Kimlun Corporation Berhad Annual Report 2017

Annual Report 2017 11 CHAIRMAN’S STATEMENT 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 2017 (“FY2017”). Our Performance For FY2017, we achieved revenue of RM985.19 million, which was 4.7% higher compared to RM940.68 million registered in the financial year ended 31 December 2016 (“FY2016”). The higher revenue achieved in FY2017 was mainly attributable to higher revenue achieved by the construction division, partly offset by the decline in manufacturing and trading (“M&T”) revenue. Despite of the higher revenue achieved, we recorded a lower profit attributable to owners of the Company of RM68.48 million, which was 16.4% lower compared to the results achieved in FY2016. This was mainly attributable to lower profit generated by the M&T division consequential upon lower revenue and gross profit margin achieved by this division. Business Review During FY2017, we secured, amongst others the following sizable projects and sales orders: (i) the construction of 2 blocks of condominiums and ancillary buildings at Mukim Petaling, Selangor for a contract sum of RM214.76 million; (ii) the construction of 1 block of office complex for Majlis Bandaraya Johor Bahru in Mukim of Plentong, Johor for a contract sum of RM263 million; and (iii) the supply of various pre-cast concrete components to Klang Valley MRT Line 2 and Singapore Thomson-East Coast MRT Line. The aggregate value of these sales orders was approximately RM49 million.