Molan Steel Co. Announces its accumulated loses reaching 27.79 % of its capital
| Element List | Explanation |
|---|---|
| Introduction | Molan Steel Co. announces that its accumulated losses have reached 27.79% of its share capital of SAR 26,600,000, based on the Company’s interim financial statements for the period ended 30 June 2025. |
| Date of Realization of the Loss | 2025-06-30 Corresponding to 1447-01-05 |
| Amount of the Accumulated Losses | 7,391,350SR |
| Percentage of the Accumulated Losses out of the Capital (%) | 27.79 % |
| Major Reasons Leading to the Losses | The primary reason for the increase in the loss-to-capital ratio is the impact resulting from the acquisition of Mayar International Industry Company, during which provisions were recorded for obsolete inventory, advance payments to suppliers, and expected credit losses, totalling SAR 2.3 million.
Additionally, the acquisition was financed through the Company’s internal funding sources, which impacted working capital and operational efficiency. |
| 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 |
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