Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) New Land Bank in the Pipe Line The purchase consideration of the New Land is expected to be satisfied by internally generated funds and bank borrowings. For illustrative purpose, assuming 70% of the purchase consideration is financed through bank borrowings and fully drawn down as at 31 December 2019, the Group’s gearing ratio is expected to increase from the audited ratio of 0.32 times as at 31 December 2019 to 0.33 times. Upon the completion of the acquisitions, the total land bank of the Group will increase to 232 acres. DIVIDEND POLICY 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 FY2019, the Board recommends a final single tier dividend of 3.3 sen per share. The recommended final dividend represents a pay-out ratio of approximately 19.2% of FY2019’s profit attributable to owners of the Company. Further, our Company has established a dividend reinvestment plan that provides our shareholders with an option to elect to reinvest their dividends in new shares in the Company. 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. 24 Expected Land Area, Tenure and Purchase Price Completion of Land Use On Completion Location (RM) Acquisition of the Acquisition Within Meridin East township which is 2.5km 22 million Last quarter of 17.90 acres freehold commercial land / away from the Senai-Desaru Highway, and 2020 commercial development approximately 28 km from Johor Bahru city centre