Suntar Eco-City Limited Responds to SGX Query on FY2025 Annual Report – What Investors Need to Know

Key Highlights from the Company’s Response to SGX

Suntar Eco-City Limited has provided a detailed response to a query from the Singapore Exchange Securities Trading Limited (SGX-ST) regarding its annual report for the financial year ended 31 December 2025. The query specifically focused on the classification and disclosure of related party transactions (RPTs) and whether any of these should have been reported as interested person transactions (IPTs) under Chapter 9 of the SGX Listing Manual.

Summary of the SGX Query and Company’s Response

• Nature of the Query: SGX-ST asked the company to explain why certain related party transactions disclosed in Note 22 of the FY2025 financial statements were not reported as IPTs in the annual report.
• Company’s Explanation: Suntar Eco-City clarified that the related party transactions disclosed were made in accordance with Singapore Financial Reporting Standards (International) 1-24 (SFRS(I) 1-24), which requires a broader disclosure than the SGX’s definition of “interested persons” under Chapter 9.

Detailed Breakdown of Transactions

Transactions Reviewed Under Chapter 9 of the Listing Manual

• Transactions with entities that are not directors, chief executive officer, controlling shareholders, or associates of such persons were not deemed IPTs. These include:
  • Rental income of equipment from a related party: RMB 96,000 (transacted with an associate of the Group)
  • Purchase of health and nutrition products from an associate: RMB 2,694,000 (transacted with an associate of the Group)
  • Production cost charged by a related party: RMB 839,000 (transacted with an entity related to key management personnel of the Group)
• Transactions with associates of Dr Lan Weiguang, the controlling shareholder, included:
  • Sales of health and nutrition products to related parties: RMB 79,000
  • Rental expenses charged by a related party: RMB 17,000

Materiality Thresholds and Compliance

• The aggregate value of the transactions with associates of Dr Lan Weiguang totaled RMB 96,000 (approximately S\$18,000). According to SGX rules (Rules 905(3) and 907), transactions below S\$100,000 are not subject to the reporting requirements for IPTs.
• The company confirmed that none of the transactions met the threshold for reporting as IPTs and that it has fully complied with Chapter 9 of the Listing Manual.

Key Takeaways and Potential Impact on Shareholders

• Transparency and Compliance: Suntar Eco-City’s proactive clarification and detailed breakdown provide reassurance to shareholders that the company is adhering to both accounting standards and SGX regulatory requirements.
• Implications for Share Value: The response indicates no undisclosed or material interested person transactions that could have a significant impact on the company’s financial position or raise concerns about corporate governance. The transactions in question were routine and below the materiality threshold, reducing the risk of regulatory or reputational issues that could affect share price.
• No Price-Sensitive Developments: Based on the information provided, there are no new or previously undisclosed transactions of a size or nature that would be deemed price sensitive or likely to move the share price.

Conclusion

Suntar Eco-City Limited’s response to the SGX-ST query affirms its commitment to transparency and regulatory compliance. The company has demonstrated that all related party transactions for FY2025 were within the prescribed limits and were appropriately disclosed. No additional or undisclosed interested person transactions have been identified, and there are no regulatory breaches, mitigating concerns for investors regarding governance or compliance risk at this juncture.

Disclaimer: The above article is a summary and interpretation of publicly available information provided by Suntar Eco-City Limited in response to an SGX query. It is intended for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a financial advisor before making any investment decisions.

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