OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 141 140 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025 Sustainability Report Centralised Procurement for Enhanced Governance Since 2023, centralised bulk contracting across key materials such as electrical appliances, air conditioning units, PVC flooring, ceramic tiles and bathroom hardware, has streamlined supplier management and increased economies of scale. Vendors are selected based on stringent pre-qualification criteria, including compliance with national regulations, specific qualification requirements for contractors and project managers for projects above RMB40 million, sound financial health and a proven record of at least three similar accepted projects in the past three years, supported by credit checks confirming no tax violations, along with a recent credit report from the People’s Bank of China. This approach enhances price and quality control while reducing the risk of irregular procurement practices, including fraud, ensuring accountability, transparency and the selection of reliable partners capable of delivering high-quality outcomes. Design Standardisation to Drive Efficiency, Quality and Satisfaction Complementing this, the Design Department’s development of 18 standard documents covering hundreds of specified items for medical, interior, electro-mechanical, and eldercare projects ensures uniformity in materials and reduces discretionary purchasing. This group-wide standardisation strengthens accessibility, enhances operational efficiency and delivers consistent project quality. By streamlining workflows, saving time and manpower, enabling employees to focus on more strategic tasks, the initiative supports SDG 8 by promoting productive work environments and staff satisfaction. At the same time, standardisation reduces unnecessary material variation and procurement waste, contributing to SDG 12 through more sustainable, responsible and resource-efficient consumption practices. SPOTLIGHT: Strengthening Governance through Centralised Procurement and Design Standardisation in China CORPORATE GOVERNANCE GRI [3-3] WHY IS THIS IMPORTANT? Strong corporate governance is essential to Perennial Holdings’ ability to operate effectively across diverse markets and regulated sectors, including healthcare, eldercare services and real estate. Robust internal controls help safeguard assets, ensure regulatory compliance and uphold stakeholder trust. As a company managing multicountry operations, maintaining high governance standards strengthens operational resilience and supports sustainable long-term growth. Since its inception, Perennial Holdings has consistently reinforced this commitment through its annual corporate governance reporting and ongoing reviews of internal policies and guidelines. A comprehensive risk management system is integrated into Perennial Holdings’ corporate governance framework to ensure that both actual and emerging risks arising from diverse business activities are systematically identified, monitored and managed. This framework also incorporates sustainability-related risks, strengthening the Company’s ability to anticipate and respond to evolving operational, regulatory Whistleblowing Mechanism The Whistleblowing Policy allows employees and stakeholders to raise critical concerns or allegations of wrongdoing, which are handled confidentially and escalated to the Board. The Policy is publicly accessible, and employees, service providers and business partners are encouraged to raise concerns with the assurance that whistleblowers’ identities will be protected throughout the investigation process. Full details of the Policy can be found at https://www.perennialholdings. com/whistle-blowing-policy.html. Anti-money Laundering and Countering the Financing of Terrorism The Policy on Anti-Money Laundering and Countering the Financing of Terrorism outlines procedures for risk assessment, customer due diligence, suspicious transaction reporting, and recordkeeping. The Policy adopts a risk‑based approach and specifies when simplified or enhanced due diligence is required, together with the documentation that must be completed. An established escalation protocol guides the handling of suspected cases of money laundering or terrorist financing. This ensures that potential risks are identified early and addressed in a timely and appropriate manner. Regular training sessions are conducted to keep employees updated on regulatory requirements and emerging risks, strengthening the Company’s overall control environment. These policies and procedures are circulated annually to Management and all employees to reinforce expected standards of business conduct and emphasise the seriousness of any policy breaches. Necessary updates are communicated promptly to ensure continued awareness and compliance across the organisation. and environmental challenges. Further details on Perennial Holdings’ corporate governance practices are available in the Corporate Governance section of the Annual Report (pages 145 to 154). In response to the evolving business landscape, the Risk Management Team conducts an