Sprintex has moved its €25.71 million Mest Water order book into commercial manufacturing after receiving A$1.3 million in customer payments. The progress comes alongside a sharply constrained funding position, with A$166,000 in cash and estimated funding of just 0.17 quarters at September-end.
- Commercial manufacturing begins for the first 40 Mest Water systems
- A$1.3 million received from Mest Water after quarter-end
- A$41.1 million order book now scheduled for delivery through late 2028
- Quarterly net operating cash outflow of A$991,000
- A$2.69 million in financing facilities fully drawn
Mest Water order book reaches manufacturing stage
Sprintex Limited (ASX:SIX) has taken its largest commercial programme from testing into production, but the September quarter also exposed how dependent that execution is on incoming customer cash. Manufacturing has started at the company’s Kunshan facility for the first 40 systems under its €25.71 million, or A$41.1 million, Mest Water order book, with deliveries now expected to run through late calendar 2028.
The milestone arrived after quarter-end. Mest Water paid €815,000, translated by Sprintex to A$1.3 million, comprising a €715,000 production deposit for the first 40 systems and €100,000 in final settlement for previously delivered equipment. The initial batch comprises 16 high-capacity 800kg-per-hour systems, 20 further 800kg-per-hour units and four smaller 300kg-per-hour systems. Sprintex technical staff remain in the Netherlands commissioning upgraded field prototypes after extended on-farm testing.
The programme had originally been scheduled for completion by June 2028, but the company has revised the delivery roadmap to late 2028 following additional validation and engineering work. The high-capacity systems were reworked into a three-motor configuration designed around a 75°C thermal threshold. The order book has risen 65% from December 2025, according to Sprintex, although its conversion into revenue will depend on manufacturing, delivery and further customer payments.
China partnership remains a potential second growth channel
Sprintex also continued building its industrial mechanical vapour recompression business in China through its Bosiwei co-development agreement. The initial project is an energy-efficiency retrofit for Hebei Yufeng Industrial Group, with Bosiwei handling integration and deployment while Sprintex supplies proprietary compressors. The arrangement was outlined in the company’s Bosiwei co-development agreement, which targeted sub-3-tonne MVR systems for Chinese industrial applications.
The proposed retrofit would replace existing 110kW Roots blowers with a proposed 30kW Sprintex MVR compressor. Bosiwei has identified a potential market of up to 500 systems a year across its addressable markets, but the filing expressly says those volumes are not contracted commitments. Any longer-term supply agreement remains subject to successful validation and customer acceptance at Yufeng.
Cash position depends on commercial receipts
Sprintex’s cash numbers provide the harder edge to the quarter. Net cash used in operating activities was A$991,000, despite A$392,000 in customer receipts and A$426,000 in government grants and tax incentives. The company ended September with A$166,000 in cash, while its A$2.69 million of financing facilities were fully drawn. The balance included A$1.85 million of CAHL convertible notes, A$160,000 of remaining April convertible notes, Chinese bank loans and insurance premium funding.
On the Appendix 4C measure, that cash balance represented an estimated 0.17 quarters of funding. Sprintex said it does not expect operating outflows to remain at the quarter’s level because Mest Water receipts should increase as manufacturing and deliveries progress. It also said it continues to assess further financing options, without specifying a new capital raising or committed facility.
The company raised A$820,000 during the quarter through shortfall shares and converted A$915,000 of notes into 12.7 million ordinary shares, while paying A$41,000 in underwriting fees. The CAHL note maturity extension to 30 June 2027 remains subject to shareholder approval, adding another financing-related item to the near-term corporate calendar.
Evaluations still need to become orders
Outside Mest Water and Bosiwei, Sprintex reported progress across wastewater blower evaluations in Australia, Bangladesh, the Philippines, South Korea, Taiwan and the United Kingdom. A Saudi wastewater tender for the King Salman International Airport specifies approximately 30 blowers and represents a stated supply opportunity of more than A$5 million, but the filing says the tender award is anticipated rather than secured. Fuel-cell compressor engagements with three developers also remain at sample-supply and evaluation stage, including applications aimed at stationary and data-centre backup power.
Bottom Line?
The first Mest Water payment gives Sprintex working capital to start production, but the investment case now turns on delivery-driven receipts arriving faster than cash is consumed and on whether additional funding is needed.
Questions in the middle?
- How quickly will the first 40 Mest Water systems be manufactured, delivered and converted into further cash receipts?
- Will the Yufeng retrofit validate Bosiwei’s proposed longer-term supply relationship, or remain a development project?
- Will Sprintex need additional equity or debt funding before its Mest Water receipts stabilise the cash position?