ANNUAL REPORT 2023
Kimlun Group is an engineering and construction services provider specialising in infrastructure and building construction, project management, industrial building systems (IBS) and manufacture of concrete products. Ancillary to our core business, we also involve in property development and trading in construction and building materials. We have the ability to act as a one-stop engineering services provider, capable of providing a comprehensive and integrated range of concrete products and engineering and construction services to our customers. K I ML U N KNOWLEDGE INTEGRITY MORAL LEADERSHIP UNITY NOVELTY CORPORATE VALUES
WHAT’S INSIDE 002 Corporate Information 003 Corporate Structure 004 Corporate Milestones 006 Profile of Directors 011 Group Financial Highlights 012 Chairman’s Statement 016 Management Discussion and Analysis 026 Sustainability Statement 044 Corporate Governance Overview Statement 058 Additional Compliance Information Disclosures 059 Audit and Risk Management Committee Report 063 Statement on Risk Management and Internal Control 069 Statement on Directors’ Responsibility FINANCIAL STATEMENTS 161 Analysis of Shareholdings 163 List of Properties 165 Notice of Fifteenth (15th) Annual General Meeting 173 Statement Accompanying Notice of Annual General Meeting 174 Administrative Guide for the 15th Annual General Meeting Proxy Form OUR MISSION “We aim to continuously improve, promote and provide construction activities and services to the society in which we operate. By providing one stop construction design and build services, we aim to add value to our clients that in turn will be beneficial to the society at large. We will treat all partners including suppliers, subcontractors and consultants with trust, honesty and fairness in all business dealings. Towards our employees, we balance our focus on their personal skills development while taking care of their welfare. While seeking for the maximisation of shareholders’ wealth, we strive to maintain harmony with the interest of the society to enhance our corporation’s sustainability”. OUR VISION “We aspire to be a reliable, innovative and profitable provider of full range construction services and products in the South East Asia region”.
Pang Tin @ Pang Yon Tin Executive Chairman Sim Tian Liang Chief Executive Officer and Executive Director Chin Lian Hing Executive Director Yam Tai Fong Executive Director Pang Khang Hau Executive Director Datuk Woon See Chin Independent Non-Executive Director Johar Salim Bin Yahaya Independent Non-Executive Director Anita Chew Cheng Im Independent Non-Executive Director Bhupendar Singh A/L Sewa Singh Independent Non-Executive Director Dato’ Ir. Fong Tian Yong Independent Non-Executive Director CORPORATE INFORMATION BOARD OF DIRECTORS AUDIT AND RISK MANAGEMENT COMMITTEE Chairperson • Anita Chew Cheng Im Independent Non-Executive Director Members • Datuk Woon See Chin Independent Non-Executive Director • Bhupendar Singh A/L Sewa Singh Independent Non-Executive Director • Dato’ Ir. Fong Tian Yong Independent Non-Executive Director REMUNERATION COMMITTEE Chairman • Datuk Woon See Chin Independent Non-Executive Director Members • Johar Salim Bin Yahaya Independent Non-Executive Director • Dato’ Ir. Fong Tian Yong Independent Non-Executive Director NOMINATION COMMITTEE Chairman • Johar Salim Bin Yahaya Independent Non-Executive Director Members • Anita Chew Cheng Im Independent Non-Executive Director • Bhupendar Singh A/L Sewa Singh Independent Non-Executive Director COMPANY SECRETARIES Wong Peir Chyun (MAICSA 7018710)(SSM PC No. 202008001742) Tay Lee Shya (MIA 16982)(SSM PC No. 202008002274) Lau Yen Hoon (MAICSA 7061368)(SSM PC No. 202008002143) HEAD OFFICE Suite 19.06, Level 19, Johor Bahru City Square, 106-108, Jalan Wong Ah Fook, 80000 Johor Bahru, Johor Darul Takzim Telephone No. : (+607) 222 8080 Facsimile No. : (+607) 223 8282 E-mail : info@kimlun.com Web-site : www.kimlun.com REGISTERED OFFICE Unit 30-01, Level 30, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur Telephone No. : (+603) 2783 9191 Facsimile No. : (+603) 2783 9111 E-mail : info@my. tricorglobal.com REGISTRAR Tricor Investor & Issuing House Services Sdn. Bhd. Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur Telephone No. : (+603) 2783 9299 Facsimile No. : (+603) 2783 9222 E-mail : is.enquiry@my. tricorglobal.com AUDITOR Crowe Malaysia PLT 201906000005 (LLP0018817-LCA) & AF 1018 E-2-3 Pusat Komersial Bayu Tasek, Persiaran Southkey 1, Kota Southkey, 80150 Johor Bahru, Johor Darul Takzim Telephone No. : (+607) 288 6627 Facsimile No. : (+607) 338 4627 Kimlun Corporation Berhad 002
CORPORATE STRUCTURE 51% 60% 40% 69.50% 49% Kimlun Sdn Bhd Kimlun Medini Sdn Bhd 100% Rock Projects Sdn Bhd SPC Industries Sdn Bhd Zecon Kimlun Consortium Sdn Bhd Kimlun Superior Crest Sdn Bhd Posh Atlantic Sdn Bhd Kiiville Sdn Bhd Rex Series Sdn Bhd Pinegate Development Sdn Bhd Kii Ashburry Sdn Bhd Kii Morris Sdn Bhd Kii Tebrau Sdn Bhd JBB Kimlun Sdn Bhd Kii Melodia Sdn Bhd Bayu Damai Sdn Bhd 33% 67% Kimlun Land Sdn Bhd KL Building Materials Sdn Bhd Kii Amber Sdn Bhd 30% 100% 60% 100% 100% 100% 100% 100% 100% 100% 100% 70% 100% 100% Kitaran Lintas Sdn Bhd 003 Annual Report 2023
CORPORATE MILESTONES 1977 • Our humble beginnings started when Kimlun Earthworks Sdn Bhd was incorporated. 1994 • Kimlun Earthworks Sdn Bhd changed its name to Kimlun Sdn Bhd (“KLSB”). 1997 - 2002 • KLSB involved in building construction and infrastructure projects with contract value less than RM20.0 million each in Johor, Malaysia. 2002 • SPC Industries Sdn Bhd (“SPC”) commenced its pre-cast concrete business. 2003 • KLSB secured its first contract with a value exceeding RM20.0 million for the construction of apartments and townhouses. • SPC was accredited with ISO 9001:2000 Quality Management. 2004 • SPC supplied concrete sewerage tunnel segments to Pantai Trunk Sewerage Bored Tunnel project in Kuala Lumpur. 2005 • KLSB ventured into specialised infrastructure construction by constructing the Tanjung Puteri flyover in Johor Bahru. • KLSB ventured into Klang Valley with the construction of 70 units of semi detached houses. • SPC secured its first sales contract for the supply of concrete tunnel lining segments to Singapore MRT project. 