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
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