Executive Chairman & CEO’s Statement SPEARHEADING LANDMARK DEVELOPMENTS ACROSS ASIA Our skillsets, deep experience and expansive network of partners in the real estate sector have laid a strong foundation for us to expand beyond the healthcare sector. Our diversified expertise enables us to develop iconic landmark developments and revitalise old or heritage buildings, ultimately creating value for stakeholders and communities. In China, our commercial-centric TODs connected to HSR or metro stations typically comprise a mix of complementary office, retail and hospitality components. Among our notable commercial portfolio is the Hangzhou West HSR Integrated Development, which encompasses premier offices, retail spaces and hotel clusters. It is also poised to become a prominent landmark, featuring the tallest building in the city. As at 31 December 2024, two residential towers achieved structural topping-out, while the remaining two tallest towers are scheduled to top out this year. Another key commercial-centric TOD is the Beijing Tongzhou Integrated Development, comprising office, residential and retail components, with progressive completion expected to begin this year. This development is also slated to be the tallest building in the Tongzhou district. In Singapore, two of our key integrated developments made good progress. At The Skywaters, set to be the tallest building in Singapore and the city state’s first supertall skyscraper of above 300 metres, development works are progressing steadily and are on track for completion in 2028. Its residences, Skywaters Residences, is also well-recognised as one of the top luxury residences in the country, with its exceptional quality in design, construction and location. In December 2024, The Golden Mile unveiled medical suites, retail units and offices, which provide businesses in Singapore with a rare opportunity to own prime offices with unparalleled views and flexible sizes. Earlier this year, Aurea, a new 45-storey residential tower connected to The Golden Mile, was unveiled, offering exclusive homes, including luxurious duplexes and triplex penthouses. Together, as Golden Mile Singapore, its commercial and residential units were recently launched for sale. The integrated development is expected to complete construction in 2029. These landmark integrated developments are a testament to our Company’s sterling reputation in revitalising Singapore's most treasured heritage icons into mixed-use hubs for thriving communities. Among our past successes, which continue to contribute to Singapore's vitality, are heritage icons Capitol Singapore and CHIJMES, both of which continued to sustain strong leasing interest, registering close to 100% occupancy as at 31 December 2024. Beyond our core markets of China and Singapore are the two growth Southeast Asian markets: Indonesia and Malaysia. In Malaysia, we are focused on the development of The Light City, a mixed-use integrated waterfront development in Penang. In FY2024, its Waterfront Convention Centre topped out and its first residential project, Mezzo, recorded impressive sales of over 90%. Launch preparations for Lightwater Residences, its second residential project, are currently underway. In Indonesia, we continued to develop The Sanctuary Collection, a luxurious landed residential development in Bogor Regency, Jakarta. Majority of the residences within Tanglin Parc, the first cluster, have been handed over to homeowners, while Newton Spring, the second cluster, is progressing towards full occupancy, with over half of its residences already handed over to homeowners. The third and most expansive cluster, Orchard Riviera, was launched in FY2024, with construction commencing in the same year. NEW STRATEGIC SHAREHOLDERS In FY2024, our Company welcomed Bangkok Bank Public Company Limited, one of Thailand’s largest banks and leading regional bank in Southeast Asia, as a shareholder. Previously, in FY2023, we welcomed Perpetual Capital VCC, an investment holding company principally backed by a sovereign wealth fund in the Southeast Asian region and managed by investment professionals with expertise and networks across Asia, as a shareholder. The investment in our Company by these reputable, strategic investors is a resounding endorsement of our vision, strategy and execution capabilities in transitioning to an integrated healthcare and real estate company. FINANCIAL PERFORMANCE AND CAPITAL MANAGEMENT In FY2024, the Company’s revenue was S$115.9 million, 42.3% lower than the S$200.9 million recorded in FY2023. Earnings before interest and tax for the same period fell 25.4% to S$187.1 million from S$250.8 million in FY2023. Overall, the Company’s profit after tax and minority interest (“PATMI”) for FY2024 was S$10.8 million, lower than the S$29.1 million in FY2023. The lower revenue in FY2024 was mainly due to the higher revenue recorded from the sales of Eden Residences Capitol in FY2023, resulting in a correspondingly lower PATMI in FY2024, but offset by higher far value gains from various assets in the year. As at 31 December 2024, the Company’s debt-to-equity ratio stood at 0.71 times, lower than the 0.74 times registered as at 31 December 2023, largely attributable to the repayment of bank facilities offset by an increase in the drawdown of loans to finance project developments. Taking into consideration the uncertain economic outlook for 2025, characterised by political instability and high interest rates, we will focus on practising financial prudence in managing and operating our businesses. ON-GOING COMMITMENT TO SUSTAINABILITY For FY2024, we continued with our voluntary commitment to publish a Sustainability Report (“SR”) prepared with reference to the Global Reporting Initiative Universal Standards 2021. The SR not only aligns with our track record in integrating medical care, eldercare, real estate and hospitality for the well-being of our community, but also ensures that long-term business sustainability remains a priority. For the year under review, we adopted two new United Nations (“UN”) Sustainable Development Goals (“SDGs”), which are SDG Goal 8 (Decent Work and Economic Growth) and SDG 12 (Responsible Consumption and Production). This is in addition to UN SDG 13 (Climate Action) and SDG 16 (Peace, Justice and Strong Institutions), SDG 5 (Gender Equality) and SDG 3 (Good Health and Well-being) adopted earlier. During the year, we established a strategic partnership with Keppel to implement Energy-as-a-Service solutions in our flagship developments in Chengdu, China. This initiative exemplifies our commitment to SDG 12 by retrofitting our properties with highefficiency energy systems, which will lead to significant energy savings and a reduction in carbon emissions. Our rigorous health and safety standards for contractors, which include the requirement for bizSAFE Level 3 certification, also highlight our commitment to ensuring safe and secure working environments, directly contributing to SDG 8. Overall, our sustainability efforts yielded significant results, including adopting energyefficient systems, achieving cost reductions, stimulating green job growth and attracting investments, all reinforcing our commitment 06 PERENNIAL HOLDINGS PRIVATE LIMITED
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