CYPARK RESOURCES BERHAD designed for: presented by: Annual Report 2021 designed for: KIMLUN CORPORATION BERHAD Annual Report 2024
“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”. “We aspire to be a reliable, innovative and profitable provider of full range construction services and products in the South East Asia region”. VISION MISSION OUR OUR 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.
WHAT’S INSIDE 002 003 004 006 Corporate Information Corporate Structure Corporate Milestones 011 012 016 Group Financial Highlights Chairman’s Statement Management Discussion and Analysis Profile of Directors 026 050 064 Corporate Governance Overview Statement Additional Compliance Information Disclosures Sustainability Statement 065 Audit and Risk Management Committee Report 075 069 Statement on Directors’ Responsibility Statement on Risk Management and Internal Control FINANCIAL STATEMENTS 076 Analysis of Shareholdings 078 List of Properties 080 Notice of Sixteenth (16th) Annual General Meeting 088 089 Statement Accompanying Notice of Annual General Meeting Administrative Guide for the Sixteenth Annual General Meeting (“16th AGM”) Proxy Form CORPORATE VALUES KNOWLEDGE LEADERSHIP NOVELTY INTEGRITY MORAL UNITY
CORPORATE INFORMATION BOARD OF DIRECTORS 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 AUDIT AND RISK MANAGEMENT COMMITTEE NOMINATION COMMITTEE REGISTERED OFFICE 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 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 Office Suite No. 603 Block C, Pusat Dagangan Phileo Damansara 1, No. 9, Jalan 16/11, Off Jalan Damansara, 46350 Petaling Jaya, Selangor, Malaysia Telephone No. : (+603) 7890 0238 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@vistra.com REMUNERATION COMMITTEE COMPANY SECRETARIES 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 Yeng Shi Mei (MAICSA 7059759)(SSM PC No. 202008001282) Tay Lee Shya (MIA 16982)(SSM PC No. 202008002274) Rebecca Kong Say Tsui (MAICSA 7039304)(SSM PC No. 202008001003) AUDITOR Ernst & Young PLT 202006000003 (LLP0022760-LCA) & AF 0039 B-15, Medini 9, Persiaran Medini Sentral 1, Bandar Medini Iskandar, 79250 Iskandar Puteri, Johor Telephone No. : (+607) 288 3111 Facsimile No. : (+607) 288 3112 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 002
CORPORATE STRUCTURE 003 ANNUAL REPORT 2024 Kimlun Sdn Bhd Zecon Kimlun Consortium Sdn Bhd SPC Industries Sdn Bhd Kimlun Superior Crest Sdn Bhd JBB Kimlun Sdn Bhd Kimlun Land Sdn Bhd KL Building Materials Sdn Bhd Kii Amber Sdn Bhd Kimlun Medini Sdn Bhd Rock Projects Sdn Bhd 100% 100% 100% 100% 100% 100% 51% 67% 33% 40% 60% 30% Posh Atlantic Sdn Bhd Kitaran Lintas Sdn Bhd Pinegate Development Sdn Bhd Kiiville Sdn Bhd Kii Ashbury Sdn Bhd Kii Morris Sdn Bhd 100% 100% 100% 100% 100% 100% Kii Melodia Sdn Bhd Bayu Damai Sdn Bhd Astaka Kimlun Sdn Bhd 49% 49% 69.50% 70% Bonus Focus Development Sdn Bhd
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 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 CORPORATE MILESTONES 004
2017 - 2020 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 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 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. 2017 • KLSB subscribed for equity interest in JBB Kimlun Sdn Bhd (“JKSB”), therely JKSB became a joint venture company of KLSB. The principal activity of JKSB is building and infrastructure contractor. • KLLSB incorporated three 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 subsidiary, Kii Amber Sdn Bhd (“KABSB”). The principal activities of KABSB are investment holding, property investment and development. • KABSB subscribed for equity interest in Bayu Damai Sdn Bhd (“BDSB”), thereby BDSD became a subsidiary of KABSB. The principal activity of BDSB is property development. • KABSB incorporated a subsidiary, Kii Melodia Sdn Bhd (“KMLDSB”). The principal activities of KMLDSB are property investment and property development. 2013 - 2016 CORPORATE MILESTONES 2021 - 2024 2024 • KLLSB acquired equity interest in Posh Atlantic Sdn Bhd (“PASB”) and Bonus Focus Development Sdn Bhd (“BFDSB”), thereby PASB and BFDSB became subsidiaries of KLLSB. The principal activities of PASB and BFDSB are property investment and property development. • KABSB subscribed for equity interest in Astaka Kimlun Sdn Bhd (“AKSB”), thereby AKSB became an associate company of KABSB. The principal activities of AKSB are property investment and property development. 005 ANNUAL REPORT 2024
