SUSTAINABILITY STATEMENT • Quality and Cost Management Kimlun prioritizes consistent quality in its work and products through dedicated quality control teams that benchmark against industry standards like the Quality Assessment System in Construction (“QLASSIC”) in Malaysia and Construction Quality Assessment System (“CONQUAS”) in Singapore. Continuous improvement is a key focus, with ongoing identification of enhancement opportunities. We follow a rigorous supplier and contractor assessment process to ensure high-quality partnerships while maintaining financial efficiency. Before each project execution, Kimlun develops detailed plans incorporating procurement and risk management. In precast manufacturing, pre-production planning and quality control minimize product rejection and optimize resources. SPC targets a product rejection rate of no more than 1% and our rejection rate for FY2024 is 0.66%. ENERGY MANAGEMENT Kimlun’s operations consume significant energy through vehicle fuel (diesel and petrol for operational vehicles), diesel for construction equipment and site generators, and electricity for headquarters, factories, project sites, and offices. In FY2023, the company has started estimating its energy consumption based on fuel purchases and electricity purchased from Tenaga Nasional Berhad (“TNB”) and Sarawak Energy Berhad (“SEB”). The table below illustrates the total energy consumption for Kimlun. Total Energy Consumption FY2024 FY2023 Energy Amount Energy Amount Purchased electricity 18,211 11,432 Diesel (used in Group-owned/controlled vehicles/equipment) 169,985 109,397 Gasoline (Petrol) (used in Group-owned/controlled vehicles/equipment) 7,164 6,918 Total Energy Consumption (GJ) 195,360 127,746 Note: Total energy consumption is calculated using Methodology from Malaysia Energy Statistics Handbook 2022 (“MESH”) (Diesel: 1 Litre = 0.035 GJ), (Petrol: 1Litre = 0.031 GJ) and total electricity consumption (1MWh = 1,000kWh; 1kWh = 0.0036 GJ) *The energy consumption amount reported in FY2023 has been converted from (MWh) to GJ WATER MANAGEMENT At Kimlun Group, we recognise that water is a crucial resource for Kimlun’s operations, particularly in precast concrete manufacturing in Negeri Sembilan and Johor, hence it is in our interest that we prioritize water efficiency and aim to avoid excessive usage wherever possible in our processes even though our in-scope premises (i.e. headquarters, factories, and offices) are not located in water-stressed areas. Notwithstanding that, Kimlun has installed rainwater harvesting tanks to collect rainwater for miscellaneous use such as cleaning wheels and tires at some construction sites. As part of our journey to improve on our sustainability initiatives, we are currently optimizing our data collection methods for the recording of rainwater collection and consumption. Additionally, to ensure that we minimise the environmental impact of our wastewater discharged, Kimlun’s Group implemented on-site treatment for wastewater, including sediment basins and silt traps, before discharge. The Group’s estimated water consumption and discharge for FY2024 is summarized in the table below: Total Volume of Water Used FY2024 FY2023 Total Water Used (Megalitre) 477.74 264.96 043 ANNUAL REPORT 2024
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