Executive Chairman & CEO’s Statement Dear Stakeholders, The global economy in FY2024 faced ongoing pressures from inflation, geopolitical conflicts and fluctuating interest rates. While Singapore achieved moderate growth, China, our other key market, experienced significant challenges, including weak consumer demand, a struggling real estate sector and widespread wage stagnation. Despite the unpredictable macroeconomic conditions, we remained steadfast in the execution of our businesses to achieve several key milestones and pioneered transformation, setting an inflexion point for our Company as we recalibrate our overall strategy towards a healthcare-led vision to be a leading integrated healthcare and real estate company. Today, on the healthcare front, we have established a leading platform which owns and operates China’s first private integrated healthcare ecosystem, combining a unique medical platform, focused on partnerships with doctors, with one of the largest private eldercare platforms in the country. Our comprehensive medical care facilities span general, rehabilitation, specialist and nursing hospitals, while our eldercare facilities span independent living, assisted living, nursing homes and dementia care. We also own China’s first wholly foreignowned private tertiary general hospital. Our Company’s combined medical care and eldercare portfolio comprises over 25,000 beds, of which about 16,000 are operational and with over 9,000 in the pipeline. On the real estate front, we are a dominant transit-oriented development (“TOD”) player in China, with six TODs adjacent to key high-speed railway (“HSR”) stations (“HSR TODs”) in the country. Five HSR TODs located in Chengdu, Tianjin, Kunming, Xi’an and Chongqing, are healthcare-centric, serving as enablers of our healthcare business, and one commercial-centric HSR TOD is in Hangzhou. In Singapore and Southeast Asia, our quality real estate portfolio comprises several prime landmark integrated developments. To-date, our diversified real estate portfolio spans a total gross floor area (“GFA”) of over 84 million square feet (“sq ft”). SUCCESSFUL TRANSFORMATION TOWARDS HEALTHCARE-DRIVEN STRATEGY, COMPLEMENTED BY REAL ESTATE Launch of 2nd Generation HealthcareCentric HSR TOD in Tianjin FY2024 marks a key milestone for our healthcare business with the launch of our second-generation healthcare-centric HSR TOD in Tianjin, which is adjacent to the Tianjin South HSR Station. Recognised as the world’s first-of-its-kind HSR TOD integrating medical care, eldercare and hospitality components, it is a distinctive showcase of how our healthcare business will take centre stage as the key growth driver going forward, supported by our real estate business which focuses on HSR TODs to scale our Company’s growth trajectory in China. Spanning 3.5 million sq ft and built at a total investment cost of S$1 billion, we have made significant strides in our healthcare business to own and operate all the medical care, eldercare and hospitality businesses within the landmark development, in addition to being an owner, developer and manager of the real estate. Established Comprehensive Medical Care Platform Positioned as an integrated healthcare city, we established a 1,000-bed medical cluster with three hospitals within the same building, comprising a general hospital with comprehensive medical disciplines, a rehabilitation hospital for post-surgery recovery and a joint venture (“JV”) brain hospital specialising in neurological surgeries, to provide a seamless care journey for patients. Connected to the medical cluster, we also established a 1,800-bed eldercare cluster, comprising eldercare homes for independent living, assisted living apartments for seniors with assisted daily living needs or dementia care, and a nursing hospital for high care needs, to provide seniors with a holistic model of care. Additionally, we created an over 960-room hospitality cluster, jointly managed with a renowned local hotel partner under multiple distinctive 3- to 5-star brands, including the 5-star ‘The Perennial Tianjin, JdV by Hyatt’. The four hotels, together with their 32,000 sq ft of meeting, incentive, conference and exhibition (“MICE”) facilities, complement the medical and eldercare clusters by supporting patients seeking treatments, loved ones visiting resident seniors as well as commercial and medical tourists. Specifically for the general hospital within the medical cluster, we established a unique asset-light co-medical space concept to assemble various centres of excellence formed via our strategic partnerships with renowned doctors and medical groups. These doctors and medical groups focus on providing medical consultations and treatments without heavy capital investments, such as renovations and medical equipment. Instead, they leverage the state-of-the-art shared medical facilities and services (“Shared Medical Platform”), including advanced operating theatres, cutting-edge diagnostic imaging equipment and an extensive clinical laboratory, provided and managed by us, a model commonly used in Singapore’s private hospitals. This Singaporemodelled Shared Medical Platform concept offers convenience and cost efficiency to doctors and medical groups, allowing them to grow and scale their practices across our healthcare-centric HSR projects. Enabled by our unique partnership models with doctors, our general hospital successfully attracted a diverse range of medical professionals, offering a comprehensive suite of medical disciplines, including orthopaedics, ophthalmology, otolaryngology, nephrology and immunology, cardiology, oncology and others. In addition, we launched an International Clinic to provide individualised medical care, including health maintenance and chronic disease management. First Wholly Foreign-owned Private Tertiary General Hospital in China In September 2024, the Chinese government announced that wholly foreign-owned hospitals would be allowed to operate in several key cities, including Beijing and Tianjin. Given our confidence in the growth potential of China’s healthcare sector and the readiness of our hospitals in Tianjin, we responded swiftly to the government’s open-door foreign policy. In December 2024, our general hospital received the distinction of being China’s first wholly foreign-owned private tertiary general hospital. The inaugural licence issued to us is a strong endorsement of the Chinese government’s trust and confidence in our Company’s execution and delivery capabilities. Overall, our four hospitals are well-positioned to provide not only quality care to the seniors residing in the eldercare cluster within the precinct, but also support the healthcare needs of the community in the district and the wider Beijing-Tianjin-Hebei region via the HSR network. The professional multi-disciplinary patientcentric care team from the hospitals also paves the way to draw more foreign patients seeking medical treatments in Tianjin, thereby raising China's medical industry’s international standing and driving the growth of Tianjin’s medical tourism industry. FIRST-GENERATION HEALTHCARECENTRIC HSR TOD IN CHENGDU First JV General Hospital Profitable in First Full Year of Operation FY2024 marked another key milestone for our healthcare business when our first JV general hospital, SuperiorMed Perennial Hospital, achieved profitability in its first full year of operations. The 350-bed multidisciplined hospital is located within Perennial International Health and Medical 04 PERENNIAL HOLDINGS PRIVATE LIMITED
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