SIM TIAN LIANG Chief Executive Officer & Executive Director Pang Tin @ Pang Yon Tin (“Mr Pang Tin”), a Malaysian aged 77, 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. Mr Pang Tin 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. Mr Pang Tin has more than 45 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 (“Mr Sim”), a Malaysian aged 70, 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. Mr Sim graduated from Universiti Teknologi Malaysia in 1978, obtaining a Bachelor’s Degree (Honours) in Engineering. 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. Mr Sim 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. Date of Appointment 24 October 2009 AGE: 70 PANG TIN @ PANG YON TIN Executive Chairman AGE: 77 Date of Appointment 24 October 2009 PROFILE OF DIRECTORS 006
PROFILE OF DIRECTORS CHIN LIAN HING Executive Director YAM TAI FONG Executive Director Chin Lian Hing (“Mr Chin”), a Malaysian aged 60, 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. Mr Chin 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. Mr Chin 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 (“Ms Yam”), a Malaysian aged 57, 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. Ms Yam 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. Ms Yam 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. Date of Appointment 24 October 2009 Date of Appointment 24 October 2009 AGE: 60 AGE: 57 007 ANNUAL REPORT 2024
PANG KHANG HAU Executive Director Pang Khang Hau (“Mr Pang”), a Malaysian aged 43, 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. Mr Pang 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 of our Group. Date of Appointment 24 October 2009 AGE: 43 PROFILE OF DIRECTORS DATUK WOON SEE CHIN Independent Non-Executive Director Datuk Woon See Chin (“Datuk Woon”), a Malaysian aged 81, male, was appointed to the Board as Independent Non-Executive Director of Kimlun Corporation Berhad on 1 October 2020. He is the Chairperson of the Remuneration Committee and a member of the Audit and Risk Management Committee. Datuk Woon 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 49 years. Datuk Woon 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. Date of Appointment 1 October 2020 AGE: 81 008
PROFILE OF DIRECTORS JOHAR SALIM BIN YAHAYA Independent Non-Executive Director ANITA CHEW CHENG IM Independent Non-Executive Director Johar Salim Bin Yahaya (“Encik Johar”), a Malaysian aged 71, male, was appointed to the Board as Independent Non-Executive Director of Kimlun Corporation Berhad on 1 December 2021. He is the Chairperson of the Nomination Committee and a member of the Remuneration Committee. Encik Johar 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. Encik Johar is currently the Chairman of Selia Ekuiti Sdn. Bhd. Anita Chew Cheng Im (“Anita”), a Malaysian aged 58, 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. Anita 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, Anita 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 Hwang DBS Investment Bank Berhad as Senior Vice President, Equity Capital Market. Prior to that, she was a Director, Corporate Finance at Alliance Investment Bank Berhad from 1997 to 2003. Anita 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 Anita 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, SKP Resources Berhad and Kuchai Development 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 NonExecutive Director. Date of Appointment 1 December 2021 Date of Appointment 1 December 2021 AGE: 71 AGE: 58 009 ANNUAL REPORT 2024
DATO’ IR. FONG TIAN YONG Independent Non-Executive Director Dato’ Ir. Fong Tian Yong (“Dato’ Ir. Fong”), a Malaysian aged 76, 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. Dato’ Ir. Fong 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 Malaysia-China Business Council as its Executive Director until 2021. In KPKT, Dato’ Ir. Fong 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, Dato’ Ir Fong 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. Date of Appointment 1 December 2021 AGE: 76 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 31 to the financial statements contained in this Annual Report, none of the directors have any conflict of interest or potential conflict of interest with the Company or its subsidiaries. 