2006 • KLSB secured specialised infrastructure construction project for the upgrading works of the Perling Interchange in Johor Bahru. 2007 • KLSB was accredited the “ISO 9001:2000, Quality Management System” certification. 2008 • KLSB secured the project for the construction of the elevated interchange along Johor Bahru Inner Ring Road – Package 3B Jalan Abu Bakar Interchange with a contract value exceeding RM100 million. • KLSB formed IBS Department to promote IBS construction methods. 2009 • KLSB secured its first Industrial Building System (“IBS”) building project from Iskandar Regional Development Authority at a contract value of RM142.81 million. • Kimlun Corporation Berhad was incorporated as an investment holding company. 2010 • Kimlun Corporation Berhad acquired KLSB, SPC and IBT in conjuction with its proposed initial public offering exercise. • Kimlun Corporation Berhad was successfully listed on the Main Market of Bursa Malaysia Securities Berhad on 29 June 2010. • Kimlun Corporation Berhad incorporated a new wholly-owned subsidiary namely, Kimlun Land Sdn Bhd (“KLLSB”). 2011 • Kimlun Group ventured into property development with its first development land in Cyberjaya, Selangor. 2012 • SPC was appointed by Mass Rapid Transit Corporation Sdn Bhd as the designated supplier for the supply of segmental box girders (“SBG”) to certain packages of the Projek Mass Rapid Transit Lembah Kelang: Jajaran Sungai Buloh-Kajang for RM223.18 million. • KLSB secured more than RM400 million worth of IBS projects during 2012. 1977-2003 2004-2008 2009-2012 Kimlun Corporation Berhad 004
CORPORATE MILESTONES 2017 • KLSB subscribed for 40% equity interest in JBB Kimlun Sdn Bhd (“JKSB”). The principal activity of JKSB is building and infrastructure contractor. • KLLSB incorporated three wholly-owned subsidiaries, Kiiville Sdn Bhd (“KVSB”), Kii Ashbury Sdn Bhd (“KASB”) and Kii Morris Sdn Bhd (“KMSB”). The principal activities of KVSB, KASB and KMSB are property investment and property development. • Kimlun Group commenced premix production in Sarawak and Johor. 2020 • KLSB successfully registered with CIDB for additional specialisation to construct hospital building. • Kimlun Corporation Berhad incorporated a wholly-owned subsidiary, Kii Amber Sdn Bhd (“KABSB”). The principal activities of KABSB are investment holding, property investment and development. • KABSB subscribed for 49% equity interest in Bayu Damai Sdn Bhd (“BDSB”). The principal activity of BDSB is property development. • KABSB incorporated a 69.50% owned subsidiary, Kii Melodia Sdn Bhd (“KMLDSB”). The principal activities of KMLDSB are property investment and property development. 2013 • Kimlun Group launched its first property development project, the Hyve SOHO and Offices in Cyberjaya, Selangor. • KLSB secured its first contract with a value exceeding RM290 million for the construction of service apartments and ancillary buildings. • SPC set up a new precast concrete products manufacturing plant on a piece of land measuring approximately 130 acres in Negeri Sembilan, and commenced production during the year. 2015 • Kimlun Corporation Berhad incorporated a wholly-owned subsidiary, KL Building Materials Sdn Bhd (“KBMSB”). The principal activities of KBMSB are manufacturing and trading of building and construction materials, and provision of quarry services and machinery rental services. 2016 • Kimlun Group’s 30% owned joint venture company, Zecon Kimlun Consortium Sdn Bhd, was awarded a work package contract for the Proposed Development and Upgrading of the Pan Borneo Highway in Sarawak for a contract sum of RM1.46 billion. This signifies the Group’s geographical diversification to East Malaysia, and expansion of its construction services to highway project. The Project is the single largest contract which the Group won in its history. • SPC won SBG and tunnel lining segments supply contracts in relation to Projek Mass Rapid Transit Lembah Kelang: Jajaran Sungai Buloh-Putrajaya Line, with aggregate contract value of RM252 million. 2013-2016 2017-2020 005 Annual Report 2023
PROFILE OF DIRECTORS Pang Tin @ Pang Yon Tin, a Malaysian aged 76, male, was appointed to the Board as Executive Chairman of Kimlun Corporation Berhad on 24 October 2009 and is responsible for overseeing the management of our Group. He completed Senior Middle Three at Foon Yew High School in Johor Bahru, Johor, in 1966. He commenced his career in the construction industry in 1966 by assisting his late father in his construction business. He, together with Phang Piow @ Pang Choo Ing, incorporated Kimlun Sdn Bhd in 1977 to continue their venture in the construction industry. With the experience gained in the construction industry, he ventured into quarry business in 1970s and into property development in 1980s. He has more than 44 years of experience in various sectors, encompassing property development, property investment, construction, quarrying, manufacturing and hotel management. He also sits on the Board of several private limited companies. Sim Tian Liang, a Malaysian aged 69, male, was appointed to the Board as Chief Executive Officer of Kimlun Corporation Berhad on 24 October 2009 and is responsible for strategic planning and for the overall management of the Group. He graduated from Universiti Teknologi Malaysia in 1978, obtaining a Bachelor’s Degree (Honours) in Engineering. Currently, he is the Past Chairman of the Institution of Engineers Malaysia Southern Branch and Past President of Johor Master Builders Association. He is also a member of the Chartered Institution of Highway and Transportations of the UK, a Honorary Member of Asean Federation of Engineering Organisation and a Fellow of Construction Industry Development Board Malaysia. He is a professional engineer registered with the Board of Engineers Malaysia, and has been in the construction industry since 1978 where he commenced work as a civil engineer with the Malaysian Government. He joined Pang Hock Constructions Sdn Bhd (now known as Tebrau Bay Constructions Sdn Bhd) towards the end of 1996 and was appointed as its Project Director in 1997 where his responsibilities included overseeing, monitoring and management of building and infrastructure construction projects. In 2003, he left Pang Hock Constructions Sdn Bhd and joined Kimlun Sdn Bhd as Chief Executive Officer. His primary role is to oversee to the execution of corporate objectives, as well as to provide the strategic direction of the company. SIM TIAN LIANG Chief Executive Officer & Executive Director Gender : Male Nationality : Malaysian Age : 69 years Date of Appointment : 24 October 2009 PANG TIN @ PANG YON TIN Executive Chairman Gender : Male Nationality : Malaysian Age : 76 years Date of Appointment : 24 October 2009 Kimlun Corporation Berhad 006
