Saudi Ceramic Co. announces its Annual Financial results for the period ending on 2024-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	1,348,797	1,314,868	2.58
Gross Profit (Loss)	253,744	237,323	6.92
Operational Profit (Loss)	-82,647	-270,544	-69.45
Net profit (Loss)	-79,252	-237,519	-66.63
Total Comprehensive Income	-79,626	-234,537	-66.05
Total Shareholders Equity (after Deducting Minority Equity)	1,423,593	1,504,509	-5.38
Profit (Loss) per Share	-0.8	-2.33
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year	The reason for the increase in sales during the current year compared to last year is due to the increase in sales quantity in tile and sanitary ware sectors, dispute the decrease in average selling price to cope with intense competition in the market.
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	The decrease in net losses for the current year compared to last year is attributed to losses recording in 2023 as follows:

1. The Company allocated a provision of SAR 165 million to address the impact of a fire incident at one of its factories.

2. The Company recognized impairment in its subsidiary’s assets "Ceramic Pipes Company" amounting to SAR 78 million.

Meanwhile, the net loss for the year was impacted by non-cash losses, including the impairment in property, plant, and equipment in the red bricks sector and the impairment in property, plant, and equipment for the subsidiary "Ceramic Pipes Company," totaling 51 million riyals, as well as provisions for inventory amounting to 44 million riyals.

Additionally, selling and distribution expenses increased this year due to rising transportation costs that resulted from the increase in fuel prices at the beginning of 2024. Statement of the type of external auditor's report Unmodified opinion Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) The consolidated financial statements of the Company for the year ended 31 December 2023 were audited by another auditor, who expressed a modified opinion dated Ramadan 13, 1445 H (corresponding to March 23, 2024) The basis for qualified opinion of the predecessor auditor was as follows:

“The accompanying consolidated statement of financial position include property, plant, and equipment of the Group amounting to Saudi Riyals 1,513 million as at December 31, 2023, the management of the Group has performed detailed assessment to determine the recoverable value of property, plant and equipment of one of its subsidiaries, Ceramic Pipes Company (“CPC”), which resulted in an impairment loss of Saudi Riyals 78 million. While identifying the smallest cash generating unit (“CGU”) management has considered all of property, plant and equipment of CPC as a single CGU. Determining the land to be part of the CGU is not in line with International Accounting Standard 36 - Impairment of Assets. Had the land been excluded from the CGU, based on the valuation performed by management, the impairment loss for the year and net loss for the year would have been increased by Saudi Riyals 68 million.

However, we are of the conclusion that the inclusion of land to be part of the CGU is in line with International Accounting Standard 36 - Impairment of Assets on the premise that the land is part of the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Reclassification of Comparison Items Certain comparative figures have been re-classified to conform to the presentation of financial statements in the current year. Additional Information The management has continued its efforts to improve working capital efficiency through decreasing the inventory balances, which has led to an increase in cash flow generated from operating activities significantly during the current year compared to last year. This improvement has helped to reduce loan outstanding balances and avoid additional financing burdens for the current year and provide opportunities for optimizing prospective production planning.

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.