On 2026-08-10 09:09:44 (Saudi Time), Jazan Development and Investment Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue increased 8.881% YoY to SAR 78.16 million (vs. SAR 71.79 million), driven by an 8% rise in shrimp sales (SAR 64.59 million vs. SAR 59.89 million) and a 30% increase in agricultural (fruits) sales (SAR 8.15 million vs. SAR 6.27 million), partially offset by a 4% decline in rental income from investment properties (SAR 5.42 million vs. SAR 5.63 million). Despite higher revenues, the company swung to a net loss of SAR 2.13 million from a net profit of SAR 26.37 million in the prior period, primarily due to a SAR 0.39 million fair valuation loss on biological assets versus a SAR 23.82 million gain in the corresponding period, compounded by an unrealized loss of SAR 2.54 million on the decline in biological biomass, both driven by lower survival and productivity rates in certain shrimp ponds. Additional headwinds included the non-recurrence of a SAR 8.77 million zakat provision reversal and a SAR 1.25 million gain from discontinued operations recorded in the prior period, as well as new expected credit loss provisions of SAR 2.86 million, only partially offset by the revenue growth and a lower zakat charge.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 4.22%, from SAR 39.93 million to SAR 38.24 million, primarily driven by a 16% drop in shrimp sales (SAR 29.55 million vs. SAR 35.04 million) and 3% lower rental income from investment properties (SAR 2.67 million vs. SAR 2.75 million), partially offset by a 183% surge in agricultural (fruits) sales (SAR 6.02 million vs. SAR 2.13 million). The net result swung from a profit of SAR 5.13 million in the previous quarter to a net loss of SAR 7.26 million in the current quarter, mainly due to a reversal in the fair valuation of biological assets — from a gain of SAR 8.61 million to a loss of SAR 9.00 million — driven by declining survival and productivity rates in certain shrimp ponds.

Other Items

The external auditor issued an unmodified conclusion for the six-month interim period ended 30 June 2026; however, the auditor's report includes a Material Uncertainty Related to Going Concern paragraph, drawing attention to Note (3) of the interim condensed consolidated financial statements, which states: "the Group's accumulated losses as at 30 June 2026 amounted to SAR 132.6 million, representing 26.5% of its share capital. As of that date, the Group's current liabilities exceeded its current assets by SAR 112.34 million, indicating the existence of material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. The Group primarily relies on its ability to achieve its business plans to generate sufficient cash flows, enabling it to meet its obligations as they fall due without a significant reduction in its operations." Total shareholders' equity (after deducting minority equity) stood at SAR 308,857,480 as of the current period, down 8.3% from SAR 336,815,299 in the same period of the prior year, and loss per share for the current period was SAR -0.04 compared to SAR 0.53 in the prior year period. Certain comparative figures for the three- and six-month periods ended 30 June 2025 have been reclassified to conform with the current period's presentation, with no impact on previously reported net profit, retained earnings, net assets, or cash flows.

Original announcement:

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