3. None of the directors have convicted any offences within the past five (5) years and being imposed with any public sanction or penalty by the relevant regulatory bodies during the financial year 2024, other than traffic offences, if any. BHUPENDAR SINGH A/L SEWA SINGH Independent Non-Executive Director Bhupendar Singh A/L Sewa Singh (“Mr Bhupendar”), a Malaysian aged 67, 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. Mr Bhupendar 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. Mr Bhupendar 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. Mr Bhupendar is currently running his own tax consultancy and advisory firm providing such services to clients in various industries. Date of Appointment 1 December 2021 AGE: 67 PROFILE OF DIRECTORS 010
PROFIT/(LOSS) BEFORE TAX (PBT) (RM’000) GROUP FINANCIAL HIGHLIGHTS REVENUE BY SEGMENT (RM’000) Construction Property Development Manufacturing Investment GROSS PROFIT (RM’000) PROFIT/(LOSS) AFTER TAX (PAT) (RM’000) BASIC EARNINGS/ (LOSS) PER SHARE (SEN) REVENUE (RM’000) 794,709 2020 691,087 2021 756,134 2022 852,569 2023 2024 1,207,413 74,536 2020 50,105 2021 86,541 2022 61,582 2023 98,473 2024 7,944 2020 (7,291) 2022 6,878 50,782 2024 2020 2.34 (0.17) 2021 (2.05) 2023 2.00 2024 14.50 15,524 2020 971 (3,698) 2022 13,055 68,398 2023 2021 2022 2024 2023 2021 (728) 20 8,564 200,065 998,764 2024 2022 19 31,622 186,337 538,156 2020 168,598 2,306 8 623,797 2023 14 23,809 190,198 638,548 2021 8 44,994 142,103 503,982 011 ANNUAL REPORT 2024
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 2024 (“FY2024”). OUR OPERATING ENVIRONMENT The Malaysia construction industry has achieved a remarkable double-digit growth in 2024, after rebounding strongly from the challenges of the COVID-19 pandemic. Robust growth was achieved by the residential, non-residential and special trade subsectors. There were marked increase in tender invitations and project awards to us during FY2024, and we secured a record high of RM2.17 billion worth of new construction projects during FY2024, which is about 67% higher than the new construction projects secured in FY2023. Amongst the new projects secured were high-rise residential projects in Johor Bahru and Klang Valley, and upgrading of Senai-Desaru Expressway. The Singapore construction industry has also recorded a higher construction demand in 2024. Our pre-cast concrete products manufacturing division (“PCPD”) benefited from the steady flow of opportunities from Singapore public sector projects, and has secured a number of pre-cast concrete products sales orders in relation to the Singapore MRT projects during FY2024. Total new sales orders secured by the PCPD in FY2024 from Malaysia and Singapore market was RM0.2 billion. With higher projects and orders in hand, our revenue rebounded strongly to RM1.21 billion. CHAIRMAN’S STATEMENT 012
OUR BUSINESS PERFORMANCE OUTLOOK We have an estimated construction and manufacturing balance order book of approximately RM3.1 billion and RM0.3 billion respectively as at 31 December 2024, from a diversified clientele. The balance order book is expected to keep us busy for the next 2 to 3 years. We believe the construction sector of Malaysia and Singapore will remain robust in 2025 with stronger property market sentiment and the expected roll out of further public sector projects, thus offer order book replenishment prospects. In our home base, Johor, developers are upbeat with the improvement in the property market sentiment given the Johor Bahru-Singapore RTS project is progressing well, and significant foreign direct investment with data centers and the Johor-Singapore Special Economic Zone (JS-SEZ) as key drivers. We will continue to bid for projects and sales orders in order to replenish our order book and contribute positively to our result in 2025 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. Our revenue increased from RM852.57 million in FY2023 to RM1.21 billion in FY2024, mainly attributable to higher revenue generated by the construction and manufacturing and trading (“M&T”) divisions. Our gross profit (“GP”) increased from RM61.58 million in FY2023 to RM98.47 million in FY2024, on the back of higher revenue and better GP margin of 8.2% against 7.2% of FY2023. Administration expenses increased from RM38.18 million in FY2023 to RM57.13 million in FY2024 mainly due to higher human resources costs and foreign exchange loss. Other operating income increased from RM8.37 million in FY2023 to RM52.06 million in FY2024 due to the full reversal of allowance of impairment on trade receivable and contract asset aggregating RM43.52 million in relation to a construction project, as the amount had been collected. We generated a stronger profit before tax and profit after tax of RM68.40 million and RM50.78 million respectively in FY2024. Please refer to the Financial Review section under the Management Discussion And Analysis for further details on our performance. 