Kimlun Corporation Berhad Annual Report 2018

25 Share capital, share premium and treasury shares (cont'd) (a) Share capital During the financial year, the Company increased its issued and paid-up ordinary share capital from RM223,817,821 to RM237,451,519 by way of: (i) issuance of 11,243,464 ordinary shares arising from the DRP pertaining to the final (single tier) dividend of 5.50 sen in respect of the financial year ended 31 December 2017. (ii) issuance of 102,700 ordinary shares arising from the conversion of Warrants 2014/2024, at the exercise price of RM1.68 per warrant. The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company. The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions and rank equally with regard to the Company's residual assets. Dividends to owners of the Company and non-controlling interests are recognised in the statement of changes in equity in the period in which they are declared. (b) Treasury shares Treasury shares relate to ordinary shares of the Company that are held by the Company. The amount consists of the acquisition costs of treasury shares. The directors of the Company are committed to enhance the value of the Company for its shareholders and believe that the share purchase plan can be applied in the best interests of the Company and its shareholders. 26. Retained earnings The entire retained earnings of the Company as at 31 December 2018 and 2017 may be distributed as dividends under single tier system. 27. Other reserves Group 31.12.2018 31.12.2017 1.1.2017 RM RM RM Foreign currency translation reserve At 1 January (70,586) (50,037) (44,796) Foreign currency translation (697) (20,549) (5,241) At 31 December (71,283) (70,586) (50,037) Warrant reserve At 1 January 34,253,234 34,865,250 34,865,250 Conversion of warrants (59,566) (612,016) - 34,193,668 34,253,234 34,865,250 At 31 December 34,122,385 34,182,648 34,815,213 Company 31.12.2018 31.12.2017 1.1.2017 RM RM RM Warrant reserve At 1 January 34,253,234 34,865,250 34,865,250 Conversion of warrants (59,566) (612,016) - At 31 December 34,193,668 34,253,234 34,865,250 Kimlun Corporation Berhad 109 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2018 (cont’d)