General Announcement::Sustainability Report 2021

New Silkroutes Group Limited | Sustainability Report FY 2021

SUSTAINABILITY REPORT

For the Financial Year Ended

2021

New Silkroutes Group Limited | Sustainability Report FY 2021

Table of Contents

		Page
About this Report	1
About New Silkroutes Group Limited	2
•	Supply Chain	3
Sustainability at NSG	4
Our Approach to Sustainability
•	Sustainability Board Statement	5
•	Stakeholders Engagement	6
•	Materiality Assessment	8
Our Core Focus
•	Economic Performance	10
• Delivering Value to Customers	11
GRI Content Index	14

New Silkroutes Group Limited | Sustainability Report FY 2021

About This Report

For the fourth consecutive year, the New Silkroutes Group Limited ("NSG" or the "Group") presents our annual Sustainability Report for the financial year ended 30 June 2021 ("FY2021"). This report has been prepared in accordance with the Global Reporting Initiative Standards: Core Option ("GRI Standards") and with reference to the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Rules 711A and 711B. For the full list of the references and disclosures used in this report, please refer to the GRI Content Index at the end of this report.

Report content and topic boundaries

This report defines NSG's Environmental, Social and Governance ("ESG") management strategy and performance for FY2021 (1 July 2020 to 30 June 2021) and covers the operations of NSG's healthcare division, which includes our clinics and a dental supply company in Singapore and production of non- woven biodegradable linen company in China.

With the addition of sustainability reporting requirements by the Singapore Exchange ("SGX"), we have created long-term value for our stakeholders through the incorporation of sustainable business practices, commitment to transparent reporting and disclosures on our approach to sustainability issues. This report thus documents our consideration and approach with regard to sustainability issues and demonstrates our commitment towards such issues. The content of this report adheres to the following reporting principles prescribed by the GRI Standards:

NSG has not sought external independent assurance for this sustainability report. However, succeeding reports will be taken into consideration as necessary.

Contact

We are fully committed to listening to our stakeholders and welcome any feedback on our sustainability performance or any aspect of our report. Please write us at: [e-mail]

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New Silkroutes Group Limited | Sustainability Report FY 2021

About New Silkroutes Group Limited

NSG is an investment holding company listed on the Mainboard of the Singapore Exchange Securities Trading Limited. Together with its subsidiaries, the Group operates in the healthcare sector and is headquartered in Singapore.

NSG's healthcare division focus on the provision of healthcare and related services, and operates under its subsidiary, Healthsciences International Pte. Ltd. ("HSI"). HSI owns and operates primary care medical and dental clinics in Singapore.

The Group has also extended its healthcare portfolio into healthcare-related supplies through its subsidiary, Shanghai Fengwei Garment Accessory Co., Ltd. ("Shanghai Fengwei") in China. Shanghai Fengwei produces the non-woven material which is used to manufacture disposable medical consumables such as hospital gowns and linens, personal protective equipment and masks.

HSI currently owns 16 clinics in Singapore, comprising one dental specialist clinic, eight dental clinics, five family medicine clinics, one aesthetic clinic and one traditional Chinese medicine (TCM) clinic as well as one dental supplies company.

In FY2021, NSG has commenced the winding up process of its wholly owned indirect subsidiary, International Energy Group Pte. Ltd. ("IEG"), by way of creditors' voluntary liquidation, which was previously reported in the oil and gas segment.

Our workforce for FY2021:

	Permanent		Temporary	Total
Male	164	7	171
Female	97	8	105
Total	261	15	276
		Employees by region:
				Total
		Singapore		104
		China		172
				276
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New Silkroutes Group Limited | Sustainability Report FY 2021

Supply Chain

HSI adopts a systematic approach in ensuring the rational use of medicines, including best dispensing practices, clinical protocol adherence to prescribed medications, and cost efficiency and effectiveness. We maintain seamless business operations by improving supply chain engagement, hence, securing adequate resources, such as medicine, dental or orthodontic appliances, and more.

At Shanghai Fengwei, the implementation of an effective production plan, operating nine production lines in six workshops, helps to achieve timely completion of production requirements.

Shanghai Fengwei's sales department is responsible for accepting sales inquiries and orders, providing samples, negotiating terms and conditions, and delivering production terms to the production department.

Shanghai Fengwei's production department comprises of the equipment, electrical, and technological components that ensure the machines and equipment are running effectively, management of the purchase of raw and auxiliary materials, and liaison with the sales department to fulfil the sales orders. The primary raw material is polypropylene pellets, which are then added with color additives to make them into cloth. The final product is packed in packaging films and delivered to customers via container trucks or stored in cool, dry, and well-ventilated warehouses.

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