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 FY2024, the Board recommends a single tier dividend of 2.0 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. Your 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 2024
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 2024年12月31日财政年（“2024财政年”）的年度报告。 我们的运营环境 马来西亚建筑业在从COVID-19疫情相关的挑战中强劲反弹后，在2024年取得了双位数的增长。 在2024年，我们受邀参加的建筑招标项目显著增加，並在该年获得颁发了总值21.7亿令吉的新建筑 项目，比2023年获得的新建筑项目飊升约67%，且是我们历来最高的年度得标总值。这些新项目包 括位于柔佛州新山和巴生谷的高层住宅项目，以及提升士乃-迪沙鲁高速公路的项目。 新加坡建筑业在2024年的建筑需求也有所增长。我们的预制混凝土产品制造部门 (“PCPD”) 在该年 获得了与新加坡捷运项目相关的多项预制混凝土产品销售订单。PCPD从新加坡和马来西亚市场获得 的新销售订单总额为2亿令吉。 随着项目和订单的增加，我们的收入强劲反弹至12亿741万令吉。 主席文告 014
我们的业务表现 展望 截至2024年12月31日，我们的建筑和制造部门 的余额订单分别约为31亿令吉和3亿令吉。预计 余额订单将让我们在未来2到3年内保持忙碌。 有鉴于房地产市场情绪的改善以及多项公共领域 工程项目有望推出，我们相信马来西亚和新加坡 的建筑业将在 2025 年保持强劲，並为我们提供 商机。 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2025年及以后的业绩做 出贡献。我们良好的业绩记录，丰富的经验及银 行家的支持，为我们垫下了竞标和执行未来项目 的优势。 我们的营业额从2023财政年的8亿5257万令吉增 加到2024财政年的12亿741万令吉，主要归功于 建筑及制造业部门的营业额走高。 我们的毛利润从2023财政年的6158万令吉增加 到2024财政年的9847万令吉，得益于更高的营 业额和较高的利润率。 行政开支从2023财政年的3818万令吉增加到 2024财政年的5713万令吉，主要是由于人力资 源成本上升和外汇损失。 其他营业收入从2023财政年的837万令吉增加到 2024财政年的5206万令吉，归功于我们成功收 回一笔总额4352万令吉的呆账及合同资产。 总体而言，我们在2024财政年的税前利润及税后 利润大副增长各达6840万令吉及5078万令吉。 请参阅2024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。 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。 董事局建议派发每股2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 2024
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. We aspire to be a reliable, innovative and profitable provider of full range construction services and products in the South East Asia region. CORPORATE VALUES MANAGEMENT DISCUSSION AND ANALYSIS VISION MISSION 016 NOWLEDGE EADERSHIP OVELTY NTEGRITY ORAL NITY
MANAGEMENT DISCUSSION AND ANALYSIS OVERVIEW OF OUR BUSINESSES AND OPERATIONS KIMLUN GROUP’S CORE BUSINESSES Construction and Engineering Manufacturing and Trading Property Development Building Division Infrastructure Division Precast Concrete Products Land Bank Quarry Products Upcoming Development Ongoing Development 017 ANNUAL REPORT 2024 Residential projects: high rise and landed properties Tailor made products for infrastructure related projects Non residential projects: retail malls, factories, hospitals, schools and colleges Customised products for IBS building related projects Highways, interchanges, flyovers, roads and earthworks Aggregates, premix and concrete - Pinegate Residency service apartment Phase 2, Masai, Johor - Pinegate Residency service apartment Phase 1, Masai, Johor - Arden Residence service apartment, Johor Bahru, Johor Johor Kuala Lumpur and Selangor
PRODUCTION PLANT AND PRODUCTS Constrution Projects Manufacturing Order Negeri Sembilan • Tunnel lining segment • Segmental box girder • Parapet walls • Column and beam Sarawak • Aggregates • Premix • Concrete drains 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 Complete sales orders include: • Segmental box girder (“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 Festival 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 All projects in Malaysia Balance order book as at 31 Dec 2024: RM3.1 billion Balance order book as at 31 Dec 2024: RM0.3 billion Johor • Tunnel lining segment • Rail sleeper • Jacking pipe • Vertical cast pipe • Box culverts • Prefabricated prefinised volumetric module • Hollow core slab • Column and beam • Aggregates • Premix Public sector 81% Private sector 19% Building projects 76% Infrastructure projects 24% Malaysia orders 99% Singapore orders 1% MANAGEMENT DISCUSSION AND ANALYSIS 018
