Takween Advanced Industries Co. announces its Annual Financial Results for the Period Ending on 31-12-2020
|Element List||Current Year||Previous Year||%Change|
|Gross Profit (Loss)||57,408||55,506||3.426|
|Operational Profit (Loss)||-31,866||-41,192||-22.64|
|Net Profit (Loss) after Zakat and Tax||-6,013||-96,717||-93.782|
|Total Comprehensive Income||-4,681||-90,614||-94.834|
|Total Share Holders Equity (after Deducting Minority Equity)||588,233||592,914||-0.789|
|Profit (Loss) per Share||-0.063||-1.02|
|All figures are in (Thousands) Saudi Arabia, Riyals|
|The reason of the increase (decrease) in the net profit during the current year compared to the last year is||The reason of the decrease in the net loss for the year 2020 compared to the net losses for the year 2019 is due to the decrease in cost of revenue, the decrease in general and administrative expense, the decrease in selling and distribution expenses, the decrease in financial charges and the increase in net profit for the year from discontinued operations, despite the decrease in sales revenue, and other income. |
The decrease in revenue is a decrease in sales value not sales quantity given that the decrease in selling price is related to the decrease in raw material prices.
|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||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, 2020. 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, 2020.|
|Reclassification of Comparison Items||Certain figures have been reclassified to comply with the current period presentation of the financial statements.|
|Additional 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 loss per share for the year 2020 was calculated by dividing the net loss of SAR(6,103 million) on the weighted average number of shares 95 million therefor loss per share is (0,063), and 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).
3-The accumulated loses as of 31/12/2020 has reached SAR (319,7 million), equal to 33.65% of the company’s capital of SAR 950 million. The accumulated loses as of 31/12/2019 has reached SAR (313,7 million), equal to 33.02% 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 the Saudi Stock 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.