| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 274,029,265 | 183,872,514 | 49.03 | ||
| Gross Profit (Loss) | 13,096,916 | 20,816,992 | -37.09 | ||
| Operational Profit (Loss) | -24,287,055 | -9,210,431 | 163.69 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -40,838,914 | -19,004,824 | 114.89 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -39,572,458 | -18,909,535 | 109.27 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 70,081,795 | 109,654,253 | -36.09 | ||
| Profit (Loss) per Share | -0.18 | -0.08 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -55,426,642 | 49.04 | |
| All figures are in (Actual) 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 increase in revenues during the current year compared to the previous year is primarily attributable to the growth in contracting segment revenues, driven by the execution of new contracts and the expansion of business activities, in addition to higher sales of gravel and sand, which contributed to the overall increase in total revenues during the period. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The increase in net loss during the current year compared to the previous year is mainly attributable to higher cost of revenues during the period, in addition to the recognition of inventory impairment provisions and asset impairment losses, as well as the remeasurement of zakat differences, and an increase in expected credit loss provisions during the year. |
| 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) | We draw attention to Note (2) to the consolidated financial statements, which indicates that the Group has incurred net losses of SAR 36.5 million for the year ended 31 December 2025 (2024: net loss of SAR 19 million). The Group’s accumulated losses have reached SAR 55.4 million (2024: SAR 15.9 million), representing 49% (2024: 14%) of the Group’s capital. These conditions, along with other matters, indicate the existence of a material uncertainty regarding the Group’s ability to continue as a going concern, as well as its ability to meet its obligations as they fall due. Our opinion has not been modified in respect of this matter |
| Reclassification of Comparison Items | Certain comparative year figures have been reclassified to align with the presentation of the consolidated financial statements for the current year. |
| Additional Information | Al Kathiri Holding Company announces a strong revenue growth of 49%, reaching SAR 274 million, driven by expansion in the contracting sector and the execution of new contracts, in addition to growth in construction materials sales. Despite this growth, the Company recorded a net loss during the period amounting to SAR 55,426,642, representing 49.04% of its capital of SAR 113,022,000, based on the annual financial results for the period ending 31 December 2025. The main reasons that led to these losses are as follows: Higher execution costs associated with project expansion, along with the recognition of accounting provisions including inventory impairment, asset impairment losses, Zakat adjustments, and increased credit loss provisions. The Company confirms that these results reflect a transitional phase associated with expansion and restructuring, and do not indicate a decline in operational performance, as management is currently focused on transforming this situation into sustainable profitability. As for the actions that the Company will take in response to these losses, they include the implementation of a clear corrective plan comprising the following: Restructuring operational sectors to enhance efficiency and improve margins Reducing operating costs and directly rationalizing expenses Focusing on higher-profit sectors and products Accelerating the collection of receivables and strengthening liquidity Reducing reliance on high-cost financing and improving the capital structure Management is also working on implementing these measures within a defined timeline, with the aim of reducing accumulated losses and gradually improving financial performance over the coming periods. The Company will also implement the procedures and instructions applicable to listed companies in the Saudi financial market whose accumulated losses have reached 20% or more of their capital. The Company affirms its full commitment to enhancing transparency and taking all necessary actions to address accumulated losses and restore profitability in a manner that serves the interests of its shareholders. |