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 Meridin Iskandar Malaysia, Johor / 5.31 acres # 99-years lease on freehold commercial land / A combination of SOHO and retails properties Iskandar Puteri, Johor Bahru, Johor / 19.84 acres # Freehold agriculture land / mixed development Iskandar Puteri, 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 Pinegate Residency Phase 1, Masai, Johor 300 million 896 service apartment units Arden Residence, Johor Bahru, Johor 800 million 618 service apartment units and 4 commercial lots Total 1,148 million Upcoming Project Development in Mukim Plentong, Johor Bahru, Johor 315 million 896 service apartment units # The gross development value cannot be ascertained as the development details have yet to be finalised. DIVERSIFIED CLIENTELE We are not materially dependent on any single customer for business. We have been securing projects from different clients. Our diversified clientele include: Private Sector • Eco World Development Group Bhd • Gamuda Bhd • Mah Sing Group Bhd • Samling Resources Sdn Bhd • Sunway Construction Group Bhd Government and Government Link Companies • Mass Rapid Transit Corporation Sdn. Bhd. • UEM Sunrise Bhd • S P Setia Bhd • JLG Land Berhad International Contractors • Taisei-Cscec JV • Shanghai Tunnel Engineering Ltd • SK Engineering & Construction • Penta-Ocean Construction Co Ltd • M+W Singapore Pte Ltd MANAGEMENT DISCUSSION AND ANALYSIS 019 ANNUAL REPORT 2024
MANAGEMENT DISCUSSION AND ANALYSIS GROUP FINANCIAL HIGHLIGHTS Year ended / As at 31 December 2020 2021 2022 2023 2024 FINANCIAL RESULTS (RM’ mil) Revenue 794.71 691.09 756.13 852.57 1,207.41 Gross Profit 74.54 50.10 86.54 61.58 98.47 Profit/(Loss) Before Taxation 15.52 0.97 (3.70) 13.06 68.40 Profit/(Loss) After Taxation 7.94 (0.73) (7.29) 6.88 50.78 Profit/(Loss) Attributable to Owners of the Company 7.99 (0.59) (7.23) 7.05 51.24 FINANCIAL POSITION (RM' mil) Cash and Bank Balances 57.47 69.54 72.23 63.26 69.67 Total Assets 1,476.98 1,326.44 1,300.77 1,532.81 2,065.64 Total Borrowings 407.11 307.06 307.64 413.37 671.54 Shareholders’ Equity 725.91 721.28 710.40 713.84 761.60 FINANCIAL RATIOS Gross Profit Margin % 9.4 7.3 11.5 7.2 8.2 Basic Earnings per Share (“EPS”)/Loss per Share Sen 2.34 (0.17) (2.05) 2.00 14.50 Dividend per Share Sen 1.00 1.00 1.00 1.00 2.00 Dividend Yield (Note 1) % 1.1 1.2 1.3 1.3 1.7 Net Assets per Share RM 2.08 2.07 2.05 2.10 2.23 Net Gearing Ratio (Note 2) times 0.32 0.25 0.25 0.32 0.43 CASH FLOW (RM’ mil) Net cash flows generated from/(used in) operating activities 13.14 117.57 52.02 89.26 (29.59) Net cash flows used in investing activities (1.98) (2.60) (20.83) (180.33) (152.82) Net cash flows generated from/(used in) financing activities 4.24 (103.44) (17.16) 85.64 181.69 SHARES PERFORMANCE Share Price – Year Close RM 0.895 0.81 0.77 0.78 1.20 Share Price – Year High RM 1.26 1.01 0.835 0.865 1.77 Share Price – Year Low RM 0.51 0.74 0.63 0.70 0.78 Trading volume (no of shares) Mil 163 76 12 15 118 Market Capitalisation (Note 3) RM' mil 316 286 272 276 424 Price Earnings Ratio (Note 4) times 38.2 - - 39.0 8.27 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 020
MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW Group Revenue and Profitability The Group recorded revenue of RM1,207.41 million in FY2024, which was RM354.84 million (41.6%) higher compared to RM852.57 million recorded in FY2023. The growth in revenue was mainly attributable to the increase in external sales revenue (“external revenue”) generated by the construction and manufacturing and trading (“M&T”) divisions. Gross profit (“GP”) of FY2024 was higher at RM98.47 million compared to RM61.58 million of FY2023 on the back of higher revenue and better GP margin of 8.2% against 7.2% of FY2023. The improvement in GP margin was due to better profitability achieved by the construction and M&T divisions. Other operating income of FY2024 was multifold higher at RM52.06 million compared to RM8.37 million of FY2023 due to the full reversal of allowance of impairment on trade receivable and contract asset aggregating RM43.52 million in relation to a construction project, as the amount had been collected. Administration expenses of FY2024 were higher at RM57.13 million compared to RM38.18 million of FY2023 due to the following: (i) Higher human resources costs, in line with higher scale of operation; and (ii) The Group suffered foreign exchange loss of RM8.24 million in FY2024 resulted from the strengthening of Ringgit Malaysia against Singapore Dollar. In contrast, the Group recorded foreign exchange gains of RM4.14 million in FY2023. Finance costs of FY2024 were higher at RM25.32 million compared to RM15.57 million of FY2023 mainly due to higher utilisation of bank facilities to finance higher scale of operation, and finance costs incurred by a subsidiary acquired during FY2024 (“New Subsidiary”). The effective tax rate of FY2024 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. Overall, the Group recorded profit before tax of RM68.40 million and profit after tax of RM50.78 million in FY2024 against profit before tax of RM13.06 million and profit after tax of RM6.88 million in FY2023. 021 ANNUAL REPORT 2024
