Naseej International Trading Co. announces its Interim Financial results for the Period Ending on 2025-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 26,247 | 63,817 | -58.871 | 38,313 | -31.493 |
| Gross Profit (Loss) | 1,476 | 11,768 | -87.457 | -734 | - |
| Operational Profit (Loss) | -6,129 | 2,801 | - | -11,388 | -46.18 |
| Net profit (Loss) | -8,643 | 111 | - | -18,416 | -53.067 |
| Total Comprehensive Income | -8,643 | 111 | - | -18,043 | -52.097 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 39,285 | 90,260 | -56.475 |
| Profit (Loss) per Share | -0.79 | 0.01 | |
| 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 | -69,688 | -63.95 | |
| All figures are in (Thousands) 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 reason for the decrease in sales during the current quarter compared to the same quarter of the previous year is mainly due to a decrease in production volume affected by a decrease in cash liquidity. |
| 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 reason for achieving net losses during the current quarter compared to the same quarter of the previous year is mainly due to a decrease in production volume, which led to a decrease in sales. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The reason for the decrease in sales during the current quarter compared to the same quarter of the previous year is mainly due to a decrease in production volume affected by a decrease in cash liquidity. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The reason for the decrease in net loss during the current quarter compared to the previous quarter is mainly due to reduction in operating expenses, while sales were affected by lower production volume. |
| 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) | 1- Emphasis of matter:We draw attention to Note 4.1 to the financial statements, which describes the non-compliance with a covenant related to outstanding loans and borrowings with a bank as at March 31, 2025. Management is in discussions with
the financial institution to obtain a waiver and expects such waiver to be granted for future periods in accordance with the agreement. Our opinion is not modified in respect of this matter.
2-Material uncertainty related to going concern: As disclosed in note 2.3 to the consolidated financial statements, the accumulated losses of the Company as of March 31, 2025, is SR 69.69 million (December 31, 2024: SR 61.05 million), which exceeded 50% of its share capital. This condition indicate that a material uncertainty exists that may cast significant doubt about the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
| Reclassification of Comparison Items | Not Applicable |
| Additional Information | Naseej International Trading Company announces that its accumulated losses have reached SAR 69.688 million as of March 31, 2025, representing 63.95% of its capital. The main reasons for these losses are the decline in production volume, which has increased the costs of manufactured goods, in addition to the decline in sales.
The company is working to take the necessary actions regarding these losses by :
A. Adopting several different strategic options, including an acquisition plan for Etmam Company and signing a sale and purchase agreement with it, and selling assets whose disposal does not affect the operational business. B. Increasing sales volume. C. Reducing expenses. The company will be subject to the procedures and instructions issued by the Capital Market Authority regarding listed companies whose accumulated losses amount to 20% or more of their capital. The specific dates were clarified in accordance with Article 132 of the Companies Law in the company's announcement of the annual financial results dated March 23, 2025. Expiring on December 31, 2024. |
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