1. Q2 sales increased by 19.5% from Q2 2018.

2. Operating expenses decreased mainly due to lower employee costs resulting from organizational re-structuring, lower rental costs and reductions in other expenses.

3. Share of associate profits increased by SAR 4.4 million compared to the previous quarter.

1. Q2 sales increased by 28.5% from Q1 2019.

2. Operating expenses decreased mainly due to lower employee costs resulting from organizational re-structuring, lower rental costs and reductions in other expenses.

3. Share of associate profits increased by SAR 5.4 million compared to the previous quarter.

1. Revenues of SAR 450.9 million for the 6-month period improved by 5.5% on the same period in 2018.

2. Operating expenses decreased mainly due to lower employee costs resulting from organizational re-structuring, lower rental costs and reductions in other expenses.

3. Share of associate profits increased by SAR 4.8 million compared to the same period in 2018.

The Company’s Q2 net loss of SAR 9.9 million was reduced by 74.5% year-on-year, with an operating loss of SAR 5.8 million decreasing by 80.4%. The first-half net loss for 2019 was SAR 38.7 million, decreasing by 31.3% on the previous year.

The Company’s management accredits the robust increase in sales, and a significant reduction in net and operating losses, to the success of its ongoing Breakthrough Program. The Program is focused on strengthening and broadening revenue streams while improving operating efficiencies and rationalizing the Company’s organizational structure.

Sales in Q2 increased by 28.5% from Q1 2019, while operating and other expenses decreased due mainly to a reduction in employee-related costs. Meanwhile, share of associate profits increased by SAR 4.4 million compared to the previous quarter.

The accumulated losses to capital ratio increased to 21% from 19.4% in the previous quarter, mainly driven by liquidation of stock and impairment loss on receivables as per IFRS requirements. In this instance, the CMA’s rules and regulations for listed companies with total accumulated losses of 20% or more of capital will be applied. It should be noted that the Company’s statutory reserves are greater than the accumulated losses. Therefore, total equity is in excess of paid up capital by SAR 8.6 million.

The liquidation process for products impacted by recent SASO regulation is on schedule for completion in August.

Identified growth avenues for the Company include the Saudi Energy Efficiency Center’s (SEEC) high-efficiency AC units initiative, which is positively supporting revenues with the Company already achieving a tangible boost in sales as a result of the program. Further opportunity is provided by the development of the Saudi housing strategy, and private sector support initiatives adopted by the government, which will reflect positively on marketing opportunities for the Company's products.

The Company is exploiting its market share of the Multi V product range to bid for projects throughout the year, in light of the real estate strategy adopted by the Saudi government, in addition to private sector projects that are expected to achieve a recovery bolstered by government spending. An attractive opportunity is presented by Tarshid, the Saudi government’s National Energy Services Company, which is tasked with retrofitting assets owned by public or government entities – among them 2 million street lights, 110,000 government buildings, 35,000 schools, 100,000 mosques and 2,500 hospitals and clinics. Shaker Company is bidding for a healthy portion of these projects as they become available.