Al Battal Factory accumulated losses reach 74.29% of capital

Al Battal Factory plans to boost sales, improve operating efficiency and rationalize costs

Al Battal Factory for Chemical Industries Co. said its accumulated losses reached SAR 24.78 million, or 74.29% of the company’s SAR 33.35 million capital, as on June 30, 2026.

The company highlighted operating losses incurred during previous periods, as production was suspended due to a factory fire. It further reported an increase in financing costs as well as operating and administrative expenses.

Al Battal Factory undertook several measures to address the losses and improve the financial and operating performance.

These include completing the affected factory’s rehabilitation and resuming production operations, increasing sales and improving operating efficiency, following up on the collection of insurance compensation related to the fire, as well as rationalizing costs and expenses while improving cash flows.

The board of directors will also continue to monitor the company’s financial position and take the necessary measures in accordance with the relevant laws and regulations.

The board of directors has until Oct. 30, 2026, to disclose its recommendations on the accumulated losses and until Feb. 26, 2027, to call an extraordinary general meeting (EGM) to consider whether the company should continue operations.

Procedures applicable to companies listed on the Saudi Exchange whose accumulated losses have reached 50% or more of their capital will apply.

The company is also subject to the procedures applicable to listed companies whose accumulated losses have reached 50% or more of their capital, in accordance with the Companies Law, the Capital Market Authority’s regulations, and the CMA’s instructions governing companies listed on the Saudi Exchange (Tadawul).