On 2026-08-11 08:06:50 (Saudi Time), Naseej International Trading 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 June 30, 2026, sales/revenue declined 81.456% YoY to SAR 8.46 million (converted from SAR 8,461 thousands) from SAR 45.63 million (converted from SAR 45,627 thousands), primarily driven by a significant decrease in production volume resulting from reduced cash liquidity. The company swung to a net loss attributable to shareholders of SAR 25.40 million (converted from SAR 25,398 thousands) compared to a net profit of SAR 7.67 million (converted from SAR 7,674 thousands) in the same period last year, mainly due to the sharp drop in production and sales, compounded by the fact that non-recurring profits were recorded in the prior-year period but not in the current period. The deteriorating financial position is further underscored by accumulated losses reaching SAR 119.36 million (109.53% of capital) and current liabilities exceeding current assets by SAR 60.32 million, raising material going concern uncertainties.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 25.438% to SAR 3.61 million (from SAR 4.85 million in the previous quarter), driven primarily by reduced production volume resulting from decreased cash liquidity. The net loss attributable to shareholders widened by 35.319% QoQ to SAR 14.61 million (from SAR 10.79 million), mainly due to the same production volume decline that suppressed sales, compounded by the recognition of an expected credit loss (ECL) provision of SAR 1 million in accordance with IFRS 9 requirements.

Other Items

The external auditor issued a qualified conclusion on Naseej International Trading Co.'s condensed consolidated interim financial statements for the period ending June 30, 2026. The basis for the qualified conclusion, as stated in the auditor's report, is that accumulated losses reached SAR 119.36 million, and current liabilities exceeded current assets by SAR 60.32 million, indicating a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. The auditor further noted that the disclosures in the financial statements do not sufficiently explain the nature and extent of the going concern dependency on management's plans, including a share capital increase, assets portfolio restructure, and achievement of projected future cash flows, nor do they adequately address how the working capital deficit and accumulated losses will be resolved or how outstanding finance obligations and non-compliance with certain contractual terms will be managed. Additionally, the auditor issued an Emphasis of Matter paragraph regarding non-compliance with a loan covenant related to outstanding loans and borrowings with a bank as at June 30, 2026, noting that management is in discussions with the financial institution to obtain a waiver and expects such waiver to be granted for future periods. Total shareholders' equity (after deducting minority equity) stood at SAR -10,388 thousands as of the current period, compared to SAR 55,602 thousands in the same period of the prior year. Loss per share for the current period was SAR -2.33, compared to earnings per share of SAR 0.7 in the prior-year period. The company also confirmed that, pursuant to applicable procedures and instructions for listed companies whose accumulated losses reach 20% or more of capital, the relevant regulatory requirements will be applied.

Original announcement:

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