PROFILE OF DIRECTORS Chin Lian Hing, a Malaysian aged 59, male, was appointed to the Board as Executive Director of Kimlun Corporation Berhad on 24 October 2009 and is responsible for the operations and business development activities of our construction business. He graduated from Tunku Abdul Rahman College, Malaysia, in 1988, obtaining a Diploma in Technology (Building). He holds a Bachelor’s Degree of Applied Science (Constructions Management and Economics) from Curtin University of Technology, Australia. He has been in the construction industry since 1988 where he commenced work as an Assistant Quantity Surveyor in Rukumas Sdn Bhd, leaving in 1989 to join AJ Construction Sdn Bhd as a Quantity Surveyor. In 1990, he joined Hoon Lay Kien Construction also as a Quantity Surveyor. Thereafter, he joined Chin Kek Ling Transport in mid-1990 before leaving to join Pang Hock Constructions Sdn Bhd (now known as Tebrau Bay Constructions Sdn Bhd) in January 1992. During his time at Pang Hock Constructions Sdn Bhd, his last held position was General Manager (Operations and Contracts) and he was responsible for overseeing the tendering of building and infrastructure construction projects, and project implementation. He left Pang Hock Constructions Sdn Bhd in 2002 to join Kimlun Sdn Bhd, where he is responsible for the operations and business development activities of the company. Yam Tai Fong, a Malaysian aged 56, female, was appointed to the Board as Executive Director of Kimlun Corporation Berhad on 24 October 2009 and is responsible for all financial matters concerning our Group. She graduated from Monash University, Australia, in 1990, obtaining a Bachelor’s Degree in Economics. Since 1994, she has been a member of the Malaysian Institute of Accountants. She commenced her career at Ernst & Young, Malaysia, in 1991, with responsibilities for audit, taxation and corporate advisory matters, leaving in 1994 to join Pang Hock Constructions Sdn Bhd (now known as Tebrau Bay Constructions Sdn Bhd). Whilst at Pang Hock Constructions Sdn Bhd, she was responsible for the financial management and management reporting of its affairs. She left Pang Hock Constructions Sdn Bhd in 2003 to join Kimlun Sdn Bhd to assume similar responsibilities. CHIN LIAN HING Executive Director Gender : Male Nationality : Malaysian Age : 59 years Date of Appointment : 24 October 2009 YAM TAI FONG Executive Director Gender : Female Nationality : Malaysian Age : 56 years Date of Appointment : 24 October 2009 007 Annual Report 2023
PROFILE OF DIRECTORS Pang Khang Hau, a Malaysian aged 42, male, was appointed to the Board as Executive Director of Kimlun Corporation Berhad on 24 October 2009 and is responsible for the corporate affairs of our Group, including business development activities, human resource, administration and management. He graduated from the University of Western Australia in 2005, obtaining a Bachelor’s Degree in Civil Engineering. He completed a Master of Business Administration degree at the University of Liverpool, UK, in 2010. He commenced his career in the construction industry in 2006 with his appointment as a Director of Kimlun Sdn Bhd where he is responsible for business development activities, human resource, administration and management. Datuk Woon See Chin, a Malaysian aged 80, male, was appointed to the Board as Independent Non-Executive Director of Kimlun Corporation Berhad on 1 October 2020. He is the Chairman of the Remuneration Committee and a member of the Audit and Risk Management Committee. He graduated from the law school of University of Singapore and is an advocate and solicitor by profession and has been in legal practice in Johor Bahru for more than forty-nine years. He was an Independent Non-Executive Director of Focal Aims Holdings Bhd (now knows as Eco World Development Group Bhd) for more than 9 years until his resignation on 28 November 2013. He was a Johor State Assembly member in 1982 and was elected as a Member of Parliament of Malaysia from 1986 to 1995. He served as a Deputy Minister of Education of Malaysia for four (4) years from 1986 to 1990. PANG KHANG HAU Executive Director Gender : Male Nationality : Malaysian Age : 42 years Date of Appointment : 24 October 2009 DATUK WOON SEE CHIN Independent Non-Executive Director Gender : Male Nationality : Malaysian Age : 80 years Date of Appointment : 1 October 2020 Kimlun Corporation Berhad 008
PROFILE OF DIRECTORS Johar Salim Bin Yahaya, a Malaysian aged 70, male, was appointed to the Board as Independent Non-Executive Director of Kimlun Corporation Berhad on 1 December 2021. He is the Chairman of the Nomination Committee and a member of the Remuneration Committee. He graduated with a Bachelor of Economics (Hons.) Degree from University of Malaya. He started his career with Bank of America in 1974 and later moved to Malaysian French Bank in 1983. He joined Kumpulan Prasarana Rakyat Johor as Chief Operating Officer from 1997 to 2003 and rose to become the Chief Executive Officer until 2013. He was also the Chief Executive Officer of Tebrau Teguh Berhad from 2004 to 2012 and Executive Chairman of PLS Plantation Bhd from 2000 to 2013. He is currently the Chairman of Selia Ekuiti Sdn Bhd. Anita Chew Cheng Im, a Malaysian aged 57, female, was appointed to the Board as an Independent Non-Executive Director of Kimlun Corporation Berhad on 1 December 2021. She is the Chairperson of the Audit and Risk Management Committee and a member of the Nomination Committee. She graduated from Monash