Sanli Environmental Limited Receives Potential Liquidated Damages Letter: Key Details for Investors

Sanli Environmental Limited (“Sanli” or “the Company”) has issued a significant announcement that may have implications for shareholders and the Company’s share price.

Key Highlights from the Announcement

• Receipt of Liquidated Damages Letter: Sanli’s wholly-owned subsidiary, Sanli M&E Engineering Pte. Ltd. (“SMEPL”), received a formal letter on 31 December 2025 from a major customer (referred to as “the Employer”). This letter pertains to the imposition of liquidated damages arising from delays in the completion of certain phases of one of Sanli’s projects.
• Background: The project in question was secured during the COVID-19 period, a time when construction and engineering activities were widely disrupted. The Company notes that the delays are related to these extraordinary circumstances.
• Extension of Time (EOT) Applications: SMEPL has already submitted requests for extensions of time (EOT) to address the delays. These applications are currently pending review and determination by the Employer.
• Potential Financial Impact: As of the announcement date, no liquidated damages have been agreed upon between the Employer and SMEPL. The Company is therefore unable to ascertain the financial impact, if any, on its consolidated results at this stage.
• Contractual Process: Sanli’s Board emphasizes that the submission and assessment of EOT applications are a normal part of the contractual administration process for projects of this nature.
• Further Announcements: The Company has committed to provide further updates and announcements should there be any material developments regarding this matter.

Important Considerations for Shareholders

• Potential Price Sensitivity: The receipt of the liquidated damages letter introduces uncertainty regarding potential financial liabilities for the Group. If the Employer ultimately determines that liquidated damages are payable and the EOT applications are not granted or only partially accepted, this could have a negative impact on the Company’s earnings and financial position.
• Pending Outcome: Since the EOT applications are still under consideration, there is currently no quantifiable financial exposure. However, any negative outcome could be viewed as price sensitive and may affect Sanli’s share value.
• Shareholder Guidance: The Board advises shareholders and potential investors to exercise caution when dealing in the Company’s shares and to consult with their professional advisers if in doubt about the appropriate actions to take.

Additional Regulatory Information

• The announcement has been reviewed by Sanli’s sponsor, SAC Capital Private Limited, but has not been examined or approved by the Singapore Exchange Securities Trading Limited (“SGX-ST”). The SGX-ST assumes no responsibility for the contents of the announcement.
• The contact person for the Sponsor is Ms. Lee Khai Yinn (Tel: +65 6232 3210), based at 1 Robinson Road, #21-01 AIA Tower, Singapore 048542.

Conclusion

The possible imposition of liquidated damages on a major project of Sanli Environmental Limited introduces an element of risk and uncertainty that investors should closely monitor. The final determination of the EOT applications will be a critical event and could have material financial consequences for the Company. Investors are urged to stay updated with the Company’s future announcements regarding this matter.

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Investors should consult their financial advisers before making any investment decisions related to Sanli Environmental Limited. The information herein is based on the Company’s official announcement and may be subject to further updates and clarifications.

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