Financial Review LOANS Secured 61.8% Unsecured 38.2% BORROWINGS Floating 96.9% Fixed 3.1% Loans and Borrowings FY2023 by subsidiaries included Perennial Jihua Mall, Perennial Qingyang Mall, Perennial International Healthcare and Medical Hub (“PIHMH”) Chengdu, Perennial Xi’an North HSR International Healthcare and Business City, Plot C of Chengdu East HSR Integrated Development, and Beijing Tongzhou Integrated Development Phase 1 in China, as well as Perennial Business City and Capitol Singapore (excluding Eden Residences Capitol) in Singapore. Perennial Holdings’ investments in associated companies and joint ventures include Shenyang Longemont Shopping Mall, Shenyang Super Outlet+ Mall, Shenyang Longemont Offices, Hangzhou West HSR Integrated Development, Chengdu East HSR Integrated Development and Beijing Tongzhou Integrated Development Phase 2, all of which are in China; The Skywaters, Golden Mile Complex, CHIJMES, Caldecott, and Forett at Bukit Timah in Singapore; The Light City in Penang, Malaysia; The Sanctuary Collection in Greater Jakarta, Indonesia; and investments in eldercare management services through Shanghai Renshoutang Eldercare Group in China and investments in Parry Assisted Living Care in Singapore. Projects held by Perennial HC Holdings Pte Ltd, a joint venture led by Perennial Holdings, include Perennial Tianjin South HSR International Healthcare and Business City and Perennial Kunming South HSR International Healthcare and Business City. The joint venture invests in, acquires and develops large-scale healthcare-centric transit-oriented developments in close proximity or seamlessly connected to major transportation hubs, such as HSR stations in China. Development properties comprise mainly Plot 5 of Xi’an North HSR Integrated Development, Plot 13 of Beijing Tongzhou Integrated Development Phase 1 and Eden Residences Capitol. SHAREHOLDERS’ EQUITY Perennial Holdings’ reserves comprise revenue reserves, capital reserves, foreign currency translation reserves and other reserves such as equity compensation reserves and statutory reserves. The decrease in reserves was mainly attributable to the decrease in foreign currency translation reserves due to the depreciation of the RMB against the Singapore Dollar (“SGD”) by 2% for the 12-month period. LOANS AND BORROWINGS As at 31 December 2023, Perennial Holdings’ gross borrowings stood at S$3.2 billion. The net borrowings were S$2.9 billion after taking into account the cash and cash equivalents of approximately S$0.2 billion. The net debt-equity ratio was 0.74 times as at 31 December 2023 (31 December 2022: 0.82 times), primarily driven by the increase in profit, deconsolidation of CHIJMES’ borrowings, and repayment of bank facilities offset by the increase of drawdown to finance project development. 61.8% of total debt was secured, with the balance under the unsecured debt category. 96.9% of the borrowings were on a floating rate while the balance 3.1% was on a fixed rate. CAPITAL MANAGEMENT As at 31 December 2023, Perennial Holdings had a total asset size of S$8.3 billion, supported by strong equity base of S$4.0 billion and debt of S$4.3 billion. The Company adopts a prudent capital management approach and actively monitors its cash flows, funding needs and debt maturity profile on an ongoing basis. Throughout the years, Perennial Holdings has expanded and strengthened its network of strategic investors and banking partners. Leveraging the support of financial institutions, Perennial Holdings successfully utilised a variety of banking facilities to advance its strategic and investment goals. The Company has also diversified its sources of funding beyond the conventional bank borrowings and tapped into the debt market such as issuances of medium term notes (“MTN”). 42 PERENNIAL HOLDINGS PRIVATE LIMITED
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