University, Australia with a Bachelor of Economics Degree, majoring in Accounting in April 1990. Anita started her career as an audit assistant at KPMG, Melbourne in 1990. She left KPMG in September 1991 to return to Malaysia. While in KPMG, she was engaged in the audit of the media, retail and mining industries. In 1992, she joined the Corporate Finance department of Bumiputra Merchant Bankers Berhad (now known as Alliance Investment Bank Berhad after merging with Amanah Investment Bank Berhad) and was with the investment bank for approximately 5 years. From 2003 to 2007, she worked at HwangDBS Investment Bank Berhad as Senior Vice President, Equity Capital Market. Prior to that, she was Director, Corporate Finance at Alliance Investment Bank Berhad from 1997 to 2003. She was involved in most related areas of corporate finance work during her tenure in the various investment banks, having advised clients on numerous IPO, fund raising, both equity and debt, mergers and acquisitions; and corporate and debt restructuring exercises. Since she left the investment banking industry in 2007, she has been sitting on various corporate boards. She is currently an Independent Non-Executive Director of Plytec Holding Berhad, K-One Technology Berhad and SKP Resources Berhad, companies listed on Bursa Securities Malaysia Berhad. She also sits on Fortress Minerals Ltd, a company listed on the Singapore Exchange (SGX) as an Independent Non-Executive Director. JOHAR SALIM BIN YAHAYA Independent Non-Executive Director Gender : Male Nationality : Malaysian Age : 70 years Date of Appointment : 1 December 2021 ANITA CHEW CHENG IM Independent Non-Executive Director Gender : Female Nationality : Malaysian Age : 57 years Date of Appointment : 1 December 2021 009 Annual Report 2023
PROFILE OF DIRECTORS Bhupendar Singh A/L Sewa Singh, a Malaysian aged 66, male, was appointed to the Board as Independent Non-Executive Director of Kimlun Corporation Berhad on 1 December 2021. He is a member of the Audit and Risk Management Committee and Nomination Committee. He holds a Bachelor’s Degree (Honours) in Accounting from Universiti Malaya. He is a member of the Malaysian Institute of Accountants and an Associate Member of the Chartered Tax Institute of Malaysia. He commenced his career with Hanafiah, Raslan & Mohammad in 1983 with the taxation unit and the firm merged with Arthur Andersen & Co in April 1990. He became a Tax Partner in 1996 and moved to the firm of Ernst & Young in 2002. He was a senior tax partner with the firm until October 2010 when he left to join Petronas as the Head of Group Tax Department. He became a Vice President in 2016 and retired from Petronas in March 2020. He was responsible for setting up and growing the Tax Department of Petronas to be able to manage all the tax affairs of the Group in an effective manner. He is currently running his own tax consultancy and advisory firm and provides such services to clients in various industries. Dato’ Ir Fong Tian Yong, a Malaysian aged 75, male, was appointed to the Board as Independent Non-Executive Director of Kimlun Corporation Berhad on 1 December 2021. He is a member of the Audit and Risk Management Committee and the Remuneration Committee. He holds a Bachelor’s Degree in Civil Engineering from Singapore University. Upon graduation in 1974, he joined the Public Works Department as Executive Engineer and rose to become the Deputy Director General of Local Government Department of the Ministry of Housing & Local Government (KPKT) until his retirement from government service in 2007. He was thereafter appointed to serve as Technical Advisor to four Ministers of KPKT until 2012 when he joined MalaysiaChina Business Council as its Executive Director until 2021. In KPKT, he oversaw the development of Chinese New Village Master Plan, the amendments of Street, Drainage and Building Act, Uniform Building Bylaws and several policy matters. He co-authored the Book, Malaysian Chinese New Villages. On the corporate side, he is a director of Malaysia-China Business Council, a not-for-profit company limited by guarantee as well as the Editor of the Board of Engineers Malaysia. He was the past President of the Technological Association Malaysia. Notes to Directors’ Profile : 1. Pang Tin @ Pang Yon Tin is the father of Pang Khang Hau. Save as disclosed, none of the directors have any family relationship with any other director and/or major shareholder of the Company. 2. Save for Pang Tin @ Pang Yon Tin and Pang Khang Hau, who have interest in recurrent related party transactions as disclosed under Note 30 to the financial statements contained in this Annual Report, none of the directors have any conflict of interest with the Company. 3. None of the directors have been convicted of any offences within the past five (5) years and imposed any public sanction or penalty by the relevant regulatory bodies during the financial year 2023 other than traffic offences, if any. BHUPENDAR SINGH A/L SEWA SINGH Independent Non-Executive Director Gender : Male Nationality : Malaysian Age : 66 years Date of Appointment : 1 December 2021 DATO’ IR FONG TIAN YONG Independent Non-Executive Director Gender : Male Nationality : Malaysian Age : 75 years Date of Appointment : 1 December 2021 Kimlun Corporation Berhad 010
623,797 168,598 2,306 8 2020 1,022,167 272,095 8,523 33 2019 2023 61,582 2021 50,105 2020 74,536 2019 134,117 2022 86,541 2023 2022 2021 2010 2019 852,569 756,134 691,087 794,709 1,302,818 2023 2.00 (2.05) 2022 (0.17) 2.34 17.42 2021 2020 2019 Construction Manufacturing Property Development Investment 58,369 2020 2021 2023 2019 7,944 (728) 6,878 2022 (7,291) 2021 2022 2023 2020 2019 79,687 15,524 971 (3,698) 13,055 538,156 186,337 31,622 19 2022 503,982 142,103 44,994 8 2021 638,548 190,198 23,809 14 2023 GROUP FINANCIAL HIGHLIGHTS REVENUE (RM’000) REVENUE BY SEGMENT (RM’000) GROSS PROFIT (RM’000) BASIC EARNINGS/(LOSS) PER SHARE (SEN) PROFIT/(LOSS) BEFORE TAX (PBT) (RM’000) PROFIT/(LOSS) AFTER TAX (PAT) (RM’000) 011 Annual Report 2023
