| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 217,612 | 286,254 | -23.98 | 232,616 | -6.45 |
| Gross Profit (Loss) | 8,385 | 16,544 | -49.32 | 15,154 | -44.67 |
| Operational Profit (Loss) | -14,480 | -4,444 | 225.83 | -8,008 | 80.82 |
| Net Profit (Loss) after Zakat and Tax | -30,065 | -14,985 | 100.63 | -25,757 | 16.73 |
| Total Comprehensive Income | -30,104 | -21,485 | 40.12 | -33,086 | -9.01 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 450,228 | 535,905 | -15.99 |
| Gross Profit (Loss) | 23,539 | 37,222 | -36.76 |
| Operational Profit (Loss) | -22,488 | -8,166 | 175.38 |
| Net Profit (Loss) after Zakat and Tax | -55,822 | -23,961 | 132.97 |
| Total Comprehensive Income | -63,190 | -32,954 | 91.75 |
| Total Share Holders Equity (after Deducting Minority Equity) | 371,436 | 574,014 | -35.29 |
| Profit (Loss) per Share | -0.59 | -0.25 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 515,419 | 950,000 | 54.25 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The reason for the increase in net loss in the current quarter compared to the net loss for the same quarter of previous year is, due to decrease in sales revenue and the increase in the cost of revenue as a percentage of sale, increase in general and administrative expenses, despite a decrease in selling and distribution expenses, increase in financial charges parallel to increase in other income, and decrease in loss from Investment in Associate. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | The reason for the increase in net loss in the current quarter compared to the net loss for the previous quarter of this year is due to the decrease in sales revenue and the increase of cost of revenue as a percentage of sales, increase in general and administrative expenses despite a decrease in selling and distribution expenses, increase in financial charges parallel to increase in other income, and decrease in loss from investment in associate. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The reason for the increase in net loss in the current period compared to the net loss for the same period of previous year is due to due to the decrease in sales revenue, the increase of cost of revenue percentage, the increase in in general and administrative expenses, the increase in financial charges, and the decrease in other income. Despite, the decrease in selling and distribution expenses, the decrease in loss from investment in associate. |
| Statement of the type of external auditor's report | Emphasis of Matter |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | We draw attention to Note 2 to the accompanying condensed consolidated interim financial statements which indicates that the Group incurred a net loss of SR 55.8 million, net operating cash outflow was SR 64.7 million and net cash outflow was SR 12.5 million during the period ended June 30, 2023, and as of that date the Group’s current liabilities exceeded the current assets by SR 438.9 million. Moreover, the Group’s accumulated losses were SR 515.4 million, which exceeded the half of the Group’s share capital. These events and conditions, along with other matters as outlined in Note 2 to the accompanying condensed consolidated interim financial statements, indicate the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern. |
The Group has taken rectification measures following the requirement of the Companies. The Group’s board of directors as of March 13, 2023, has submitted a recommendation to the Shareholders for reduction of share capital by absorbing the accumulated losses and a subsequent capital increase through rights issue. The approval of the Capital Market Authority to reduce the capital was received on June 6, 2023, as well as the approval of the General Assembly on July 26, 2023. Our conclusion is not modified in respect of this matter.
2-The accumulated losses as of 30-06-2023 have reached SAR (515,42 million), equal to 54,25% of the company’s capital of SAR 950 million. The accumulated losses as of 31/12/2022 have reached SAR (459,59 million), equal to 48,38% of the company’s capital. Noting that the company is applying the procedures and instructions issued by the capital market authority of the listed companies in the Saudi Stock Exchange, which has accumulated losses of 50% or more of its capital.
3- On 18/5/2023 (28/10/1444H), the company announced the latest recommendation of its board of directors to reduce the company's capital from nine hundred and fifty million (950,000,000) Saudi riyals to four hundred and sixty-four million six hundred forty-six thousand sixty (464,646,060) Saudi riyals by canceling forty-eight million five hundred thirty-five thousand three hundred ninety-four (48,535,394) shares of the company's issued shares, with the previous recommendation related to increasing the company's capital by offering rights issues worth three hundred million (300,000,000) Saudi riyals as it is unchanged. The company's capital after the increase becomes seven hundred and sixty-four million six hundred forty-six thousand and sixty (764,646,060) Saudi riyals.
4- On 6/6/2023 (17/11/1444H), the Capital Market Authority approved the reduction of the Company's capital from nine hundred and fifty million (950,000,000) Saudi Riyals to Four Hundred and Sixty-four Million Six Hundred Forty-Six Thousand and Sixty (464,646,060) Saudi Riyals by cancelling forty-eight million five hundred and thirty-five thousand three hundred and ninety-four (48,535,394) shares of the Company's issued shares.
5- On 26/7/2023 (8/1/1445H), the Extraordinary General Assembly approved the reduction of the company's capital from nine hundred and fifty million (950,000,000) Saudi riyals to four hundred and sixty-four million, six hundred and forty-six thousand and sixty (464,646,060) Saudi riyals by canceling forty-eight million five hundred thirty-five thousand three hundred and ninety-four (48,535,394) shares issued by the company. Thus, the accumulated losses will be amortized as at 31/3/2023.
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