Takween Advanced Industries Co. announces the annual financial results of the period ending on 31-12-2016
|Element||Current year||Previous year||% Change|
|Net profit (loss)||-57,290||-27,122||-111.23|
|Earning or loss per share, Riyals||-1.17||-0.71||-|
|Gross profit (loss)||185,988||179,614||3.55|
|Operational profit (loss)||25,598||13,693||86.94|
|All figures are in (Thousands) Saudi Arabia, Riyals|
|Reasons of annual financial results||The reason for the increase in net loss as compared with the net loss for same period previous year is due to the increase in general and administrative expenses, financial charges, due to compliance with IFRS certain intangible assets have been written off, the re-evaluation of the Egyptian Pound after the devaluation of the Egyptian Pound; although there was a decrease in cost of sales- which had its impact on increasing the gross profit by 3.55%, and the decrease in selling and distribution expenses and research expenses- which had its impact on the increase of the operating income by 86.94%.|
|Reclassifications in annual financial results||Certain figures have been reclassified to comply with the current period presentation of the financial statements.|
1) The total sales for the year ended 31 December, 2016 amounted to SAR 1,415 million as compared to the same period last year of SAR 1718 million a decrease of 17%. This is due to decrease on the price of raw material which in turn led to decrease on the sales price as per the signed contracts with customers.
2) The total shareholders' equity (before minority interest) at 31 December, 2016 amounted to SAR 936.8 million compared to SAR 455 million at 31 December, 2015, an increase of 105.8%. This is because of the increase in company capital from 350 million to 950 million as approved by the non-ordinary general assembly meeting on 21/6/2016G.
3) The calculation of the loss per share for this period is based on the capital increase that has been approved by the non-ordinary general assembly meeting conducted on 21/9/2016G from 35 million shares to 95 million shares. The loss per share calculated based on dividing the net loss 57290000 on the weighted average number of shares 49052740, and for the same period from last year by dividing the net loss 27122000 on the weighted average number of shares 38150000
Second: Clarification on the differences in net loss as per the audited financial statement year ending 2016 amounted to SAR 57.3 million and the net loss as per the primary financial statement for the fourth quarter of 2016 amounted to SAR 32.9 million, which was announced on 19/1/2017:
1) An increase in calculating the tax deduction as per the Egyptian tax declaration for the intercompany – New Marian in Egypt.
2) An extra impact on the re-evaluation of the inventory in some of the TAI inter-companies.
3) Reclassifying between cost of sales account and expenses account resulted in the differences on the gross profit and operating profit.
4) Adjustment in costs which came for the re-evaluation of the Egyptian Pound after the devaluation decision issued in November 2016.
5) Intangible assets written off after the extra changes related to the implementation of IFRS.