| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 244.5 | 217.27 | 12.53 | ||
| Gross Profit (Loss) | 10.47 | 9.51 | 10.09 | ||
| Operational Profit (Loss) | -23.41 | -18.53 | 26.34 | ||
| Net profit (Loss) | -40.3 | -31.47 | 28.06 | ||
| Total Comprehensive Income | -38.8 | -31.28 | 24.04 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 245.48 | 284.28 | -13.65 | ||
| Profit (Loss) per Share | -1.14 | -0.89 | |||
| 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 | 2.21 | 0.62 | |
| Accumulated Losses | 108.52 | 30.66 | |
| 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 reasons for the increase in sales during the current year compared to the previous year are due to improve in sales of drawn wire products by 25%, in contrast there is decrease in sales of the steel casting segment by about 3% due to the competition and low market demand. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Reasons for the increase in the losses during current year compare to the last year are decrease in sales of Steel Casting products , decrease in average selling price of drawn wire products, also increase in selling and distributing expenses and administrative expenses . in addition, reasons for the increase in the losses during 2024 are decrease in other income and decrease in profit from Murabaha deposits with banks and increase in the losses from discontinued operations (for more details on discontinued operation, refer to note 32 in the consolidated financial statements). |
| 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) | None |
| Reclassification of Comparison Items | Certain reclassifications were made to the 2023 figures to conform to the current year's presentation. |
| Additional Information | The accumulated losses reached SAR 108.52 Million, equivalent to 30.66% of the company’s paid up capital of SAR 354 Million after the approval of EGA on 10 Jun 2024 to transfer SAR 27.17 Million from statutory reserve to write-off part from the accumulated losses of SAR 96.89 Million as stated in the financial statement at 31 Dec 2023. The 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 20% or more from its paid up capital on 30/06/2023 and announced immediately , 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. 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 32 in the consolidated financial statements). |
