Kimlun Corporation Berhad Annual Report 2018

Kimlun Corporation Berhad 11 CHAIRMAN’S STATEMENT DEAR SHAREHOLDERS, ON BEHALF OF THE BOARD OF DIRECTORS (“THE BOARD“), I AM PLEASED TO PRESENT THE ANNUAL REPORT OF KIMLUN CORPORATION BERHAD (“OUR COMPANY”) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (“FY2018”). Our Performance For FY2018, we achieved revenue of RM1.01 billion, which was 2.7% higher compared to RM985.19 million registered in the financial year ended 31 December 2017 (“FY2017”). The higher revenue achieved in FY2018 was mainly attributable to higher revenue achieved by the manufacturing and trading (“M&T”) division, partly offset by the decline in revenue in the construction division. Despite of the higher revenue achieved, we recorded a lower profit attributable to owners of the Company of RM61.14 million, which was 10.7% lower compared to the results achieved in FY2017. This was mainly attributable to lower profit generated by the construction and M&T division consequential upon projects mix with higher composition of lower margin contracts. Business Review During FY2018, we secured, amongst others the following sizable projects and sales orders: (i) main building works for 1 block of commercial building and 1 block of apartments at Medini Iskandar, Mukim Pulai, Daerah Johor Bahru, Johor (“the Project”) for a contract sum of RM164.00 million.; (ii) the construction of road and interchange in Gerbang Nusajaya, Johor Bahru, Johor for a contract sum of RM144.10 million; and (iii) the supply of pre-cast concrete building components to M+W Singapore Pte Ltd for Singapore Dollar 27.00 million.