Alujain Holding Announces Consolidation of Financial Statements with Subsidiary NATPET

Alujain Holding Corp. announces that it received an email from its external auditor on January 29, 2022 regarding their decision to consolidate the financial statements of Alujain Holding Corp. with the subsidiary company National Petrochemical Industrial Company (NATPET) for the year 2021, instead of using the equity method for the investment in NATPET.

Alujain’s Audit Committee endorsed this decision after discussing it with the external auditor, as the company satisfied all conditions including full influence and control and other relevant requirements.

Furthermore, as the consolidation of financial statements according to the international accounting standards requires a full valuation of the subsidiary company (NATPET) and its assets on the date of control by an independent qualified evaluator, and the issuance of two financial statements of NATPET before and after the date of control (besides other additional requirements), therefore, it is expected that these requirements and the Audit work will be completed including the announcement of the financial results of Alujain Holding Corp. for the year 2021 before the due date set by the Capital Market Authority (Thursday, March 31, 2022).

Note that the consolidation of the financial statements will not have any impact on the company’s profitability as compared to equity method. NATPET’s estimated (Unaudited) Net Profit for the year 2021 is a SR521 Million and earnings per share of SR4.87 and Alujain Holding Corp. estimated (Unaudited) Net Profit would be Approx. SR305 Million and earnings per share of SR4.41.

Alujain Holding Corp. owns 74.98% of NATPET’s shares at the end of third quarter of 2021 (the company’s share increased during the third quarter of 2021 from 57.4% to 74.98%), and the company’s share increased during the fourth quarter of 2021 from 74.98% to 75.37%.