CERTIFICATIONS & AWARDS
Saudi Cable Company invites shareholders to attend a meeting via modern technology to discuss the Board of Directors’ recommendation to reduce the company’s capital
| ELEMENT LIST | EXPLANATION |
|---|---|
| Announcement Detail | Saudi Cable Company announces that it has organized a meeting via modern technology with the honorable shareholders to discuss the Board of Directors’ recommendation to reduce the company’s capital and to answer the shareholders’ inquiries by the Chairman and Board members. The meeting will be on Monday 19/12/1443 AH corresponding to 18/07/2022 AD, at (04:00) pm until (06:00) pm. Each shareholder registered in the company’s shareholder register at a deposit center is entitled to attend at the end of the trading session preceding the meeting. Link to attend the meeting: http://www.any-meeting.com |
Saudi Cable Company announces the Board of Directors’ recommendation to reduce the company’s capital and then increase the company’s capital by offering rights shares
| ELEMENT LIST | EXPLANATION |
|---|---|
| Introduction | The Saudi Cable Company announces that the Board of Directors decided, by passing in its meeting held on Thursday 02/06/2022, to recommend to the Extraordinary General Assembly to reduce the company’s capital and then increase it through priority rights shares according to the following details: |
| Date of Board Meeting | 2022-06-02 Corresponding to 1443-11-03 |
| Capital before decrease | 262,311,060 |
| Capital after decrease | 66,729,060 |
| Percentage of Capital decrease | -74.6 % |
| Number of Shares before Decrease | 26231106 |
| Number of Shares after Decrease | 6672906 |
| Reasons for the Capital Decrease | Restructuring of the capital in order to write-off (100%) of the accumulated losses as of 31 March 2022, an amount of (195,582,000) Saudi Riyal. |
| Method of Capital Decrease | Cancellation a number of (19,558,200) of the Company’s shares, such that, 0.7456 share will be reduced for every 1 share |
| Impact of the Capital Decrease on the Company’s Obligations, Operations or Operational, Financial or Organizational Performance of the Company | Capital decrease will not impact the Company financial obligations. |
| Date of reduction | The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved |
| Approvals | The approval of the relevant official authorities and the extraordinary general assembly |
| Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA | An announcement will be made when a financial advisor is appointed as well as when the capital reduction application file is submitted to the Capital Market Authority for approval |
| Additional Information | The company’s board of directors also recommended, at the same meeting of the extraordinary general assembly, and after the completion of the capital reduction process, to increase the company’s capital through a rights issue of 400,000,000 million riyals, so that the capital after the increase becomes 466,729,060 million riyals, the details of which are as follows: Capital before the increase: 66,729,060 riyals Capital after the increase: 466,729,060 riyals Capital increase percentage: 599% Number of shares before the increase: 6,672,906 shares Number of shares after the increase: 46,672,906 shares The reason for the capital increase: Restructuring of the Company’s capital in order to inject new capital to secure working capital to enable the Company to increase operational capacity and support its future activities. Method of capital increase: Offering and listing of rights issue (40,000,000) Shares. Eligibility to subscribe: The eligibility to subscribe will be to the shareholders who own the shares on the day of the extraordinary general assembly which decided to increase the capital by offering rights shares and whose names appear in the company’s shareholders register at the Depository Center at the end of the second trading day following the date of the extraordinary general assembly which It will be scheduled at a later time |
Saudi Cable Co. announces to Invites its Shareholders to Attend the ( First Meeting ) Ordinary General Assembly Meeting
Saudi Cable Co. announces its Interim Financial Results for the Period Ending on 2022-03-31 (Three Months)
| ELEMENT LIST | CURRENT QUARTER | SIMILAR QUARTER FOR PREVIOUS YEAR | %CHANGE | PREVIOUS QUARTER | % CHANGE |
|---|---|---|---|---|---|
| Sales/Revenue | 35,357 | 63,855 | -44.629 | 31,848 | 11.017 |
| Gross Profit (Loss) | -26,737 | -17,257 | 54.934 | -14,179 | 88.567 |
| Operational Profit (Loss) | -42,071 | -36,832 | 14.224 | -32,644 | 28.878 |
| Net Profit (Loss) after Zakat and Tax | -37,155 | -35,882 | 3.547 | -92,682 | -59.911 |
| Total Comprehensive Income | -18,531 | -36,867 | -49.735 | -92,581 | -79.984 |
| 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) | 62,575 | 249,271 | -74.896 |
| Profit (Loss) per Share | -1.17 | -1 | |
