Kimlun Corporation Berhad Annual Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW Group Revenue and Profitability 3FWFOVF SFDPSEFE JO ': XBT 3. NJMMJPO XIJDI XBT 3. NJMMJPO PS MPXFS DPNQBSFE UP UIF SFWFOVF BDIJFWFE JO FY2019. The lower revenue achieved in FY2020 was attributable to lower revenue achieved by all the business divisions arising from the weak economic environment caused by the COVID-19 pandemic and the impact of the various movement control orders and social restrictions implemented by the Malaysia and Singapore governments. 0VS (SPVQ SFDPSEFE B MPXFS HSPTT QSPGJU i(1w NBSHJO PG JO ': DPNQBSFE UP JO ': 5IJT XBT NBJOMZ EVF UP UIF (SPVQ T SFWFOVF TUSFBNT IBE CFFO TFWFSFMZ SFEVDFE EVSJOH UIF .$0 QFSJPE GSPN .BSDI UP .BZ BOE QBSU PG $POEJUJPOBM .$0 QFSJPE i$.$0w GSPN .BZ UP +VOF XIJMTU UIF (SPVQ DPOUJOVFE UP JODVS TVCTUBOUJBMMZ UIF TBNF BNPVOU PG GJYFE BOE recurring expenses such as depreciation, payroll and rental expenses. *O MJOF XJUI UIF MPXFS SFWFOVF BOE (1 NBSHJO BDIJFWFE HSPTT QSPGJU PG 3. NJMMJPO SFDPSEFE JO ': XBT 3. NJMMJPO PS lower compared to FY2019. 0VS (SPVQ T TFMMJOH BOE BENJOJTUSBUJWF FYQFOTFT i4 .w XBT 3. NJMMJPO JO ': XIJDI XBT 3. NJMMJPO PS IJHIFS compared to FY2019. This was mainly due to the recognition of impairment loss of RM7.32 million in relation to land held for development (“LHFD”). The impact of the impairment was partly mitigated by the following: (i) decline in foreign exchange loss by RM1.01 million in FY2020; and JJ DPTU TBWJOHT GSPN DPTU DVUUJOH NFBTVSFT JNQMFNFOUFE CZ UIF (SPVQ 'JOBODF DPTUT PG 3. NJMMJPO JO ': XBT IJHIFS DPNQBSFE UP ': NBJOMZ EVF UP UIF (SPVQ DFBTFE UP DBQJUBMJTF DFSUBJO MPBO JOUFSFTU EVSJOH ': BT EFWFMPQNFOU BDUJWJUJFT PO DFSUBJO PG UIF (SPVQ T MBOE CBOL XFSF EFMBZFE JO WJFX PG UIF TPGU QSPQFSUZ NBSLFU TFOUJNFOU 5IF (SPVQ SFDPSEFE B MPTT JO UIF TIBSF PG SFTVMUT PG KPJOU WFOUVSFT PG 3. NJMMJPO JO ': There was no significant variance in other income in FY2020 against FY2019. Other income mainly comprised of unwinding of discount on receivables, reversal of allowance for impairment on trade receivables and fees charged for the provision of shop drawings to our customer. 5IF FGGFDUJWF UBY SBUF GPS ': XBT IJHIFS UIBO UIF TUBUVUPSZ SBUF BQQMJDBCMF UP UIF (SPVQ BT DFSUBJO FYQFOTFT XFSF EJTBMMPXFE GPS UBY deduction under tax regulations, and potential deferred tax benefits in relation to interest expenses and impairment loss on land held for property development were not recognized on prudent basis. Due to the variances in gross profits, share of results of joint ventures, other income and expenses, and higher effective tax rate as explained above, profit before taxation (“PBT”) and profit after taxation (“PAT”) of FY2020 of RM15.52 million and RM7.94 million respectively were MPXFS UIBO ': 5IJT XBT BOE MPXFS DPNQBSFE UP UIF 1#5 BOE 1"5 PG 3. NJMMJPO BOE 3. NJMMJPO BDIJFWFE in FY2019, respectively. Our net profit attributable to owners of the Company for FY2020 was RM7.99 million. Kimlun Corporation Berhad Registration No. 200901023978 (867077-X) 019