OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX Executive Chairman & CEO’s Statement Dear Stakeholders, FY2025 was a pivotal year for Perennial Holdings. Against a backdrop of persistent global volatility, geopolitical tensions and evolving market conditions, we advanced our strategic transformation into an integrated healthcare and real estate company, while strengthening our presence in our core markets of China and Singapore. Today, Perennial Holdings owns and operates one of the first private integrated healthcare ecosystems in China, which combines a unique medical platform with hospitals centred on partnerships with doctors and one of the largest private eldercare platforms in the country. Our medical facilities span general, rehabilitation, specialist and nursing hospitals, while our eldercare portfolio encompasses independent living, assisted living, skilled nursing and memory care. For our hospital portfolio, we are operating China’s first wholly foreignowned private Class 3 tertiary general hospital in Tianjin and have the opportunity to operate wholly foreignowned private Class 3 hospitals in another four cities - Shanghai, Guangzhou, Nanjing and Hainan, bringing our presence to five out of nine designated cities where wholly foreign-owned hospitals are permissible. Collectively, our healthcare portfolio comprises over 29,000 beds, with approximately 18,000 operational beds and more than 11,000 in the pipeline. We are also a leading player in transitoriented developments (“TODs”) in China, with seven projects strategically located adjacent to key high-speed railway (“HSR”) stations. Six of these HSR TODs – Chengdu, Tianjin, Kunming, Xi’an, Guangzhou and Chongqing – are healthcare-centric, serving as enablers of our healthcare business, while one commercial-centric TOD is located in Hangzhou. In Singapore and Southeast Asia, our prime real estate portfolio includes landmark integrated developments, such as The Skywaters, Singapore’s tallest building, and Golden Mile Singapore, comprising a revitalised heritage icon in Singapore’s Downtown Core. Overall, our diversified real estate portfolio spans over 85 million square feet of gross floor area (“GFA”). REFRESHED BRAND IDENTITY TO SUPPORT STRATEGY RECALIBRATION In line with our Company’s successful transition to a healthcare-led, real estateenabled strategy, a refreshed brand identity was introduced across our group and core business verticals: medical, eldercare, real estate and hospitality. The new brand architecture clearly defines our Company’s four distinct verticals, emphasising medical care and eldercare as the primary business lines, supported by real estate and hospitality. The unified logo strengthens brand recognition and reinforces our Company’s identity, setting ourselves for sustained growth and long-term market presence. MOMENTUM OF EXECUTION ACROSS KEY DEVELOPMENTS Healthcare remains a strategic national priority amid an increasingly ageing population in China and Singapore. Our focus on disciplined execution of our existing developments, growing recognition in the healthcare space and integrated expertise across the healthcare and real estate value chain have enabled us to secure a robust pipeline of healthcare projects, ensuring a steady growth trajectory. Second-generation Healthcare City in Tianjin Gains Traction In FY2025, we fully launched Perennial Healthcare City Tianjin, our secondgeneration HSR TOD and the world’s firstof-its-kind integrated medical, eldercare and hospitality development. The development also houses China’s first wholly foreign-owned private Class 3 tertiary general hospital. Spanning 3.5 million square feet (“sq ft”) and developed at a total investment cost of S$1 billion, we own and operate all medical, eldercare and hospitality businesses, while also serving as owner, developer and manager of the real estate. The healthcare city achieved strong traction in its first full year of operations. Within the medical cluster, all three hospitals commenced operations by February 2025 and were enrolled in the National Medical Insurance Scheme by May 2026. Together, they provide 1,000 beds across a general hospital with comprehensive disciplines, a rehabilitation hospital for post-surgery recovery, and a brain specialist hospital focused on neurological surgeries, ensuring a seamless care journey for patients. A key differentiator was the successful implementation of our asset-light co-medical space concept at the general hospital. This model enables strategic partnerships with leading doctors and medical groups, allowing them to deliver consultations and treatments without heavy capital investment. They leverage our Singapore-inspired Shared Medical Platform, which provides advanced operating theatres, diagnostic imaging and clinical laboratories. This approach offers convenience, cost-efficiency and scalability, empowering medical groups to expand across our healthcare-centric projects. As a result, the general hospital now hosts a balanced portfolio of specialised clinics led by renowned doctors from public hospitals and medical groups in the JingJin-Ji (“JJJ”) region. Supported by the Tianjin Municipal Health Commission, the hospital formed specialty alliances with seven Class 3A tertiary hospitals, fostering collaboration in clinical development and patient referrals. Notably, the hospital performed Tianjin’s first Mako robotic armassisted joint surgery, successfully completed one of Xiqing district’s most complex cardiology surgeries and established centres of excellence, including an innovative oncology diagnosis and treatment centre in partnership with GE Healthcare. All