Kimlun Corporation Berhad Annual Report 2018

Annual Report 2018 12 CHAIRMAN’S STATEMENT Looking Ahead The Board is positive of the performance of the Group in 2019 as the Group’s estimated construction and manufacturing balance order book of approximately RM1.9 billion and RM0.3 billion respectively as at 31 December 2018, is expected to support the Group’s performance in 2019. Recent Corporate Development During FY2018, the Company implemented a dividend reinvestment plan (“DRP”) that provides the shareholders with an option to elect to reinvest their dividends in new shares of the Company (“New Shares”) from the entire FY2017 final dividend (“Third DRP”). 76.5% of shareholders had elected to reinvest their dividend pursuant to the Third DRP. The electable portion of the FY2017 final dividend which was not reinvested in new shares in the Company was paid in cash on 9 August 2018. Reward to Shareholders – Dividend While we do not adopt a formal dividend policy, our Company has been declaring dividends every year since its listing on the Main Market of Bursa Malaysia Securities Berhad in 2010. In respect of FY2018, the Board recommends a final single tier dividend of 3.7 sen per share. The recommended final dividend is subject to the approval of the shareholders at the forthcoming Annual General Meeting (“AGM”), and it represents a pay-out ratio of approximately 20.1% of FY2018’s profit attributable to owners of the Company. The Board has determined that the DRP will apply to the proposed final dividend in respect of FY2018 and all shareholders of the Company be given an option to reinvest the entire final dividend in New Shares (“Reinvestment Option”), subject to approvals being obtained from the following: (i) Bursa Securities for the listing of and quotation for the New Shares to be issued pursuant to the implementation of the DRP for the final dividend on the Main Market of Bursa Securities; (ii) Shareholders in the forthcoming AGM for the declaration of the final dividend and the issuance of such number of New Shares as may be required pursuant to the exercise of the Reinvestment Option by the shareholders; and (iii) Approval from other relevant authorities and/ or parties, if required. Our Company is always mindful to reward our loyal shareholders who have supported our growth over the years while trying to strike a balance with the funding needs at our different development phases. Acknowledgement On behalf of the Board, I would like to extend my heartfelt gratitude to our shareholders, bankers, customers, business partners and regulatory authorities for their continued support, guidance and assistance. Your Board would like to express our appreciation to our management team and employees for their hard work and dedication. Pang Tin @ Pang Yon Tin Chairman (cont’d)