Kimlun Corporation Berhad Annual Report 2020

MANAGEMENT DISCUSSION AND ANALYSIS Financial Position Shareholders’ funds increased from RM720.47 million as at 31 December 2019 to RM725.91 million as at 31 December 2020, attributable to the comprehensive income generated and issuance of shares pursuant to the dividend reinvestment plan during FY2020. Non-current assets decreased from RM389.58 million as at 31 December 2019 to RM368.86 million as at 31 December 2020, mainly due to depreciation of property, plant and equipment (“PPE”) of RM39.89 million and disposal of investment properties of RM3.14 million, partly offset by the acquisition of PPE of RM12.34 million and net increase in LHFD of RM12.76 million. The increase in LHFD was due to the completion of the acquisition of a parcel of commercial land in Johor at RM14.25 million during FY2020, partly offset by the recognition of impairment loss of RM7.32 million in relation to another parcel of land. Current assets decreased from RM1.16 billion as at 31 December 2019 to RM1.11 billion as at 31 December 2020. This was mainly due to the combined effects of the following: (i) decrease in development properties by RM52.70 million and increase in inventories of RM49.39 million, due to the reclassification of development cost in relation to the completed bungalow lots in Bukit Bayu@U10 Shah Alam, Seksyen U10, Shah Alam, Selangor, to inventories; (ii) decrease in trade and other receivables and contract assets by RM25.39 million and RM11.83 million respectively, mainly attributable to lower business operation during FY2020; and (iii) decrease in cash and bank balances by RM7.47 million. Current liabilities decreased from RM667.44 million as at 31 December 2019 to RM607.41 million as at 31 December 2020 mainly due to the combined effects of the following: (i) increase in loans and borrowings by RM22.54 million, mainly due to higher utilization of working capital financing facilities in the last quarter of FY2020; (ii) decrease in trade and other payables and contract liabilities by RM63.23 million and RM13.18 million respectively, mainly due to lower business operation in FY2020; and (iii) decrease in income tax payable by RM6.82 million, in line with lower profit generated during FY2020. Non-current liabilities decreased from RM158.20 million as at 31 December 2019 to RM135.27 million as at 31 December 2020 mainly due to repayment of loans and borrowings. Net gearing ratio as at 31 December 2020 was at a manageable level of 0.32 times. Cash Flow 'PS ': UIF (SPVQ SFHJTUFSFE OFU DBTI JOGMPX GSPN PQFSBUJOH BDUJWJUJFT PG 3. NJMMJPO /FU DBTI VTFE JO JOWFTUJOH BDUJWJUJFT XBT RM17.01 million, mainly for the purchase of land held for development. Net cash generated from financing activities of RM4.24 million was mainly attributable to the proceeds from loans and borrowings and issuance of shares, partly offset by dividend paid and repayment of lease liabilities, hire purchase payables and advances due to joint ventures. Due to the net cash inflow of RM15.40 million during FY2020, the (SPVQ T DBTI BOE DBTI FRVJWBMFOUT XBT 3. NJMMJPO BT BU %FDFNCFS Kimlun Corporation Berhad Registration No. 200901023978 (867077-X) 021