8.43 billion riyal has accumulated losses for 28 listed companies, 6 of which exceed half of their capital

28 Saudi companies listed on the main market have recorded accumulated losses of about 20 percent or more of their capital, according to the latest financial data available at the end of the first quarter of 2022.
The total accumulated losses of these companies amounted to about 8.43 billion riyals, making up an average of 36 percent of their combined capital of 23.4 billion riyals.
According to the monitoring of the reporting unit in the newspaper “Al-Eqtisadiah”, which was based on the data of the Saudi stock exchange “Tadawul”, some companies became among the list of companies that accumulated losses of 20% or more . of their capital.
This came after it was affected by the outbreak of the Corona pandemic and was affected by the closure of related activities for long periods, such as companies related to Hajj and Umrah, aviation, tourism and commercial centers.
However, the Saudi Catering Company managed to reduce its losses to below 20 percent, so it was removed from the list while the existing Wafa Insurance Company left, due to its cancellation after a court decision issued its liquidation.
By the end of the first quarter of 2022, the insurance sector dominated most of the losing companies with more than a third to ten companies, followed by the “capital goods” sectors with four companies, and then “food production” with three companies. , so that the three sectors together made up 61 percent of the losing companies.
Among the 28 companies, the cumulative losses of 12 companies are about 20% or more and less than 35%, ten companies are more than 35% to less than 50%, and six companies whose cumulative losses are 50% or more of the capital, including One company whose losses exceed 75% of its capital.

Lose 50% or more
The ranking of companies in terms of the highest percentage of accumulated losses, compared to the capital, was as follows: First, “Amanah Insurance” with accumulated losses of about 188 million riyal, equivalent to 144.6% of the capital that “in the insurance works. sector ”, secondly the cable company, with accumulated losses of about 195.6 million riyal. Equivalent to 74.6 percent of the capital “capital goods”.
This was followed by Enaya Company, with accumulated losses of approximately 108.8 million riyal, equivalent to 72.5 percent of the capital “operating in the insurance sector”, when Salama Insurance Company 158.8 million riyal, equivalent to 63.5 percent of the company’s capital “insurance sector”. “.
Then the Export Company with losses of 14.5 million riyal, which makes up 67.2 percent of the capital “the capital goods sector”, then the Salama Insurance Company with accumulated losses of 167 million riyal, which has 66.8 percent of its capital “the insurance sector “make out. .
Sixth, Gulf Union Company with accumulated losses of 132.1 million riyal, which makes up 57.7 percent of its capital, “insurance sector”.

Losses between 35 and 50%
The accumulated losses of the Red Sea Company amount to 298 million riyal, equivalent to 49.7 percent of the capital “the property management and development sector”, while the ACIG company with accumulated losses of 144.1 million riyal, equivalent to 49.5 percent of the capital “the insurance sector”.
Behind them, Al Sagr Insurance Company with accumulated losses of about 197 million riyals, equivalent to 49.3 percent of the capital “insurance sector”, followed by Raydan Company with accumulated losses of about 162.2 million riyals, which is 48.1 percent of the capital “constitutes consumer. service sector”.
This is followed by Al Hokair Group Company with accumulated losses of approximately 303.7 million riyals, representing 46.7 percent of the capital “consumer services sector”, and Naseej Company with accumulated losses of approximately 96.2 million riyals, equivalent to 45 , 5 percent of the capital “long” -terminence goods sector “.
While the accumulated losses of Al Hokair Company amounted to 952 million riyal, which makes up 45.3 percent of its capital, the “luxury goods retail sector”.
The accumulated losses of the United Insurance Company amounted to 171.6 million riyals, representing 42.9 percent of the company’s capital “insurance sector”, then Alinma Tokio Marine Company, with accumulated losses of approximately 112.2 million riyals, equivalent to 37.4 percent of the capital “insurance”. sector”.
The Fisheries Company left it behind with accumulated losses of 144.1 million riyal, making up 36 per cent of the capital of the “food production sector”.

Losses between 20 and 35%
The accumulated losses of Tihama Company amount to 16.7 million riyals, equivalent to 33.5 percent of its capital, “the media and entertainment sector”, then Takween Company, with accumulated losses of approximately 309.7 million riyals, equivalent to 32, 6 percent of the capital, “the basic materials sector”, and Emaar the Economic City Company with accumulated losses. 3.63 billion riyal, equivalent to 32 percent of the capital “Real Estate Management and Development Sector”.
This was followed by the Gulf General Insurance Company with accumulated losses of approximately 150.9 million riyals, equivalent to 30.2 percent of the capital “insurance sector”, then Malath Insurance Company with accumulated losses of approximately 144.7 million riyals, equivalent to 28.9 percent of the capital. “insurance sector”.
Thereafter, Amiantit Company with accumulated losses of approximately 28.6 million riyals, equivalent to 28.9 percent of the capital “capital goods sector”, then Al Baha Company with accumulated losses of approximately 81.7 million riyals, equivalent to 27.5 percent of the capital “investment and financing sector”.
This is followed by Tabuk Agricultural Company with accumulated losses of 99.7 million riyal, equivalent to 25.5% of the capital “food production sector”, then Al-Jouf Cement Company with accumulated losses of 337.6 million riyal, equivalent to 23, 6 percent of the capital “basic materials sector”.
And behind that was Wafra Company with accumulated losses of about 17.6 million riyal, equivalent to 22.8 percent of the capital- “food production sector”, then Misk Company 90.5 million riyal, equivalent to 22.6 percent of the capital- ” capital goods sector “.
Dan Shaker Company with accumulated losses of about 134 million riyal, equivalent to 21.3 percent of the capital “luxury goods sector”.

corporate system
As a result of the application of section 150 of the Companies Act issued by the Ministry of Commerce, the Saudi capital market authority has started applying new procedures to losing companies, from 22 April 2017.
Section 150 of the new Companies Act included the procedures to be taken by companies whose accumulated losses amounted to 50 per cent or more of their paid-up capital at any time during the fiscal year.
During these procedures, as soon as he learns that the share company’s losses have reached 50 per cent of its paid-up capital, any company official or auditor must notify the Chairman of the Board, and the Chairman of the Board must immediately inform the members of the Board and the Board must – within 15 days Whoever becomes aware of this – convene the extraordinary general meeting to meet within 45 days from the date of its notice of the losses. , and the extraordinary general meeting must decide to either increase or decrease the company’s capital – in accordance with the provisions of the Companies Act – to the extent that the percentage losses fall to less than half Paid-up capital, or dissolution of the company before the term specified in its articles of association.
The company is deemed to have been dissolved by virtue of the law if the extraordinary general meeting did not meet within the specified period, or if it did not meet and was unable to issue a resolution in the matter, or if it decided to increase the capital, and the subscription for all the capital increase was not completed within 90 days from the issuance of the meeting’s decision to increase.
In November 2020, the Royal Order was issued to suspend the work of some provisions of the articles of the Companies Act, and accordingly the Minister of Trade issued a decision to suspend the work of Section 150 of the Companies Act for a period of two year to be suspended from 25 March 2020.
According to the Authority’s procedures, companies with accumulated losses are divided into three categories: First, companies whose accumulated losses amount to 20 percent to 35 percent of the capital, and the yellow mark is placed next to them.
Second, companies whose accumulated losses amount to 35 percent to 50 percent of the capital, and the orange mark is placed next to them, and third, the companies whose accumulated losses are 50 percent or more of the capital, and the red mark is placed . next to them.
Economic Reporting Unit

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