Kimlun Corporation Berhad Annual Report 2018

The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 December 2018. Principal activities The principal activity of the Company is investment holding. The principal activities and other information on the subsidiaries are disclosed in Note 15 to the financial statements. Results Group Company RM RM Profit net of tax 61,065,108 17,851,299 Attributable to: Owners of the Company 61,138,672 17,851,299 Non-Controlling interests (73,564) - 61,065,108 17,851,299 There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial statements. In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature. Dividend The amount of dividends paid by the Company since 31 December 2017 was as follows: RM In respect of the financial year ended 31 December 2017 as reported in the directors' report of that year: Final (single-tier) dividend of 5.50 sen per ordinary share, on 320,627,640 ordinary shares, declared on 22 June 2018 and paid on 9 August 2018 17,634,518 The shareholders of the Company ("Shareholders") have been granted an option to elect to reinvest their entitlement of the abovementioned final dividend in new ordinary shares in the Company ("New Shares") in accordance with the approved Dividend Reinvestment Plan of the Company ("DRP"). The reinvestment rate for the abovementioned dividend was 76.52%. At the forthcoming Annual General Meeting ("AGM"), a final (single-tier) dividend in respect of the financial year ended 31 December 2018, of 3.70 sen per ordinary share will be proposed for shareholders’ approval. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an appropriation of retained earnings in the financial year ending 31 December 2019. The Board of Directors has determined that the DRP will apply to the final dividend and the shareholders will 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 Malaysia Securities Berhad (''Bursa Securities'') for the listing and quotation of the New Shares 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. Annual Report 2018 54 DIRECTORS' REPORT