اعلان شركة أميانتيت العربية السعودية عن النتائج المالية الأولية للفترة المنتهية في 202

a) A decline in sales in the current quarter compared to the same quarter of the previous year by approximately 20 million Saudi riyals resulting from the lack of liquidity and the increase in the prices of raw materials, and consequently an increase in operating costs affected by the increase in sales, which resulted an increase in the loss of approximately 7.5 million Saudi riyals.

b) Forming a provision for zakat in the amount of 10 million Saudi riyals in the current quarter, compared to 5 million Saudi riyals in the same quarter of the previous year.

• Sales declined in the current quarter compared to the previous quarter by 14.98 million Saudi riyals due to the lack of liquidity and the increase in the prices of raw materials.

• Forming new provisions in the current quarter, amounting to 14.18 million Saudi riyals, compared to 1.42 million Saudi riyals in the previous quarter, as follows:

o Provision for expected credit losses on short-term receivables amounting to SAR 2.85 million.

o Provision for doubtful debts (under legal process) amounting to SAR 11.33 million.

• Formed Provision for expected credit losses in the current period amounting by 16 million Saudi riyals, while the provisions in the similar period of the previous year were amounting by 78 million Saudi riyals approximately, as follows:

o A provision for expected credit losses on short-term receivables amounting to SAR 31.9 million.

o A provision for doubtful debts (under legal process) amounting to 43.6 million Saudi riyals.

o A discount of retention worth 2.5 million Saudi riyals.

• Accounting Profits of 60.2 million Saudi riyals were recorded in the current period and were not recorded in the same period of the previous year as a result of the following reasons:

o A recorded accounting profits against settlement discounts for some outstanding obligations with some banks, amounting to approximately 20.1 million Saudi riyals.

o A recorded accounting profits as a result of selling the entire invested stakes in Amitec Morocco, amounting to 12.4 million Saudi riyals.

o A recorded accounting profits as a result of discounts from some suppliers on cash payment, amounting to 3.9 million Saudi riyals.

o A recorded accounting profits as a result of reversing some fixed provisions in previous years in the current period, amounting to 23.8 million Saudi riyals.

- The Group had accumulated losses of SR 221.1 million (December 31, 2020: SR 205.5 million) which is more than 50% of the share capital of the Company. Due to this event, Article 150 of the Companies Law requires the Board of Directors to call for an extraordinary general assembly to be convened in order to discuss whether to maintain or dissolve the Company within the set duration mentioned in Article 150. However, based on Royal Decree (15016) dated Rabi'I 16, 1442H (corresponding to November 2, 2020), provisions of Article 150 have been suspended until the end of Sha'ban 1, 1443H (corresponding to March 4, 2022).

- The Group had current liabilities exceed current assets by SR 665.7 million (December 31, 2020: SR 582.5 million). Also, as at that date, the Group is in breach of certain financial covenants stated in credit facility agreements which are subject to annual review by lenders. The Group's ability to continue as a going concern depends to a large extent on the success of Group's management in raising the Company's capital and rescheduling its bank borrowings.

Our conclusion is not modified in respect of these matters.

The (loss) per share for the nine-month period ended September 30, 2021G was SAR (4.64), calculated by dividing the net (loss) attributable to shareholders of the company of SAR (147.797) million on the weight average number of outstanding shares 31,828,706, and the (loss) per share for the comparative nine-month period ended September 30, 2020G was SAR (7.67), calculated by dividing the net (loss) attributable to shareholders of the company of SAR (244.088) million on the weight average number of outstanding shares 31,828,706.

With respect to calculating the earnings per share (loss), the earnings per share (loss) has been calculated in accordance with "International Accounting Standard 33 (IAS 33): Earnings per share.", Which requires that the number of ordinary shares outstanding before the event be adjusted proportionally to the number of ordinary shares The list is as if the event occurred at the beginning of the earliest displayed period (i.e. comparative figures) and, accordingly, the earnings per share (loss) was calculated by dividing the profit (loss) for the period as if the reduction was made on January 1, 2020G, and accordingly the number of issued shares is calculated 32,000,000 shares according to the new capital, minus the number of shares held on the Employee Ownership Program, which amounts to 171,294 shares.

b) It is worth noting that in the announcement introduction, the (loss) after zakat and foreign income tax and total comprehensive (loss) have been added only for shareholders of the company, whereby in the nine-months period ended 30-09-2021G, the net (loss) after zakat and foreign income tax is SAR (147.815) million, includes SAR (0.018) million for non-controlling interests and SAR (147.797) million for shareholders of the company, and in the three-months period ended on 30-09-2021G, the net (loss) after zakat and foreign income tax is SAR (86.064) million includes SAR 1.283 million for non-controlling interests and SAR (87.347) million for shareholders of the company.

While in the nine-months period ended 30-09-2020G, the net (loss) after zakat and foreign income tax is SAR (248.078) million, includes SAR (3.990) million for non-controlling interests and SAR (244.088) million for shareholders of the company, and in the three-months period ended on 30-09-2020G, the net (loss) after zakat and foreign income tax is SAR (55.313) million includes SAR 0.185 million for non-controlling interests and SAR (55.498) million for shareholders of the company.

For the total comprehensive (loss) in the nine-months period ended 30-09-2021G is SAR (166.286) million, includes SAR 0.007 million for non-controlling interests and SAR (166.293) million for shareholders of the company, and in the three-months period ending on 30-09-2021G, the total comprehensive (loss) is SAR (93.799) million includes SAR 1.235 million for non-controlling interests and SAR (95.034) million for shareholders of the company.

While the total comprehensive (loss) in the nine-months period ended 30-09-2020G is SAR (206.140) million, includes SAR (1.853) million for non-controlling interests and SAR (204.287) million for shareholders of the company, and in the three-months period ending on 30-09-2020G, the total comprehensive (loss) is SAR (34.284) million includes SAR1.179 million for non-controlling interests and SAR (35.463) million for shareholders of the company.

c) Accumulated Losses reaching 69.11% of Share Capital:

The company came to know on this announcement publishing date that its accumulated losses have reached 69.11% of its share capital, the total accumulated losses reached 221.146 million Saudi riyals, and the company will apply the procedures and instructions in this regard.

So according to article fifth of chapter two of the procedures and instructions related to listed companies with accumulated losses reaching 20% or more of their share capital, the company should, immediately and without delay, disclose to the public in a

separate announcement when its Accumulated Losses reach 50% or more of its Share Capital. The announcement should reflect the total Accumulated Losses, its percentage of the capital, and the main reasons that caused the losses as mentioned above, with reference that these procedures will be applicable.

In case the announcement coincides with the interim or annual financial results announcement, the company is exempt from the disclosure as a separate announcement if it disclosed the required information as per this paragraph in the interim or annual financial results announcement.