ANNUAL REPORT 2025 033 SUSTAINABILITY STATEMENT MATERIAL SUSTAINABILITY MATTERS Why It Matters At Kimlun Group, we recognise that our material ESG matters significantly influence our ability to create sustainable and long-term value for our stakeholders. The Group identifies and prioritises these matters through a structured materiality assessment process conducted at least once every two to three years. Our Approach Based on the results of the materiality assessment conducted in FY2023, the Management decided to consolidate several related matters to enable a more integrated and effective management approach. These include Industrialised Building System, Sustainable Materials, Quality and Cost Management, Energy Management, and Water Management. The assessment process initially identified 20 ESG issues relevant to the Group, each were then evaluated for their impact materiality perspective. Following this evaluation, the Group streamlined its sustainability focus to these 10 key material matters. The refreshed material matters were reviewed and approved by the Board of Directors. As there have been no significant changes to our business model, stakeholder expectations, operating environment, or risk landscape since the FY2024 validation exercise, we have determined that the previously identified material ESG matters remain relevant and valid for FY2025. Accordingly, a new materiality assessment was not conducted during this reporting period. In 2025, the Group’s materiality assessment metrics and the materiality matrix have been reviewed and approved by the Board of Directors for guiding the Company’s sustainability strategies and actions. Kimlun Group remains committed to managing these material ESG matters through a structured sustainability framework. We continue to monitor emerging developments, assess potential risks and opportunities, and strengthen our management approaches to support sustainable business growth and long-term value creation. Materiality Assessment Process Kimlun Group’s materiality assessment process consists of three key phases: PHASE 1: Identification of Material Matters Based on the features of the industry, an initial issue pool that is material to the company was created. • Review internal data • Conduct internal survey through questionnaire • Analyse current ESG status and trends • Research internationally recognised standard requirements • Understand industry issues and trends The Group reviewed the identified Material Sustainability Matters and subsequently consolidated to provide a more comprehensive and streamlined approach. PHASE 2: Assessment and Prioritisation of Key Material Matters Each identified issue was evaluated to determine its significance to the Group and its stakeholders. • Evaluate the environmental and social impact from our business operations • Review internal data • Conduct internal and external stakeholder survey online to gather insights and perspectives • Analyse industry common key issues • Assess the impact types of issues (actual or potential, severity and likelihood of the impact). This process enabled the Group to prioritise ESG matters that are most significant to both stakeholders and the business.
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