Kimlun Corporation Berhad Annual Report 2020

OUR BUSINESS PERFORMANCE Our revenue decreased from RM1.30 billion in FY2019 to RM794.71 million in FY2020 on lower business operations. Our profit before taxation decreased from RM79.69 million in FY2019 to RM15.52 million in FY2020, mainly due to: (i) lower revenue in FY2020; (ii) the incurrence of substantially the same amount of fixed and recurring expenses such as depreciation, payroll expenses, rental and interest expenses during the period in which our business operations were substantially halted; and (iii) the provision for impairment loss of RM7.32 million in relation to land held for development amidst a soft property market sentiment. We implemented the following measures to mitigate the impact of the COVID-19 pandemic UP UIF (SPVQ T CVTJOFTT (i) take necessary precautionary measures at our business premises and work sites in accordance with guidelines from health authorities and government bodies; (ii) frequent senior management operation meetings to strategize and identify operational issues so that operations can resume smoothly post-MCO; (iii) communicate with suppliers as to their stocks readiness and procure alternative suppliers/supplies to improve supply chain lead times where necessary; (iv) explore cost cutting measures to preserve cash to support working capital requirements and suspend all non-essential operating and capital expenditure; (v) focus in online marketing campaigns on our property development projects and reach out to potential purchasers via Facebook, video calls and virtual tours; and (vi) closely monitor the working capital SFRVJSFNFOUT PG UIF (SPVQ BOE TFDVSF additional working capital credit facilities, where necessary. CHAIRMAN’S STATEMENT ACHIEVEMENTS AND OUTLOOK %VSJOH UIF ZFBS UIF (SPVQ IBT PCUBJOFE additional certification from CIDB on its qualification to construct hospitals. This certification has further expanded the range PG DPOTUSVDUJPO QSPKFDUT XIJDI UIF (SPVQ DBO bid for. As at 31 December 2020, the estimated construction and manufacturing balance order book of approximately RM1.1 billion and RM0.3 billion respectively, from a diversified clientele, will contribute to our revenue for about 2 years. We will continue to bid actively for projects and sales orders in order to replenish our order book and contribute positively to our result in 2021 and beyond. Our track record in the industries we operate in, and extensive experience in our businesses, coupled with the support from bankers, are good supporting GBDUPST GPS UIF (SPVQ UP CJE GPS BOE FYFDVUF future projects. RECENT CORPORATE DEVELOPMENT During FY2020, the Company implemented a dividend reinvestment plan (“DRP”) that provides the shareholders with an option to elect to reinvest their dividends in new shares of the Company (“New Shares”) from the entire FY2019 final dividend (“Fifth DRP”). PG TIBSFIPMEFST IBE FMFDUFE UP SFJOWFTU their dividend pursuant to the Fifth DRP. The electable portion of the FY2019 final dividend which was not reinvested in new shares in the Company was paid in cash on 4 December 2020. REWARDTOSHAREHOLDERS–DIVIDEND 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 FY2020, the Board recommends a final single tier dividend of 1.0 sen per share. The recommended final dividend is subject to the approval of the shareholders BU UIF GPSUIDPNJOH "OOVBM (FOFSBM .FFUJOH i"(.w BOE JU SFQSFTFOUT B QBZ PVU SBUJP PG BQQSPYJNBUFMZ PG ': T QSPGJU attributable to owners of the Company. The Board has determined that the DRP will not apply to the proposed final dividend in respect of FY2020. 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. ACKNOWLEDGEMENT On behalf of the Board, I would like to extend a warm welcome to Datuk Woon See Chin who has joined us as an Independent Non- Executive Director on 1 October 2020. We are confident Datuk Woon’s extensive experience XJMM CF B WBMVBCMF DPOUSJCVUJPO UP PVS (SPVQ On behalf of the Board, I would like to extend my heartfelt gratitude to our shareholders, bankers, customers, business partners and regulatory authorities for their continued support, guidance and assistance. The Board would like to express our appreciation to our management team and employees for their hard work and dedication. PANG TIN @ PANG YON TIN Chairman Annual Report 2020 012