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 2023 (“FY2023”). OUR OPERATING ENVIRONMENT Since the COVID-19 global pandemic up until FY2022, we have decided to focus in the execution of projects in hand and reduce participation in new projects bidding, to keep credit risks and operation risks low during a period of supply constrictions, unpredictable trend of rising cost of raw materials and massive shortage of workers. As a result, our order book replenishment was low in the past few years, thus impacted our revenue. With the improvement in property market sentiments and labour market conditions, more manageable building material price trends, we normalised our bidding strategy in FY2023. In our home base, Johor, work progress on the Johor Bahru-Singapore Rapid Transit System Link project has significantly boosted property buyers’ confidence, given the visibility of growth prospects. There were increasing launches of residential, commercial and industrial development during the year. Further, the influx of new investments such as data centres has also created demand for construction services. We secured RM1.3 billion of new construction projects during FY2023, which is about 4.5 times of new construction projects secured in FY2022. Some of these new projects have began contributing revenue in FY2023, thus improving our performance in FY2023. Our pre-cast concrete products manufacturing division (“PCPD”) benefited from the steady flow of opportunities from Singapore public sector projects, and has won sales orders from Singapore MRT projects. Most of these sales orders were in design stage or production preparation stage during FY2023. Total new sales orders secured by the PCPD in FY2023 was RM0.3 billion. CHAIRMAN’S STATEMENT Kimlun Corporation Berhad 012
OUR BUSINESS PERFORMANCE Our revenue increased from RM756.13 million in FY2022 to RM852.57 million in FY2023, mainly attributable to higher revenue generated by the construction division. Despite of higher revenue, our gross profit (“GP”) declined from RM86.54 million in FY2022 to RM61.58 million in FY2023, due to a lower GP margin of 7.22% in FY2023 against 11.45% of FY2022. The decline in the GP margin was due to lower profitability achieved by the manufacturing and trading division. Administration expenses declined from RM82.74 million in FY2022 to RM38.18 million in FY2023. Administration expenses were higher in FY2022 due to the impairment of trade receivable and contract asset totaling RM43.52 million in relation to a completed hospital project. On overall, we generated profit before tax of RM13.06 million and profit after tax of RM6.88 million in FY2023 against loss before tax of RM3.70 million and loss after tax of RM7.29 million in FY2022. Please refer to the Financial Review section under the Management Discussion And Analysis for further details on our performance. OUTLOOK We have an estimated construction and manufacturing balance order book of approximately RM2.0 billion and RM0.3 billion respectively as at 31 December 2023, from a list of diversified clientele. The balance order book is expected to keep us busy for the next 2 to 3 years. We are cautiously optimistic that the construction sector of Malaysia and Singapore will remain positive in 2024, thus offer order book replenishment prospects. We will continue to bid for projects and sales orders in order to replenish our order book and contribute positively to our result in 2024 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 FY2023, 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 013 Annual Report 2023
敬爱的股东， 本人谨代表董事局提呈 金轮企业有限公司（“本 公司”）截至2023年12 月31日财政年（“2023 财政年”）的年度报告。 我们的运营环境 自 COVID-19 全球大流行至2022财政年，我们决定专注 于执行手头上的项目，减少参与新项目招标，以在供应紧 缩、不可预测的原材料成本上涨趋势和工人严重短缺的时 期保持较低的信用风险和运营风险。因此，过去几年我们 的订单补充量颇低，从而影响了我们的收入。 随着房地产市场情绪好转, 劳动力短缺缓解以及建筑材料 价格趋势稳定，我们在2023财政年将投标策略正常化。 在我们的大本营柔佛州，新山-新加坡捷运项目的工作进 展大大增强了购房者的信心。许多开发商在2023年启动 住宅、商业和工业房地产开发项目。此外，数据中心等新 投资的涌入也创造了对建筑服务的需求。 我们在2023财政年获得了13亿令吉的新建筑项目，约为 2022财政年获得的新建筑项目的4.5倍。其中一些新项目 已在2023财政年开始贡献收入，从而改善了我们在2023 财政年的业绩。 我们的预制混凝土产品分部受惠于新加坡公共工程对预制 混凝土产品的需求，并赢得了新加坡捷运项目的销售订 单。该分部在2023财政年度获得的销售订单总额为3亿令 吉。这些销售订单大多在2023财政年处于设计阶段或生 产准备阶段。 主席 文告 Kimlun Corporation Berhad 014
我们的业务表现 我们的营业额从2022财政年的7亿5613万令吉增加到 2023财政年的8亿5257万令吉，主要归功于建筑部门的 营业额有所改善。 尽管我们的营业额有所增加，2023财政年的毛利卻因较 低的毛利润而下降到6158万令吉。 行政开支从2022财政年的8274万令吉下降到2023财政 年的3818万令吉。我们在2022财政年对一笔与一项医院 工程相关的应收账款和合同资产共计4352万令吉所作出 的全盘减值导致该年的行政开支偏高。 总体而言，我们在2023财政年的税前利润为1306万令 吉，税后利润为688万令吉，而2022财政年的税前亏损 为370万令吉，税后亏损为729万令吉。 请参阅2023财政年年度报告的第 21 至 22 页，以了解有 关我们业绩的更多详细信息。 展望 截至2023年12月31日，我们的建筑和制造余额订单分别 约为20亿令吉和3亿令吉，来自多元化的客户群。预计余 额订单将让我们在未来2到3年内保持忙碌。 我们谨慎乐观地认为，马来西亚和新加坡的建筑业将在 2024年保持活力。我们将继续积极地竞标项目和销售订 单，以补充我们的订单，并为我们在2024年及以后的业 绩做出贡献。我们在所经营的行业中拥有良好的业绩记 录，在业务方面拥有丰富的经验，加上银行家的支持，是 集团竞标和执行未来项目的良好支持因素。 股东回馈—股息 虽然本公司没有实行正规的股息政策，但是本公司自 2010年在马来西亚证券交易所主板上市以来,每年都派发 股息回馈股东。 即使我们经历了艰辛的一年,董事局仍然建议派发每股1仙 的终期单层股息，惟需在来临的股东常年大会上获得股东 批准。 致谢 我谨代表董事会，衷心感谢我们的股东、来往银行、客 户、业务伙伴以及有关监管当局对我们的持续支持，指导 以及协助。董事会谨借此机会感谢我们的管理层以及员工 的辛勤工作以及奉献精神。 彭廷 主席 主席 文告 015 Annual Report 2023
MANAGEMENT DISCUSSION AND ANALYSIS MISSION We aim to continuously improve, promote and provide construction activities and services to the society in which we operate. By providing one stop construction design and build services, we aim to add value to our clients that in turn will be beneficial to the society at large. We will treat all partners including suppliers, subcontractors and consultants with trust, honesty and fairness in all business dealings. Towards our employees, we balance our focus on their personal skills development while taking care of their welfare. While seeking to maximise shareholders’ wealth, we strive to maintain harmony with the interest of the society to enhance our corporation’s sustainability. VISION We aspire to be a reliable, innovative and profitable provider of full range construction services and products in the South East Asia region. K I ML U N KNOWLEDGE INTEGRITY MORAL LEADERSHIP UNITY NOVELTY CORPORATE VALUES Kimlun Corporation Berhad 016