MANAGEMENT DISCUSSION AND ANALYSIS 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. FY2024 RM'000 FY2023 RM'000 Changes RM'000 % Revenue Construction 1,104,477 679,704 424,773 62.5 M&T 279,424 249,999 29,425 11.8 Property Development 8,565 23,809 (15,244) -64.0 Investment 9,957 8,908 1,049 11.8 Elimination (195,010) (109,851) (85,159) 77.5 Consolidated revenue 1,207,413 852,569 354,844 41.6 GP Construction 62,909 25,055 37,854 151.1 M&T 56,520 37,013 19,507 52.7 Property Development (125) 3,982 (4,107) -103.1 Investment 9,957 8,908 1,050 11.8 Elimination (30,788) (13,376) (17,412) 130.2 Consolidated GP 98,473 61,582 36,892 59.9 GP margin Construction 5.7% 3.7% M&T 20.2% 14.8% Property Development -1.5% 16.7% Investment 100.0% 100.0% Consolidated GP margin 8.2% 7.2% The increase in construction revenue in FY2024 was mainly attributable to revenue contribution from new projects secured in FY2023 and FY2024, and higher revenue arose from the acceleration of construction progress of the Sarawak-Sabah Link Road Construction Project (Lawas-Long Lopeng Junction) (“SSLR Project”). The increase in M&T revenue in FY2024 was mainly attributable to higher sales of pre-cast concrete products and quarry products to external parties. The decrease in property development revenue was mainly due to one of the on-going development projects was at tail end. The construction and M&T divisions recorded higher GP in FY2024 on the back of higher revenue and better GP margin on economic of scale from higher level of operation. 022
MANAGEMENT DISCUSSION AND ANALYSIS Financial Position Shareholders’ equity increased from RM713.84 million as at 31 December 2023 to RM761.60 million as at 31 December 2024, mainly contributed by total comprehensive income attributable to owners of the Company of RM51.29 million, partly offset by dividend of RM3.53 million paid during FY2024. Non-current assets increased from RM508.29 million as at 31 December 2023 to RM651.59 million as at 31 December 2024, mainly due to the acquisition of properties, plant and equipment (“PPE”) to meet the requirements of higher scale of operation. Current assets increased from RM1.02 billion as at 31 December 2023 to RM1.41 billion as at 31 December 2024, mainly due to the increase in trade and other receivables and contract assets, in line with higher scale of operation. Current liabilities increased from RM587.32 million as at 31 December 2023 to RM997.58 million as at 31 December 2024, mainly due to higher trade and other payables, and loans and borrowings, in line with higher scale of operation. Non-current liabilities increased from RM205.12 million as at 31 December 2023 to RM280.14 million as at 31 December 2024 mainly due to loan of the New Subsidiary. Net gearing ratio as at 31 December 2024 was at a manageable level of 0.43 times. Cash Flow For FY2024, net cash of RM29.59 million was used in operating activities, in line with higher scale of operation. Net cash of RM152.82 million was used in investing activities, mainly for the purchase of PPE. Net cash of RM181.69 million was generated from financing activities, mainly from drawdown of bank facilities and issuance of Sukuk to part finance the purchase of PPE and land held for property development, and working capital requirements. With the overall net decrease in cash and cash equivalents of RM0.72 million during FY2024, the Group’s cash and cash equivalents was RM57.91 million as at 31 December 2024. PROSPECTS AND OUTLOOK The Group has an estimated construction and manufacturing balance order book of approximately RM3.1 billion and RM0.3 billion respectively as at 31 December 2024, 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 70 to 72 of this Annual Report for nature of the key risks and the Group’s control measures to mitigate the risks. 023 ANNUAL REPORT 2024