annual review of the Company’s key risks and works closely with relevant departments to implement the appropriate mitigation measures as needed. Further information on the principal risks faced by Perennial Holdings can be found in the Risk Management section of the Annual Report (pages 155 to 160). The Company is guided by the principles and provisions of the Code of Corporate Governance 2018 and remains committed to the timely preparation of its corporate governance report as part of the Annual Report. COMPLIANCE WITH LAWS AND REGULATIONS GRI [3-3] [2-27] WHY IS THIS IMPORTANT? Regulatory compliance is fundamental to Perennial Holdings’ ability to operate effectively across all its markets. Maintaining full compliance is essential for securing operational licences, meeting sector-specific requirements and ensuring business continuity. Adherence to local regulations governing environmental protection, labour practices and health and safety helps safeguard stakeholders, protect the Company’s reputation, and prevent financial penalties or operational disruptions. Non-compliance could impede growth strategies, delay project timelines or compromise our licence to operate. Perennial Holdings has established a robust compliance framework that ensures regulatory requirements are understood, monitored and met across all jurisdictions in which we operate. The systematic approach supports operational resilience and reinforces stakeholder confidence in the Company’s governance standards. Perennial Holdings views regulatory compliance as a shared responsibility across all functions of the organisation. The Company actively engages with the regulatory bodies listed in Table 6 and expects all departments to stay updated on regulatory developments by attending relevant training sessions and seminars Regulators Regulations (Examples) Accounting and Corporate Regulatory Authority • Business Names Registration Act 2014 • Companies Act 1967 National Environment Agency • Energy Conservation Act 2012 • Environmental Protection and Management Act 1999 (Cap. 94A) • Environmental Public Health Act 1987 (Cap. 95) • Code of Practice of Environmental Health (“COPEH”) • Infectious Disease Act 1976 (Cap. 137) • Resource Sustainability Act 2019 (Cap. 322A) • Smoking (Prohibition in Certain Places) Act 1992 (Cap. 309) • Carbon Pricing Act 2018 (Cap. 133A) Public Utilities Board, Singapore’s National Water Agency • Public Utilities Act 2001 (Cap. 261) • Sewage and Drainage Act 1999 (Cap. 294) Ministry of Manpower • Employment Act 1968 • Employment Claims Act 2016 • Employment (Part-Time Employees) Regulations 1996 • Workplace Safety and Health Act 2006 (Cap. 354A) • Work Injury Compensation Act 2019 (Cap. 354) Workplace Safety and Health Council • Code of Practice of Workplace Health and Safety Singapore Civil Defence Force • Fire Safety Act 1993 (Cap. 109A) Ministry of Communications & Information • Personal Data Protection Act 2012 (PDPA) • Personal Data Protection (Amendment) Act 2020 Ministry of Health • The Healthcare Services Act (HCSA) • The Central Provident Fund (Medisave Account Withdrawals) Regulations 2001 Traditional Chinese Medicine Practitioners Board • Traditional Chinese Medicine Practitioners Act 2000 Allied Health Professions Council • Allied Health Professions Act 2011 Relevant Laws for Properties in China • Law of the People’s Republic of China on Work Safety • Emergency Response Law of the People’s Republic of China • Environmental Protection Law of the People’s Republic of China • Fire Protection Law of the People’s Republic of China • Law of the People’s Republic of China on Energy Conservation • Water Pollution Prevention and Control Law of the People’s Republic of China • Land Administration Law of the People’s Republic of China • Urban Real Estate Administration Law of the People’s Republic of China • Urban and Rural Planning Law of the People’s Republic of China • Construction Law of the People’s Republic of China • Property Management Regulations of the People’s Republic of China Relevant Laws for Eldercare in China • Management Measures for Elderly Care Institutions • Law on the Protection of the Rights and Interests of the Elderly of the People’s Republic of China • National Standards on Specifications for Service Safety of Eldercare Institutions • National Standards on Specifications for Service Quality of Eldercare Institutions • Food Safety Law of the People’s Republic of China • Food Hygiene Law of the People’s Republic of China Table 6: List of Regulators and Applicable Regulations conducted by these authorities. The Legal Department provides additional guidance and support to ensure teams understand and fulfil their compliance obligations. In addition, the Risk Management Team reports any known instances of non-compliance to the Board on a quarterly basis, ensuring transparency and timely oversight at the highest governance level. To date, Perennial Holdings is proud to have achieved its target of maintaining zero cases of non-compliance since FY2018 and remains committed to sustaining this positive performance.
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