Asia Pacific Strategic Investments : Sustainability Report 2023

Table of Contents

Board Statement	3
About This Report	4
Corporate Profile
About the Company	5
Group Structure	6
Our Supply Chain	7
Our Sustainability Approach
Sustainability Governance	8
Stakeholder Engagement	9
Materiality Assessment	10
Material Topics
Economic Performance	12
Environmental Protection	13
Human Capital	16
Compliance with Laws and Regulations	19
GRI Content Index	20
TCFD Content Index	23

This document has been reviewed by the Company's sponsor, PrimePartners Corporate Finance Pte. Ltd. (the "Sponsor"). It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "Exchange") and the Exchange assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document.

The contact person for the Sponsor is Ms Lim Hui Ling, 16 Collyer Quay #10-00 Collyer Quay Centre Singapore 049318, [e-mail].

2

Board Statement

Dear Stakeholders,

The Board of Directors (the "Board") is honoured to present the sixth annual Sustainability Report for Asia-Pacific Strategic Investments Limited ("APS", and together with its subsidiaries, the "Group"). This Report provides a comprehensive insight into our environmental, social and governance ("ESG") performance over the financial year ended 30 June 2023, underscoring our unwavering dedication to create long-term value for our stakeholders.

From December 2022, the People's Republic of China ("PRC") government has progressively lifted the COVID-related control measures and has re-opened its borders to international visitors without quarantine in January 2023. Since then, the economic activity has rebounded in early 2023, which led to higher consumer spending, particularly on domestic services. However, the recovery of the world's second-biggest economy has seen a rapid loss in momentum since the second quarter, dragged down by weak demands at home and abroad, rising unemployment and property sector woes. The pandemic has demonstrated the importance of establishing a sustainable business that is resilient and adaptable to change.

At APS, we are constantly seeking out new opportunities to deliver sustainable and inclusive growth to our stakeholders. The Board is committed to providing oversight, monitoring management's progress on ESG-related initiatives and concerns, and ensuring alignment of our sustainability programme with APS' strategic direction. It is crucial that we prioritise on measures to build our organisational resilience and effectively manage ESG-related risks and opportunities that are encountered by the Group, particularly considering the challenges posed by continuing stress in the real estate sector. The Board is dedicated to continuously enhance our sustainability reporting, to better address our stakeholders' interests, thus reinforcing our accountability and transparency in the process.

The Board wishes to extend our heartfelt gratitude and appreciation to our shareholders, employees, customers, and business partners for their enduring support throughout the years. Looking ahead, we will continue to concentrate on navigating our business operations while remain proactive in identifying and responding to the risks and opportunities that arise for the Group.

Sincerely,

Board of Directors

Asia-Pacific Strategic Investments Limited

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About This Report

This report has been prepared with reference to the Global Reporting Initiative ("GRI") Standards 2021, which is regarded as a globally recognised standard for sustainability reporting. Its reporting principles are as follows:

Materiality

Stakeholder

Inclusiveness

Sustainability

Context

Completeness

GRI Reporting Principles

Focusing on the ESG-related issues that impact business growth and are of utmost importance to stakeholders

Proactively responding to stakeholders' expectations and interests

Presenting the Group's performance in the wider context of sustainability

Including information that is of significant ESG impact to allow stakeholders to accurately assess APS' performance

This report has also been prepared in compliance with Rules 711A and 711B of the Listing Manual Section B: Rules of Catalist (the "Catalist Rules") by the Singapore Exchange Securities Trading Limited ("SGX-ST") and drawing reference to Practice Note 7F Sustainability Reporting Guide.

As APS does not fall within the SGX-identified industries that were prioritised for mandatory Taskforce on Climate-related Financial Disclosures ("TCFD") disclosures, climate-related disclosures are currently not included in this report. However, the Group intends to incorporate them in upcoming sustainability reports progressively and we have included a TCFD Index in this Report to align our reporting with the climate-related disclosures and the "comply or explain" approach required by SGX.

This report encompasses data from our financial year spanning 1 July 2022 to 30 June 2023 ("FY2023"), including relevant historical performance data. We have relied on internal verification by the management and the Board to ensure the accuracy of the data and information provided within the report. The sustainability reporting process has been reviewed by the internal auditor in FY2023 as required under Catalist Rule 711B(3). APS has not sought external independent assurance for this report but will consider doing so for future reports.

