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
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