Executive Chairman & CEO’s Statement Increasingly, we are also building up our hospitality business, and the close interconnection and synergy of the hospitality business with our two core businesses of real estate and healthcare will drive future growth. total of over 1,800 beds to cater to seniors with different care needs, and a rehabilitation centre. The facilities comprise Perennial Eldercare Home, a 286-bed home for healthy seniors, Perennial Assisted Living Apartment, a 1,227-bed facility for seniors with assisted daily living needs, and Perennial Nursing Hospital, a 299-bed facility for seniors who have high care needs. The medical care component comprises three hospitals with a total of 1,000 beds. The hospitals include Perennial General Hospital, a 500-bed tertiary hospital with a unique co-medical space concept, where doctor groups or our JV medical groups provide specialty-medical services while enjoying the convenience of shared ancillary services operated by Perennial Holdings, such as operating theatres, diagnostic imaging equipment and laboratory. It also includes Perennial Rehabilitation Hospital, a 200-bed step-down care hospital focusing on rehabilitation. Additionally, it comprises a 300-bed Eber Perennial Brain Hospital, a 40-60 JV between Perennial Holdings (40%) and Eber Shanghai (60%), one of the top brain specialist medical groups in China. All three hospitals will feature stateof-the-art equipment and will be staffed by renowned doctors from diverse disciplines, aiming to establish them as centres of excellence for patient care. Through a cohesive approach that seamlessly connects and integrates eldercare services with the medical facilities, Tianjin HSR TOD will offer an integrated model that provides seniors with comprehensive and uninterrupted care, enhancing their overall well-being. Increasingly, we are also building up our hospitality business, and the close interconnection and synergy of the hospitality business with our two core businesses of real estate and healthcare will drive future growth. To immediately support the Tianjin HSR TOD eldercare and medical care ecosystem and in the longer-term develop the medical tourism industry for Tianjin city, we unveiled four hotel brands totalling about 960 rooms within the hospitality component of Tianjin HSR TOD targeted at different travellers’ profiles. The hotel brands will be operated by a Perennial Holdings (49%) and Minyoun Hospitality (51%) JV (“Hotel JV”). Minyoun Hospitality is an established hotel operator and manager in China. The 5-star hotel will be branded ‘The Perennial, JdV by Hyatt’, unveiling our own hotel brand. The 4-star+, 4-star and 3-star hotels will be branded ‘Cheese by Minyoun’, ‘lia! by Minyoun’, and ‘Living Minyoun’, respectively. Plans are currently underway to replicate this second-generation healthcare-centric HSR TOD model at Perennial Kunming South HSR International Healthcare and Business City (“Kunming HSR TOD”) and Perennial Xi’an North HSR International Healthcare and Business City (“Xi’an HSR TOD”). Construction at Kunming HSR TOD is at a more advanced stage, with the completion of its assisted living apartments and its show suite, while fitting-out has commenced for the hotel component. As the Eldercare and Senior Housing healthcare business segment is a key growth driver for our Company, we continue to drive synergy between our healthcarecentric HSR TOD and our eldercare businesses, including Renshoutang, our integrated eldercare business arm, and Perennial Alzheimer’s Care Village (“PACV”), a new Alzheimer’s care facility in Xi’an. As at 31 December 2023, Renshoutang’s portfolio comprised over 30 eldercare and nursing facilities, predominantly in Shanghai, with a total of approximately 13,000 beds, of which nearly 12,000 are operational beds. Renshoutang is one of China’s largest private integrated eldercare operators offering eldercare, medical care, nursing care and dementia care services. Separately, PACV is positioned as China’s first Alzheimer’s care-focused integrated development comprising the country’s largest dementia care home with over 400 beds. In the year, Phase 1 redevelopment works were completed and PACV began its trial period of residency by welcoming the first resident in December. Beside a dementia care home, the development comprises a nursing hospital, a rehabilitation hospital and an international eldercare research institute. The facility is expected to house close to 700 beds when fully operational. As at 31 December 2023, our healthcare network comprises about 18,500 Eldercare Home, Assisted Living Apartment and Nursing Home beds, as well as about 3,500 Hospital beds. We are committed to expanding our presence in China by leveraging on the favourable policies and expanding HSR network to meet the growing integrated eldercare and medical care demand of its ageing population. On the commercial TODs front, construction works are progressing well at Hangzhou West HSR Integrated Development (“Hangzhou HSR TOD”) and Beijing Tongzhou Integrated Development (“Beijing Tongzhou TOD”). Hangzhou HSR TOD, connected to the Hangzhou West HSR Station, will comprise the tallest building (68 storeys) in Hangzhou upon its completion. Development works are progressing well and the distinctive Cloud Gate architectural feature has been completed, while the construction of the sales gallery for the residential component is presently underway. The Hangzhou West HSR Station was one of three key transportation hubs which offered an Asian Games-themed journey for Hangzhou residents and international visitors for the 19th Asian Games held in Hangzhou in September 2023. Beijing Tongzhou TOD, an iconic landmark fronting the famous Beijing-Hangzhou Grand Canal which will comprise one of the tallest buildings (52 storeys) in Tongzhou District, achieved progressive structural top-out and the sales gallery for the commercial apartments was completed in preparation for its sales launch. OTHER MARKETS In 2023, despite the challenging global environment, Perennial Holdings’ key growth in Southeast Asian markets, Malaysia and Indonesia, has shown an improvement in economic growth momentum anchored by resilient domestic demand. In Malaysia, there was substantial progress in Phase One of The Light City. This phase comprises the Penang Waterfront Convention Centre, recognised as the largest convention centre in Penang, along with its retail component, the Waterfront Shoppes, and residential, hotel and office segments. As at 31 December 2023, more than 70% of the first residential phase, Mezzo, has been sold despite upward price adjustments during the year. The hotel management agreement has also been signed with Minyoun Hospitality to operate a 4-star and 5-star hotel to cater to the waterfront destination’s different travellers’ profiles. In Indonesia’s Greater Jakarta area, The Sanctuary Collection’s Phase 1 residential clusters of Tanglin Parc and Newton Springs were well-received by home buyers. For Tanglin Parc, which was fully sold, about 85% of the units have been handed over to homeowners. Newton Springs, which is almost fully sold, commenced the handover of units to homeowners towards the end of the year. With the strong reception by the market, the third residential cluster, Orchard Riviera, is expected to be launched in the first half of 2024. Amidst easing domestic inflation and a steady growth outlook, countered by foreign exchange fluctuations, we will continue to be prudent while seeking expansion opportunities to deepen our presence in Malaysia and Indonesia. COMMITMENT TO SUSTAINABILITY Perennial Holdings continued with our voluntary commitment to publish our Sustainability Report (“SR”) prepared in reference to the revised Global Reporting Initiative Universal Standards 2021 as part of our Annual Report in FY2023. 12 PERENNIAL HOLDINGS PRIVATE LIMITED
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