MANAGEMENT DISCUSSION AND ANALYSIS OVERVIEW OF OUR BUSINESSES AND OPERATIONS KIMLUN GROUP’S CORE BUSINESSES Manufacturing and Trading Property Development Construction and Engineering Building Division Residential projects: high rise and landed properties Non residential projects: retail malls, factories, hospitals, schools and colleges Precast Concrete Products Tailor made products for infrastructure related projects Customised products for IBS building related projects Land Bank Johor Kuala Lumpur and Selangor Infrastructure Division Highways, interchanges, yovers, roads and earthworks Quarry Products Aggregates, premix and concrete Upcoming Development Service apartment development in Johor Ongoing Development Semi-detached houses in 100 trees @ Seri Alam, Johor Bungalows in Bukit Bayu, Shah Alam, Selangor 017 Annual Report 2023
NEGERI SEMBILAN • Tunnel lining segment • Segmental box girder • Parapet walls • Column and beam JOHOR • Tunnel lining segment • Rail sleeper • Jacking pipe • Vertical cast pipe • Box culverts • Prefabricated pre nished volumetric module • Hollow core slab • Column and beam • Aggregates • Premix SARAWAK • Aggregates • Premix • Concrete drains PRODUCTION PLANT AND PRODUCTS CONSTRUCTION PROJECTS MANUFACTURING ORDERS Notable completed projects include: • Main building works for Marlborough College East, Johor • Mall of Medini, Johor • Granada Hotel, Johor • Gleneagle Medini Hospital, Johor • Pan Borneo Highway Sarawak On-going projects include: • Sarawak-Sabah Link Road • Various apartment and landed properties projects in Selangor and Johor Completed sales orders include: • Segmental box girders (“SBG”) and tunnel lining segment (“TLS”) to Klang Valley MRT (“KVMRT”) Line 1 and Line 2 • TLS to Singapore MRT Circle Line, Downtown Line and Thomson Line • Precast Bathroom to Michael and Festive Hotel, Singapore On-going sales orders include: • TLS, rail sleepers and IBS for Singapore MRT projects • Jacking pipes for Singapore Deep Tunnel Sewerage project • IBS for Singapore Integrated Waste Management Facility and a resort development Sector Type Private sector (67%) Project Type Infrastructure projects (39%) Public sector (33%) Building projects (61%) Orders by Country Singapore orders: (97%) Malaysia orders: (3%) RM2.0 billion Balance order book as at 31 December 2023 RM0.3 billion Balance order book as at 31 December 2023 All projects in Malaysia MANAGEMENT DISCUSSION AND ANALYSIS Kimlun Corporation Berhad 018
We are not materially dependent on any single customer for business. We have been securing projects from different clients. Our diversified clientele include: Government and Government Link Companies International Contractors Private Sector - Eco World Development Group Bhd - Gamuda Bhd - Mah Sing Group Bhd - Samling Resources Sdn Bhd - Sunway Construction Group Bhd - Mass Rapid Transit Corporation Sdn. Bhd. - UEM Sunrise Bhd - S P Setia Bhd - Johor Land Bhd - Shimizu Corporation - Shanghai Tunnel Engineering Ltd - SK Engineering & Construction - Nishimatsu Construction Co. Ltd. - M+W Singapore Pte Ltd MANAGEMENT DISCUSSION AND ANALYSIS PROPERTY DEVELOPMENT Location / Land Area Gross Development Value (RM) Type of Land Usage / Plan Development Selective Land Bank in Hand Bandar Seri Alam, Johor Bahru, Johor / 11.11 acres # Freehold commercial land / commercial development Within Meridin East township, Mukim Plentong, Johor Bahru, Johor / 17.90 acres # Freehold commercial land / commercial development Medini Iskandar Malaysia, Johor / 5.31 acres # 99-years lease on freehold commercial land / A combination of SOHO and retails properties Kota Tinggi, Johor / 139.64 acres # 29 parcels of freehold agriculture land / township development Mukim Pulai, Johor Bahru, Johor / 29.00 acres # Freehold agriculture land / commercial development Situated next to Alam Damai, Cheras, Kuala Lumpur / 43.87 acres # 10 pieces of freehold agriculture land / mixed development Seksyen U10 Shah Alam, Selangor / 19.10 acres # 72 units of 99-years leasehold vacant detached lots approved for bungalow development Location Gross Development Value (RM) Launched Development / Planned Development On-going Projects Phase 2 of Bukit Bayu, Seksyen U10 Shah Alam, Selangor 48 million 16 units of leasehold bungalows 100 trees @ Seri Alam, Bandar Seri Alam, Johor 66 million 60 units of freehold semi-detached houses Total 114 million Upcoming Project Development in Mukim Plentong, Johor Bahru, Johor 300 million 896 service apartment units # The gross development value cannot be ascertained as the development details have yet to be finalised DIVERSIFIED CLIENTELE 019 Annual Report 2023
GROUP FINANCIAL HIGHLIGHTS Year ended / As at 31 December 2019 2020 2021 2022 2023 FINANCIAL RESULTS (RM' mil) Revenue 1,302.82 794.71 691.09 756.13 852.57 Gross Profit 134.12 74.54 50.10 86.54 61.58 Profit/(Loss) Before Taxation 79.69 15.52 0.97 (3.70) 13.06 Profit/(Loss) After Taxation 58.37 7.94 (0.73) (7.29) 6.88 Profit/(Loss) Attributable to Owners of the Company 58.39 7.99 (0.59) (7.23) 7.06 FINANCIAL POSITION (RM' mil) Cash and Bank Balances 64.94 57.47 69.54 72.23 63.26 Total Assets 1,546.16 1,476.98 1,326.44 1,300.77 1,526.37 Total Borrowings 406.61 407.11 307.06 307.64 413.37 Shareholders’ Equity 720.47 725.91 721.28 710.40 713.84 FINANCIAL RATIOS Gross Profit Margin % 10.29 9.38 7.25 11.45 7.22 Basic Earnings per Share (“EPS”)/ Loss per Share Sen 17.42 2.34 (0.17) (2.05) 2.00 Dividend per Share Sen 3.30 1.00 1.00 1.00 1.00 Dividend Yield (note 1) % 2.6 1.1 1.2 1.3 1.3 Net Assets per Share RM 2.12 2.08 2.07 2.05 2.10 Net Gearing Ratio (note 2) times 0.32 0.32 0.25 0.25 0.32 CASH FLOW (RM’ mil) Net cash flows generated from operating activities 10.55 13.14 117.57 53.98 89.26 Net cash flows used in investing activities (91.86) (1.98) (2.60) (22.79) (173.04) Net cash flows generated from/ (used in) financing activities 104.04 4.24 (103.44) (17.16) 78.35 SHARES PERFORMANCE Share Price – Year Close RM 1.25 0.895 0.81 0.77 0.78 Share Price – Year High RM 1.49 1.26 1.01 0.835 0.865 Share Price – Year Low RM 1.08 0.51 0.74 0.63 0.70 Trading volume (no of shares) Mil 35 163 76 12 15 Market Capitalisation (note 3) RM' mil 425 316 286 272 276 Price Earnings Ratio (note 4) times 7.2 38.2 - - 39.0 Note 1 : Being dividend per share/share price – year close Note 2 : Being net debt/total equity plus net debt Note 3 : Market capitalisation as at the financial year end Note 4 : Being year close share price/EPS for the financial year MANAGEMENT DISCUSSION AND ANALYSIS Kimlun Corporation Berhad 020
