Ash-Sharqiyah Development Co. announces the interim financial results for the period ending on 30-09-2015 (Nine Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	561,771	-	-	7,001,620	-
Gross profit (loss)	2,429,426	355,699	583	2,695,337	-
Operational profit (loss)	559,267	-	-	506,838	10.34
All figures are in Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	8,237,709	-	-
Gross profit (loss)	6,743,984	53,443	12,519.02
Operational profit (loss)	1,125,213	-	-
Earning or loss per share, Riyals	1.1	-	-
All figures are in Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	growth in profits for the current quarter compared to the corresponding quarter of the previous year is due to: Firstly/ The increase of 54% in sales from SAR 4.00 million to SAR 6.14 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 which led to achieving a total profit of SAR 2.43 million compared to total profit of SAR 0.36 million in the same quarter of last year. Secondly/ Despite the increase in general and administrative expenses by 52% from SAR 1.06 million to SAR 1.61 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. Yet the Company achieved operating profits of SAR 0.56 million compared to operating losses of SAR 0.93 million for the same quarter of last year. Thirdly/ The Company achieved a net profit of SAR 0.56 million compared to a net loss of SAR 0.2 million due to the operating profits of SAR 0.56 million in addition to a rent of SAR 0.04 million allocated completely for Zakat, compared to operating losses of SAR 0.93 million from the same quarter in addition to profits from other various investments and a capital gain (sales of scrap) of SAR 0.74 million.
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 39% in sales from SAR 12.61 million to SAR 17.58 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 14% from SAR 12.56 million to SAR 10.84 million due to the optimum utilization of the Company's resources and the positive planning which led to achieving a total profit of SAR 6.74 million compared to a total profit of SAR 0.05 million for the same period of last year. Secondly/ Despite the increase in general and administrative expenses by 50% from SAR 3.27 million to SAR 4.90 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 1.13 million compared to operating losses of SAR 3.90 million for the same period of last year. Thirdly/ The Company achieved a net profit of SAR 8.24 million compared to a net loss of SAR 2.69 million due to the operating profits of SAR 1.13 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 1.25 million with a provision of Zakat of SAR 0.17 million compared to operating losses of SAR 3.90 million and revenues from other investments of SAR 0.45 million and other various revenues of 0.76 million for the same period of last year.
Reasons of increase (decrease) for quarter compared with previous quarter	The reduction in profits for the current quarter compared to the previous quarter is due to: Firstly/ Despite the official holiday seasons (Eid Alfitr and Eid Aladha) that occurred during this period, the Company achieved an increase in sales from SAR 6.06 million to SAR 6.14 million due to the increase in agricultural fields resulting in an increase in the production of green feeds in addition to the increase in selling costs by 11% caused by the increase in fuel, fertilizers, and pesticides in addition to the high tempreatures which led to a reduction in raw milk production yielding a reduction in gross profit of 10% to SAR 2.43 million compared to a total profit of SAR 2.70 million for the previous quarter. Secondly/ Despite the reduction in gross profits, the reduction in general and administrative expenses by 16% from SAR 1.9 million to SAR 1.6 million yielding into a 10% quarterly growth in operating income from SAR 0.51 million to SAR 0.56 million. Thirdly/ Despite the increase in operating profits, the Company achieved a net profit of SAR 0.56 million compared to a net profit of SAR 7.00 million of the previous quarter due to achieving non-recurring profits for the previous quarter by selling of the Company's share in Taseel Company plus the capital gains incurred from (sales of scrap) plus rents and various revenues netting at SAR 6.5 million after payment of Zakat.
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 14% at the end of Q3 to SAR 67.17 million compared to SAR 58.93 million by the end of fiscal year 2014 and the Book Value per Share increased to SAR 8.96

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