| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 3,374,971 | 2,984,238 | 13.09 | ||
| Gross Profit (Loss) | 297,032 | 347,045 | -14.41 | ||
| Operational Profit (Loss) | 25,293 | 70,132 | -63.94 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -55,021 | -62,365 | -11.78 | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -53,284 | -63,561 | -16.17 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 430,011 | 7,271 | 5,814.06 | ||
| Profit (Loss) per Share | -1.7 | -2.06 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | -336,578 | -69.7 | |
| All figures are in (Thousands) 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 | Red Sea International (“Red Sea”, "RSI", or the “Group”) achieved an increase in revenue of 13% in the current year compared to the last year, reaching SR 3,374 million. This growth was primarily driven due to the satisfaction of performance obligations and percentage of completion achieved to recognise the revenue. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The Group reported a decrease in net results resulting in a net loss of SR 42.9 million during the year compared to a profit of SR 4.06 million during the previous year. This is primarily attributable to the recording of provision for impairment on certain property, plant and equipment and investment properties amounting to SR 58.9 million and provision for slow moving inventory amounting to SR 17.9 million based on their recoverable values and their future revenue generating capability. |
| Statement of the type of external auditor's report | Conservation |
| 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) | Qualified opinion In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Red Sea International Company (the “Company”) and its subsidiaries (together the “Group”) as at 31 December 2025, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards, that are endorsed in the Kingdom of Saudi Arabia, and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (SOCPA). Basis for qualified opinion As set out in Note 37 to the consolidated financial statements, the Company entered into a shareholders' agreement (“SHA”) on 1 October 2023 in connection with the acquisition of a 51% stake in a subsidiary. The SHA included put and call options in relation to the non-controlling interest in the subsidiary that were exercisable subject to certain terms and conditions to be met over a period of time. In accordance with the requirements of International Accounting Standard 32 “Financial instruments: Presentation” that is endorsed in the Kingdom of Saudi Arabia, the Group was required to recognise a financial liability at the date of the acquisition of the subsidiary measured at the present value of the redemption amount as at that date. However, this financial liability was not measured and, accordingly, was not recognised on the acquisition date and consequently, impacted the reported equity at 1 January 2024 and 31 December 2024; and the consolidated statement of financial position as at 31 December 2024. The consequent charges arising on the unwinding of the discount on the liability together with any remeasurements that might have been required for the year ended 31 December 2024, were also not recognised. On 9 April 2025, the Company and the non-controlling interest shareholders of the subsidiary entered into an agreement that terminated the put and call options and as a result there were no put and call options as at 31 December 2025. This termination should have resulted in the derecognition of the above-mentioned financial liability at the date of termination. As management had not recognised the liability in the first instance, the impact of the subsequent derecognition of the financial liability in the consolidated financial statements has also not been recognised during the year ended 31 December 2025. As the liability was never measured, we were unable to determine the impact of its omission on (i) the consolidated statement of financial position as at 31 December 2024; (ii) the consolidated statement of changes in equity for the years ended 31 December 2025 and 31 December 2024 as well as opening accumulated losses and equity as of 1 January 2024; and (iii) the consolidated statements of profit or loss and comprehensive income for the years ended 31 December 2025 and 31 December 2024. |
| Reclassification of Comparison Items | Certain of the prior year amounts were reclassified and restated to conform with the presentation in the current year and to correct certain prior year errors. For details please refer note 39 to the Consolidated Financial Statements for the year ended 31 December 2025. |
| Additional Information | '- The Group generated revenues amounting to SR 3,375 million in FY25, compared to SR 2,984 million in FY24, which represents an increase of 13%. The breakdown is as follows: • Revenue from general construction amounted to SR 2,723 million in FY25, as compared SR 2,626 million in FY24. • Revenue from sale of buildings amounted to SR 480 million in FY25, as compared to SR 229 million in FY24. • Rental revenue from investment properties amounted to SR 172 million, as compared to SR 130 million in FY24. - Gross profit decreased to SR 297 million, compared to a gross profit of SR 347 million in FY24. The reduction in gross profit despite achieving operational efficiencies was mainly due to recording of impairment loss of around SR 59 million on certain investment properties and property, plant and equipment based on their recoverable values and their future revenue generation capability. Further, a provision on slow moving inventory of around SR 17million was recorded against inventory based on their recoverable values. This translated to a Gross margin of 8.8% in FY25 as compared to 11.6% in FY24. - Operating profit decreased to SR 25.3 million in FY25, compared to an operating profit of SR 70.1 million in FY24. The decrease in operating profit despite reduction in the S & GA expenses and allowance for expected credit losses by around 2%, was due to the reduction in gross margins as explained above. - Earnings/(Loss) Per Share: Calculated by dividing the loss attributable to equity holders of the Parent Company by the weighted average number of shares of the Company. - Total Accumulated Losses: This amounted to SR 336.6 million, equivalent to 69.7% of its share capital as of 31 December 2025. The Company confirms its adherence to the procedures and instructions issued by the Capital Market Authority for listed companies in the Saudi stock market with accumulated losses of 50% or more of their capital. |
