| Element List | Current Period | Similar period for previous year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 16,582,340 | 25,570,027 | -35.149 | ||
| Net profit (Loss) | -2,901,906 | 5,157,096 | - | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 35,834,021 | 42,462,708 | -15.61 | ||
| Profit (Loss) per Share | -0.05 | 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 | - | - | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | Revenues: SAR 16.5 million, compared to SAR 25.5 million for the corresponding period of the previous year, representing a decrease of 35%. The decline in revenues during the current period is primarily attributable to the following: A decrease in sales resulting from lower selling prices in the wholesale and supplies sector, coupled with an increase in the cost of goods sold. A decrease in service revenues (installation and programming) as their execution has been shifted to the second half of the year. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Net Loss for the Current Period: SAR (2.9) million, compared to a net profit of SAR 5.2 million for the corresponding period of the previous year. The decline in net profit during the current period is mainly attributable to the following factors: Higher operating costs during the current period, while general and administrative expenses remained relatively unchanged. A decrease in sales resulting from lower selling prices in the wholesale and supplies sector, along with an increase in the cost of goods sold. The temporary impact of restructuring activities, as the Company, during the first half of the year, spun off its core operations into specialized subsidiaries. During this phase, the focus was placed on operations and organizational setup rather than sales targets. This transition period affected financial performance due to operational preparations and adjustments, paving the way for a stronger market re-entry through the introduction of new and advanced solutions. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | N/A |
| Additional Information | The decline in revenues and net profit during the current period is attributable to the factors previously mentioned, in addition to the following reasons: Strategic Restructuring: The Company affirms that the restructuring was a strategic step aimed at enhancing operational efficiency and strengthening its ability to capture a larger market share by focusing on each business line independently through the establishment of specialized subsidiaries: Mamar for Wholesale and Supplies: Focuses on the wholesale sale and distribution of low-current products, security and protection systems, and communications, with the objective of strengthening the distribution network and expanding the customer base across the Kingdom. Nabah for Projects: Specializes in the implementation of communications, information technology, and integrated security solutions projects, with an emphasis on delivering high-quality installation, programming, and comprehensive maintenance services. Rona for Cybersecurity: Focuses on providing specialized cybersecurity solutions and services, including data and digital infrastructure protection for enterprises, and developing advanced technical and security systems to meet the growing market needs in this vital field. Future Outlook: The Company believes that this step will enable each subsidiary to focus on its respective operational sector with greater flexibility, while building clear competitive advantages. This is expected to increase opportunities for gaining larger market shares in each business line. The positive impact of this strategy is anticipated to begin materializing in the second half of 2025, reflected in improved revenues, profitability, and enhanced market positioning. Furthermore, the signing of strategic partnerships with ZKTeco, a global manufacturer, and SignMax, a provider of exhibition and conference solutions, is expected to significantly improve operational and financial results in the second half of the year. These partnerships will expand the range of products and services offered and strengthen supply capabilities. Combined with the newly adopted sector-focused strategy, this move is expected to enhance operational efficiency, improve earnings quality, and increase revenues, thereby supporting the Company’s sustainable growth in the coming period. |
