Kimlun Corporation Berhad Annual Report 2020

Segmental Revenue and Gross Profit* * : The segmental revenue and gross profit stated in the commentary in relation to the respective segment was inclusive of inter-segment transactions. FY2020 FY2019 Changes RM’000 RM’000 RM’000 % Revenue Construction 625,856 Manufacturing & Trading (“M&T”) 250,259 Property Development 2,306 Investment 17,966 Elimination (101,678) Consolidated revenue 794,709 GP Construction 41,946 M&T 31,762 Property Development 487 Investment 17,966 Elimination (17,625) $POTPMJEBUFE (1 74,536 GP margin Construction 6.7% M&T 12.7% Property Development 21.1% Investment 100.0% $POTPMJEBUFE (1 NBSHJO 9.4% MANAGEMENT DISCUSSION AND ANALYSIS The decrease in construction revenue and M&T revenue in FY2020 was due to the following: B 5IF (SPVQ T CVTJOFTT PQFSBUJPOT XFSF TVCTUBOUJBMMZ IBMUFE during the MCO period and most part of May 2020; (b) The construction division’s productivity was affected by the shortage of foreign workers consequential upon the freeze on recruitment of new foreign workers in Malaysia since June 2020; (c) The supply contracts in relation to the supply of segmental CPY HJSEFST i4#(w UVOOFM MJOJOH TFHNFOUT i5-4w BOE PUIFS precast concrete products to the Klang Valley MRT Line 2 are at tail end; and (d) Our M&T activities are correlated with the construction industry in Malaysia and Singapore. The slowdown in the construction activities in these countries have resulted in low delivery of our products during FY2020. The property development division recorded a lower revenue during FY2020 due to lower sales concluded amidst the soft market sentiment. Revenue of the investment division during FY2020 was mainly derived from dividend income and interest income received from other business divisions. #PUI UIF $POTUSVDUJPO BOE . 5 EJWJTJPOT SFDPSEFE MPXFS (1 NBSHJOT in FY2020, mainly due to their respective revenue streams had been severely reduced during the MCO and part of CMCO period whilst they continued to incur substantially the same amount of fixed and recurring expenses such as depreciation, payroll and rental FYQFOTFT *O MJOF XJUI UIF MPXFS SFWFOVF BOE (1 NBSHJO BDIJFWFE gross profit generated by the Construction and M&T divisions were lower in FY2020. 1SPQFSUZ %FWFMPQNFOU EJWJTJPO BDIJFWFE B IJHIFS (1 NBSHJO JO FY2020, as better profit margin products were sold during FY2020. Due to lower revenue generated, gross profit generated by Property Development division was lower in FY2020. Annual Report 2020 020