Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (cont’d) 157 37. Dividends 2019 2018 RM RM Recognised during the financial year: Dividends on ordinary shares: - Final (single-tier) dividend of 3.70 sen (2018: 5.50 sen) per share 12,279,225 17,634,518 (i) (ii) (iii) Approval from other relevant authorities and/ or parties, if required. The shareholders of the Company ("Shareholders") have been granted an option to elect to reinvest the entire portion of the final dividend in respect of the financial year ended 31 December 2018 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 80.73%. At the forthcoming Annual General Meeting ("AGM"), a final (single-tier) dividend in respect of the financial year ended 31 December 2019, of 3.30 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 2020. The Board of Directors has determined that the DRP will apply to the final dividend and the Shareholders be given an option to reinvest the entire final dividend in New Shares ("Reinvestment Option"), subject to approvals being obtained from the following: Bursa Malaysia Securities Berhad ("Bursa Securities") for the listing and quotation of the New Shares on the Main Market of Bursa Securities; 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 Group and Company