Knowledge Economic City Company announces its interim financial results for the period ended 31/03/2011:
1.Net Profit for the first quarter amounted to SAR 20.2 million, compared to a loss of SAR 12.7 million for the fourth quarter 2010, while Net Loss amounted to SR 125.4 million for the period from July 27, 2010 (the date of the ministerial decree announcing the establishment of the company) to March 31, 2011, due to the write-off of all the pre-operating expenditures amounting to SAR 128.6 Million.
2.Gross Profit for the first quarter amounted to SAR 31.7 million as well as for the period from July 27, 2010 (the date of the ministerial decree announcing the establishment of the company) to March 31, 2011.
3.Operating Profits for the first quarter amounted to SAR 18.8 million, while Operating Profit for the period from July 27, 2010 (the date of the ministerial decree announcing the establishment of the company) to March 31, 2011 amounted to SAR 22,543.
4.Earnings per share for the first quarter equaled SAR 0.06 compared to a loss of SAR 0.37 for the period from July 27, 2010 to March 31, 2011.
5.Increase in Net Income is due to the revenue recognized on the sale of plots of land to Real Estate Knowledge Company Limited, a company evenly owned by Knowledge Economic City Company and Saudi Real Estate Company Al Akaria.
6.Net Loss of SAR 125.4 Million covering the period from July 27, 2010 (the date of the ministerial decree announcing the establishment of the company) till March 31, 2011 is attributed by the write-off for the entire pre-incorporation expenses amounting to SAR 128.6 million, noting that the first financial year of the company is a long year starting from July 27, 2010 (the date of the ministerial decree announcing the establishment of the company) and ending on December 31, 2011, as per the companys Articles of Association
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