Kumpulan Kitacon Berhad (Malaysia)

The Company was incorporated in Malaysia on 24 February 2022, as a private company limited by shares under the name of Kumpulan Kitacon Sdn. Bhd .
The Company's principal activity is investment holding range of construction projects under category residential buildings including landed properties such as terrace, semi-detached and detached houses, cluster houses and townhouses; while non-residential buildings include commercial shop offices, shopping malls, industrial buildings, institutional buildings, and purpose-built buildings such as sales gallery and clubhouse.
The World Health Organisation declared the novel coronavirus ('COVID-19') as a global pandemic on 11 March 2020. Following the declaration, the Government of Malaysia has on 18 March 2020 imposed the Movement Control Order eMCO') and subsequently entered into various phases of the MCO to curb the spread of the COVID-19 pandemic in Malaysia.
The Group's current financial year results were affected by pandemic and the implementation of different stages of Movement Control Order ('MCO') which had disrupted the construction activities of the projects. As such, the Group billings to customers have been delayed and as a result, the Group experienced a delay in the billings and collections. However, this did not materially affect the business operations and cash flow position.
As at the date of authorisation of the financial statements, the COVID-19 pandemic situation is still evolving and remain uncertain. The Group will continue to actively monitor and manage its funds and operations to minimise any impact arising from the COVID-19 pandemic. Nevertheless, with the Group's past focus on cost efficiency, strong cash position, resilient fundamentals, the Group expects to sustain its operational and financial performance for the financial year ending 31 December 2022.
Our history can be traced back to October 1990 when our Managing Director, Tan Ah Kee, acquired 50.0% equity interest in KSB (formerly known as Aqua Gourmet Sdn Bhd, a company that was incorporated by Teow Choo Hing, our Non-Independent Non-Executive Director and Substantial Shareholder, his uncle and business associates with the intention of undertaking restaurants and catering business) from the subscriber shareholders for RM2 and commenced business as a construction services provider. At the same time, the remaining 50.0% equity interest was acquired by Kindah Construction Sdn Bhd, in which Teow Choo Hing held 30.0% equity interest, for RM2. In December 1996, Kindah Construction Sdn Bhd transferred its entire shareholding in KSB to be held directly by Teow Choo Hing, which resulted in Tan Ah Kee and Teow Choo Hing each holding 50.0% equity interest in KSB.
Between 1998 and 2017, KSB has undertaken various shareholding restructuring exercise involving the disposal of shares in KSB by Tan Ah Kee and Teow Choo Hing to a few shareholders who were associated with Tan Ah Kee and Teow Choo Hing, mainly to explore the expansion of KSB’s construction business. These shareholders were employees of Tan Ah Kee and Teow Choo Hing, and had subsequently disposed of their shareholdings back to Tan Ah Kee and Teow Choo Hing. Notwithstanding the changes in the shareholding structure, our Group remains under the control of Tan Ah Kee and Teow Choo Hing since incorporation, and Tan Ah Kee had remained as the main driving force behind the business growth, development and the strategic direction of KSB together with the support and guidance of Teow Choo Hing throughout the period.
In January 2018, subsequent to another shareholding restructuring exercise undertaken by KSB involving the transfer of 4.0% equity interest in KSB by QLB to Lembah Reka, Tan Ah Kee and Teow Choo Hing each held 50.0% effective equity interest in KSB, represented by their direct shareholding of 23.0% each, and indirect shareholding via Suan Neo Capital (50.0%) and Lembah Reka (4.0%), both of which were equally owned by Tan Ah Kee and Teow Choo Hing.
In April 2018, KSB subscribed for 49% equity interest comprising 1,960,000 shares in QLB through the issuance of new shares at RM1.00 each for a total consideration of RM1,960,000. QLB was incorporated in December 1997, and is principally involved in the provision of construction services. The company served a small clientele base which included I & P Group, THP Enstek Development Sdn Bhd and PNB Development Group. During the Financial Years/Period Under Review, QLB subcontracted all of its projects awarded by its customers to KSB, which contributed between 1.6% and 11.4% to our total revenue.
In order to consolidate QLB’s clientele base and construction services under KSB for cost effectiveness reason and to improve operational efficiency of our Group, KSB undertook the Disposal of QLB in May 2022. Prior to the Disposal of QLB, the directors of QLB were Tan Ah Kee, Teow Choo Hing, Sabarin Bin Ibrahim and Zamri Bin Salleh, and the shareholders of QLB were KSB (49.0%) and Pembinaan Lembah Reka Sdn Bhd (51.0%, previously an investment holding company which was jointly owned by Sabarin Bin Ibrahim (40.0%) and Zamri Bin Salleh (60.0%)). The Disposal of QLB was completed in June 2022 and is not expected to affect KSB in securing future projects as KSB would participate directly in all tenders, including the tender for projects from QLB’s customers.
In November 2021, following the issuance of 10,000,000 new shares by KSB at an issue price of RM1.00 each (of which 2,600,000 shares were subscribed in cash by Tan Ah Kee, Suan Neo Capital and Lembah Reka collectively, while the remaining 7,400,000 shares were subscribed in cash by Teow Choo Hing), Teow Choo Hing held 40.0% equity interest in KSB directly, while the remaining 60.0% equity interest in KSB was held by Tan Ah Kee, whereby 23.0% was held directly while 34.0% and 3.0% were held indirectly through Suan Neo Capital and Lembah Reka respectively. Both Suan Neo Capital and Lembah Reka were wholly-owned by Tan Ah Kee. The above new share issuance by KSB was mainly intended to restructure the shareholders’ shareholdings in KSB.