| All figures are in (Thousands) Saudi Arabia, Riyals |
| ACCUMULATED LOSSES | CAPITAL | PERCENTAGE % | |
|---|---|---|---|
| -195,582 | 262,311 | -74.56 | |
| 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 Group made a net loss of SR 37.2 million in current quarter as compared to the net loss of SR 35.9 million in the same quarter of the previous year and the change in net losses of the current quarter compared with net loss of the same quarter of the previous year are mainly due to following impacts: • Lower volumes in current quarter as compared to same quarter of previous year. • Decreased expenses in current quarter as compared to same quarter of the previous year. • Decreased share of profit from associates in current quarter as compared to same quarter of the previous year. • Increased other income in current quarter as compared to same quarter of the previous year. “ |
| 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 Group made a net loss of SR 37.2 million in current quarter as compared to the net loss of SR 92.7 million in the previous quarter and the change in net losses of the current quarter compared with net loss of the previous quarter are mainly due to following impacts: • Lower volumes in current quarter as compared to previous quarter further impacted by the product mix affected gross margins to decline. • Decreased expenses in current quarter as compared to previous quarter. • Increased share of profit from associates in current quarter as compared to share of losses in previous quarter. • Increased other income in current quarter as compared to same quarter of the previous year. • Certain one-off adjustments relating to zakat & tax expenses affected the previous quarter as compared to current quarter.” |
| Statement of the type of external auditor’s report | Disclaimer of conclusion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | “Basis for Disclaimer of Conclusion • The Group incurred a net loss of SAR 37.6 million for the three-month period ended March 31, 2022, and as of that date, the Group’s accumulated losses have reached SAR 195.6 million, representing 74.56% of the share capital as at March 31, 2022. Further, the Group current liabilities exceeded its current assets by SAR 487 million as at March 31, 2022 (as at December 31, 2021: SAR 476.4 million). These events or conditions, along with other matters, indicate a significant doubt about Group’s ability to continue as a going concern and its ability to meet its obligations when it becomes due. The Group has been and still in the process of restructuring its liabilities to its creditors and plan to reduce its payables with future cash flows from its current projects. The Group’s management is aware of the risks related to going concern but has prepared the interim condensed consolidated financial statements under going concern basis. We have also disclaimed our audit opinion for the year ended December 31, 2021 in respect of this matter. • As stated in note 17, the Group received assessments from the Zakat, Tax and Customs Authority (ZATCA), claiming additional Zakat liabilities of SAR 235.9 million in respect of the assessment for prior years against which the Group has filed appeals. It is management’s assertion that they have grounds to contest against items included in the assessments raised by ZATCA, that the outcome of the appeals is uncertain at this stage and, therefore, it is not possible to determine the potential Zakat liability. No provision has been made in these interim condensed consolidated financial statements for the items under appeal and for any potential exposure relating to open years not yet assessed by ZATCA. We have not been provided details or basis of certain appeals the assessments, including details of zakat computation and appeals in respect of certain open years for the Company and of certain subsidiaries. We were, therefore, unable to determine whether any adjustments are necessary to the Group’s current or prior years’ / periods’ zakat charges. • The Group has property, plant and equipment amounted of SAR 269.9 million as at March 31, 2022 and there are some indicators that the recoverable value of them is less than its book value, we were unable to obtain sufficient evidence regarding the recoverable amount of them as the Group’s management hasn’t provided us with sufficient data related to the recoverable amount of the property, plant and equipment and the extent to recognize any impairment losses the book value of property, plant and equipment as at March 31, 2022. The Group’s management will prepare a future studies to determine the recoverable value subsequently after approval date of the interim condensed consolidated financial statements of the Group. • As stated in note 6, the interim condensed consolidated financial statements include investment in an associate (50% ownership) with a carrying value of SAR 