| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 905,164 | 15,078,828 | -93.997 | 593,488 | 52.515 |
| Gross Profit (Loss) | -4,166,592 | -16,865,619 | -75.295 | -6,454,564 | -35.447 |
| Operational Profit (Loss) | -10,385,353 | -27,834,511 | -62.688 | -12,009,270 | -13.522 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -8,958,038 | -17,974,354 | -50.162 | -12,005,986 | -25.386 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -8,557,627 | -17,375,304 | -50.748 | -11,802,689 | -27.494 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 1,498,652 | 28,187,932 | -94.683 |
| Gross Profit (Loss) | -10,621,156 | -16,965,074 | -37.393 |
| Operational Profit (Loss) | -22,394,623 | -36,109,494 | -37.981 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -20,964,024 | -25,076,551 | -16.399 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -20,360,316 | -24,432,963 | -16.668 |
| Total Shareholders Equity (after Deducting Minority Equity) | 66,410,366 | 155,052,227 | -57.169 |
| Profit (Loss) per Share | -0.54 | -0.64 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -324,331,519 | 82.79 | |
| All figures are in (Actual) 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 revenues during the current quarter compared to the corresponding quarter of the previous year is due to the decline in agricultural production and the continued restructuring of the Company’s operating processes, in addition to the decrease in inventory available for sale. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The reason for the decrease in net loss during the current quarter compared to the corresponding quarter of the previous year is due to the decrease in the cost of revenues and the decrease in gross loss, the decrease in selling and distribution expenses, the decrease in general and administrative expenses, the reversal of part of the provision for expected credit losses, and the increase in other income – net. The Company has implemented the operational recovery plan and the rehabilitation of the agricultural assets during 2026, in preparation for the gradual resumption of agricultural activities at full capacity as of 2027. The Company is also diversifying its income sources through commercial activities and olive oil, and leasing the areas planted with perennial trees in order to maximise returns and halt the costs associated with them. It is likewise raising operational efficiency and reducing fixed costs through the rationalisation of general and administrative expenses and selling and distribution expenses, and the transition to lower-cost energy sources, in addition to restructuring certain investments in order to strengthen liquidity and generate cash flows that support the implementation of the operating plan. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The reason for the increase in revenues during the current quarter compared to the previous quarter is due to the reclassification of the lease income of the grape project from other income to operating revenues. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The reason for the decrease in net loss during the current quarter compared to the previous quarter is due to the decrease in the cost of revenues and the decrease in gross loss, the decrease in selling and distribution expenses, the increase in other income – net, the reversal of part of the provision for expected credit losses, and the decrease in losses arising from the sale of investments in associates accounted for using the equity method; despite the increase in general and administrative expenses, the increase in finance costs, and the decrease in the Company’s share of profits of investments in associates accounted for using the equity method. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | The reason for the decrease in revenues during the current period compared to the corresponding period of the previous year is due to the decline in agricultural production and the continued restructuring of the Company’s operating processes, in addition to the decrease in inventory available for sale. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The reason for the decrease in net loss during the current period compared to the corresponding period of the previous year is due to the decrease in the cost of revenues and the decrease in gross loss, the decrease in selling and distribution expenses, the decrease in general and administrative expenses, the reversal of part of the provision for expected credit losses, and the increase in other income – net; despite the decrease in revenues, the decrease in the Company’s share of profits of investments in associates accounted for using the equity method, and the recording of losses from the sale of part of those investments. |
| Statement of the type of external auditor's report | Conservation |
| 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) | BASIS FOR QUALIFIED CONCLUSION |
As disclosed in Note (5) to the interim condensed consolidated financial information, we did not obtain the financial statements of one of the subsidiaries, and we were unable to perform alternative procedures enabling us to satisfy ourselves as to the validity, presentation and valuation of the investment in that subsidiary. Accordingly, we were unable to satisfy ourselves as to the validity of these balances within the assets and liabilities of the consolidated Group as at 30 June 2026.
QUALIFIED CONCLUSION
Except for the adjustments to the interim condensed consolidated financial information that might have come to our attention had it not been for the situation described above, and based on our review, and except for the possible effects of the matters described in the “Basis for Qualified Conclusion” section, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34, “Interim Financial Reporting,” that is endorsed in the Kingdom of Saudi Arabia.
MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
We draw attention to Note (2-5) to the interim condensed consolidated financial information, which indicates the existence of material uncertainties related to going concern. The Group’s total accumulated losses amounted to SAR 324 million as at 30 June 2026, representing 83% of its share capital. In addition, the Group’s current liabilities exceeded its current assets, resulting in a working capital deficit of SAR 180 million. Furthermore, the Group incurred negative cash flows from operating activities amounting to SAR 26 million. Management has prepared the accompanying interim condensed consolidated financial information on a going concern basis based on the Group’s future business plans to generate sufficient positive cash flows to enable it to meet its obligations as they fall due and to continue its operations. Our conclusion is not modified in respect of this matter.
OTHER MATTER
The consolidated financial statements of the Group for the year ended 31 December 2025 were audited by another auditor, who expressed an unmodified opinion on those consolidated financial statements dated 20 Shawwal 1447H (corresponding to 8 April 2026).
The interim condensed consolidated financial information for the three-month and six-month periods ended 30 June 2025 was reviewed by another auditor, who expressed an unmodified conclusion on that interim condensed consolidated financial information dated 17 Safar 1447H (corresponding to 11 August 2025).
The interim condensed consolidated financial statements for the three-month period ended 31 March 2026 were reviewed by another auditor, who expressed a qualified conclusion on those interim condensed consolidated financial statements dated 30 Dhul Qi’dah 1447H (corresponding to 17 May 2026).
1- Date on which the losses were reached: 30 June 2026.
2- Date on which the Board of Directors was notified of the accumulated losses: [10/08/2026].
3- Amount of the accumulated losses: SAR 324,331,519.
4- Percentage of the accumulated losses to capital: (82.79%).
5- The main reasons for these accumulated losses are the decline in revenues resulting from the decrease in agricultural production and the restructuring of operating processes, the increase in the cost of revenues compared to the revenues realised, the recording of impairment in the value of inventory and biological assets, the recognition of provisions for expected credit losses, in addition to losses on the sale of part of the investments in associates accounted for using the equity method.
6- The measures the Company will take in respect of these losses:
- Reduction of capital to extinguish the accumulated losses: On 1 April 2026, the Company announced the recommendation of the Board of Directors to reduce the capital, and on 12 May 2026 it announced an amendment to the recommendation so that the reduction is from SAR 391,767,000 (divided into 39,176,700 shares) to SAR 76,524,600 (divided into 7,652,460 shares) by cancelling 31,524,240 shares, at a reduction rate of 80.47%. On 23 July 2026, the Capital Market Authority approved the Company’s application, and the invitation to hold the Extraordinary General Assembly was already issued on 5/8/2026 (corresponding to 22/2/1448H) to reduce the accumulated losses by 80.47%. The Extraordinary General Assembly will be held on 31/8/2026 (corresponding to 18/3/1448H).
- Implementation of the operational recovery plan and the rehabilitation of the agricultural assets during 2026, in preparation for the gradual resumption of agricultural activities at full capacity as of 2027.
- Diversification of income sources through commercial activities and olive oil, and the leasing of the areas planted with perennial trees in order to maximise returns and halt the costs associated with them.
- Raising operational efficiency and reducing fixed costs through the rationalisation of general and administrative expenses and selling and distribution expenses, and the transition to lower-cost energy sources.
- Restructuring certain investments in order to strengthen liquidity and generate cash flows that support the implementation of the operating plan.
The Company will also apply the procedures and instructions applicable to companies listed on the Saudi Exchange whose accumulated losses have reached 20% or more of their capital.
The dates stated above are determined in accordance with Article 132 of the Companies Law, which provides the following:
“If the losses of a joint stock company reach half of its issued capital, the Board of Directors must make a disclosure within 60 days from the date on which it becomes aware thereof, together with the recommendations it has reached in respect of those losses. The Board must also call the Extraordinary General Assembly to meet within 180 days from the date on which it becomes aware thereof, in order to consider the continuation of the Company by taking the measures necessary to address those losses, or the dissolution of the Company.”
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.