Takween Advanced Industries Co. — Interim / Quarterly Report 2021

May 2, 2021

Takween Advanced Industries Co. announces its Interim Financial Results for the Period Ending on 31-03-2021 ( Three Months )

1201 · 02/05/2021 08:15:08 · Announcement #63137 · View on Saudi Exchange

Takween Advanced Industries Co. announces its Interim Financial Results for the Period Ending on 31-03-2021 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	186,313	200,639	-7.14	171,664	8.533
Gross Profit (Loss)	11,634	18,884	-38.392	253	4,498.418
Operational Profit (Loss)	-12,660	-5,579	126.922	-15,846	-20.106
Net Profit (Loss) after Zakat and Tax	2,157	-18,793	-	-3,395	-
Total Comprehensive Income	2,178	-17,992	-	-2,650	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (after Deducting Minority Equity)	590,411	588,233	0.37
Profit (Loss) per Share	0.023	-0.2
All figures are in (Thousands) Saudi Arabia, Riyals

	Accumulated Losses	Capital	Percentage %
	-317,550	950,000	33.4
All figures are in (Thousands) 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 reason of the increase in net profit in the current quarter compared to the net losses for the same quarter of previous year is due to the decrease in cost of revenue, the decrease in general and administrative expenses, and the decrease in financial charges. Despite the increase in selling and distribution expenses caused by additional provision for bad debts, and the decrease in sales revenue and increase of percentage in cost of revenue. The decrease in revenue is a decrease in sales value not sales quantity given the decrease in selling price related to the decrease in material prices.
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 reason of the increase in net profit in the current quarter compared to the net losses for the previous quarter is due to

the increase in revenue, the decrease of percentage in cost of revenue, and the increase in other income. Despite the increase in general and administrative expenses, the increase in selling and distribution expenses and the increase in financial charges.Statement of the type of external auditor's report Unmodified conclusionModification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion Emphasis of mater: We draw attention to Note 1 of the condensed consolidated financial statements which states that management performed annual impairment testing of Goodwill amounting to SR 323.58 million as of December 31, 2020. The assessment, which was 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 those 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 the 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 does not exceed their recoverable amount. Accordingly, no impairment was recorded for goodwill as of December 31, 2020 and March 31, 2021Reclassification of Comparison Items Certain figures have been reclassified to comply with the current period presentation of the financial statementsAdditional Information 1-On 30/12/2020 Takween has signed a share purchase agreement with JOFO under which Takween agreed to sell 92,260 shares in one of its subsidiaries, Advanced Fabrics Factory Company (“SAAF”), representing 70% of the share capital of SAAF (the “Transaction”).IFRS 5 was followed for Non-current assets held for sale and discontinued operations to be presented separately in the statement of financial position, So Takween disclosed separately the net profit for the year from discontinued operations in the income statement, and disclosed separately the Assets & Liabilities held for sales in the balance sheet.

2-The profit per share for the period ended on 31-03-2021 was calculated by dividing the net profit of SAR(2,157 million) on the weighted average number of shares 95 million therefor profit per share is 0.023, and for the same quarter of previous year was calculated by dividing the net loss of SAR(18,793 million) on the weighted average number of shares 95 million therefor loss per share is (0.2).

3-The accumulated loses as of 31/03/2021 has reached SAR (317,6 million), equal to 33.4% of the company’s capital of SAR 950 million. The accumulated loses as of 31/12/2020 has reached SAR (319,7 million), equal to 33.65% of the company’s capital. 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.