302.49 million and share of results of SAR 5 million as at and for the three-month period ended March 31, 2022. The associate had trade receivables amounting to SAR 54.4 million, out of which the Group’s share is SAR 27.2 million; that are overdue for more than one year, against which management has not recognized any allowance for expected credit losses. Management was unable to provide us with appropriate support to ensure the possibility of recoverability of those trade receivables balances. Consequently, we were unable to determine whether any adjustments to the Group’s share of results of an associate and the carrying value of the investment in an associate were necessary as of and for the three-month period ended March 31, 2022. We have also disclaimed our audit opinion on the consolidated financial statements of the Group for the year ended December 31, 2021 in respect of these matters. Disclaimer of Conclusion We do not express a conclusion on the accompanying interim condensed consolidated financial statements of the Group. Because of the significance of the matters described in the Basis for Disclaimer of Conclusion section above, we have not been able to carry out sufficient procedures to provide a basis for a review conclusion on these interim condensed consolidated financial statements. Other Matter The interim condensed consolidated financial statements for the three-month period ended March 31, 2021 were reviewed by another Auditor who expressed a modified review conclusion on May 23, 2021. |
| Reclassification of Comparison Items | Certain prior period figures have been reclassified to conform to current period presentation, which are not material in nature. |
| Additional Information | “The loss per share during first quarter amounts to SR 1.17 against loss per share of SR 1.00 for the same quarter of last year.Loss per share for the current quarter was calculated based on the average of 31,802 thousand shares compared to 36,061 thousand shares for the same quarter last year.In line with IAS 33 Earnings per share, Basic EPS is calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the period. As there was a capital reduction that took place as approved in the Extraordinary General Assembly by the shareholders, on February 20, 2022, the weighted average structure changed since then, affecting weighted average number of ordinary shares of three-month period ended March 31, 2022. The number of shares prior to capital reduction was 36,061 thousand where as the number of shares post capital reduction is 26,231 thousand. “ |
Saudi Cable Co. Announces Appointment of a Board Member
| ELEMENT LIST | EXPLANATION |
|---|---|
| Introduction | Saudi Cable Company announces that the board of directors has approved by Circular resolution on its meeting held on 22/05/2022 the appointment of Mr. Khaled Mohamed Bawazer as an (Independent) member of the Board of directors in the vacant seat for the current term of the Board, which ends in 13/01/2024, starting from 22/05/2022. Board Approval May not be Deemed Final, this Appointment Shall Be Put before the First General Assembly Meeting for Approval |
| ELEMENT LIST | EXPLANATION |
|---|---|
| Appointed Member Name | Mr. Khaled Mohamed Bawazer |
| Membership Type | Independent |
| Membership Start Date | 2022-05-22 Corresponding to 1443-10-21 |
| Brief Resume of the Appointed Member | It is worth mentioning that Mr. Khaled M. Bawazer holds a Bachelor’s degree in Industrial Engineering from King Abdulaziz University, and served as the CEO of several companies such as KIA Saudi Arabia, the Medical Group (Pfizer), METCO company and the Saudi Bugshan Company, and holds several board memberships and committees in several companies. |
| ELEMENT LIST | EXPLANATION |
|---|---|
| Date of Board Meeting in which Appointed New Member(s) were Appointed | 2022-05-22 Corresponding to 1443-10-21 |
| Board Approval | Board Approval May not be Deemed Final, this Appointment Shall Be Put before the First General Assembly Meeting for Approval |
Saudi Cable Co. invites Shareholders to attend a meeting to discuss the Company’s continuity plan through modern technology. (Reminder Announcement)
| ELEMENT LIST | EXPLANATION |
|---|---|
| Announcement Detail | The Saudi Cable Company announces organizing a meeting through modern technology with its respected Shareholders to discuss the company’s continuity plan and to answer the Shareholders queries by the Chairman and the members of the Board. The meeting shall take place on Sunday, 21\10\1443 corresponding to 22\05\2022, from 4:00pm to 6:00pm.Each Shareholder registered in the Company’s shareholders register in (EDAA) is entitled to attend the meeting by the end of the trading session prior to the meeting. LINK: http://www.any-meeting.com |
Saudi Cable Co. invites Shareholders to attend a meeting to discuss the Company’s continuity plan through modern technology.