We are fully committed towards actively engaging our stakeholders and enhancing our sustainability reporting practices. We welcome any queries, comments, and suggestions on our sustainability report and related initiatives at [e-mail].

As part of our commitment to environmental sustainability, physical copies of this report will not be printed. The electronic edition of this report is available at: http://investor.asiastrategic.com.sg/sr.html and SGX-STwebsite at www.sgx.com.

4

Corporate Profile

About the Company

Asia-Pacific Strategic Investments Limited is a real estate developer specialising in the hospitality sector and retirement villages, with a particular focus on addressing the evolving needs and aspirations of the growing elderly population in China and Southeast Asia.

Project Phoenix (凤凰洲项目), consists of approximately 320 hectares of agriculture land located in Huzhou, was a significant milestone for our Group as it signified our inaugural venture into China. This strategic move followed our acquisition of majority stakes in two property companies situated in Huzhou, Zhejiang Province, back in 2017. We plan to convert and develop the agriculture land into an integrated residential and active ageing hub, complemented by healthcare-related, commercial, educational, and family entertainment amenities, all aimed at enhancing holistic well-being and lifelong learning.

The project's location in Digang Town (荻港村) boasts a remarkable and distinctive cultural heritage, highlighted by historical landmarks like the renowned mulberry dike fishpond (桑基鱼塘). In light of this, our vision for Project Phoenix extends beyond preserving the cultural legacy of the ancient city of Huzhou; it also encompasses harnessing the area's agricultural and ecological heritage to foster the growth of a contemporary aquacultural industry.

On 15 December 2022, our subsidiaries, Zhongfang Lianhe Grand Canal Culture Tourism Group Co., Ltd (中房联合大运河文化旅游集团有限公司, "Grand Canal"), and Zhejiang Zhongfang Yashe Hotel Management Co., Ltd (浙江中房雅舍酒店管理有限公司, "Yashe") entered into an equity and asset acquisition agreement (the "Acquisition Agreement") with Huzhou Hongji Enterprise Management Co., Ltd. (湖州弘基企业管理有限公司) to dispose of 100% of the issued shares in Yashe and Anatole by Landison Hotel Huzhou (湖 州雷迪森怿曼酒店, the "Hotel") and related assets (together, the "Hotel Assets") for an aggregate consideration of RMB80.0 million (the "Proposed Disposal"). The Proposed Disposal was approved by the Shareholders at the extraordinary general meeting held on 6 February 2023. The Group has lost control over Yashe and the Hotel Assets thereafter.

Given the current challenging sentiment within the real estate sector in the PRC, the progress towards finalising the development implementation and business plans for Project Phoenix has encountered delays. Consequently, we are actively reassessing our business strategy for this project to ensure its long-term success and alignment with market dynamics.

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Corporate Profile

Group Structure

APS was incorporated as a public company limited by shares in Singapore on 6 July 2006 and has been listed on the Catalist Board of SGX-ST since 31 August 2007. APS changed its name to China Real Estate Grp Ltd with effect from 3 August 2018 and changed it back to APS with effect from 31 December 2020.

Our principal place of operation is at 1 Scotts Road, #20-07 Shaw Centre, Singapore 228208 and our registered office is at 77 Robinson Road, #06-03 Robinson 77, Singapore 068896.

While we operate as an investment holding company, our subsidiaries are principally involved in the business of real estate development, and provision of hotel management and hospitality services in FY2023.

Our Corporate Structure, as of 30 June 2023, is as follows:

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Corporate Profile

Our Supply Chain

Sustainable procurement practices are essential for mitigating supplier risk, preserving our competitive advantage, facilitating timely completion of construction projects, and ensuring the quality of services we provide to our hotel guests.

As we navigate the disruptions in supply chain, which are aggravated by the slow-moving real estate market, we acknowledge the importance of building and maintaining healthy, positive relationships with our suppliers and contractors. These relationships are key to the long-term success of the Group and help to ensure uninterrupted flow of essential supplies for our business operations, without compromising the quality of goods and services procured.

