SIIC Environment Holdings Ltd. (BHK) has released written responses to questions from the Securities Investors Association (Singapore) prior to the company’s annual general meeting scheduled for Apr, 29 2026.

The group said last year’s lower construction revenue reflected project-timing factors and a slowdown in new-build opportunities, noting that profit margins in traditional heavy-asset construction have tightened and receivable cycles have lengthened. Management highlighted a strategic focus on “breakthrough through M&A and improving quality and efficiency”, citing the early-2026 purchase of four mature water plants in Liaoning Province, China.

On acquisitions, the company stated that investment decisions prioritise operational stability, compliance, integration value and return. It contrasted the one-off equity outlay for acquiring operating concessions with the staged capital commitments and execution risks typical of greenfield build-operate-transfer projects.

Selling and distribution expenses rose mainly because of higher staff and water-meter maintenance costs, but SIIC Environment said the overall cost structure remains broadly stable without evidence of structural escalation.

Regarding receivables, the group has introduced tighter tracking, increased engagement with government counterparties and linked collections to divisional performance indicators. It evaluates credit risk using an expected-credit-loss matrix updated for factors such as ageing, customer risk profiles and macroeconomic conditions. The audit committee reviews provisioning levels to ensure adequacy.

The board, currently comprising four executive and three independent non-executive directors, acknowledged its deviation from the Singapore Code of Corporate Governance’s guidelines on board independence but maintained that the present composition supports efficient decision-making during an active merger-and-acquisition phase. The nominating committee said the company intends to appoint additional independent directors over time to align more closely with the code’s provisions.