| ELEMENT LIST | EXPLANATION |
|---|---|
| Announcement Detail | The Saudi Cable Company announces organizing a meeting through modern technology with its respected Shareholders to discuss the company’s continuity plan and to answer the Shareholders queries by the Chairman and the members of the Board. The meeting shall take place on Sunday, 21\10\1443 corresponding to 22\05\2022, from 4:00pm to 6:00pm.Each Shareholder registered in the Company’s shareholders register in (EDAA) is entitled to attend the meeting by the end of the trading session prior to the meeting. LINK: http://www.any-meeting.com |
Saudi Cable Co. announces its Annual Financial Results for the Period Ending on 2021-12-31
| ELEMENT LIST | CURRENT YEAR | PREVIOUS YEAR | %CHANGE |
|---|---|---|---|
| Sales/Revenue | 160,553 | 368,779 | -56.463 |
| Gross Profit (Loss) | -76,625 | -57,662 | 32.886 |
| Operational Profit (Loss) | -144,223 | -169,811 | -15.068 |
| Net Profit (Loss) after Zakat and Tax | -194,309 | -55,012 | 253.212 |
| Total Comprehensive Income | -204,316 | -56,343 | 262.628 |
| Total Share Holders Equity (after Deducting Minority Equity) | 81,106 | 285,422 | -71.583 |
| Profit (Loss) per Share | -5.39 | -1.53 | |
| 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 Group made a net loss of SR 194.3 million as compared to the net loss of SR 55.0 million last year and the change in net losses of the current year compared with net loss of the previous year are mainly due to following impacts: • Lower volumes and margins in 2021 as compared to 2020 due to severe working capital constraints resulted in heavy unutilized capacity and thereby unrecovered fixed costs. • Increased finance cost of the Group during 2021, as most significant restructurings of debt took place mid-year 2020 and thereby were impacted only partially last year, alongside fair value gains of restructured borrowings with a commercial lender and former supplier in 2020. • Reductions in other income which mainly consisted of foreign currency exchange gains during 2021 as opposed to significant reversal in legal and other provisions in 2020. • Impairment of deferred tax assets considering the expiry of claimable losses in accordance with tax regulations of Turkey. • Increased provisions for zakat and income tax which also includes partial impacts as a result of tax assessments. • Impacts of the above were partly compensated through decreased selling, general & administrative expenses during 2021. |
| Statement of the type of external auditor’s report | Disclaimer of opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | Basis for Disclaimer of Opinion • The Group incurred a net loss of SAR 193.7 million for the year ended December 31, 2021 (2020: SAR 55.7 million), and as of that date, the Group’s accumulated losses have reached SAR 256.7 million, representing 71.2% of the Group’s share capital. Further, the Group current liabilities exceeded its current assets by SAR 476.4 million as at December 31, 2021 (As at December 31, 2020: SAR 34.64 million). These events or conditions, along with other matters, indicate a significant doubt about Group’s ability to continue as a going concern and its ability to meet its obligations when it becomes due. The Group has been and still in the process of restructuring its liabilities to its creditors and plan to reduce its payables with future cash flows from its current projects. The Groups management is aware of the risks related to going concern but has prepared the consolidated financial statements under going concern basis. Accordingly, we were unable to obtain a sufficient appropriate audit evidence to satisfy ourselves that the Group will be able to continue its operations in the future and whether using going concern basis in preparing the consolidated financial statements is still appropriate. • As stated in note 18, the Group received assessments from the Zakat, Tax and Customs Authority (ZATCA), claiming additional Zakat liabilities of SAR 235.9 million (2020: SAR 201.9 million) in respect of the assessment for prior years against which the Group has filed appeals. It is management’s assertion that they have grounds to contest against items included in the assessments raised by ZATCA, that the outcome of the appeals is uncertain at this stage and, therefore, it is not possible to determine the potential Zakat