three hospitals also secured direct payment arrangements with over 20 commercial insurers, enabling access to international and corporate client segments. As a result, the hospitals received patients from more than 20 countries in the year. In FY2025, to foster local-foreign hospital collaboration to elevate the standards of private medical care, we entered into a Memorandum of Understanding with SingHealth, Singapore's largest public healthcare group, to bring diverse medical professionals and expertise to Tianjin. Subsequently, several training sessions were conducted by SingHealth in the Tianjin general hospital on best practices in nursing, rehabilitation and talent development. The hospitals also hosted medical delegations from countries such as Pakistan and Mongolia, reinforcing crossborder knowledge exchange. Connected to the medical cluster is the eldercare cluster, offering over 1,700 beds across independent living, assisted living, dementia care and nursing hospital services. To date, 1,100 beds are in operation and the average occupancy as at December 2025 was approximately 40%. The eldercare cluster has secured partnerships with nearly 20 insurers, enabling them to extend professional eldercare services to more seniors. The hospitality cluster, comprising nearly 800 rooms under 3- to 5-star brands – including the flagship The Perennial Tianjin, JdV by Hyatt – achieved Earnings Before Interest, Taxes, Amortisation and Rent breakeven within its first year. Its 32,000 sq ft MICE facilities hosted 230 large-scale conferences, welcoming over 120,000 guests. The steady progress of Perennial Healthcare City Tianjin underscores the strength of our integrated medical, eldercare and hospitality model. By delivering hospitalgrade medical care to seniors in eldercare homes and infusing five-star hospitality standards into service delivery at our hospitals and eldercare facilities, Perennial Holdings is redefining senior living and positioning our developments as premier destinations for domestic and international medical tourism, as well as world-class MICE events. Expanding Portfolio of Wholly ForeignOwned Hospitals in China Following China’s 2024 policy shift permitting wholly foreign-owned private hospitals, our successful track record in Tianjin has paved the way for the Company to gain access to opportunities to operate even more wholly foreignowned private Class 3 tertiary hospitals in Guangzhou, Shanghai, Nanjing and Hainan – marking our maiden entry into the medical space in these prime cities. Notably, we will be establishing South China’s first wholly foreign-owned private Class 3 tertiary general hospital with 500 beds within our upcoming Baiyun Mega Health City. Today, Perennial Holdings is a trusted brand in China’s healthcare industry, with a growing presence across first-tier and strong second-tier provincial capital cities. This reputation has created a strong pipeline of opportunities to accelerate the rollout of our integrated healthcare city model through asset-light brownfield projects. These include the upcoming Perennial Healthcare City in Sanya, Hainan, and Perennial Healthcare City in Nanjing. These brownfield projects involve retrofitting near-completed buildings to bring our hospitals and medical services to market more quickly, as fast as within a year, while minimising capital outlay. By maintaining a prudent investment strategy and leveraging our integrated model, we are well-placed to capture emerging market opportunities and scale up our healthcare footprint across China. Second-Generation Healthcare City in Kunming Commences Operations FY2025 was a fruitful year where we fully opened four new hospitals in Tianjin in the first half and another two new hospitals in Kunming in the second half. We expect to open over 10 hospitals across 2026 and 2027. Following our successful execution in Tianjin, we focused on operationalising our second second-generation HSR TOD in Kunming, which is nearly twice the size of Tianjin. Spanning approximately 6 million sq ft and developed at a total investment cost of approximately S$1.2 billion, Perennial Healthcare City Kunming’s medical care layers on wellness, in addition to eldercare and hospitality clusters. Recently in March 2026, its third hospital secured its licence to commence operations. Part of the eldercare and hospitality clusters have also commenced operations, including the premium Hyatt Place hotel and approximately 157,000 sq ft of event space. Kunming’s all-year-round mild and comfortable climate positions the city as an attractive alternative rehabilitation and holiday destination to Hainan. Strategically located adjacent to Kunming South HSR Station – Yunnan Province’s key transport hub and China’s premier gateway linking East and Southeast Asia to the rest of the country – Perennial Healthcare City Kunming is poised to become a compelling health and rehabilitation destination for seniors nationwide as well as wellness tourism and international visitors from Southeast Asia and beyond. Expansion of Healthcare City Portfolio in China In FY2025, we expanded our healthcare portfolio with one HSR TOD in Guangzhou Baiyun and three integrated projects in Sanya, Nanjing and Guangzhou Huangpu. Each of these new projects features a wholly foreign-owned private Class 3 tertiary hospital. Baiyun Mega Health City, positioned as our third-generation HSR TOD, marks our entry into a Tier 1 Chinese city and the opportunity to access a prime brownfield project. Measuring over 12.7 million sq ft across three phases, Perennial Holdings has partnered with the Guangzhou Government to bring to life the vision of a