| Element List | Explanation |
|---|---|
| Introduction | Abdulmohsen Alhokair Group for Tourism and Development announces that the accumulated losses exceeded 20% of it’s share capital, based on the unaudited financial results as of 31 July 2020, the accumulated losses amounted to SAR 130 million, represent 23.6% from it’s share capital which amounted to SAR 550 million. |
| Date of Realization of the Loss | 2020-07-31 Corresponding to 1441-12-10 |
| Amount of the Accumulated Losses | SAR 130 million |
| Percentage of the Accumulated Losses out of the Capital (%) | 23.6 % |
| Major Reasons Leading to the Losses | 1- The company’s businesses were affected by Covid-19 pandemic (Coronavirus) and by the precautionary and preventive measures to control the emerging corona virus and to prevent it’s spread. It should be noted that all Entertainment centers were closed from March 15, 2020 to June 20, 2020. The company has been gradually opening entertainment centers starting from June 21, 2020 based on market demand. |
2- Suspension of international flights adversely affected hotel occupancy rate in all region especially Western Region.
3- Non-recurring losses resulted from the closure of a number of low performing locations during 2018 and 2019.
4- Increase of operating expenses, due to the increase in renewal of expats work permits cost, licenses renewal cost and the utilities cost.
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