Sembcorp has complied with disclosure obligations regarding its China unit

WE refer to the commentary by Tay Peck Gek "Sembcorp's disclosure of China unit's troubles falls short" (BT, Jan 20, 2020).

Sembcorp Industries (Sembcorp) reiterates that it has complied with its disclosure obligations and adequately updated the market in relation to the legal proceedings involving its joint venture wastewater treatment company in China. The company had 16 months earlier in September 2018 issued an SGXNet announcement on this matter. The company had further in its 2018 Annual Report disclosed this again together with additional provisions.

The fine of S$10 million levied on the joint venture company in the fourth quarter of 2019 was fully provided for in the provisions made in 2018 and accordingly had no further financial impact. The fine is just one component of the ongoing legal proceedings which have now progressed to a final stage. However, the civil case has yet to be definitively concluded.