To build and maintain a sustainable supply chain, the Group maintains our stringent quality standards by exercising careful considerations in the identification and selection of suppliers, contractors, and consultants to partner with.

Sustainable

Sources

Environmental

Impact

Supply Chain

Assurance

Our Focus Areas for Sustainable Procurement

Maintaining an exclusive vendors list and sourcing for new vendors on an ongoing basis

Minimising the environmental impact of the goods and services used in our business operations

Conducting regular assessments of our vendors' ESG performance

When seeking out potential vendors to collaborate with, our primary criteria include not only the quality, cost of the products and services provided but also the adequacy of the environmental, health, and safety compliance management systems that they have put in place.

Additionally, we are committed to conducting regular assessments of our contractors, consultants, and suppliers. This ongoing evaluation process ensures that the products and services they deliver consistently align with the requirements of our hotel business and real estate development projects.

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Our Sustainability Approach

Sustainability Governance

At APS, we adopt a comprehensive approach to managing our sustainability-related risks and opportunities. This approach forms a robust foundation for establishing financial integrity, organisational credibility, and investor confidence, all of which are pivotal to the long-term success of the Group.

Our Board is responsible for sustainability reporting and governance and plays a critical role in identifying the material ESG factors, integrating sustainability into our business strategy and upholding stringent corporate governance standards across the Group. The Board receives additional support from various Board Committees, including the Audit Committee, Nominating Committee, and Remuneration Committee, as well as from APS employees who are responsible for implementing, monitoring and management of our sustainability objectives.

In line with SGX's most recent requirement, all Directors have completed the mandatory sustainability training in FY2023.

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Our Sustainability Approach

Stakeholder Engagement

APS consistently communicates and collaborates with our stakeholders concerning economic, environmental, social, and governance matters. This proactive approach enhances our ability to anticipate sustainability-related risks and opportunities that may emerge during our business operations. Furthermore, it allows us to effectively address our stakeholders' primary concerns and priorities in our strategic planning and decision- making processes.

The table below presents a summary of the engagement initiatives we have undertaken to gain a deeper understanding of the principal expectations our stakeholders hold for

the Group.
Stakeholder	Engagement Activities
Group
		Marketing brochures
		Online enquiry and
Customers		feedback channel
		Customer	service
		hotlines
		Staff communication
Employees		channel
	Internal newsletter
		Annual town hall
		Annual meetings
		Periodic	media
Investors		releases	and
	shareholder circulars
		Periodic	SGX
		announcements
Suppliers &		Supplier assessment
	and feedback
Business
	Discussions	and
Partners
	meetings
Government 	Discussions	with

• government agencies

Regulators

and departments

Frequency		Stakeholders' Expectations
		High-quality services and
Ad-hoc		after-sales support
	Adherence with COVID-19
		precautionary measures
		Competitive	remuneration
		packages
Ad-hoc		Staff welfare
		Flexible	working
		arrangements

• Business profitability and
  Annually/ sustainability
  Ad-hoc  Transparent and timely reporting
• Partnershipfor

Ad-hoc		opportunities and growth
	Competitive pricing of high-
		quality goods and services
		Compliance with applicable
		rules and regulations
Ad-hoc		Timely	reporting	and
	resolution of issues

 Compliance with COVID-19 safety measures

9

Our Sustainability Approach

Materiality Assessment

To effectively address our stakeholders' sustainability concerns, a comprehensive materiality assessment is crucial to ensure our efforts and sustainability programme address the issues that have the highest impact on our business.

In our last materiality assessment conducted in FY2022 the Board identified a total of four

1. ESG topics as being most material to our business and stakeholders, as highlighted in the following figure:

Materiality Matrix

Stakeholders' Assessments	and Decisions
Influence on

5

4

3

2

1

0

0

Economic

Performance

Environmental

Protection

Human Capital

Compliance with

Laws and

Regulations

1

2

3

4

5

Significance of Economic, Environmental and Social Impacts

In light of the evolving stakeholder priorities and the latest developments in our industry, the Board regularly reviews the ongoing significance of the identified material ESG topics on an annual basis. In FY2023, we conducted a comprehensive examination of our existing ESG topics and concluded that they continue to hold significance for APS and our stakeholders. Consequently, we have opted to maintain these same four material topics for inclusion in this year's sustainability report.

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