General Announcement::SUSTAINABILITY REPORT FOR FY2021

TABLE OF CONTENTS

BOARD STATEMENT	2
SUSTAINABILITY APPROACH	4
ECONOMIC	7
ENVIRONMENTAL	10
SOCIAL	14
GOVERNANCE	19
GRI STANDARDS CONTENT INDEX	21

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BOARD STATEMENT

We are pleased to present the annual Sustainability Report of HS Optimus Holdings Limited ("HSO", the "Company", and together with its subsidiaries, the "Group") for our financial year ended 31 March 2021 ("FY2021").

The outbreak of the COVID-19 pandemic has significantly disrupted the global supply chain and businesses worldwide are striving to overcome these challenging times. Nonetheless, the Group remains committed to manoeuvring through the ongoing COVID-19 pandemic and conduct our business in an economically sustainable manner.

Recognising the importance of sustainability, our Board of Directors ("Board") leads the sustainability efforts of the Group. The Board has considered sustainability issues as part of its strategic formulation, determined the material economic, environmental, social and governance ("EESG") factors relevant to its business and overseen the management and monitoring of these material EESG factors.

We continue to stay committed to conducting business in a sustainable manner to build a sustainable future and delivering greater value to our esteemed stakeholders.

ABOUT THIS REPORT

In this report, we have applied the Global Reporting Initiative ("GRI") Standards by considering the Group's activities, impact and substantive expectations as well as interests of its stakeholders. For reporting quality, we observed the principles of balance, comparability, accuracy, timeliness, clarity and reliability.

The EESG data and information provided in this report have been derived from internal data monitoring and verification to ensure accuracy. We may consider seeking external assurance in the future.

REPORTING PERIOD, SCOPE AND FRAMEWORK

This report is issued on an annual basis (most recently on 7 September 2020 in the Company's annual report for the financial year ended 31 March 2020) and has been prepared with reference to the GRI Standards: Core option, and on a "comply or explain" basis in accordance with Rule 711B and Practice Note 7F of the Singapore Exchange Securities Trading Limited ("SGX-ST") Section B: Rules of Catalist ("Catalist Rules"). We have chosen to report using the GRI Standards because it is an internationally recognised sustainability reporting framework that covers a comprehensive range of sustainability disclosures. Moreover, the structured framework promotes reporting a full and balanced picture of the material EESG factors affecting the Group and the management of its impact.

Corresponding to the GRI Standards' emphasis on materiality, this report highlights the EESG related initiatives carried out throughout the 12-month period, from 1 April 2020 to 31 March 2021 by the

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Group's Doors Business. Further information on the Group's activities, products, brands and services can be found in the "Our Businesses" section of our Annual Report for FY2021 released via SGXNET and our corporate website on 13 July 2021.

While the Group has expanded into property investment and development business, this report has not included information on our property business. As disclosed previously and in our voluntary business update released via SGXNET on 17 August 2021, the Group has completed the acquisition of land in Jakarta, Indonesia in May 2019 and is currently in the process of applying for various permits and licences to develop the land into condominium and office units for sale. This process has been delayed in Jakarta due to the ongoing challenging COVID-19 situation in Jakarta. In relation to our property at Lincoln Square in Melbourne, as disclosed in our voluntary business update of 17 August 2021, we have completed renovations for the building and have appointed marketing agents to market the property for lease. Marketing efforts are now ongoing to find suitable tenants for the Lincoln Square building.

For FY2021, as disclosed previously, the Group's wholly owned subsidiary, Dongguan Lebex Doors Co Ltd. ("Lebex") was then undergoing an autonomous winding-up process, the completion of which was announced via SGXNET on 1 August 2021. As such, no data relating to Lebex has been relied on to prepare this report.

FEEDBACK

We welcome feedback from our stakeholders with regards to our sustainability efforts as this enables us to improve our policies, systems and results. Please send your feedback to [e-mail].

As part of our conservation efforts, no hard copy of this report is printed. We have uploaded a digital copy on our website at www.hso.com.sg.

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SUSTAINABILITY APPROACH

OUR SUSTAINABILITY APPROACH

Report

Collect Data

Assess

Materiality

Engage

Stakeholders

Plan and

Scope

STAKEHOLDER ENGAGEMENT AND IDENTIFICATION OF MATERIAL EESG FACTORS

An important starting point in our sustainability reporting is to identify our stakeholders and the material EESG factors relevant to our business. We define our stakeholders as persons or groups whom our business has a significant impact on and those with a vested interest in our business or operational performance.

We have identified the following stakeholders who have significant impact on our operations and sustainability performance. We will continue to maintain open communication and strong relationships with our stakeholders to better understand their concerns. These key stakeholders include, but are not limited to the Board, employees, customers, suppliers, the investing public, local government and local communities. We adopt both formal and informal channels of communication to understand the needs of key stakeholders and incorporate these into our corporate strategies to achieve mutually beneficial relationships. The following sets out our engagement platforms with our stakeholders:

	Stakeholders			Engagement Platforms			Frequency			Topics Discussed / Key
										Concerns raised
	BOARD OF DIRECTORS		Board Meetings		Quarterly		Financial performance,
										policies and strategies and
				Board Papers
								annual budgets
	EMPLOYEES		Staff Appraisal		As and when, and		Employee compensation
							annually		and benefits, personal
				Staff bonding sessions &

	whistleblowing policy	developments and
	performance appraisal. No
		reports received for
		whistleblowing for FY2021
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