provision. No provision has been made in these consolidated financial statements for the items under appeal and for any potential exposure relating to open years not yet assessed by ZATCA. We have not been provided details or basis of certain appeals the assessments, including details of zakat computation and appeals in respect of certain open years and of certain subsidiaries. We were, therefore, unable to determine whether any adjustments are necessary to the Group’s current or prior years’ zakat charges and corresponding liability. • The Group has property, plant and equipment amounted of SAR 276.3 million as at December 31, 2021 and there are some indicators that the recoverable value of them is less than the book value, we were unable to obtain sufficient audit evidence regarding the recoverable amount of them as the Group’s management hasn’t provided us with sufficient data related to the recoverable amount of the property, plant and equipment and the extent to recognize any impairment losses the book value of property, plant and equipment as at December 31, 2021. The Group’s management will prepare a future studies to determine the recoverable value subsequently after approval date of the consolidated financial statements of the Group. • As stated in note 10, the consolidated financial statements include investment in an associate (50% ownership) with a carrying value of SAR 299.17 million and share of results of SAR 7.2 million as at and for the year ended December 31, 2021 (2020: SAR 319.12 million and SAR 1.52 million respectively). The associate had trade receivables amounting to SAR 54.4 million, out of which the Group’s share is SAR 27.2 million; that are overdue for more than one year, against which management has not recognized any allowance for expected credit losses. Management was unable to provide us with sufficient appropriate audit evidence to ensure the recoverability of those trade receivables balances. Consequently, we were unable to determine whether any adjustments to the Group’s share of results of an associate and the carrying value of the associate were necessary for and as of the year ended December 31, 2021. Other Matter The consolidated financial statements of the Group for the year ended December 31, 2020 were audited by another auditor who expressed a modified opinion (qualified) on those consolidated financial statements on April 06, 2021. |
| Reclassification of Comparison Items | Certain figures have been reclassified in comparative 2020 consolidated financial statements to confirm with the presentation in the current year. |
| Additional Information | Subsequent to year end, the shareholders approved in their meeting held on February 20, 2022 (corresponding to Rajab 19, 1443 H) the reduction of the parent Company’s share capital from SAR 360,614,060 (36, 061,406 shares) to SAR 262,311,060 (26,231,106 shares) by cancelling 9,830,300 of its common stock for the purpose of restructuring the Company’s share capital and to absorb 100% of the accumulated losses as at March 31, 2021. On January 19, 2022 (corresponding to Jumada Al-Akhirah 16, 1443), the Group successfully rescheduled its entire outstanding payable balance with Noble Resources International Pte. Ltd., through entering into the amendment to settlement deed. No reclassification has been made in the consolidated financial statements, to reflect amounts due beyond 12 months as the event was deemed to be “”non-adjusting”” in nature, in accordance with IAS 10, Events After the Reporting Period. Subsequent to year end, the commercial court in Jeddah has issued a final judgement by order of execution was issued on Shab’aan 19, 1443H (corresponding to March 22, 2022), in favor of Saudi Cable Company indicated the termination of the contract concluded between the two parties and enforcing Al-Nawasi Gulf Trading Company repaying to Saudi Cable Company an amount of 6,001,448 SAR. On March 14, 2022, the Group entered into a sale contract to sell the investment property classified as held for sale for a consideration of SAR 40.9 million. No significant event occurred since the year end of December 31, 2021 and the date of approval of these consolidated financial statements by board of directors that would have a material impact on the financial position or financial performance of the Group, other than stated above. |