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Al Kathiri Holding Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months ) | premargin

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	28,059,168	51,837,209	-45.87	75,863,197	-63.013
Gross Profit (Loss)	-6,703,188	2,240,333	-	-2,695,851	148.648
Operational Profit (Loss)	-11,137,772	-2,878,517	286.927	-24,013,759	-53.619
Net Profit (Loss) Attributable to Shareholders of the Issuer	-13,817,582	-5,039,097	174.207	-32,814,958	-57.892
Total Comprehensive Income Attributable to Shareholders of the Issuer	-13,817,582	-5,039,097	174.207	-31,548,502	-56.202
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Shareholders Equity (after Deducting Minority Equity)	56,264,213	104,615,156	-46.217
Profit (Loss) per Share	-0.061	0.022
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	69,244,224	61.27
All figures are in (Actual) 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 revenue during the current quarter, compared to the same quarter of the previous year, is attributed to a slowdown in the execution and delivery pace of certain projects within the contracting sector. Additionally, sales of some construction material products declined due to challenges related to the availability of raw materials and supply chain fluctuations, which impacted operational performance during the period. On the other hand, the Group continues to focus on improving operational efficiency, maximizing the utilization of available resources, and strengthening higher-margin sectors.
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 net loss for the current quarter increased compared to the same quarter of the previous year due to lower revenues and the fact that the cost of revenue did not decrease at the same pace. This led to a shift from gross profit to a gross loss, in addition to higher financing costs and the impact of market challenges and rising operating costs on certain operational activities. To address these challenges, the Group has initiated a number of corrective measures, including restructuring certain operating segments, streamlining expenses, improving liquidity and working capital management, and enhancing collection efficiency. Furthermore, the Group is focusing on higher-margin activities and sectors as part of an operational and financial plan aimed at achieving a gradual improvement in performance during the coming periods. The Group also emphasizes that the current results reflect an operational and restructuring phase aimed at boosting efficiency, enhancing revenue quality, and ensuring business sustainability. Management continues to evaluate appropriate financing options and optimize the financing structure to support the stability and continuity of operational activities.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The decrease in revenue during the current quarter compared to the previous quarter is attributed to a decline in operational performance across several sectors. Specifically, construction sector revenues were impacted by a slower pace of project execution and delivery. Additionally, sales of concrete, aggregate, and washed sand decreased due to supply chain challenges that affected the availability of raw materials.
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 loss during the current quarter compared to the previous quarter is attributed to the reduction in general and administrative expenses as well as finance costs. Additionally, it is due to the non-recurrence of one-time expenses that impacted the previous quarter's results, such as "inventory write-down provisions, asset impairment losses, and Zakat."
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)	We draw attention to Note (2) to the consolidated financial statements, which indicates that the Group incurred a net loss of SAR 13.9 million for the period ended March 31, 2026 (For the period ended December 31, 2025: a net loss of SAR 36.5 million). Furthermore, accumulated losses reached SAR 69.2 million for the period ended March 31, 2026 (For the period ended December 31, 2025: SAR 55.4 million), representing 61% (2025: 49%) of the Group's capital. These conditions, along with other matters, indicate the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern, as well as its ability to meet its obligations as they become due. Our opinion is not modified in respect of this matter.
Reclassification of Comparison Items	Certain comparative figures have been reclassified to conform with the presentation of the current period’s condensed consolidated interim financial statements.
Additional Information	Al Kathiri Holding Company announces that its accumulated losses have reached SAR (69,244,224), representing (61.27%) of its capital, which stands at SAR (113,022,000), according to the interim financial statements for the period ended March 31, 2026. The date on which the losses reached this level was March 31, 2026, and the Board of Directors was notified of the accumulated losses on May 07, 2026. The primary reasons for the accumulated losses are attributed to the increase in execution costs related to the expansion of certain projects, alongside recording accounting provisions including inventory write-downs, impairment losses on certain assets, Zakat settlements, and an increase in Expected Credit Loss (ECL) provisions. The Group has initiated an integrated corrective plan aimed at improving financial and operational performance, enhancing resource utilization efficiency, and boosting liquidity. This plan includes: • Restructuring certain operating segments and improving margins. • Reducing operating and administrative expenses. • Focusing on high-margin segments and products. • Accelerating the collection of accounts receivable and improving cash flows. • Studying and optimizing the financing structure and reducing reliance on high-cost financing. Management reaffirms its full commitment to taking the necessary measures to address the accumulated losses, enhance financial sustainability, and improve performance in the best interest of the shareholders. Note that the deadline for the Board of Directors to disclose its recommendations regarding the accumulated losses is July 05, 2026. Furthermore, the deadline for the Board to call for an Extraordinary General Assembly (EGM) to consider the company's continuity is November 02, 2026. The procedures and instructions applicable to companies listed on the Saudi Exchange (Tadawul) whose accumulated losses have reached 20% or more of their capital will be applied. The company is subject to the procedures and instructions for listed companies whose accumulated losses have reached (50%) or more of their capital, in accordance with the Companies Law, the Implementing Regulations of the Capital Market Authority (CMA), and the CMA instructions for companies listed on the Saudi Exchange. The dates mentioned above are determined in accordance with Article 132 of the amended Companies Law, which states: "If the losses of a joint-stock company reach half of its issued capital, the Board of Directors must disclose the same and its recommendations regarding such losses within 60 days from the date of its knowledge thereof. The Board must also call for an Extraordinary General Assembly meeting within 180 days from the date of its knowledge thereof to consider the continuity of the company by taking the necessary measures to address such losses or to dissolve the company." The company reaffirms its full commitment to enhancing transparency and taking all necessary actions to rectify the accumulated losses and restore profitability to serve the interests of its shareholders.