Tritech Group Launches S\$12.4 Million Lawsuit Amid Cross-Border Legal Battle: What Investors Must Know

Key Points from the Report

• Tritech Group Limited has initiated legal proceedings in Singapore’s High Court against two individuals, Gao Liangyu (a Hong Kong resident) and Wang Liang (a Chinese resident).
• The lawsuit is for S\$12,405,832, stemming from alleged unlawful conspiracy involving unauthentic documents used in Chinese legal proceedings.
• The alleged actions by the defendants have resulted in Tritech Group being unable to monetise its investment and recover loans from its subsidiary, Tritech Environmental Group Co. Ltd (“Tritech Qingdao”).
• The investment and loans to Tritech Qingdao have already been fully impaired in previous financial years.
• Tritech received two demand letters from solicitors representing Gao Liangyu and Wang Liang, each seeking CNY 31,847,586.30 (approx. S\$6 million) from the Company.
• Tritech’s legal advisors believe these demands are unmeritorious and that no legal or enforcement proceedings have commenced against Tritech in Singapore at this time.
• The Company has instructed legal counsel to respond to the demand letters and will provide further announcements on material developments.

What Shareholders Need to Know: Potentially Price-Sensitive Developments

Shareholders should take special note of the following issues, which could be price-sensitive or impact Tritech’s share value:

1. Significant Legal Action and Monetary Claim: The S\$12.4 million lawsuit is a substantial sum relative to the company’s financials and could have an impact on future recoveries if Tritech is successful. Conversely, the counter-demand from the defendants (each seeking over CNY 31.8 million) could represent a significant liability if enforced.
2. Impairments Already Booked: Since the investment and loan to Tritech Qingdao have already been fully impaired in earlier years, the financial impact on upcoming statements may be muted. However, any recovery through the lawsuit could present a windfall.
3. Uncertainty and Cross-Border Legal Risks: The legal proceedings span both Singapore and China, introducing complexity and uncertainty. The outcome is unpredictable, and adverse developments could affect investor confidence and the share price.
4. No Current Legal Proceedings Against Tritech in Singapore: As of now, the demand letters do not constitute legal proceedings in Singapore. Tritech is proactively addressing these demands with legal advice.
5. Ongoing Disclosure Obligations: The company promises to keep investors informed of further material developments, which could trigger further share price movements as the case evolves.

Details of the Litigation and Demand Letters

On 14 August 2025, Tritech Group Limited announced that it commenced litigation in the General Division of the High Court of Singapore (case HC/OC 636/2025) against two individuals—Gao Liangyu and Wang Liang. The company alleges that these defendants engaged in an unlawful conspiracy by using unauthentic documents in legal proceedings in the People’s Republic of China (the “Chinese Proceedings”). Tritech asserts that this has led to an inability to monetise its investment in its PRC-based subsidiary, Tritech Qingdao, as well as preventing the collection of loans extended to that entity.

In parallel, Tritech received two demand letters, both dated 6 August 2025 (arrived 11 August 2025), from solicitors acting for the two defendants. Each letter demands payment of CNY 31,847,586.30, referencing claims from the Chinese Proceedings. Tritech’s legal advisors have assessed the demands as lacking merit and clarified that receipt of these letters does not equate to the commencement of any Singapore-based legal action.

The Group has already accounted for the maximum loss by fully impairing its investment and loan to Tritech Qingdao in prior financial years. Hence, the primary risk to Tritech now lies in the possibility of having to satisfy the counterclaims, should they materialise.

The company’s board and management have stated their commitment to keep the market and investors updated on further material events as the litigation and related matters progress. Investors are urged to closely follow the company’s announcements and to seek professional advice if uncertain about the implications of these developments for their investments.

Investor Advisory

The Board has advised shareholders and potential investors to exercise caution when dealing in Tritech shares, and to consult with professional advisors as needed. Given the legal uncertainties and the size of the claims involved, the outcome of these proceedings could have a material impact on Tritech’s financial position and share price.

Tritech’s sponsor, UOB Kay Hian Private Limited, has reviewed this announcement, but the Singapore Exchange Securities Trading Limited (SGX-ST) has not examined or approved it.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial adviser before making any investment decisions. The situation described is subject to ongoing legal proceedings and may change as new information becomes available.

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