Sanli Environmental Limited’s wholly-owned subsidiary, Sanli M&E Engineering Pte. Ltd. (“Sanli M&E”) will collaborate and jointly incorporate a Joint Venture Company with Engreen Fa & Asset Wise Co., Ltd. (“Engreen”) and Ms Warunee Benjatammakul to invest in and undertake commercial and industrial water and wastewater treatment and renewable energy projects in Thailand.
Formation and share capital of the JV
The JV Company shall have a total registered capital of THB1,000,000, divided into 10,000 shares with a par value of THB100 each. The paid-up capital for the shares at the time of registration of the JV Company shall be 25% of the share value. Sanli M&E will hold 49% of these shares, Engreen will hold 49% of these shares, and Ms Warunee will hold the remaining 2% of the shares.
Business of the JV Company
The business of the JV Company shall include (and subject to shareholder approval if necessary):
- provision of engineering, procurement and construction (“EPC”) services for water and wastewater treatment projects;
- provision of operations and maintenance (“O&M”) services for water and wastewater treatment projects;
- developing, building, owing and operating water or wastewater treatment projects;
- developing and investing in roof-top solar power generation systems through the power purchase agreement model with customers and users;
- provision of EPC services for the solar power generation systems undertaken by the JV Company;
- provision of O&M services for the solar power generation systems undertaken by the JV Company;
- management of all solar power generation system assets of the JV Company;
- all activities related to the renewable energy business; and
- any other business activities as agreed by the Parties.
Each shareholder shall play a specific role in the JV Company:
- Sanli M&E shall be responsible for providing or procuring the provision of working capital;
- Engreen shall be responsible for procuring all requisite permits and licences, all aspects of sales, marketing and accounting services, and providing EPC and O&M services for all projects; and
- Ms Warunee shall be responsible for general management.
Rationale for JV Company
This Joint Venture is in line with Sanli’s strategy to extend its revenue base. Also, Sanli’s management has identified the growth potential of the renewable energy business, with countries in Southeast Asia aiming to reduce their carbon footprint and promote sustainable development while addressing rising energy demand.
Subject to shareholders’ approval, the JV will serve as Sanli’s first step in pursuing the renewable energy business by collaborating with partners who possess the requisite experience and expertise.
Sanli’s share price as of 6 December 2023 after market close was S$0.102.
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About Sanli Environmental Limited
Listed in 2017 on the SGX-Catalist, Sanli Environmental Limited (“Sanli”) is an environmental engineering company in the field of water and waste management. Sanli’s expertise is in the design, supply, delivery, installation, commissioning, maintenance, repair and overhaul of mechanical and electrical equipment as well as process, instrumentation and control systems in wastewater treatment plants, water reclamation plants, NEWater plants, waterworks, service reservoirs, pumping stations and incineration plants.
The Company’s business is divided into three business segments.
- The Engineering, Procurement and Construction segment provides engineering, procurement and
construction services within the field of water and waste management including process
upgrading of existing water treatment plants, upgrading of pumping station capacities,
replacement of aged mechanical and electrical equipment, and design and build of various
treatment process systems. - The Operations and Maintenance segment provides corrective and preventive maintenance
services relating to water and waste management to ensure reliability and minimal disruptions to
its customers’ operations. - The Chemical segment manufactures and sells magnesium hydroxide slurry to customers in the
wastewater treatment and marine industries.
Backed by its strong engineering capabilities, Sanli has the ability to integrate mechanical, electrical and process engineering expertise to provide customised, cost- and time-efficient integrated engineering solutions and services to its customers.
