Sinad Holding Co. — Earnings Release 2020

Mar 31, 2021

Aseer Trading, Tourism and Manufacturing Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

4080 · 31/03/2021 15:41:41 · Announcement #62553 · View on Saudi Exchange

Aseer Trading, Tourism and Manufacturing Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	1,569.6	1,883.9	-16.683
Gross Profit (Loss)	450.2	514.4	-12.48
Operational Profit (Loss)	28.2	74.3	-62.045
Net Profit (Loss) after Zakat and Tax	-48.5	-22.8	112.719
Total Comprehensive Income	-29.3	-10.7	173.831
Total Share Holders Equity (after Deducting Minority Equity)	1,380.3	1,401.6	-1.519
Profit (Loss) per Share	-0.38	-0.18
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	The increase of loss compared to previous year due to decrease in gross profit and operating profit through the year 2020 compared to last year 2019. This decrease was mainly driven by decrease in gross profit from sales and record impairment in properties and equipment and loss in other income in addition to increase income tax expenses.
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 13 to the accompanying consolidated financial statements, on 18 Rabi II 1441H (corresponding to 15 December 2019), the Company filed two lawsuits at the Public Court in Riyadh against the seller of the land located north of Riyadh, Al Khair District, and against the broker of the purchase deal requesting to compel both the land seller and purchase broker (defendants) to return the amount paid to them. During the year 2020 a court decree has been issued in favor of the Company, which obligate the land seller to pay an amount of SAR 202M. Our opinion is not qualified in respect of this matter.

Other matter

The consolidated financial statements of the Group for the ended 31 December 2019 were audited by another auditor who expressed an unmodified opinion on those statements on 26 March 2020. Reclassification of Comparison Items Certain figures for the previous year were re-classified to conform with the presentation for the current year. Additional Information 1. Accumulated losses reach SR 63.70 million by end of 31 December 2020 which represent 5.% of company share capital SR 1263.9 million.

2. Income statement has been amended as a result of reclassifying investment in some of financial instruments from equity instruments through other comprehensive income to a debt instrument through profit or loss after the management re-evaluated the terms and conditions of the relevant investment agreement and concluded that the financial instrument does not meet the definition of equity instrument. For more details, we draw attention to note 35 (Restatement) accompanying the consolidated financial statements for year ended 31 December 2020.

3. One of Aseer company’s subsidiaries working in drinks and juices sector has been affected during the year from applying the excise tax (sugar tax) that was applied by end of year 2019 which has negatively impact on profit from sales this year.

4. According to the decision of the Board of Directors of Aseer Company for Trade, Tourism, Industry, Agriculture, Real Estate and Contracting (a Saudi joint stock company) on September 30, 2020, it was decided to liquidate Al Ostoul Arabia for Real Estate Development Company Limited (single owner company), Al Nusrah International for Real Estate Development Company Limited (single owner company) and Altelal Regional Investment Company Limited (single owner company). This is because there is no need to continue to these companies. This liquidation did not have an impact on the Group, as the assets and liabilities of these Companies were transferred to Aseer Company for Trade, Tourism, Industry, Agriculture, Real Estate and Contracting, and consequently the assets and liabilities of these Companies that were liquidated still within the Group.

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