ANNUAL REPORT 2025 159 NOTES TO THE FINANCIAL STATEMENTS 200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 4. Revenue (cont'd) (b) Contract assets and contract liabilities 2025 2024 RM RM Contract assets: Construction (i) 426,042,524 340,450,749 Manufacturing (ii) 47,900,882 31,850,850 Property development (iii) 81,130,935 10,310,818 555,074,341 382,612,417 Contract liabilities: Construction (i) 55,266,934 13,910,929 Manufacturing (ii) 10,186,811 30,946,251 Property development (iii) 8,814,916 - 74,268,661 44,857,180 (i) Contract assets/(liabilities) from construction: 2025 2024 RM RM Contract assets 426,042,524 340,450,749 Contract liabilities (55,266,934) (13,910,929) 370,775,590 326,539,820 Construction contract costs incurred to date 4,840,887,366 4,097,219,989 Recognised profits 540,384,894 499,564,221 Progress billings to date (5,010,496,670) (4,270,244,390) 370,775,590 326,539,820 Contract assets primarily relate to the Group's right to consideration for work completed but not yet billed at the reporting date. Contract assets are transferred to receivables when the rights become unconditional. Group Information about contract assets and contract liabilities from contracts with customers is disclosed as follows: Contract liabilities primarily relate to the Group's billings in advance at the reporting date. Contract liabilities are reversed and revenue is recognised as work is completed. Group - 39 -
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