| 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 decrease in sales/revenues is mainly attributable to the decrease in sales of the Sanitary Ware segment and the Mattresses and Foam segment. |
| 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 decrease in net profit is mainly attributable to the decrease in operating profit, due to the recognition of an impairment in asset values, and the decrease in gross profit resulting from lower sales. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The decrease in sales/revenues is mainly attributable to the decrease in sales of the Sanitary Ware segment. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The increase in net profit is mainly attributable to the increase in operating profit, due to the recognition of impairment losses on goodwill and the higher impairment recorded in asset values during the previous quarter. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| 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) | • We draw attention to Note No. (2) to the accompanying interim condensed consolidated financial statements, which indicates that the Group incurred recurring net losses and was facing liquidity pressure as of 31 December 2024. We also noted that the Group has recurring operating losses, negative operating cash flows, and a history of not achieving the approved budgets, as actual results were lower than previous forecasts. This increases the level of uncertainty associated with management’s estimates and the assumptions used in assessing going concern. However, during the previous year, the Group was able to obtain the required financing from shareholders through an increase in the Group’s share capital by SAR 165 million to support its operations and planned investments, including the launch of a new brand identity and expansion of showrooms network. Management expects an improvement in the Group’s financial performance and operating cash flows, mainly due to obtaining adequate financing, as well as the expansion plans approved by the Board of Directors and presented to shareholders when requesting such financing. Accordingly, the Group’s ability to continue as a going concern remains dependent on the successful implementation of the Group’s business plans and the achievement of the expected cash flows, which have been approved by the Board of Directors. Our conclusion has not been modified in respect of this matter. |
| Reclassification of Comparison Items | Certain comparative figures as of 1 January 2025 have been restated, as disclosed in Note No. (11) to the accompanying interim condensed consolidated financial statements. |
| Additional Information | The weighted average number of shares for the purpose of calculating earnings/loss per share has been determined in accordance with the requirements of International Accounting Standard No. (33) “Earnings per Share”, taking into consideration the impact of the capital reduction during 2024 and the capital increase through a rights issue during 2025. The comparative figures for the previous period have also been adjusted only for calculating earnings/loss per share purposes, to reflect the accounting impact associated with the rights issue. The new shares were included in the weighted average number of shares from the date of receipt of the capital increase proceeds. |
