BAAN Holding Group Co. — Interim / Quarterly Report 2021

Aug 19, 2021

Abdulmohsen Alhokair Group for Tourism and Development announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )

1820 · 19/08/2021 15:36:04 · Announcement #64642 · View on Saudi Exchange

Abdulmohsen Alhokair Group for Tourism and Development announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	182.65	119.58	52.742	140.99	29.548
Gross Profit (Loss)	13.64	-1.52	-	-0.65	-
Operational Profit (Loss)	-31.39	-47.24	-33.552	-41.94	-25.154
Net Profit (Loss) after Zakat and Tax	-69.95	2.07	-	-60.1	16.389
Total Comprehensive Income	-70.72	2.13	-	-60.1	17.67
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	323.64	350.63	-7.697
Gross Profit (Loss)	12.99	79.77	-83.715
Operational Profit (Loss)	-73.33	-18.7	292.139
Net Profit (Loss) after Zakat and Tax	-130.05	4.18	-
Total Comprehensive Income	-130.83	4.09	-
Total Share Holders Equity (after Deducting Minority Equity)	116.6	443.9	-73.732
Profit (Loss) per Share	-2.36	0.08
All figures are in (Millions) Saudi Arabia, Riyals

	Accumulated Losses	Capital	Percentage %
	-432.39	550	78.6
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The reasons for achieving net loss in current quarter as compared with net profit in the same quarter of the last year are as follows:

1- Decline in the revenues of the hotels division during the current quarter as compared to the same quarter last year due to the repercussions of coronavirus (Covid 19) pandemic and the enforcement of precautionary measures in order to contain its spread had negatively affected the company’s revenues in general due to the suspension of all the events, wedding halls, banquet hall, business meeting and open buffets in restaurants in the Hotels. Also, the occupancy rate  in Hotel Division was negatively affected, particularly in western region, due to the temporary restrictions on the international flights and Umrah.​ Additionally, the decline in occupancy rates in Hotel Division as a quarantine facilities in comparison to the same quarter of the last year.

2- During the same quarter last year, the company had nonrecurring Rent concessions for an amount of SR 21.3M for some hotels and entertainment centers as a repercussions of coronavirus (Covid 19) pandemic.

3- Recording nonrecurring gain during the same quarter of the last year for SR 76.9M  according to the  requirements of the IFRS no.16, due to the change of lease agreements of all the hotel properties which leased from the principal shareholder, to be based on a percentage of revenues instead of fixed rent amount.

4- Closure of some unprofitable entertainment projects and centers and retirement of its net book value for an amount of SR 19 million during the current quarter.

5- Recording of an impairment loss for an amount of SR 12M based on the IFRS impairment test conducted by the company during the current quarter.

6- During the same quarter of the last year, a reversal of Zakat provision for an amount of SR 1M.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The reasons for the increase in Net loss in current quarter as compared with previous quarter are as follows:

1- Closure of some unprofitable entertainment projects and centers and retirement of its net book value for an amount of SR 19 million during the current quarter.

2- Recording of an impairment loss for an amount of SR 12M based on the IFRS impairment test conducted by the company during the current quarter.

3- Decline the company’s share in joint ventures net profit by SR 900K during the current quarter compared to the previous quarterThe reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The Reasons for achieving a net loss in the current period, compared with a net profit in the same period of last year are as follows:

1- The decline in revenues by SR 27M mainly due to the repercussions of coronavirus (Covid 19) pandemic and the enforcement of precautionary measures in order to contain its spread had negatively affected the company’s revenues in general during the current period, as the operation of all Entertainment Division Centers in KSA were suspended starting from 10 PM Thursday 4th of February 2021 till 6th of March 2021, in addition to the suspension of all the events, wedding halls, banquet hall, business meeting and open buffets in restaurants in the Hotels. Also, the occupancy rate  in Hotel Division was negatively affected, particularly in western region, due to the temporary restrictions on the international flights and Umrah.​​

2- During the same period last year, the company had nonrecurring Rent concessions for an amount of SR 45M for some hotels and entertainment centers.

3- Recording nonrecurring gain during the same period of the last year for SR 76.9M  according to the  requirements of IFRS no.16, resulted from revised of lease agreement of all the hotel properties which leased from the principal shareholder, to be based on a percentage of revenues instead of fixed rent amount.

4- Closure of some unprofitable entertainment projects and centers and retirement of its net book value for an amount of SR 19 million during the current period.

5- Recording of an impairment loss for an amount of SR 12M based on the IFRS impairment test conducted by the company during the current period.

6- During the same period of the last year, a reversal of Zakat provision for an mount of SR 1M was recordedStatement of the type of external auditor's report Unmodified conclusionModification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion We draw attention to note 2 to the interim condensed consolidated financial statements, which indicates that the  accumulated losses recached SR 432.39 million as of 30 June 2021, exceeding half of the Company’s capital, and the current liabilities of the Group exceeded its current assets, resulting in a negative working capital of SR 535.59 million as of 30 June 2021.

These conditions indicate that a material uncertainty exists that may cast a 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 as result, these interim condensed consolidated financial statements have been prepared on a going concern basis.

Our opinion is not modified in respect of this matterReclassification of Comparison Items NAAdditional Information • Total revenues during current quarter amounted to SAR 182.65 million, compared to SAR 119.58 million for the same quarter of last year with a n increase of 52.7%.

• Gross profit during current quarter amounted to SAR 13.64 million, compared to Gross loss amounted to SAR 1.52 million for the same quarter of last year.

• Operational Loss during current quarter amounted to SAR 31.39 million, compared to Operational Loss amounted to SAR 47.24 million for the same quarter of last year with a decline of 33.6%.

• Net Loss during current quarter amounted to SAR 69.95 million, compared to Net Profit of SAR 2.07 million for the same quarter of last year and compared to Net Loss of SAR 60.10 million for the previous quarter with an increase of 16.4%

• Total comprehensive loss during current quarter amounted to SAR 70.72 million, compared to a Total comprehensive Income SAR 2.13 million for the same quarter of last year and compared to Total comprehensive Loss SAR 60.10 million for the previous quarter with an increase of 17.7%

• Total revenues during current period amounted to SAR 323.64 million, compared to SAR 350.63 million for the same period of last year with a decrease of 7.7%.

• Gross Profit during current period amounted to SAR 12.99 million, compared to SAR 79.77 million for the same period of last year with a decrease of 83.7%.

• Operational Loss during current period amounted to SAR 73.33 million, compared to SAR 18.70 million for the same period of last year with an increase of 292.1%.

• Net Loss during the current period amounted to SAR 130.05 million, compared to Net Profit amounted to SAR 4.18 million for the same period of last year.

• Total comprehensive Loss during current period amounted to SAR 130.83 million, compared to total comprehensive Income amounted to SAR 4.09 million for the same period of last year.

• Loss per share for the current period amounted to SAR 2.36 , compared to Earning per share amounted to SAR 0.08 for the same period of last year.

• Total Shareholders Equity ( No Minority interests ) during the current period amounted to SAR 116.60 million, compared to SAR 443.90 million of the same period of last year with a decrease of 73.7%.

• The accumulated losses as of 30-06-2021 amounted to SAR 432.39 Million which represent 78.6% of the Company’s share capital.

It’s worth noting that the company in the subsequent period made a capital reduction with an amount of SR 207 Million to partially absorb the accumulated loss and is undertaking a capital increase for an amount of SR 307 Million through issuance of share rights offering

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