Saudi Industrial Development Company (SIDC)announces its Interim Consolidated Financial Results for the period ending on 30/06/2026 (Six Months)

Saudi Industrial Development Company (SIDC) reported a net loss of SAR 24.69 million for the first half of 2026, representing a 39.18% increase in losses compared to SAR 17.74 million in the same period last year. For the second quarter alone, the net loss widened by 57.35% year-on-year to reach SAR 13.06 million.
Total revenue for the six-month period declined by 17.88% to SAR 42.89 million, down from SAR 52.23 million in the previous year, driven primarily by falling sales in the mattresses, foam, and sanitary ware segments.
The widening net loss was attributed to lower gross profits resulting from the sales slump and the recognition of higher impairment charges on asset values, which weighed heavily on operational results despite a 115.78% year-on-year increase in total shareholders' equity to SAR 116.61 million following capital adjustments.
The external auditor included a "Material Uncertainty Related to Going Concern" notification, highlighting that the Group generated negative operating cash flows and maintains significant debit balances in its foreign currency translation and fair value reserves totaling SAR 185 million.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	20.56	28.07	-26.754	22.34	-7.967
Gross Profit (Loss)	4.24	4.93	-13.995	2.41	75.933
Operational Profit (Loss)	-11.64	-7.34	58.583	-11.02	5.626
Net Profit (Loss) Attributable to Shareholders of the Issuer	-13.06	-8.3	57.349	-11.63	12.295
Total Comprehensive Income Attributable to Shareholders of the Issuer	-12.15	-10.34	17.504	-10.01	21.378
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	42.89	52.23	-17.882
Gross Profit (Loss)	6.65	7.94	-16.246
Operational Profit (Loss)	-22.67	-16.54	37.061
Net Profit (Loss) Attributable to Shareholders of the Issuer	-24.69	-17.74	39.177
Total Comprehensive Income Attributable to Shareholders of the Issuer	-22.16	-19.72	12.373
Total Shareholders Equity (after Deducting Minority Equity)	116.61	54.04	115.784
Profit (Loss) per Share	-0.82	-1.31
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	-	-
All figures are in (Millions) 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 decrease in sales/revenues is mainly attributable to the decrease in sales of 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 higher impairment in asset values, and the decrease in gross profit resulting from the decrease in 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 mattresses and foam segment.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The decrease in net profit is mainly attributable to the decrease in operating profit, due to the recognition of higher impairment in asset values.
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 decrease in sales/revenues is mainly attributable to the decrease in sales of the mattresses and foam segment and the sanitary ware segment.
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 decrease in net profit is mainly attributable to the decrease in operating profit, due to the recognition of higher impairment in asset values, and the decrease in gross profit resulting from the decrease in sales.
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)	Material Uncertainty Related to Going Concern We draw attention to Note (2-2) to the accompanying condensed consolidated interim financial statements, which indicates that the Group incurred a net loss of SAR 24.3 million and generated negative operating cash flows during the six-month period ended 30 June 2026, as the actual results were below the previous forecasts. Furthermore, as at 30 June 2026, the Group had a debit balance in the foreign currency translation reserve of SAR 52 million and a debit balance in the reserve for changes in the fair value of investments of SAR 133 million. These events or conditions, together with the other matters set forth in Note (2-2), indicate that material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter. Other Matter The condensed consolidated interim financial statements of the Group for the three-month and six-month periods ended 30 June 2025 were reviewed by another auditor, who expressed a qualified conclusion thereon in their report dated 21Rabi’ Al-Awwal 1447H, (corresponding to 13 September 2025). The Group’s consolidated financial statements for the year ended 31 December 2025 were also audited by the same auditor, who expressed an unmodified opinion thereon in their report dated 19 Shawwal 1447H, (corresponding to 7 April 2026).
Reclassification of Comparison Items	Certain comparative figures as of 1 January 2025 have been restated, as disclosed in Note No. (16) 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.