FINANCIAL REVIEW Group Revenue and Profitability The Group recorded revenue of RM852.57 million in FY2023, which was RM96.44 million (12.8%) higher compared to RM756.13 million recorded in FY2022. The growth in revenue was mainly attributable to higher revenue generated by the construction division. Despite of higher revenue, gross profit (“GP”) of FY2023 was lower at RM61.58 million compared to RM86.54 million of FY2022, due to a lower GP margin of 7.22% against 11.45% of FY2022. The decline in the GP margin was due to lower profitability achieved by the manufacturing and trading (“M&T”) division which offset the marked improvement in the GP of construction division. Other income of RM8.37 million in FY2023 approximate the level in FY2022. Other income mainly comprised of reversal of allowance for impairment on land held for property development and trade receivable, and interest income. Administration expenses of RM38.18 million in FY2023 were RM44.56 million (53.9%) lower against FY2022. Administration expenses were higher in FY2022 due to the impairment of trade receivable and contract asset totaling RM43.52 million in relation to a hospital project. Finance costs of RM15.57 million in FY2023 were RM2.75 million (21.5%) higher against FY2022 mainly due to higher utilisation of bank facilities and hike in interest rate. Share of loss of joint ventures of RM3.14 million in FY2023 was RM0.24 million (8.2%) higher against FY2022 mainly due to higher finance costs incurred by joint ventures. The effective tax rate for FY2023 was higher than the statutory rate applicable to the Group as certain expenses were disallowed for tax deduction under tax regulations and potential deferred tax benefit on unutilised tax losses, unabsorbed capital allowances and other temporary differences were not recognised on prudent basis. As a result, the Group recorded profit before tax of RM13.06 million and profit after tax of RM6.88 million in FY2023 against loss before tax of RM3.70 million and loss after tax of RM7.29 million in FY2022. Segmental Revenue and Gross Profit* * : The segmental revenue and gross profit stated in the commentary in relation to the respective segment were inclusive of inter-segment transactions. FY2023 RM'000 FY2022 RM'000 Changes RM'000 % Revenue Construction 679,704 550,208 129,496 23.5% M&T 249,999 366,153 (116,154)-31.7% Property Development 23,809 31,623 (7,814) -24.7% Investment 8,907 9,674 (767) -7.9% Elimination (109,851) (201,524) 91,673 -45.5% Consolidated revenue 852,568 756,134 96,434 12.8% GP Construction 25,056 6,703 18,353 273.8% M&T 37,013 76,520 (39,507) -51.6% Property Development 3,982 3,589 393 11.0% Investment 8,907 9,674 (767) -7.9% Elimination (13,376) (9,945) (3,431) 34.5% Consolidated GP 61,582 86,541 (24,959) -28.8% GP margin Construction 3.69% 1.22% M&T 14.81% 20.90% Property Development 16.72% 11.35% Investment 100.00% 100.00% Consolidated GP margin 7.22% 11.45% The increase in construction revenue in FY2023 was attributable to revenue contribution from new construction projects secured in FY2023, and higher revenue arose from the acceleration of construction progress of the Sarawak-Sabah Link Road Construction Project (Lawas-Long Lopeng Junction) (“SSRL Project”). The decrease in M&T revenue in FY2023 was due to the significant decrease in the inter-segment sales as a large order which contributed significantly to the inter-segment sales in the preceding year was near completion. MANAGEMENT DISCUSSION AND ANALYSIS 021 Annual Report 2023
The breakdown of the revenue of the M&T division is as follow: FY2023 RM'000 FY2022 RM'000 Changes RM'000 % External sales 190,198 186,337 3,861 2.07 Inter-segment sales 59,801 179,816 (120,015) (66.74) Total 249,999 366,153 (116,154) (31.72) The decrease in property development revenue was due the absence of sales of Phase 1 of Bukit Bayu, Seksyen U10, Shah Alam project which, save for 1 unit of unsold stock, had been fully sold in FY2022. The decline in investment revenue which comprised of dividend and interest income, was due to lower inter-segment dividend income. Construction division recorded a better GP margin in FY2023 on economic of scale from higher level of operation. On the back of improved GP margin and higher revenue, construction division achieved a higher GP in FY2023. M&T division recorded a lower GP margin in FY2023, mainly due to depreciation did not decrease proportionately to the decrease in revenue, while payroll costs were higher during the period. With a lower revenue and GP margin, M&T division recorded a lower GP in FY2023. PD division recorded a higher GP margin in FY2023, due to better margin products were sold during FY2023. Financial Position Shareholders’ equity increased from RM710.40 million as at 31 December 2022 to RM713.84 million as at 31 December 2023, attributable to total comprehensive income attributable to owners of the Company of RM6.98 million partly offset by dividend of RM3.53 million paid during FY2023. Non-current assets increased from RM316.77 million as at 31 December 2022 to RM501.85 million as at 31 December 2023, mainly due to acquisition of land held for development. Current assets increased from RM984.00 million as at 31 December 2022 to RM1,024.52 million as at 31 December 2023, mainly due to the increase in contract assets, in line with higher scale of operation. Current liabilities increased from RM416.17 million as at 31 December 2022 to RM587.32 million as at 31 December 2023, mainly due to higher trade payables and bank borrowings, in line with higher scale of operation. Non-current liabilities increased from RM159.31 million as at 31 December 2022 to RM198.68 million as at 31 December 2023 mainly due to new loans drawn down during the year to finance land acquisition. Net gearing ratio as at 31 December 2023 was at a manageable level of 0.32 times. Cash Flow For FY2023, net cash of RM89.26 million was generated from operating activities. Net cash of RM173.04 million was used in investing activities, mainly for the purchase of land held for property development. Net cash of RM78.35 million was generated from financing activities, mainly from loans drawn down to part finance the purchase of land held for property development. With the overall net decrease in cash of RM5.42 million during FY2023, the Group’s cash and cash equivalents was RM58.71 million as at 31 December 2023. MANAGEMENT DISCUSSION AND ANALYSIS Kimlun Corporation Berhad 022
