| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The reason for the increase in net income during the current quarter compared to the same quarter of the previous year is SIIG’s share of profit of the jointly managed projects has increased in the current quarter to be SR 352 million, compared to a profit of SR 147 million in the same quarter of the previous year, due to an increase in the average sales prices of project’s products. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is | The reasons for the decrease in the net income during the current quarter compared with the previous quarter are:1. SIIG’s share of profit of the jointly managed projects has decreased in the current quarter to be SR 352 million, compared to a profit of SR 761 million in the previous quarter, due to a decrease in the average sales prices of project’s products, in addition to an increase in the feedstock costs.2. An increase in the Zakat expenses as Petrochem has reversed zakat provisions relating to previous years during the previous quarter. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The reasons for the increase in the net income during the current period compared with the same period in the previous year are:1. SIIG’s share of profit of the jointly managed projects has increased in the current period to be SR 1,606 million, compared to a loss of SR (85) million for the same period of the previous year, due to an increase in the average sales prices of project’s products. In addition to that, Petrochem had permanently written off its Polystyrene unit and fully depreciated during the same period of the previous year.2. A decrease in the Zakat expenses as Petrochem has reverse zakat provisions relating to previous years during this quarter. |
| Statement of the type of external auditor’s report | Emphasis of matter |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | We draw attention to Note 14 to the accompanying condensed consolidated interim financial statements, which sets out the impact of the restatement on investments in Saudi Polymers Company (“SPCO”) and Gulf Polymers Distribution Company (“GPDC”) that were previously consolidated by the Company’s subsidiary, National Petrochemical Company (“Petrochem”). Based on Petrochem’s assessment of the contractual arrangements between the shareholders, these investments should have been accounted for as investments in joint ventures using the equity method as Petrochem exercised joint control over these investments.Note 14 to the accompanying condensed consolidated interim financial statements also sets out the impact of this restatement to the respective:- consolidated statements of financial position as of 31 December 2020 and 1 January 2020 and consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2020;- condensed consolidated interim statements of financial position as of 30 June 2021 and 31 March 2021 and condensed consolidated interim statements of profit or loss and other comprehensive income for the three-month and six-month periods ended 30 June 2021 and the three-month period ended 31 March 2021; and – 2020 comparative periods of these condensed consolidated interim financial statements. |
| Reclassification of Comparison Items | Certain prior period figures have been re-classified to confirm with the presentation in the current period. |
| Additional Information | Reference to the announcement of the National Petrochemical Company “Petrochem” on its financial results for the period ending on 30-09-2021, and its disclosure of a change in the presentation of its financial statements, as it will stop consolidating its financial statements with the Saudi Polymers Company and the Gulf Polymers Distribution Company, and it will present its investments in the mentioned company by the equity method, and based on the above, Saudi industrial investment group “SIIG” would like to clarify that it consolidates its financial statements with Petrochem, and therefore the change that Petrochem has made to its financial statement, has led SIIG to change the way it presents its financial statements as well, and this change will not affect by any way the equity of SIIG’s shareholders or the net profits and earnings per share. |
