| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 49.58 | 70.14 | -29.312 | 59.77 | -17.048 |
| Gross Profit (Loss) | 3.13 | 5.81 | -46.127 | 2.17 | 44.239 |
| Operational Profit (Loss) | -4.61 | -1.8 | 156.111 | -7.3 | -36.849 |
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -5.69 | -3.19 | 78.369 | -8.05 | -29.316 |
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -5.69 | -3.19 | 78.369 | -5.63 | 1.065 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 219.92 | 242.28 | -9.228 |
| Profit (Loss) per Share | -0.16 | -0.09 | |
| 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 | 134.08 | 37.88 | |
| 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 during the current quarter compared to the same period last year was primarily driven by a 37% decline in sales of drawn wire products. This drop resulted from weakened domestic and export market demand for specific sizes of the main product of this sector. This was further compounded by supply chain disruptions due to the geopolitical events in the region, delayed the arrival of critical raw materials. Additionally, sales of axles and casting products decreased by approximately 10% |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Reasons for the increase in the losses during current quarter compare to the same quarter last year was driven by decrease in sales and increase in general and administrative expenses. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The decrease in sales during the current quarter compared to the last quarter was primarily driven by a 34% decline in sales of drawn wire products. This drop resulted from weakened domestic and export market demand for specific sizes of the main product for this sector. This was further compounded by supply chain disruptions due to the geopolitical events in the region, delayed the arrival of critical raw materials. In contrast , sales of axles and casting products increased by approximately 44% |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Reasons for increase in gross profit , decrease in operational losses and decrease in net losses after Zakat during current quarter compared to the previous quarter are due to increase in average selling price, decrease in cost of sales, decrease in selling and distribution expenses, decrease in general and administrative expenses and decrease in losses from discontinued operations . |
| 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) | None |
| Reclassification of Comparison Items | Certain comparative figures have been reclassified to comply with the current period presentation of the interim condensed consolidated financial statements. |
| Additional Information | The accumulated losses reached SAR 134.08 Million, equivalent to 37.88% 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 16 in the interim condensed consolidated financial statements for the three month period ended March 31,2026). - To mitigate the impact due to the ongoing events in the region on the supply of imported raw materials, coordination with the suppliers has been made to reroute the shipments for the coming months through Jeddah Islamic Port. |
