The newly listed UltraGreen.ai has raised serious questions among investors, analysts, and observers alike. Behind its futuristic branding, many observers believe the company is fundamentally a legacy dye seller attempting to ride the AI wave.
## 1. The “AI-Washing” Problem
Despite the “.ai” appended to its name, UltraGreen’s revenue engine remains tied almost entirely to a generic pharmaceutical dye.
In FY2024, ICG accounted for **94.2%** of total revenue — a hallmark of single-product dependence.
The touted “AI platform” is early-stage, with negligible revenue contribution. This has led many to liken the strategy to the **dot-com era**, where companies added buzzwords to inflate valuation multiples.
## 2. Supply Chain Fragility
UltraGreen has no in-house production. Instead, it depends on single-source suppliers—with its key active ingredient currently sourced primarily from **one supplier**.
This creates:
- Single-point failure risk
- Little bargaining power
- Operational vulnerability
A disruption in 2024 already caused months-long bottlenecks.
Analysts warn that one factory incident could temporarily wipe out inventory.
## 3. Weakening Financials
UltraGreen’s recent financials show several stress indicators:
- Net margins fell from **47.7%** → **36.6%**
- FX losses totaled **US$7.0M** in 1H2025
- The IPO price implies an **82.3% dilution** relative to NAV
These trends point toward strained profitability and poor hedging strategy.
## 4. Compliance Red Flags
The prospectus discloses:
- A **“major deficiency”** flagged by Irish regulators (HPRA)
- Liability surrounding **off-label usage**
- U.S. market restrictions due to **competitor exclusivity** until 2026
Such issues highlight regulatory fragility.
## 5. The Listing Venue Questions
Industry commentary suggests the Singapore Exchange (SGX-ST) faces:
- Concerns about technical expertise
- Bureaucratic friction
Critics argue this environment may enable companies to gain approval without deep scrutiny despite financial red flags.
## 6. Governance & Control
Post-IPO, the Renew Group retains **~61.9%** control.
This means:
- Voting power is heavily concentrated
- Cross-company allegiances persist due to overlapping leadership roles.
## 7. Technological & Product Obsolescence
UltraGreen’s reliance on ICG faces new threats:
- Emerging **spectral imaging** technologies that don’t require injection dyes
- A recently sold PACS business, reducing proven tech revenue
- An AI platform that the prospectus admits may contain **bugs and defects**
This raises doubts about whether the company’s Ultragreen pivot toward AI is credible or merely valuation-driven.
## Conclusion
UltraGreen.ai’s prospectus, corporate structure, and market positioning collectively reveal a company straddling old-world products and new-world claims.
Investors should approach with a clear understanding of the underlying fundamentals.
This analysis is based solely on the UltraGreen.ai Limited Prospectus dated 26 Nov 2025 and is provided for informational and educational purposes only.