Ash-Sharqiyah Development Co. announces the interim financial results for the period ending on 30-06-2015 (Six Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	7,001,619	-	-	674,318	938.33
Gross profit (loss)	2,695,336	-	-	1,619,221	66.46
Operational profit (loss)	506,837	-	-	59,107	757.49
All figures are in Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	7,675,936	-	-
Gross profit (loss)	4,314,557	-	-
Operational profit (loss)	565,944	-	-
Earning or loss per share, Riyals	1.02	-	-
All figures are in Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	The growth in profits for the current quarter compared to the corresponding quarter of the previous year is due to: Firstly/ The increase of 39% in sales from SAR 4.36 million to SAR 6.06 million is due to the increase in agricultural fields which led to the increase in the production of green feeds in addition to the improvement in raw milk sale contract prices and the reduction in selling costs by 29% from SAR 4.74 million to SAR 3.36 million due to the optimum utilization of the Company's resources and the positive planning which led to achieving a total profit of SAR 2.7 million compared to total losses of SAR 0.38 million in the same quarter of last year.secondly/ Despite the increase in general and administrative expenses by 133% from SAR 0.83 million to SAR 1.93 million due to the implementation of new jobs and the attracting of managerial and technical staff of a high caliber plus the enhancement of the Company's security enforcement by adding 23 new personnel and providing them with all the equipment necessary to protect Fadhili farmland from trespassers. In addition to the allocation of SAR 0.2 million to amortize non-moving inventory and an increase in the depreciation balance. Yet the Company achieved operating profits of SAR 0.51 million compared to operating losses of SAR 1.39 million for the same quarter of last year.Thirdly/ The Company achieved a net profit of SAR 7 million compared to a net loss of SAR 0.96 million due to the operating profits of SAR 0.51 million in addition to a profit of SAR 5.73 million resulting from the sales of the Company's share in Taseel Company plus the profits of SAR 0.30 million resulting from investments in other companies plus a capital gain (sales of scrap) and other revenues of 0.59MM with a provision for Zakat of SAR 0.13 million compared to operating losses of SAR 1.43 million and revenues from other investments of SAR 0.45 million for the same quarter of last year.
Reasons of increase (decrease) for period compared with same period last year	The growth in profits for the current period compared to the same period of last year is due to:Firstly/ The increase of 33% in sales from SAR 8.61 million to SAR 11.43 million due to the increase in agricultural fields resulting in an increase in the production of fodders in addition to the improvement in raw milk sales contract prices and the reduction in selling costs by 26% from SAR 9.57 million to SAR 7.12 million due to the optimum utilization of the Company's resources and the positive planning which led to achieving a total profit of SAR 4.31 million compared to a total loss of SAR 0.96 million for the same period of last year.Secondly/ Despite the increase in general and administrative expenses by 111% from SAR 1.56 million to SAR 3.29 million due to the implementation of new jobs and attracting managerial and technical staff of a high caliber plus the enhancement of the Company's security forces plus the allocation of SAR 0.2 million to amortize non-moving inventory and an increase in the depreciation balance. Yet the Company achieved operating profits of SAR 0.57 million compared to operating losses of SAR 2.96 million for the same period of last year. Thirdly/ The Company achieved a net profit of SAR 7.68 million compared to a net loss of SAR 2.49 million due to the operating profits of SAR 0.57 million in addition to the selling of the Company's share in Taseel Company with a net income of SAR 5.73 million plus the profits of SAR 0.30 million incurred from investments in other companies plus a capital gain (sales of scrap) and other revenues of SAR 1.16 million with a provision of Zakat of SAR 0.13 million compared to operating losses of SAR 2.96 million and revenues from other investments of SAR 0.45 million for the same period of last year.
Reasons of increase (decrease) for quarter compared with previous quarter	The growth in profits for the current quarter compared to the previous quarter is due to: Firstly/ The seasonal increase of 13% in sales from SAR 5.38 million to SAR 6.06 million is due to the increase in agricultural fields resulting in an increase in the production of green feeds in addition to the reduction in selling costs by 11% which led to achieving a total profit of SAR 2.7 million compared to a total profit of SAR 1.62 million for the previous quarter.Secondly/ Despite the increase in general and administrative expenses by SAR 0.58 million compared to the previous quarter due to the allocation of SAR 0.2 million to amortize non-moving inventory and an increase in the depreciation balance. Yet the Company increased its sales and reduced selling costs to achieve operating profits of SAR 0.51 million compared to SAR 0.06 million. Thirdly/ The Company achieved a net profit of SAR 7.00 million compared to a net profit of SAR 0.67 million due to achieving operating profits of 0.51MM in addition to the selling of the Company's share in Taseel Company with a net income of SAR 5.73 million plus the profits of SAR 0.30 million incurred from investments in other companies plus a capital gain (sales of scrap) and other revenues of 0.59MM with a provision for Zakat of SAR 0.13 million compared to profits from capital gains (sales of scrap) plus rents and various revenues of SAR 0.62 million for the previous quarter.
Reclassifications in quarterly financial results	Some figures of 2014 budget were reclassified to be aligned with current period
Other notes	An increase in shareholders' equity by 13% at the end of the current fiscal year's first half to SAR 66.61 million compared to SAR 58.93 million by the end of fiscal year 2014 and the Book Value per Share increased to SAR 8.88

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