Kimlun Corporation Berhad Annual Report 2020

CHAIRMAN’S STATEMENT During FY2020, our business operations were significantly impacted by the outbreak of the Coronavirus (“COVID-19”) which has adversely affected economies worldwide. Save for a very few industries, the operational and financial performance of most businesses were adversely affected as governments across the world imposed lockdown and social restriction measures to combat the spread of COVID-19. 'PS UIF (SPVQ UIF JNQBDU PO PVS CVTJOFTT operations has not been a direct consequence of the COVID-19 pandemic, but a result of the NFBTVSFT UBLFO CZ UIF .BMBZTJB (PWFSONFOU BOE 4JOHBQPSF (PWFSONFOU UP DPOUBJO JU 5IFTF are unprecedented and challenging times for UIF (SPVQ BT UIF QSPQFSUZ BOE DPOTUSVDUJPO sectors were significantly curtailed due to the various government orders. 'PMMPXJOH UIF .BMBZTJB (PWFSONFOU T implementation of a Movement Control Order (“MCO”) on 18 March 2020 in response to the COVID-19 outbreak, all of our business operations were substantially halted until late May 2020. All of our business operations resumed works in June 2020, however at a lower scale and momentum compared to the pre-MCO period due to the compliance of the applicable standard operating procedures JNQPTFE CZ UIF .BMBZTJB (PWFSONFOU BOE shortage of foreign workers consequential upon the freeze on recruitment of new foreign workers in Malaysia since June 2020. The export of our precast concrete products to Singapore was severely reduced during the Circuit Breaker Order period which began on 7 April 2020 and ended on 1 June 2020, and fewmonths after the Circuit Breaker Order period. Though the Singapore construction industry is allowed to resume operations effective from 2 June 2020, the resumption of construction activities of our clients was slow as it was compulsory to have all their respective foreign workers tested and confirmed negative for COVID-19 before resumption of construction activities, and the challenges in meeting the safe management measures required at workplaces. Further, order book replenishment opportunities were substantially reduced due to the postponements in the award of some Singapore public sector projects from 2020 to 2021, and developers delayed or cancelled their planned roll out of new projects amidst a weak market sentiment. Consequentially, our revenue and earnings were affected negatively. Nevertheless, we managed to end the FY2020 with a full-year net profit. DEAR SHAREHOLDERS, ON BEHALF OF THE BOARD OF DIRECTORS (“THE BOARD”), I AM PLEASED TO PRESENT THE ANNUAL REPORT OF KIMLUN CORPORATION BERHAD (“OUR COMPANY”) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 (“FY2020”). OUR OPERATING ENVIRONMENT Kimlun Corporation Berhad Registration No. 200901023978 (867077-X) 011