Sanli Environmental Limited (SGX: 1E3) has announced its financial results for the six months ended 30 September 2026 (1H2027), reporting 18.3% year-on-year revenue growth to S$85.3 million, primarily driven by higher revenue recognition from Engineering, Procurement and Construction (EPC) projects and increased contributions from chemical manufacturing under its Emerging Business Segments (EBS).

The Group's S$699.5 million order book as at 30 September 2026 provides visibility over future project execution, supported by its established presence in Singapore's water and wastewater infrastructure sector.

Key highlights of the 1H2027 results:

• Strong EPC Revenue Growth: EPC segment revenue increased 47.9% year-on-year to S$68.2 million, supported by higher revenue recognition from projects awarded in FY2026.

• Improved O&M Profitability: Gross profit from the Operations and Maintenance (O&M) segment surged 267.7% to S$4.0 million, making it the Group's largest gross profit contributor during the period, despite lower segment revenue.

• Growing Emerging Business Contributions: EBS revenue increased to S$1.0 million, from S$0.6 million in 1H2026, driven by higher sales and production of magnesium hydroxide slurry used in wastewater treatment and industrial environmental applications.

• Healthy Order Book: With an outstanding order book of S$699.5 million, Sanli remains focused on the timely execution and delivery of EPC projects for private sector clients and public sector customers, including PUB and LTA.

• Profitability and Cost Management: Gross profit declined 25.7% to S$6.9 million, with gross profit margin moderating to 8.1%, reflecting a higher proportion of lower-margin EPC projects. The Group recorded net profit of S$0.6 million and EBITDA of S$3.2 million, compared with S$3.2 million and S$6.4 million respectively in 1H2026, which included a non-recurring property disposal gain of S$2.1 million.

• Strengthened Balance Sheet: Total equity increased to S$62.9 million as at 30 September 2026, with net asset value per share standing at 18.24 Singapore cents.

Commenting on the results, Mr Sim Hock Heng, Chief Executive Officer and Executive Director of Sanli Environmental, highlighted the Group's continued progress in converting its order book into revenue, while acknowledging the impact of higher raw material costs and the absence of the previous period's one-off gain on earnings.

Looking ahead, Sanli remains focused on strengthening operational efficiency, managing costs prudently and improving margins, while executing its substantial order book and developing complementary revenue streams across the environmental industry.

See link for full announcement: https://links.sgx.com/FileOpen/Sanli%20-%201H2027%20Results%20Media%20Release.ashx?App=Announcement&FileID=911375