world-class medical, wellness, research and training hub, equivalent to the likes of Mayo Clinic and MD Anderson in the United States. The first phase will comprise a wholly foreign-owned private Class 3 tertiary general hospital, specialist hospitals and medical suites within a completed building, at a total investment cost of RMB1 billion. The general hospital is expected to commence operations in 4Q 2026, expediently within a year from the securement of the project. With its strategic location next to the Guangzhou Baiyun HSR Station, the city’s largest transportation hub, coupled with Guangzhou’s international aviation hub status, abundant medical resources and top academic institutions, our general hospital and the eventual Baiyun Mega Health City are well-poised to cater to patients locally and across Pan-Asia and the Middle East, while injecting new momentum into the development of the healthcare industry of the Greater Bay Area. At Perennial Healthcare City Chongqing, adjacent to Chongqing East HSR Station, the largest station in Western China, works for the first phase spanning 140,000 sqm are progressing smoothly. Riding on the success of our general hospital in Tianjin, we will be introducing our general hospital with the Shared Medical Platform at Perennial Healthcare City Chengdu to complement SuperiorMed Perennial General Hospital, our strong performing joint-venture Class 2 secondary general hospital with a focus on wellness and longevity treatments and located within the same development. Together, our healthcare-centric HSR TOD portfolio now spans six cities in China – Tianjin, Chengdu, Kunming, Xi’an, Guangzhou and Chongqing. Building on this robust pipeline of healthcare-centric HSR TODs, plans are also underway to establish healthcare cities in Nanjing and Sanya via our asset-light model. The two healthcare cities are both expected to comprise the first wholly foreign-owned private Class 3 rehabilitation hospitals in Jiangsu Province and Hainan, respectively. In addition, in Guangzhou Huangpu, a healthcare precinct will also be launched comprising a wholly foreign-owned private Class 3 tertiary rehabilitation hospital and an eldercare cluster with over 1,200 beds to deliver a seamless continuum of care, addressing the Greater Bay Area’s growing demand for quality eldercare, rehabilitation and nursing services. This continuous expansion of our pipeline through asset-light opportunities underscores the scalability of our model and our growth momentum. CONTINUUM OF ELDERCARE IN CHINA Renshoutang, where we remain the largest single shareholder with a 50% stake, continues to be one of China’s leading private eldercare providers, offering a full spectrum of senior living solutions tailored to the evolving needs of elderly individuals. As at 31 December 2025, Renshoutang’s portfolio encompassed more than 40 eldercare and nursing facilities, predominantly in Shanghai, with over 15,000 operational and pipeline beds. In 2025, Renshoutang launched its first facility in Shanghai’s Hongkou District, achieving close to full occupancy shortly after opening, and expanded into Wuhan with a second 217-bed facility in Wuchang District. Leveraging the deep operational expertise gained from Renshoutang, we have successfully transposed these capabilities over to Perennial-branded eldercare facilities, creating a comprehensive continuum of care within our healthcarecentric developments. This is exemplified by our operational eldercare communities in Tianjin and Kunming, which integrate medical and eldercare services seamlessly. In FY2025, we commenced operations at the Perennial Jingxin Senior Care Home, marking both a significant milestone in our asset-light strategy and our maiden entry into Beijing. By retrofitting an existing building, we delivered a 156-bed facility within just one year of securing the project, enabling us to provide comprehensive nursing, medical and community care efficiently to residents and the surrounding neighbourhood. REPLICATING INTEGRATED ELDERCARE AND MEDICAL CARE IN SINGAPORE Building on our successful ventures in China, we are bringing our integrated medical and eldercare expertise back to Singapore. By replicating our proven model, we aim to address the needs of Singapore’s rapidly ageing population— where one in four citizens will be aged 65 or older by 2030 – and redefine the future of integrated eldercare and medical care in our home market. In 4Q 2025, we unveiled Perennial Living, Singapore’s first private assisted living development and our inaugural eldercare project in the country. Perennial Living blends luxury living, five-star hospitality services and comprehensive East-meetsWest medical care. Anchored by the Perennial Wellness concept, it will offer a diverse suite of medical, diagnostic imaging, rehabilitation and traditional Chinese medicine services directly at residents’ doorsteps. Perennial Living is expected to progressively open from 2Q 2026. As a precursor, we launched Perennial Wellness (Jervois Road) in January 2026, which in addition to serving the local community, will serve seniors who no longer require residential care at Perennial Living. LANDMARK DEVELOPMENTS ACROSS ASIA In FY2025, the residential component of Perennial Hangzhou Cloud Gate Centre, a commercial-centric HSR TOD, completed its show suite and clubhouse facilities, and has since commenced soft-launch sales. This iconic development features four skyscrapers – including the tallest building in Hangzhou – anchored by Cloud Gate, its architectural centrepiece. Over at Beijing 05 04 PERENNIAL HOLDINGS PRIVATE LIMITED ANNUAL REPORT 2025
RkJQdWJsaXNoZXIy NTM2MDQ5