Kimlun Corporation Berhad Annual Report 2018

PROSPECTS AND OUTLOOK 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 keep our Group busy for the next 2 years. Our key challenges and risks include operational, credit, liquidity, human resources and market risks. Please refer to pages 48 to 49 of this Annual Report for nature of the key risks and the Group’s control measures to mitigate the risks. Our on-going projects and sales orders comprises of contracts secured from, amongst other, Lebuhraya Borneo Utara Sdn Bhd, MMC Gamuda KVMRT (UGW) Joint Venture, UEM Sunrise Bhd Group, Sunway Iskandar Sdn Bhd, Hillcrest Gardens Sdn Bhd and China Railway First Group Co.Ltd. Our on-going projects and sales orders include the following: (a) The supply contracts in relation to the supply of SBG and TLS to KVMRT Line 2, with aggregate contract value of approximately RM252 million. The supplies of products under these contracts are expected to be completed in 2019; (b) PBH - Zecon Kimlun Consortium Sdn Bhd, the Company’s 30% owned joint venture company was awarded with a work package under the PBH for a contract sum of RM1.46 billion. The estimated completion period of the project per the letter of award is end March 2020; (c) Main building works for 1 block of commercial building and 1 block of apartments at Medini Iskandar, Mukim Pulai, Daerah Johor Bahru, Johor at a contract sum of RM164.00 million. The estimated completion period of the project per the letter of award is June 2021. (d) the construction of road and interchange in Gerbang Nusajaya, Johor Bahru, Johor for a contract sum of RM144.10 million; and (e) the supply of pre-cast concrete building components to M+W Singapore Pte Ltd for Singapore Dollar 27.00 million The Group will continue to actively bid for new construction projects in Malaysia, in particular those in relation to affordable housing development which continue to receive strong demand from the low and middle income group. Kimlun Corporation Berhad 21 MANAGEMENT DISCUSSION AND ANALYSIS Focus and Strategies for 2019 Construction Division • Focus in the execution of projects in hand • Leverage on the diversified construction services track record to actively bid for new public and private sector projects solely or jointly with parties whom have complementary strengths Manufacturing Division • Focus in the production of pre-cast components for KVMRT Line 2 and Singapore MRT • Bid for orders from Singapore market including to those in relation to MRT line, North South Corridor Expressway and private sector projects Property Development Division • Development planning of land bank in hand and in the pipeline • Engage experience real estate agents and participate in roadshow to market balance stocks • Explore potential land bank in strategic locations (cont’d)