BAAN Holding Group Co. — Annual Report 2020

Mar 28, 2021

Abdulmohsen Alhokair Group for Tourism and Development announces its Annual Financial Results for the Period Ending on 2020-12-31

1820 · 28/03/2021 08:28:44 · Announcement #62439 · View on Saudi Exchange

Abdulmohsen Alhokair Group for Tourism and Development announces its Annual Financial Results for the Period Ending on 2020-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	613.11	1,110.02	-44.765
Gross Profit (Loss)	12.13	272.08	-95.541
Operational Profit (Loss)	-187.64	8.39	-
Net Profit (Loss) after Zakat and Tax	-200.16	-142.99	39.981
Total Comprehensive Income	-192.39	-142.52	34.991
Total Share Holders Equity (after Deducting Minority Equity)	247.42	439.81	-43.743
Profit (Loss) per Share	-3.64	-2.6
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	Net Loss of the current year has increased compared with last year due to the following:

1- Decrease in revenues by SAR 496.9 million mainly resulted from:

* The company’s revenues were negatively affected during the current year due to corona virus (Covid-19) pandemic, and also affected from the precautionary and preventive measures taken by the authorities in the Kingdom of Saudi Arabia to contain the spread of the virus.

2- The Company’s share in net results of joint ventures decreased by SAR 20.0 million, mainly these joint ventures are affected from the emerging corona virus pandemic.

3- During the current year, Provision for Impairment of property and equipment was recorded by SAR 28.3 million, based on the Impairment test which was made by the company, in accordance with the International Financial Reporting Standards.

4- The decrease in revenues was offset by a reduction in total Operating expenses, Financial charges on loans and Financial charges on lease liabilities with total amount SAR 367.8 million.

5- Other expenses decreased by SAR 119.0 million, mainly due to the following:

A- Recognition of nonrecurring gain during the current year amounted to SAR 76.9 million, in accordance with the requirements of the International financial reporting standard no.16, resulted from revised of lease agreement of all the hotel properties which leased from the Principal shareholder, to be a percentage of revenues instead of fixed rent amount.

B- The losses which resulted from the disposal of property and equipment are decreased by SAR 27.1 million.

6- During the current year, zakat provision was reversed by SAR 1.2 million, the company received the final assessment for the year of 2012 which led to a reduction on the calculation of the zakat provision. 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 We draw attention to note 2 to the consolidated financial statements, which indicates that the accumulated losses of the Group recached SR 302.33 million as of 31 December 2020, exceeding half of its capital, which is subject to certain regulatory procedures according to “Companies Law”. In addition, the current liabilities of the Group exceeded its current assets, resulting in a negative working capital of SR 577.82 million as of December 31, 2020 These conditions indicate that a material uncertainty exists that may cast a significant doubt on the Group’s ability to continue as a going concern. As stated in note 2, the management has made an assessment of the Group’s ability to continue as a going concern, and a result, it has prepared these consolidated financial statements on a going concern basis. Our opinion is not modified in respect of this matter. Reclassification of Comparison Items NA Additional Information Total revenues during current period amounted to SAR 613.11 million, compared to SAR 1110.02 million for the same period of last year with a decrease of 44.8%.

Gross Profit during current period amounted to SAR 12.13 million, compared to SAR 272.08 million for the same period of last year with a decrease of 95.5%.

Operational Loss during current period amounted to SAR 187.64 million, compared to Operational Profit amounted to SAR 8.39 million for the same period of last year.

Net loss during the current period amounted to SAR 200.16 million, compared to SAR 142.99 million for the same period of last year with an increase of 40.0%.

Total comprehensive loss during current period amounted to SAR 192.39 million, compared to SAR 142.52 million for the same period of last year with an increase of 35.0%.

Loss per share for the current period amounted to SAR 3.64 , compared to SAR 2.60 for the same period of last year.

Total Shareholders Equity ( No Minority interests ) during the current period amounted to SAR 247.42 million, compared to SAR 439.81 million of the same period of last year with a decrease of 43.7%.

* The accumulated losses as of 31-12-2020 amounted to SAR 302.33 million which represent 55.0% of the Company’s share capital.

* On March 25, 2021 the Board of Directors of the company was informed that the Accumulated losses reached 55.0% of the Company’s share capital.

* The main reasons led to these losses are as follows:

1- The company’s business were negatively affected during the current year by Covid-19 pandemic (Coronavirus) as all Entertainment centers has been suspended from March 15, 2020 to June 20, 2020, as well as the suspension of some of the Hotel's facilities, closure of the commercial centers, suspension of buffet food services and the suspension of the wedding Halls and Cafes. These are due to the precautionary and preventive measures which taken by the authorities of the Kingdom of Saudi Arabia to control the pandemic corona virus and to prevent it’s spread.

2- Suspension of international flights, negatively affected the Hotel's occupancy rate in all region especially Western Region.

3- Non-recurring losses resulted from the closure of a number of low performing locations during 2018 and 2019.

4- Increase of operating expenses, due to the increase in renewal of expats work permits cost, licenses renewal cost and the utilities cost during 2018 and 2019.

It’s worth noting that on 31-12-2020 the company has submitted to the Capital Market Authority, the Capital reduction and the Capital increase file through offering right’s issue.

* 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.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.