premargin

Element List	Current Year	Previous Year	%Change
Sales/Revenue	98.81	137.67	-28.23
Gross Profit (Loss)	13.48	30.58	-55.92
Operational Profit (Loss)	-86.4	-21.52	301.49
Net Profit (Loss) Attributable to Shareholders of the Issuer	-89.06	-16.91	426.67
Total Comprehensive Income Attributable to Shareholders of the Issuer	-94.56	-24.32	288.81
Total Shareholders Equity (after Deducting Minority Equity)	138.77	73.76	88.14
Profit (Loss) per Share	-4.84	-0.99
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	-	-
All figures are in (Millions) 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 decrease in sales/revenues is mainly attributable to the decline in sales of the mattress and foam segment.
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	The decrease in net profit is mainly attributable to the recognition of an impairment in goodwill and the decline in operating profit, driven by the decrease in gross profit as a result of lower sales, in addition to the increase in impairment recorded on current assets.
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 (1) to the accompanying consolidated financial statements, which indicates that the Group had incurred recurring net losses and was facing liquidity pressures as of 31 December 2024. We also noted that the Group had recurring operating losses, negative cash flows from operating activities, and a history of not achieving the approved forecast budgets, as the actual results were lower than previous expectations, which increases the degree of uncertainty associated with management’s estimates and assumptions underlying its going concern assessment. However, during the current year, the Group was able to obtain the required funding from shareholders through a capital increase amounting to SAR 165 million to support its operations and planned investments, including the launch of a new commercial identity and expansion into showrooms. Management expects an improvement in the Group’s financial performance and operating cash flows, mainly due to obtaining sufficient funding as well as the expansion plans approved by the Board of Directors and presented to shareholders when seeking such funding from them. Accordingly, the Group’s ability to continue as a going concern remains dependent on the successful implementation of the Group’s business plans and the achievement of the expected cash flows approved by the Board of Directors. Our opinion has not been modified in respect of this matter. We also draw attention to Note (29) to the accompanying consolidated financial statements, which indicates that certain comparative figures as of 1 January 2024 and 31 December 2024 have been restated. Our opinion has not been modified in respect of this matter.
Reclassification of Comparison Items	Certain comparative figures as of 1 January 2024 have been restated, as disclosed in Note (29) to the consolidated financial statements.
Additional Information	SIDC announced on Tadawul on 23/11/2025 the correction of the accounting treatment relating to SIDC’s transfer, during the financial year ended 31 December 2023, of the fair value reserve balance relating to financial assets measured at fair value through other comprehensive income, in connection with its investment in the Arabian Industrial Fibers Company (Ibn Rushd), amounting at the transfer date to SAR 132.9 million, to accumulated losses prior to derecognition of the related asset. This was effected by reversing the accounting entry related to the transfer recorded at the end of the 2023 financial year, through reinstating the fair value reserve of financial assets through other comprehensive income within equity, and restating the comparative financial statements for 2023 and 2024 upon preparing the financial statements for the year ended 31 December 2025, together with disclosure of the nature and impact thereof in accordance with the requirements of International Financial Reporting Standards. The financial impact of correcting the accounting treatment is limited to a reclassification within equity, whereby SAR 132.9 million is reclassified from accumulated losses to the fair value reserve of financial assets measured at fair value through other comprehensive income. There is no impact on operating activities, cash flows, assets, or liabilities. In addition, the resulting effect on retained earnings is not available for cash dividend distribution, as it represents a reclassification arising from the correction of an accounting treatment rather than realized operating profits, and it does not change the Company’s operating performance results. SIDC confirms that this correction does not represent any change in accounting policies or accounting estimates, thereby ensuring full compliance with the relevant laws and regulations, reinforcing the principles of transparency and disclosure, and reflecting SIDC’s commitment to applying International Financial Reporting Standards as endorsed in the Kingdom of Saudi Arabia by the Saudi Organization for Chartered and Professional Accountants. In conjunction with the announcement of the Company’s preliminary consolidated financial results for the period ended 31 December 2025, the Company’s accumulated losses balance as at 30/09/2025, amounting to SAR 35,966,649, which represented 26.64% of the Company’s capital at that time of SAR 135,000,000, turned into retained earnings amounting to SAR 25,539,186 as at 31/12/2025. This was primarily due to the accounting correction announced by the Company on Tadawul Saudi Arabia on 23/11/2025, relating to the reclassification of SAR 132.9 million, associated with the Company’s investment in the Arabian Industrial Fibers Company (Ibn Rushd), from accumulated losses to the fair value reserve of financial assets measured at fair value through other comprehensive income within equity, together with the restatement of comparative financial statements in accordance with International Financial Reporting Standards. In addition, the Company’s capital increased during the period to SAR 300,000,000 following completion of capital increase procedures through a rights issue, which was reflected in the balance-to-capital ratio at the end of the period. Accordingly, Article 132 of the Companies Law and the Procedures and Instructions applicable to listed companies whose accumulated losses reach 20% or more of their share capital no longer apply to the Company. The weighted average number of shares for the purpose of earnings/(loss) per share was calculated in accordance with the requirements of International Accounting Standard (33) “Earnings per Share”, considering the effect of the capital reduction during 2024 and the capital increase through a rights issue during 2025. Comparative figures for the prior period were also adjusted solely for the purposes of calculating earnings/(loss) per share, to reflect the accounting impact associated with the rights issue, and the new shares were included in the weighted average from the date of receipt of the capital increase proceeds.

The Saudi Industrial Development Company (SIDC) announces the consolidated annual financial results for the period ending on 31/12/2025AD. (twelve months).