| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 226,515,823 | 252,003,743 | -10.114 | ||
| Gross Profit (Loss) | 50,094,291 | 73,278,588 | -31.638 | ||
| Operational Profit (Loss) | 27,113,116 | 48,027,668 | -43.546 | ||
| Net Profit (Loss) after Zakat and Tax | -150,976,118 | -98,542,255 | 53.209 | ||
| Total Comprehensive Income | -152,208,072 | -119,634,135 | 27.227 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 1,090,480,888 | 1,242,688,960 | -12.248 | ||
| Profit (Loss) per Share | -1.06 | -0.69 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The reason for the decrease in net profit during this year compared to the previous year is due to the decrease in the value of sales, as a result of the decrease in average selling prices despite the increase in export sales and the decrease in general and marketing expenses, in addition to the increase in zakat expense for this year. The company also recorded provisions at the end of 2021 An amount of 142 million riyals, based on the studies carried out by the company, which included the study of the decline in the value of assets, the credit study and the study of spare parts. |
| Statement of the type of external auditor's report | Qualified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | Basis of qualified opinion |
1. As shown in Note No. 3, the company prepared a study for the decline in the value of property, machinery and equipment, which amounted to 1,715 million riyals as on December 31, 2021 (1,809 million Saudi riyals as on December 31, 2020 AD) with the assistance of an external consultant. This study resulted in a decline in the value of Property, plant and equipment amounting to 63.2 million Saudi riyals after adjusting the book value of the assets to exclude the effect of interest on loans and periodic maintenance expenses that are not eligible for capitalization that were charged to projects during previous years in the amount of 104 million Saudi riyals as shown in Note No. 26 and the impairment loss was recorded in the income statement The consolidated comprehensive for the fiscal year ending on December 31, 2021 AD. We were not able to obtain sufficient appropriate audit evidence to confirm the validity of the assumptions and estimates used by management and the external consultant and the reasonableness of the bases used to prepare this study. Accordingly, we were unable to determine whether any adjustments were necessary to the value of property, plant and equipment as at December 31, 2021.
2. As shown in Note No. 13, during our review of the loan agreements registered in the consolidated financial statements, we noticed a breach of the debt covenants of one of the banks according to the agreement signed with the bank, where the agreement stipulated that the loan be paid in full in the event of a breach of the debt covenants and the group did not transfer the loan within the liabilities As of December 31, 2021, the impact of this on the consolidated financial statements will lead to a decrease in non-current liabilities by 156.4 million Saudi riyals, and an increase in current liabilities by the same amount.
On the other hand, we make it clear that the study was based on the growth rate that corresponds to the improvement in the economy, especially in the internal economic situation of the Kingdom of Saudi Arabia.
The accumulated losses amounted to 23.9% of the company's capital, and the company will complete the procedures and instructions issued by the Capital Market Authority in this regard.
With regard to the conservative opinion on the pledges, it concerns SABB Bank only, as the bank's final response in this regard has not been received, bearing in mind that dealings are going smoothly with the bank in this regard.
Current liabilities include an amount of 49.5 million riyals related to the share of the guarantee of Al-Jouf Cement Company for part of the loan of the Saudi Industrial Development Fund to the Eastern Industrial Company invested in 2012 AD.
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