Knowledge Economic City announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )

A4310 KEC-0.16 (-0.88 %)
1443/03/29 Thu Nov 4, 2021 08:01:14

Knowledge Economic City announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )

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Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	1,495	9,895	-84.891	7,385	-79.756
Gross Profit (Loss)	77	1,119	-93.118	2,025	-96.197
Operational Profit (Loss)	145	-8,920	-	6,696	-97.834
Net Profit (Loss) after Zakat and Tax	-2,503	-15,138	-83.465	4,685	-
Total Comprehensive Income	-2,503	-15,138	-83.465	4,685	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	33,512	92,355	-63.713
Gross Profit (Loss)	8,675	18,089	-52.042
Operational Profit (Loss)	4,710	-11,793	-
Net Profit (Loss) after Zakat and Tax	-2,575	-22,214	-88.408
Total Comprehensive Income	-2,575	-22,214	-88.408
Total Share Holders Equity (after Deducting Minority Equity)	3,095,857	3,102,244	-0.205
Profit (Loss) per Share	-0.008	-0.065
All figures are in (Thousands) Saudi Arabia, Riyals

Accumulated Losses	Capital	Percentage %
-297,142,830	3,393,000,000	-0.88
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 reduced net loss in the current quarter 2021 as compared to the similar quarter in the last year is due to increase in other income in the current quarter on account of liquidation of advance letter of guarantee from one of the contractors amounting to Saudi Riyals 10.3 million plus unwinding income of significant financing components of Saudi Riyals 1.1 million (Q3 2020: Saudi Riyals 0.5 million) which is offset by reduced Gross Profit (revenue minus cost of sales) by Saudi Riyals 1 million as a result of reduced revenue.
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 increased net loss in the current quarter 2021 as compared to net profit in the previous quarter of the current year is due to decrease in other income on account of liquidation of Letter of guarantee from the contractor amounting to Saudi Riyals 10.3 million (Q2, 2021: Saudi Riyals 15.5 million) which is offset by reduced Gross Profit (revenue minus cost of sales) of Saudi Riyals 2 million as a result of reduced revenue.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The reduced net losses for the nine months of 2021 as compared to the same period of the last year is due to increase in net other income on account of liquidation of Letter of guarantee from the contractor amounting to Saudi Riyals 25.8 million plus unwinding income of significant financing components of Saudi Riyals 3.3 million (Q3 2020: Saudi Riyals 0.6) which is offset by reduced Gross Profit (revenue minus cost of sales) by Saudi Riyals 9.4 million as a result of reduced revenue.
Statement of the type of external auditor's report	Unmodified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion	None
Reclassification of Comparison Items	None
Additional Information	Covid-19 impact The spread of coronavirus (COVID-19) across multiple geographies was confirmed in early 2020, causing significant macro-economic uncertainty, disruptions to businesses and economic activities. The Saudi Arabian government has taken many initiatives to contain the spread of virus which included restrictions on travel, gathering of people, roll out of vaccination program. To preserve the health of the employees and support the prevention of contagion in the operational and administrative areas, the Group took measures, in line with the recommendations of the World Health Organisation and Ministry of Health, social distancing at workplace, rigorous cleaning of workplaces, distribution of personal protective equipment, testing of suspected cases, limiting non-essential travel, self-health declarations and measuring body temperature. The Group's management carried out an impact assessment on the overall Group's operations and business aspects and concluded that, as at the reporting date of these condensed consolidated interim financial statements, the Group did not have significant adverse impact on its operations and businesses due to COVID-19 and the Group does not expect any significant impact on the balances as at 30 September 2021 especially around impairment of investment and development properties due to the nature of properties. The operational and financial impacts of the COVID-19 pandemic to date have been reflected in these condensed consolidated interim financial statements. The strong financial position, including access to funds and absence of debt, coupled with the actions the Group has taken to date ensures that the Group has the capacity to continue through the challenges caused by the COVID-19 pandemic. Based on the financial position and likely scenarios assessed, the management does not believe any significant issues in relation to the going concern aspect. As the situation is evolving with future uncertainties, the management and those charged with governance will continue to assess the impact based on prospective developments and accordingly update all stakeholders as soon as more information is available.

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.