Saudi Fisheries Co. announces its Annual Financial results for the period ending on 2023-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 52,208 | 48,816 | 6.95 | ||
| Gross Profit (Loss) | -43,962 | -21,264 | 106.74 | ||
| Operational Profit (Loss) | -79,429 | -58,639 | 35.45 | ||
| Net profit (Loss) | -91,438 | -63,390 | 44.25 | ||
| Total Comprehensive Income | -91,008 | -62,900 | 44.69 | ||
| Total Share Holders Equity (After Deducting the Minority Equity) | 144,793 | 235,801 | -38.59 | ||
| Profit (Loss) per Share | -2.29 | -1.58 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | 5,810 | 1.45 | |
| Accumulated Losses | -256,023 | 64 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | Revenue increased by 7% compared to the last year due to the increase in wholesale sales of fish and shrimp. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | • due to the increase in shrimp and fish production costs at the farms
• loss arising from fair valuation of biological assets amounts to SAR 33.8 million. • Recognizing provision SR 22.31 million related to Inventory, Zakat, Impairment of an asset under construction |
| Statement of the type of external auditor's report | Conservation |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | Qualified Opinion
1. As of December 31, 2023, the net book value of properties, machinery, and equipment, capital work in progress, and rights-of-use assets (referred to collectively as "assets") disclosed in the company's financial position amounted to SAR 112.45 million, SAR 26.56 million, and SAR 12.51 million, respectively. Due to a significant decrease in cash generated from sales of the fish and shrimp farm and other business operations, as well as the accumulated losses incurred by the company in the current and prior years, the company's management performed an impairment assessment on its assets as of December 31, 2023. This assessment involved comparing the book values of the assets to their recoverable amounts. Based on the company's management assessment, it was concluded that there is no need to recognize an additional impairment loss on its assets as of December 31, 2023. We have examined and tested the judgments, assumptions, and key estimations used by the company's management, including the appropriateness of the valuation methodologies. In our view, some key assumptions and sources of information or inputs used in determining the recoverable amount were not adequately supported. Had the company's management used assumptions and information sources supported with reasonable basis, some items in the accompanying financial statements and related disclosures could have been materially affected. The impact on the financial statements has not been determined. 2. As stated in Note 11 of the accompanying financial statements, the company's management was unable to access the fair value of the fish as of December 31, 2022, due to the lack of appropriate tools for inventory valuation. Therefore, it was presented at cost amounting to SAR 12.9 million as of that date. This represents a departure from the financial reporting framework requirements. We were unable to obtain relevant financial information related to the fair value of fish in the financial position as of December 31, 2022, and the change in fair value of fish in the statement of profit or loss and other comprehensive income for the years ended December 31, 2023, and 2022. Consequently, we were unable to perform the procedures we deemed necessary.
Material Uncertainty Related to Going Concern
We draw attention to Note 2-4 in the financial statements, which indicates that the company incurred a net loss of SAR 91.4 million during the year ended December 31, 2023, and its accumulated losses amounted to SAR 256 million as of that date, representing 64% of the company's capital. Additionally, as of December 31, 2023, the company's current liabilities exceeded its current assets by SAR 44 million. As stated in Note 2-4, these events and conditions indicate the existence of a material uncertainty regarding the company's ability to continue as a going concern. Our opinion has not been modified in respect of this matter. |
| Reclassification of Comparison Items | Certain items and disclosures of the comparative year’s financial statements have been reclassified to comply with the current period presentation. |
| Additional Information | Total accumulated losses at the end of the current period amounted to SR 256 million, equivalent to 64% of the capital as of 31 December 2023. The company is confirming its adherence to the procedures and instructions issued by the capital market authority for the listed companies in the Saudi Stock Market and intends to reduce the capital within the allowed timeframe.
- The company has changed its accounting policies by implementing the fair value model for the valuation of investment properties starting from the second quarter of 2023. The company has followed all guidelines and regulations in accordance with the standards and the Capital Market Authority, including appointing Certified valuers and obtaining two valuations, adopting the lower value. - In reference to the qualified opinion (1) in the auditor's report concerning the impairment evaluation on the company's assets as of December 31, 2023, the company wishes to clarify the following: In compliance with International Accounting Standards, specifically International Accounting Standard 36 "Impairment of Assets", the company has proactively taken measures in this regard by appointing a certified appraiser for fixed assets (an independent appraiser certified by the Saudi Authority for Accredited Valuers). The aim of this appointment was to ensure that the company's assets are recorded at an amount not exceeding their recoverable amount. Based on the evaluation results conducted by the certified appraiser, it was found that the fair value of the fixed assets exceeds their book value. Therefore, it can be concluded that there is no need to record an impairment of these assets accordingly. - Regarding Qualified Opinion (2) mentioned in the attached report with the financial statements regarding biological assets (Fish), the company evaluated the biological assets starting from the third quarter of 2023 according to accounting standards. The company was unable to physically count the fish as of December 31, 2022, due to the absence of means to verify the quantities of fish in the sea at that time. Therefore, the company could not access the fair value of the fish at that date. Hence, this Qualification was made for that period, with the expectation that it will be resolved in the first quarter of 2024. |
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