MANAGEMENT DISCUSSION AND ANALYSIS Our on-going projects and sales orders comprise of contracts secured from, amongst other, Saraworks Sdn. Bhd., Eco World Development Group Berhad group, UEM Sunrise Berhad Group, S P Setia Berhad Group and China Communications Construction Company Ltd. Our ongoing projects and sales orders include the following: (a) the SSRL Project for a contract sum of RM0.78 billion; (b) design and build project for 1 block of service apartment and amenities in Johor for a contract sum of RM98.85 million; and (c) few sales orders for the supply of IBS components and tunnel lining segments (“TLS”) to Singapore MRT project. The Board is optimistic that the construction sector of Malaysia and Singapore will continue to be vibrant in 2025, 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 2025 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. Malaysia Construction Sector The Group expects some tender opportunities from the following public sector projects in 2025: • Highway projects in East Malaysia; • Road upgrading works in Johor; • Penang LRT projects; and • Affordable housing projects In the home base of the Group, Johor, developers are upbeat with the improvement in the property market sentiment given the Johor Bahru-Singapore RTS project is progressing on schedule, and significant foreign direct investment with data centers and the Johor-Singapore Special Economic Zone as key drivers. There were marked increase in tender invitations and project awarded to the Group since year 2023. The Group secured RM2.17 billion worth of construction projects in year 2024. Other than projects from external parties, the Group’s construction arm will undertake construction works for in-house property development projects as detailed in the ensuing section of this report. Focus and Strategies for 2025 Construction Division: • Execution of projects in hand • Leverage on the diversified construction services track record to bid for new public and private sector projects • Undertake in-house projects Manufacturing Division: • Bid for precast products order from Singapore and Malaysia markets, including those in relation to MRT line and rail line, and private sector IBS orders • Complete the expansion of production line Property Development Division: • On-going development of Phase 2 of Bukit Bayu, Selangor • Launching of 2 service apartment projects in Johor with total of GDV of RM1.1 billion • Development planning of land bank in hand 024
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$47 billion and S$53 billion in nominal terms in 2025. The strong demand is underpinned by the expected award of contracts for several large-scale developments, such as Changi Airport Terminal 5 (T5) and the expansion of the Marina Bay Sands Integrated Resort, alongside public housing development and upgrading works. Other contributors include high-specification industrial buildings, educational developments, healthcare facilities, Mechanical and Engineering contracts for the Thomson-East Coast Line Extension (TEL) and Cross Island Line (CRL), and infrastructure works for the Woodlands Checkpoint extension and the Tuas Port. Over the medium-term, BCA expects the total construction demand to reach an average of between S$39 billion and S$46 billion per year from 2026 to 2029. 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 DIVIDEND POLICY 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 FY2024, the Board recommends a final single tier dividend of 2.0 sen per ordinary share. The recommended final dividend is subject to the shareholders’ approval 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. Property Development Division The Group began the sales of a service apartment development project in Masai, Johor, namely Pinegate Residency Phase 1, with estimated gross development value (“GDV”) of approximately RM300 million, in January 2025. Further, its associate company, Astaka Kimlun Sdn Bhd, launched a service apartment development project in Johor Bahru, Johor, namely Arden Residence, with estimated GDV of approximately RM800 million, in March 2025. The developments receive encouraging response from the market and are expected to contribute positively to the Group’s profit. The Group expects to submit its development planning applications in relation to few of its land banks for the relevant authorities’ approval this year. 025 ANNUAL REPORT 2024
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