ANNUAL REPORT 2025 039 SUSTAINABILITY STATEMENT Compliance Why It Matters Operating in the construction and built environment sector exposes Kimlun to a broad regulatory landscape spanning environmental protection, workplace health and safety, labour practices, and corporate governance. Non-compliance carries direct financial consequences such as fines, project stoppages, and reputational damage, as well as indirect risks to client relationships, contract eligibility, and our social licence to operate. Conversely, a demonstrable culture of compliance strengthens stakeholder trust, supports access to quality contracts and partnerships, and underpins the long-term resilience of our business. Our Approach in Compliance with Laws and Regulations Kimlun conducts its business in full accordance with applicable laws, regulations, and industry standards. We maintain robust corporate governance practices and continuously review our internal controls, policies, and procedures to keep pace with evolving regulatory requirements and emerging best practices. Regulatory Compliance Monitoring KLSB and SPC maintains a Health, Safety and Environment (“HS&E”) legal register to track applicable regulatory requirements, reviewed and updated annually to reflect legislative changes. The Group also monitors and records any notices, warnings, or compounds issued by regulatory authorities as part of its ongoing compliance management process. Compliance with HS&E regulatory requirements is further supported through KLSB and SPC’s certified management systems under ISO 45001 (Occupational Health and Safety Management System) and ISO 14001 (Environmental Management System), which provide a structured framework for monitoring, managing and improving regulatory compliance across operations. Internal audits are conducted at least once annually under each certified system, complemented by independent external audits performed by accredited certification bodies. Progress In FY2025, the Group recorded 44 cases of non-compliance with applicable laws and regulations, resulting in fines and penalties. These cases related primarily to health and safety offences i.e. mosquito larva breeding and housekeeping. In response, the Group conducted safety and health inspections across all affected sites and areas, and all compounds and penalties have been duly settled. Kimlun views each instance of non-compliance as an opportunity to strengthen its systems and prevent recurrence. Through rigorous governance, proactive monitoring, and a commitment to continuous improvement, we reinforce a culture of ethical conduct, transparency, and accountability across all operations. Ethical Business Practices Why It Matters We recognise the potential harm that unethical practices can cause to our operations, reputation, and stakeholder trust. To protect our Company and stakeholders against unethical practices, we are committed to ensuring that our people, processes and operations comply with all applicable laws, regulations and policies, including the MACC Act 2009. Management Structure and Policies The Board plays a central role in defining, promoting, and upholding the ethical standards that guide the Group’s business conduct and operational practices.
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