تعلن شركة الكابلات السعودية عن النتائج المالية الأولية للفترة المنتهية في 30-09-2021م (تسعة أž

• Lower volumes in current quarter as compared to same quarter of the previous year.

• Decreased expenses in current quarter as compared to same quarter of the previous year.

• Decreased other income in current quarter as compared to same quarter of the previous year.

• Lower volumes in current quarter as compared to previous quarter.

• Decreased one-off expenses in current quarter as compared to previous quarter.

• Decreased other income in current quarter, as compared to previous quarter.

• Decreased share of profit from associates in current quarter as compared to previous quarter.

• Lower volumes in current period as compared to same period of previous year.

• Decreased expenses and finance cost in current period as compared to same period of the previous year.

• Increased share of profit from associates in current period as compared to net losses in same period of the previous year.

• Decreased other income in current period as compared to same period of previous year.

• As stated in note 6, the interim condensed consolidated financial statements include investment in an associate (50% ownership) with a carrying value of SAR 310.3 million and share of results of S AR 11.5 million as at and for the nine-month period ended September 30, 2021 (SAR 319.12 million and SAR 1.52 million as of and for the year ended December 31,2020). The associate had trade receivables amounting to SAR 48 million, out of which the Group's share is SAR 24 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 adequate information to ensure the recoverability of those trade receivables balances. Had we been provided adequate information, matters might have come to our attention indicating that adjustments might be necessary to the interim condensed consolidated financial information for and as of the period ended September 30, 2021.

• As stated in note 17, the Group received assessments from the Zakat, Tax and Customs Authority (the Authority), claiming additional Zakat liabilities of SAR 239.5 million (December 31, 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 the Authority, 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 the Authority. We have not been provided details or basis of certain appeals, including details of zakat computation in respect of certain open years for the Company and of the certain subsidiaries. Had we been able to complete our review of zakat assessments, matters might have come to our attention indicating that adjustments might be necessary to the interim condensed consolidated financial information for and as of the period ended September 30, 2021G.

Material Uncertainty Related to Going Concern

We draw attention to Note 2 in the interim condensed consolidated financial statements which states that the Group incurred a net loss of SAR 100.9 million during the nine-month period ended September 30, 2021 and, as of that date, the Group's current liabilities exceeded its current assets by SAR 224.6 million. These events or conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Other Matter

The consolidated financial statements of the Group for the year ended December 31, 2020 and the interim condensed consolidated financial statements for the six month period ended June 30, 2020, nine-month period ended September 30, 2020 and the three month period ended March 31, 2021 were audited and reviewed by another Auditors who expressed a modified opinion and conclusion on April 06, 2021, August 25, 2020, November 10, 2020 and May 23, 2021.

Qualified Conclusion

Based on our review, except for the effects of the matters described in the paragraphs mentioned above, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 "Interim Financial Reporting" as 0endorsed in the Kingdom of Saudi Arabia.

The Company's accumulated losses as at September 30, 2021 reached SR 164.0 million (SR 62,4 million as at December 31, 2020) whereby amounting to 45.5% of it's share capital as at period ended September 30, 2021 (17.31% as at year ended December 31, 2020). The Company has applied ""Procedures and instructions related to listed companies with accumulated losses reaching 20% or more of their share capital"" issued by the Capital Market Authority of the Kingdom of Saudi Arabia.

During the three-month period ended September 30, 2021, The group waived it's right and obligations in XECA International Information Technology Company to Xenel Industries Limited Company (a related party), the carrying amount of this investment at disposal date was zero, accordingly it had no effect on the accompanying interim condensed consolidated financial statements.