25 companies listed on TASI are subject to procedures for companies with losses of 20% more

By: Abeer Sufyani

A survey conducted by (Maaal), based on data from the financial statements of companies listed on the Saudi Stock Exchange after the end of the second quarter of 2025, revealed that 25 companies recorded accumulated losses. Nine companies recorded accumulated losses of 50% or more of their capital, 10 companies recorded accumulated losses ranging from 35% to less than 50%, and six companies recorded accumulated losses of 20% to less than 35%.

According to the survey, the number of companies with accumulated losses exceeding 50% or more of their capital reached nine, including Red Sea, Gulf General, United Insurance, Tabuk Agricultural, Thimar, Sinomi Retail, Redan, Printing and Packaging, and Saudi Cables. Ten companies recorded accumulated losses ranging from 35% to less than 50% of their capital. These companies are Petro Rabigh, Takween, Nama Chemicals, Saudi Kayan, Al-Fakharia, Exports, Naseej, Pan, Tihama, and Amana Insurance.

Six companies recorded accumulated losses ranging from 20% to less than 35% of their capital, including Gabsco, Maadaniya, ACIG, SAPTCO, Jazadco, and Enaya.

The accumulated losses represent the company’s results for the current period, plus the company’s results carried over from previous periods, which together represent a loss. These losses are shown as a separate item within shareholders’ equity in the statement of financial position. It is noteworthy that the Saudi Capital Market Authority issued the procedures and instructions for listed companies whose accumulated losses amounted to 20% or more of their capital in 2013, and they were amended in 2023. These instructions aim to regulate the mechanism for dealing with this category of listed companies. The Authority’s strategic objectives include enhancing confidence in the financial market through multiple tools, most notably enhancing the level of governance and transparency for market participants. The Authority specified several measures in the procedures and instructions for listed companies whose accumulated losses amounted to 20% or more of their capital. These include requiring companies with accumulated losses between 20% and less than 35% to immediately disclose the amount and reasons for the losses in a separate announcement. The market adds a mark next to the company’s name on the market’s website, indicating that the company’s accumulated losses amounted to 20% or more and less than 35% of its capital. As for the procedures for companies with accumulated losses between 35% and less than 50% of their capital, the company must commit to an independent disclosure detailing the losses, their causes, and the measures planned to address them. Upon obtaining a report from a certified public accountant detailing its financial position, the company must immediately and without delay disclose to the public in a separate announcement when its accumulated losses are reduced below 35% of its capital.

As for the procedures for companies with accumulated losses exceeding 50% or more, immediate disclosure is required in a separate announcement detailing the losses, their causes, and the board of directors’ recommendation to the extraordinary general assembly regarding its accumulated losses upon its issuance. Upon obtaining a report from a certified public accountant detailing its financial position, the company must immediately and without delay disclose to the public in a separate announcement when its accumulated losses are reduced below 50% of its capital.

Accumulated losses are the company’s results for the current period plus the company’s results carried over from prior periods, which together represent a loss. These losses are shown as a separate item within shareholders’ equity in the statement of financial position. It is noteworthy that the Saudi Capital Market Authority issued the procedures and instructions for listed companies whose accumulated losses amounted to 20% or more of their capital in 2013, and they were amended in 2023. These instructions aim to regulate the mechanism for dealing with this category of listed companies. The Authority’s strategic objectives include enhancing confidence in the financial market through multiple tools, most notably enhancing the level of governance and transparency for market participants. The Authority specified several measures in the procedures and instructions for listed companies whose accumulated losses amounted to 20% or more of their capital. These include requiring companies with accumulated losses between 20% and less than 35% to immediately disclose the amount and reasons for the losses in a separate announcement. The market adds a mark next to the company’s name on the market’s website, indicating that the company’s accumulated losses amounted to 20% or more and less than 35% of its capital. For companies with accumulated losses between 35% and less than 50% of their capital, the company must provide independent disclosure detailing the losses, their causes, and the measures planned to address them. Upon obtaining a report from a certified public accountant detailing its financial position, the company must immediately and without delay disclose to the public in a separate announcement when its accumulated losses have been reduced below 35% of its capital. For companies with accumulated losses exceeding 50% or more, immediate disclosure is required in a separate announcement detailing the losses, their causes, and the board of directors’ recommendations to the extraordinary general assembly regarding its accumulated losses, as soon as they are issued. Upon obtaining a report from a certified public accountant detailing its financial position, the company must immediately and without delay disclose to the public in a separate announcement when its accumulated losses have been reduced below 50% of its capital.