Sinad Holding Co. — Earnings Release 2017

Mar 25, 2018

Aseer Trading, Tourism and Manufacturing Co. announces the annual financial results for the period ending on 31-12-2017

4080 · 25/03/2018 15:21:12 · Announcement #49824 · View on Saudi Exchange

Aseer Trading, Tourism and Manufacturing Co. announces the annual financial results for the period ending on 31-12-2017

Element	Current year	Previous year	% Change
Net profit (loss)	-324.02	-180.66	-79.35
Earning or loss per share, Riyals	-2.55	-1.42	-
Gross profit (loss)	268.7	515.86	-47.91
Operational profit (loss)	-204.18	-35.97	-467.64

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

Element	EXPLAINATION
Reasons of annual financial results	The increase in 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, and increase in the financial charges. Moreover, the same period from last year included income from transfer of investment as additional investments contribution while this is not the case for the current year.
Reclassifications in annual financial results	The comparative figures have been restated to conform to International Financial Reporting Standards. The Company has adopted the International Financial Reporting Standards as from 1 January 2017. Accordingly, certain changes have been made to the Company's financial statements on a number of items in the measurement, recognition, presentation and disclosure method for the current period and the comparative period as per the accounting policies adopted in accordance with the requirements of the International Financial Reporting Standards applied in the Kingdom of Saudi Arabia. For further details see Note 3 (Implementation of International Financial Reporting Standards as applied in the Kingdom of Saudi Arabia for the First Time) in the disclosures to the consolidated financial statements for the year ended 31 December 2017.
Other notes	A. 1- Revenue from sales amounted to SR 1887.8 million compared to SR 2084 million for the previous year, representing a decrease of 9.4% 2- Shareholders equity excluding non-controlling interest, amounted to SR 1788.5 million compared to SR 2342.4 million for the previous year, a decrease of 23.6% 3- The comprehensive loss attributable to the shareholders of the Company amounted to SR 427.5 million during the year, compared to a loss of SR 37.8 million for the previous year, an increase of 1030.1% B. The company wishes to clarify the main reasons that have resulted in losses during year 2017: 1- Decrease in the net sales in subsidiaries amounting to SR 196.1 million compared to the previous year 2- No profit on transfer of investment as additional investments contribution in the current period compared to a profit of SR 13.2 million in the previous year 3- Increase of SR 171.5 million in impairment resulting from non-temporary decline in the value of investments and financial assets compared to the previous year 4- The value of real estate investments decreased by an amount of SR 38.2 million compared to the previous year 5- Increase of SR 7.6 million in financial charges compared to the previous year C. The Company wishes to clarify that in accordance with International Financial Reporting Standards adopted in the Kingdom of Saudi Arabia, a subsidiary was excluded from the consolidation of the financial statements during the year and the results of its operations were classified in the income statement under income from discontinued operations as a result of the Board of Directors' decision to sell or liquidate the subsidiary

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