| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 124.74 | 165.59 | -24.669 | 144.13 | -13.453 |
| Gross Profit (Loss) | 2.2 | 13.14 | -83.257 | -12.92 | - |
| Operational Profit (Loss) | -38.09 | -32.54 | 17.055 | 35.81 | - |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -46.36 | -44.66 | 3.806 | 30.43 | - |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -46.36 | -44.66 | 3.806 | 32.89 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 238.85 | 724.04 | -67.011 |
| Profit (Loss) per Share | -0.69 | -0.66 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | 597.67 | 88.6 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The reason for the decrease in revenue of 25% during the current quarter compared to the same quarter of last year is mainly due to a drop in selling quantities by 23%, largely due to regional supply chain and logistical challenges. |
To maintain supply continuity, particularly given that the Company's international sales account for approximately 67% of its total annual sales, the Parent Company successfully rerouted shipments through alternative trade corridors, helping to minimize the financial impact.
Losses incurred by the subsidiaries accounted for 20% (SAR 9.3 million) of the total losses during the current quarter, even without any depreciation and amortization expense, as all fixed assets were fully impaired in Q2 of the previous year.
Despite a 25% decrease in revenue, total losses increased by only 4%, managed largely through cost-optimization measures implemented to mitigate the top-line impact.
Additionally, overall results were impacted by regional market challenges, which affected key shipping routes and their costs. To maintain supply continuity, the Parent Company successfully rerouted shipments through alternative trade corridors, helping minimize the financial impact.
Furthermore, the reversal of provision of SR 94.5 million, which was recognized in Q2 2025 and reversed in Q4 2025. This provision was recognized against receivables from subsidiaries relating to working capital support and feedstock supply.
Subsidiaries contributed 20% (SR 9.3 Mn) to total losses during this quarter, even without any depreciation and amortization expense, as all fixed assets were fully impaired in Q2 of last year.
Additionally, overall results were impacted by regional market volatility, which affected key shipping routes and their cost. To maintain supply continuity, the Parent Company successfully rerouted shipments through alternative trade corridors, helping minimize the financial impact.
We draw attention to Note 3 in the interim condensed consolidated financial statements, which indicates that the Group has incurred a net loss of SR 48.3 million for the three-month period ended 31 March 2026. As at that date, the Group’s current liabilities exceeded its current assets by SR 355.9 million and the Group’s accumulated losses exceeded half of its share capital. In addition, the Group is involved in legal proceedings as described in Note 3. These events or conditions, along with other matters as described in Note 3, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Management’s plans in respect of these matters, including the planned rights issue and other mitigating measures, are also disclosed in Note 3. The interim condensed consolidated financial statements have been prepared on a going concerning basis. Our conclusion is not modified in respect of this matter.
The Extraordinary General Assembly was held on July 14, 2026, at which the Company's shareholders approved the reduction of the Company's share capital to SAR 150,000,000, in addition to the utilization of SAR 53.4 million from the statutory reserve to cover the remaining balance of accumulated losses as of 30 September 2025 and this was approved by shareholders. The Parent Company is in the process of completing the remaining statutory formalities with the governmental authorities.
It is worth noting that the procedures and instructions for listed companies with accumulated losses of 20% or more of their capital will be applied.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.