Company AnnouncementsNomu
Amwaj International Co. Announces its accumulated loses reaching 46.69 % of its capital
9537 | AMWAJ INTERNATIONAL
JUL 28, 2026, 06:42 AM (1448/02/14)
3 Min Read
| Element List | Explanation |
|---|---|
| Introduction | Amwaj International Company announces that its accumulated losses have reached 46.69% of its share capital of SAR 60,000,000, based on the audited annual financial results for the year ended December 31, 2025. |
| Date of Realization of the Loss | 2025-12-31 Corresponding to 1447-07-11 |
| Amount of the Accumulated Losses | SAR 28,015,270 |
| Percentage of the Accumulated Losses out of the Capital (%) | 46.69 % |
| Major Reasons Leading to the Losses | The accumulated losses were primarily attributable to inventory discrepancies identified at one of the Company’s branches, amounting to SAR 28,666,257, which had previously been disclosed by the Company, in addition to the recognition of expected credit loss provisions on certain trade receivable balances. The provision recognized during the year amounted to SAR 47,124,775, the majority of which related to receivables associated with the branch where the incident occurred. The Company also recognized provisions for slow-moving and obsolete inventory and impairment losses on certain inventory items. These impacts, together with other operational and financing factors, resulted in the Company recording a net loss of SAR 87,799,964 for the year. |
| Measures to be Taken by the Company in Regard to Such Losses | The Company continues to take the necessary statutory and legal measures to collect receivables and claims and recover any amounts associated with the inventory discrepancies at the branch where the incident occurred. It is also pursuing the related legal proceedings to safeguard the Company’s rights and recover any amounts to which it may be proven entitled. The Company has also enhanced its credit management and collection policies, reassessed the credit limits granted to customers, improved the efficiency of its working capital and inventory management, controlled operating and administrative expenses, and enhanced the efficiency of its branches and sales channels. These measures are intended to reduce losses, improve profitability and cash flows, and preserve the Company’s financial position. The Board of Directors will continue to oversee the implementation of the corrective plan, assess its impact on the financial results, and disclose any material developments in accordance with the applicable laws, regulations, and instructions. |
| Application of the Procedures and Instructions | Procedures and Instructions Applicable on Companies Listed in Saudi Capital Market Whose Accumulated Losses Reach 20% or more out of the Capital Thereof will be Applied |
| Additional Information | It should be noted that part of the aforementioned financial impacts represents accounting provisions and estimates recognized in accordance with the applicable International Financial Reporting Standards and does not necessarily represent final cash losses or cash outflows during the period. The Company has also not recognized any asset or potential recoverable amounts in connection with claims arising from the inventory discrepancy incident, as the related legal proceedings remain ongoing and the outcome of such claims depends on uncertain future events. Accordingly, any amounts collected or recovered in the future will be recognized once the applicable accounting recognition criteria are met, which may have a positive impact on the Company’s results in the period in which such amounts are recognized. |
Keywords:Company AnnouncementsAMWAJ INTERNATIONALNomuConsumer Discretionary Distribution & Retail
