contract, plus others announced earlier, AJJ Healthcare’s total contracted institutional revenue pipeline now exceeds $8 million, to be recognised over the next three to five years.
In the same interview with Zhao, Ong points out that the tender for the supply of these medical consumables can be highly competitive, especially on pricing.
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“For every tender contract, there can be more than 10 suppliers out there fighting for it. But the most important consideration will be the safety level of the products, which suppliers need to ensure that the medical consumables are safe to use,” he says.
Apart from safety, a good track record, a stable supply of medical products, and pricing are also part of the bidding considerations. “Once you are appointed for one or two contracts, and they feel comfortable working with you, you are sort of in their good books and chances will be higher in the subsequent bids,” Ong says.
Partnership with Suzhou Zoey
While the company has seen its order book grow from medical consumables supply contracts, Ong admits that margins are naturally low due to the competitive nature of the market.
He believes the company must shift towards high-value growth engines and one of them will be expanding its renal care technology platform.
Last December, AJJ Healthcare entered into an Original Equipment Manufacturing (OEM) agreement with Suzhou Zoey for the joint development and production of hollow-fibre hemodialysers and core consumables used in renal dialysis in Singapore.
“With the current timeline, we should be able to receive the hemodialyser by June. Once approved by the Health Sciences Authority (HSA), we will reach out to all the public healthcare institutions, which are your public hospitals and polyclinics,” Ong claims.
Ong shares that, through the company’s business network, AJJ Healthcare learned about Suzhou Zoey. “We went to visit them in Suzhou and when we compare the certified results of their products, it is basically on par with similar products out there,” Ong claims.
After rounds of negotiations with Suzhou Zoey, AJJ Healthcare was allowed to use its own branding on the hemodialyser. “They accepted our request because they know that Singapore is a good stepping stone for them to expand in the future,” Ong adds.
Both Zhao and Ong agree that the product is expected to be 10% to 30% cheaper than similar solutions from the US, Germany and Japan. This will allow patients to gain access to advanced dialysis treatment at a lower cost.
Blockbuster project — Humanoid robots
AJJ Medtech is not content with just supplying consumables and distributing some medical instruments. The company has its sights set on the much-touted market for humanoid robots.
“We need to catch the AI train; if not, the company will be stagnant,” Ong says.
In February, AJJ Medtech and Hangzhou-based Huaxi Intelligence launched a strategic roadmap for its medical-grade multifunctional humanoid eldercare robot, which is set to become the world’s first of its kind in the eldercare industry.
Under this agreement, Huaxi Intelligence will be responsible for the programming and design of the humanoid robots. At the same time, AJJ Medtech will be responsible for the architectural side, including the cloud platform.
According to Zhao and Ong, this partnership aims to address the workforce shortage in the eldercare sector, given that one in four Singaporeans will be aged 65 and above by 2030.
“Right now, every one humanoid robot can take on the workload of about 2.3 full-time equivalent (FTE) caregivers. This will help alleviate the manpower shortages and operational pressure in the long run,” Ong adds.
From their perspective, the humanoid robot will help remove repetitive, low-value operational tasks from existing FTE caregivers and support a shift toward higher-value, relationship-based care.
Apart from that, they share that the humanoid robot can be deployed 24/7, during the day helping with AI companionship, emotional interaction and even smart facility tours.
At night, the humanoid robot can be deployed for autonomous patrol and to perform bed-exit detection and hazard monitoring.
Roadmap and deployment
Commercial deployment of the humanoid robots, if any, is some time away. Huaxi Intelligence has yet to ship the robot here as relevant export licenses are pending.
“Once the humanoid robot arrives in Singapore, which we expect to be around April or May, we will continue to explore more features and functions for the humanoid robot as it is an ongoing technology,” Ong adds.
AJJ Medtech has laid out a three-phase roadmap to improve the humanoid robot’s capabilities over time. First, it will primarily focus on the role of a care assistant robot, aiming to address manpower shortages in eldercare facilities.
Next, it will evolve into a home companion robot that provides companionship, daily living assistance, and safety reminders. In the third phase, it will be further upgraded to provide advanced care assistance and specialised caregiving support.
AJJ Medtech is partnering with another Singapore-listed company. Last November, AJJ Medtech and Autagco entered into a legally binding MOU to deploy the robot at Autagco’s senior-assisted living facilities here.
Its wholly owned subsidiary, Communa Gold, will acquire six humanoid robots to be deployed across its assisted living facilities. Once deployed, Autagco will facilitate staff training, operational integration and support commercialisation within its facilities.
Through this MOU, both parties aim to integrate AI-powered humanoid robots into real-world eldercare scenarios and accelerate product validation.
Zhao and Ong decline to reveal the pricing of the humanoid robots. “What we can say today is that apart from the purchase price, there will be subsequent maintenance costs involved and also subscription fees, which relate to the software as well,” Ong adds.
They are optimistic that humanoid robots will see some demand, given the potential to redefine the healthcare industry, freeing caregivers to focus on higher-value tasks.
“We are not here to replace all the caregivers; we just want to lessen their workload and focus on more important tasks,” says Ong.
Fundraising and plans ahead
Given the improvement in sentiment in Singapore’s equity market, AJJ Medtech took the opportunity last November to raise additional capital of about $855,000 from eight individuals at 0.72 cent each to fund business expansion, particularly in humanoid robots.
When asked whether any further fundraising was planned, Zhao said the company will now rely on its growing medical consumables contracts to generate stable revenue and cash flow.
“For the near term, we will be focusing on clinching more medical consumable contracts, which will help scale up our gross profit, ebitda, cash flow and ultimately long-term value creation.”
“At the same time, our expansion plan for our healthcare platform will help strengthen its long-term growth potential. In simple terms, our strategy is to convert structural healthcare demand into recurring revenue, scalable cash flow and long-term shareholder value,” she says.