Focus and Strategies for 2024 Manufacturing Division Property Development Division Construction Division Execution of projects in hand Leverage on the diversi ed construction services track record to bid for new public and private sector projects Undertake in-house projects Bid for precast products orders from Singapore and Malaysia markets, including those in relation to MRT line, rail line and private sector IBS orders Expansion of production line On-going development of Phase 2 of Bukit Bayu, Selangor, and 100 trees @ Seri Alam, Johor Launching of a service apartment project in Johor with GDV of RM300 million Development planning of land bank in hand PROSPECTS AND OUTLOOK The Group has an estimated construction and manufacturing balance order book of approximately RM2.0 billion and RM0.3 billion respectively as at 31 December 2023, contributed by numerous construction contracts and manufacturing orders. The balance order book is expected to keep the Group busy for the next 2 to 3 years. As in any business, the Group is subject to various challenges and risks. Please refer to pages 64 to 66 of this Annual Report for nature of the key risks and the Group’s control measures to mitigate the risks. Our on-going projects and sales orders comprises contracts secured from, amongst other, Samling Resources Sdn Bhd, Eco World Development Berhad Group, UEM Sunrise Bhd Group, S P Setia Bhd Group and China Communications Construction Company Ltd. Our on-going projects and sales orders include the following: (a) The SSRL Project for a contract sum of RM0.78 billion. The estimated completion period of the project is year 2026; (b) Design and build project for 1 block of service apartment and amenities in Johor for a contract sum of RM98.85 million. The estimated completion period of the project is year 2026; and (c) Few sales orders for the supply of IBS components and tunnel lining segments (“TLS”) to Singapore MRT project. The estimated completion period of these sales orders is year 2026. The Board is cautiously optimistic that the construction sector of Malaysia and Singapore will remain positive in 2024, thus offer order book replenishment prospects. The Group will continue to bid for projects and sales orders in order to replenish the Group’s order book and contribute positively to the Group’s result in 2024 and beyond. The Group’s track record in the industries that it operates in, and extensive experience in our business, coupled with the support from bankers, are good supporting factors for the Group to bid for and execute future projects. MANAGEMENT DISCUSSION AND ANALYSIS 023 Annual Report 2023
Malaysia Construction Sector The Group expects some tender opportunities from the following public sector projects in 2024: ● Phase 2 of Pan Borneo Highway Sarawak; ● Flood mitigation projects; ● Road upgrading works in Johor; ● Klang Valley MRT Line 3; ● Kuching Urban Transportation System; and ● Affordable housing projects On the property sector landscape, Malaysia’s property transaction value hit RM196.83 billion in 2023, the highest ever recorded by the National Property Information Centre (Napic). Napic expects the property market’s performance to remain cautiously optimistic in 2024. There were marked increase in tender invitations and project awards to the Group since year 2023. The Group secured RM1.3 billion worth of construction projects in year 2023. In the home base of the Group, Johor, developers are upbeat with the improvement in the property market sentiment given the visibility of the Johor Bahru-Singapore RTS project as well as the announcements of the proposed JohorSingapore Special Economic Zone and Special Financial Zone. Other than projects from external parties, the Group’s construction arm will undertake construction works for in-house property developments projects as detailed in the ensuing section of this report. Singapore Construction Sector The Building and Construction Authority (BCA) projects the total construction demand, i.e. the value of construction contracts to be awarded, to range between S$32 billion and S$38 billion in nominal terms in 2024. The public sector is expected to drive total construction demand in 2024, reaching between S$18 billion and S$21 billion, mainly from public housing and infrastructure projects. Some of the major upcoming public sector projects scheduled to be awarded in 2024 include the Housing and Development Board’s new Built-To-Order developments, additional Cross Island MRT Line contracts (Phase 2), infrastructure works for the future Changi Airport Terminal 5 (T5) and Tuas Port developments and other major road enhancement and drainage improvement works. Private sector construction demand is projected to be between S$14 billion and S$17 billion in 2024. BCA anticipates that private sector construction demand in 2024 will come mainly from residential developments under the Government Land Sales, expansion of the two Integrated Resorts, redevelopment of commercial premises, as well as development of mixed-used properties and industrial facilities. BCA expects a steady improvement in construction demand over the medium term. It is projected to reach between S$31 billion and S$38 billion per year from 2025 to 2028. Our subsidiary, SPC Industries Sdn Bhd (“SPC”) has very strong track record in the supply of precast components including TLS, concrete rail sleepers and jacking pipes to large public sector infrastructure projects in Singapore including Singapore MRT projects, Deep Tunnel Sewerage System Phase 2 and Singapore Power’s underground cable tunnel. Further, SPC has been a frequent supplier of IBS components to various projects in Singapore. With its strong track record in Singapore, SPC is well positioned to compete for further potential sales orders from Singapore. MANAGEMENT DISCUSSION AND ANALYSIS Kimlun Corporation Berhad 024
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