| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 240 | 244.5 | -1.84 | ||
| Gross Profit (Loss) | 16.83 | 10.47 | 60.74 | ||
| Operational Profit (Loss) | -17.42 | -23.41 | -25.59 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -22.29 | -40.3 | -44.69 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -19.87 | -38.8 | -48.79 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 225.61 | 245.48 | -8.09 | ||
| Profit (Loss) per Share | -0.63 | -1.14 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | 128.39 | 36.27 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | The reasons for the decrease in sales during the current year compared to the previous year are due to decrease in sales of Engineering & Metal Forming Industries sector (Axles, Spare parts and Metal Casting products) by 25% due to decrease in the market demand and competition imported products , in contrast sales of Transformation Industries (drawn wire products) increased by 12%. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Reasons for the decrease in the losses during current year compare to the last year are improvement in sales of Transformation Industries sector (drawn wire products), reversal of allowance for expected credit loss, increase in other income, decrease in Zakat provision, decrease losses from discontinued operations (for more details on discontinued operation, refer to note 32 in the consolidated financial statements) and increase re-measurement gain on employees end of service benefits. |
| Statement of the type of external auditor's report | Unmodified opinion |
| 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) | None |
| Reclassification of Comparison Items | Certain reclassifications were made to the 2024 figures to conform to the current year's presentation. |
| Additional Information | The accumulated losses reached SAR 128.39 Million, equivalent to 36.27% of the company’s paid up capital of SAR 354 Million and the main reasons for the accumulated losses are the following: 1- Decrease in sales of the main products due to low demand in the local and export markets. 2- Competition in the local market from similar products imported from China. 3- Local manufacturers of P.C. Strand product (one of the main products of the company) entered in some exporting countries, negatively impacted the quantities exported to those countries. 4- High fluctuation in the price of high-carbon steel (the raw material for the main products of the company) and it is not produced locally. 5- Decrease in average selling price for some products, negatively impacted the profit margins. The company came to know that the accumulated losses reached 35% or more from its paid up capital on closing the financial statements for the year ended 31-12-2025, the company will apply the procedures and instructions applicable on companies listed in Saudi capital market whose accumulated losses reached 20% or more out of the capital. Measures to be Taken by the Company in Regard to Such Losses: The Board is planned a strategic for 2026 based on: 1. Restructuring the company, which began in mid-2025. 2. Improve operational efficiency by reducing unnecessary administrative and operational expenses. 3. Increase income through the operation of declared projects. 4. Employing qualified cadres with high professional and professional competence. During 2024 board of director decided to discontinue production line of HWS due to lack of economic feasibility ( for more details on discontinued operations , refer to the note 32 in the consolidated financial statements). |
