Tabuk Agricultural Development Co. Announces the Decrease of its Accumulated Losses to 9 % of the Capital

Element List	Explanation
Introduction	Following to the announcement of the Tabuk Agricultural Development Company on 04-05-2021 AD corresponding to 09-22-1442 AH, regarding the company's board of directors' decision dated 03/05/2021 AD to use the statutory reserve of (68,019,821 Saudi riyals) sixty-eight million and nineteen thousand eight hundred twenty-one Saudi riyals only to amortize part of The accumulated losses according to the audited consolidated financial statements as of December 31, 2020 AD, amounting to (86,545,066 Saudi riyals) eighty-six million five hundred and forty-five thousand and sixty-six Saudi riyals only, which represents 35.8% of the capital.

Element List

Explanation

Introduction

Following to the announcement of the Tabuk Agricultural Development Company on 04-05-2021 AD corresponding to 09-22-1442 AH, regarding the company's board of directors' decision dated 03/05/2021 AD to use the statutory reserve of (68,019,821 Saudi riyals) sixty-eight million and nineteen thousand eight hundred twenty-one Saudi riyals only to amortize part of The accumulated losses according to the audited consolidated financial statements as of December 31, 2020 AD, amounting to (86,545,066 Saudi riyals) eighty-six million five hundred and forty-five thousand and sixty-six Saudi riyals only, which represents 35.8% of the capital.

The company wishes to announce a decrease in its accumulated losses amounting from (90,035,159 Saudi riyals) ninety million and thirty-five thousand one hundred and fifty-nine Saudi riyals only, to only (22,015,338) Saudi riyals only twenty-two million and fifteen thousand three hundred and thirty-eight Saudi riyals only, representing a percentage of Its amount is 09% of the capital as in the consolidated financial position (unaudited) on 03/05/2021 and included in the attached chartered accountant report issued on 19/05/2021 AD. Date of accumulated losses decrease 2021-05-03 Corresponding to 1442-09-21 Amount of the Accumulated Losses SAR (22.015.338) Measures Taken by the Company to Decrease Accumulated Losses Restructuring the shareholders' equity in the company by amortizing an amount of SAR (68.19.821) from the accumulated losses through the full usage of statutory reserve, thereby the losses to capital ratio decreased from 35.8% to 09%.

The reduction of the statutory reserve will not have an impact on the Cash Liquidity of the company, in addition to that there will be no impact on the net shareholders' equity and liabilities of the company. Auditor's Report showing the Financial Position of the Company after the Decrease of the Accumulated Losses

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