Takween Advanced Industries Co. — Earnings Release 2019

Mar 23, 2020

Takween Advanced Industries Co. announces its Annual Financial Results for the Period Ending on 31-12-2019

1201 · 23/03/2020 16:02:10 · Announcement #58047 · View on Saudi Exchange

Takween Advanced Industries Co. announces its Annual Financial Results for the Period Ending on 31-12-2019

Element List	Current Year	Previous Year	%Change
Sales/Revenue	1,189,450	1,343,760	-11.483
Gross Profit (Loss)	71,935	128,377	-43.965
Operational Profit (Loss)	-53,137	4,812	-
Net Profit (Loss) after Zakat and Tax	-96,717	-39,730	143.435
Total Comprehensive Income	-90,614	-35,810	153.041
Total Share Holders Equity (after Deducting Minority Equity)	592,914	683,528	-13.256
Profit (Loss) per Share	-1.02	-0.42
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
Increase (Decrease) in Net Profit for Current Year Compared to Last Year is Attributed to	The reason for the increase in net loss for the year 2019 compared with last year 2018 is due to the decrease in sales and the increase in general and administrative expenses, and the increase in financial charges.
Basis of the External Auditor's Opinion	Unmodified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion	Emphasis of matter

We draw attention to Note 8 of the consolidated financial statements which states that management has performed annual impairment testing of Goodwill amounting to SR 323.58 million as of December 31, 2019.

The assessment, which is reviewed by an independent party for the reasonableness of the methodology used by management, included assumptions related to the future sales volume, prices, operating assets, growth rates, terminal value and other related assets.

The outcome of these assumptions is highly dependent on the success of the future operations of the Group and market conditions as estimated by management and achieving its plans in future. Management considers these assumptions to be realistic and achievable in view of its operational plan and is confident of its ability to meet these future plans.

Management believes that the carrying value of cash generating units’ assets including goodwill will not exceed their recoverable amount. Accordingly, no impairment is recorded for goodwill as of December 31, 2019 . Reclassification of Comparison Items Certain figures have been reclassified to comply with the current period presentation of the financial statements . Additional Information IFRS 16 was implemented as of January 1, 2019 and there was no material impact on the financial Statement.

The loss per share for the year 2019 was calculated by dividing the net loss of SAR(96,7 million) on the weighted average number of shares 95 million therefor loss per share is (1.02), and for the year 2018 by dividing the net loss SAR( 39,7 million ) on the weighted average number of shares 95 million therefor loss per share is (0.42)

The accumulated loses as of 31/12/2019 has reached SAR( 313,7 million) , equal to 33.02% of the company’s capital SAR 950 million. The accumulated loses as of 31/12/2018 has reached SAR (216,9 million), equal to 22.8% of the company’s capital. The reason for the accumulated loses is due to the decrease in sales and the increase in general and administrative expenses, and the increase of financial charges.

Noting that the company is applying the procedures and instructions issued by the capital market authority of the listed companies in the Saudi Stock Exchange, which has accumulated losses of 20% or more of its capital .

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.