Jana Medical Co. Announces its accumulated loses reaching 40.55 % of its capital
| Element List | Explanation |
|---|---|
| Introduction | Jana Medical Company announces that its accumulated losses have reached SAR 13.029 million, representing 40.55% of its capital, based on the annual financial results for the fiscal year 2024, which ended on December 31, 2024 (corresponding to Jumada Al-Thani 30, 1446 AH). |
| Date of Realization of the Loss | 2024-12-31 Corresponding to 1446-06-30 |
| Amount of the Accumulated Losses | SAR 13.029 million |
| Percentage of the Accumulated Losses out of the Capital (%) | 40.55 % |
| Major Reasons Leading to the Losses | The main reasons for reaching these losses are:
1. Increase in expected credit loss provisions. 2. Addition of provisions for legal cases. 3. Increase in financing costs. |
| Measures to be Taken by the Company in Regard to Such Losses | 1. Increase Sales Volume: The company aims to raise its sales level as a key solution to reduce accumulated losses, by enhancing the effectiveness of marketing activities, improving customer experience, and expanding distribution scope. This approach is expected to increase operating revenues, optimize available production capacities, positively impact the company's financial results, and enhance its ability to reduce the loss-to-capital ratio.
2. Reduce Expenses: Through a comprehensive review of operational and administrative items, the company aims to reduce unnecessary expenses and improve operational efficiency. 3. Increase the Number of Medical Device Agencies: By increasing the number of exclusive agencies, the company can access new and innovative products, enhancing market competitiveness and providing opportunities for higher sales. This also helps diversify income sources and reduce reliance on a limited number of suppliers or products. 4. Evaluate the Company's Financial Position and Liquidity: To determine the company’s ability to meet its obligations when due and to review and approve the company’s five-year business plan, including cash flows and future forecasts. 5. Activate Odoo ERP Program: By completing employee training and fully implementing it during Q2 of 2025, this will raise operational efficiency, improve quality, and support the digital transformation of operations, contributing to increased sales and reduced operating costs. |
| Application of the Procedures and Instructions | Procedures and Instructions Applicable on Companies Listed in Saudi Capital Market Whose Accumulated Losses Reach 20% or more out of the Capital Thereof will be Applied |
| Reference to additional procedures or instructions | Not applicable |
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