Sinad Holding Co. — Earnings Release 2016

Mar 7, 2017

Aseer Trading, Tourism and Manufacturing Co. announces the annual financial results for the period ending on 31-12-2016

4080 · 07/03/2017 15:36:45 · Announcement #45851 · View on Saudi Exchange

Aseer Trading, Tourism and Manufacturing Co. announces the annual financial results for the period ending on 31-12-2016

Element	Current year	Previous year	% Change
Net profit (loss)	-184.6	160.3	-
Earning or loss per share, Riyals	-1.46	1.27	-
Gross profit (loss)	517.7	816.9	-36.63
Operational profit (loss)	-41.9	284.1	-

*All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The net loss after zakat and tax is due to decrease in gross income and loss from main operations resulting mainly from the decrease in gross income from sales in subsidiaries, loss in income from investments, increase in sales and distribution expenses, increase in general and administrative expenses, in addition to the decrease in other revenues, increase in loss from currency exchange differences from a subsidiary, and increase in the financial charges. Moreover, the same period from last year included income from discontinued operations that was sold and is no longer consolidated.
Reclassifications in annual financial results	Certain figures of the previous year have been reclassified to conform to the presentation for the current year.
Other notes	A. 1- Revenue from sales amounted to SR 2087.5 million compared to SR 2339.5 million for the previous year, representing a decrease of 10.8%. 2- Shareholders equity excluding non-controlling interest, amounted to SR 2354.2 million compared to SR 2521.8 million for the previous year, a decrease of 6.6%. B. The company wishes to clarify that the difference between the results in the audited financial statements for year 2016 and the interim financial statements (fourth quarter) for year 2016 announced on January 18, 2017 is due to the fact that during the final audit of the annual financial statements, the company did some final adjustments to several figures resulting in an increase in net loss of SR 1.8 million compared to the announced interim financial results (fourth quarter). C. The company wishes to clarify the main reasons that have resulted in losses during the current period: 1- Decrease in the gross income from sales in subsidiaries amounting to SR 68.1 million compared to the previous year. 2- The company share of net loss of an associate company of SR 41.2 million compared to a profit of SR 28.6 million in the previous year. 3- No gains on sale of investments and financial assets in the current year compared to SR 59.2 million gains on sale of investments and financial assets for the previous year. 4- Increase of SR 112.6 million in impairment resulting from non-temporary decline in the value of investments and financial assets compared to the previous year. 5- Increase of SR 18.4 million in sales and distribution expenses compared to the previous year. 6- Increase of SR 8.3 million in general and administrative expenses compared to the previous year. 7- Decrease of SR 14.0 million in other revenues compared to the previous year. 8- Increase of SR 67.9 million in loss from currency exchange differences from a subsidiary compared to the previous year. 9- Increase in financial charges of SR 15.6 million compared to the previous year. 10- No income before zakat from discontinued operations compared to SR 15.9 million for the previous year. D. The company wishes to clarify the exclusion of the financial figures relating to a previously owned subsidiary, in accordance with generally accepted accounting principles, from the consolidation process in the previous year, and the classification of the results of its operations in the income statement under income from discontinued operations.

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.