UltraGreen.ai’s bold market debut has raised significant questions among investors, analysts, and observers alike. Behind its futuristic branding, critics argue 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, the company’s business model remains tied almost entirely to Indocyanine Green (ICG).
In FY2024, ICG accounted for **94.2%** of total revenue — a hallmark of single-product dependence.
The touted “AI platform” is minimally commercial, with minimal 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 relies fully on external manufacturing. 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
- Exposure to delays
A disruption in 2024 already caused months-long bottlenecks. read more
Critics argue that one factory incident could temporarily wipe out inventory.
## 3. Deteriorating Profitability
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 compliance vulnerability.
## 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 slip through with optimistic narratives despite financial red flags.
## 6. Ownership Concerns
Post-IPO, the Renew Group retains **~61.9%** control.
This means:
- Minority shareholders have limited influence
- Potential conflicts of interest 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 pivot toward AI is sustainable or merely valuation-driven.
## Bottom Line
UltraGreen.ai’s prospectus, corporate structure, and market positioning collectively reveal a legacy business with a modern label.
Investors should approach with a healthy degree of skepticism.
This analysis is based solely on the UltraGreen.ai Limited Prospectus dated 26 Nov 2025 and is provided for informational and educational purposes only.