(iii) better absorption of sunk costs enabled by higher level of operations. Despite the higher GP achieved, we suffered loss before tax of RM3.70 million and loss after tax of RM7.29 million in FY2022 against profit before tax of RM0.97 million and loss after tax of RM0.73 million in FY2021. This was mainly due to the impairment of trade receivable (“Debt”) and contract asset (“Contract Asset”) totaling RM43.52 million in relation to a hospital project which the Group completed in the last quarter of year 2020. The said project was awarded to our subsidiary, by a company (“Debtor”) which is jointly owned by a body corporate (owned by a state government) and a public listed company. Please refer to the Financial Review section under the Management Discussion And Analysis for further details on the Debtor and the project. The aforesaid impairment is a non-cash provision, i.e. it does not have any impact on the Group’s cash flow. Notwithstanding, any recovery of the Debt and Contract Asset will increase the Group’s other operating income and operating cash inflow in the future. We will continue to pursue the recovery of the Debt and Contract Asset. OUTLOOK The Group has an estimated construction and manufacturing balance order book of approximately RM1.38 billion and RM0.35 billion respectively as at 31 December 2022, from a list of diversified clientele. The balance order book is expected to support the Group’s performance in 2023. Notwithstanding, rising cost of raw materials, higher energy costs and commodity prices and shortage of workers will continue to weigh on our operation and profitability. As the shortage of labour is expected to ease gradually, we will intensify our bidding for projects and sales orders in order to increase our job flows and contribute positively to our result in 2023 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 factors for the Group to bid for and execute future projects. REWARD TO SHAREHOLDERS – 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 FY2022, the Board recommends a single tier final dividend of 1.0 sen per share. The recommended final dividend is subject to the approval of the shareholders at the forthcoming Annual General Meeting. 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 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 CHAIRMAN’S STATEMENT Kimlun Corporation Berhad | Registration No. 200901023978 (867077-X) 13
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