| The reason of the increase (decrease) in the net profit during the current year compared to the last year is |
The company achieved (net loss) during the year compared to the net profit achieved during the previous year, despite:1-Sales increased by 51.34% as a result of the increase in sales of the iron sector and the increase in sales of the wood sector in general, and in particular the large increase in sales of the wood sector as a result of the supply contract with the Saudi Assda Trading Company, which reflects the expected financial impact of the contract during the year, despite the decline in sales of the logistics sector and other sectors.2-Reversal of allowance for credit losses related to investment in finance lease.3-Decreased financing costs as a result of capitalizing part of the financing costs on the assets eligible for capitalization, higher interest earned from investing in the finance lease contract, and lower financing costs related to lease liabilities.4-Increased investment profits.5-Increased other income.However, on the other hand:1-The cost of sales increased by 84%, which is higher than the increase in sales due to the increase in raw material prices, the increase in operating costs in the iron sector, and the decrease in storage and occupancy in the logistics services sector.2-Administrative and public expenses increased by 41.23% due to the high salaries and wages for the administrative cadres that were attracted to implement the company’s expansion plans.3-Selling and marketing expenses increased by 26.28% due to the increase in sales.4-An increase in the provision for credit losses (debts) for trade receivables because of the increase in customer debts as a result of the increase in sales.5-Zakat provision increased by 329% to increase the capital, and the value of zakat provision will gradually decrease as the company progresses in implementing its expansion plans and capital spending. |
| Statement of the type of external auditor’s report |
Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion |
There is no |
| Reclassification of Comparison Items |
Certain comparative figures have been re-presented and classified to conform to the presentation for the current period. |
| Additional Information |
The basic and diluted share of profit and loss for the current period and the corresponding period of the previous year was calculated by dividing the net profit or loss for each period after zakat attributable to the shareholders of the company by the weighted average number of ordinary shares outstanding at the end of each period, where the weighted average shares for the current period amounted to 17,500,000 shares compared to 3,750,000 shares for the same period of the previous year.During the current period and since receiving the proceeds of the offering and the capital increase from the beginning of the year 2022, the company is carrying out capital spending to implement its expansion plans, as it is working on rehabilitating the infrastructure of the iron factory in Buraidah Industrial City and adding automatic production lines with the aim of raising the production capacity of the factory from 4300 tons annually to 6000 tons annually initially and with the highest quality, and the establishment of a wood factory in the industrial city in Riyadh with a production capacity of 75 thousand wooden pallets per month initially, and it purchased a land of 40 thousand square meters to build a complex of warehouses and logistical services that include all types of frozen, refrigerated and dry storage in the city of Riyadh, which will start building it Currently, there is a storage capacity of 40,000 storage platforms, in addition to administrative development and digital transformation ,These developments will be announced, as The capital additions amounted to 45.20 million riyals and non-current assets increased by 30,76 million riyals in the financial position by 98.50%, which will have a positive impact on the company and its results during the coming period and achieve sustainability and growth, and the Zakat provision will decrease significantly to return to normal limits after completing capital expenditure On assets that will be offset by the capital increase. |
