AICTEC says accumulated losses reach 52.38% of capital

Logo of Advance International Company for Communication and Information Technology (AICTEC)

Advance International Company for Communication and Information Technology (AICTEC) announced that its accumulated losses reached 52.38% of the company’s capital, according to the interim financial statements for the six-month period ended June 30, 2026.

In a statement to Tadawul today, the company said the main reasons for the accumulated losses were higher project implementation costs and financing costs, resulting from a number of factors, as listed below.

The company added that it is implementing an integrated plan to address accumulated losses and improve financial and operational performance.

The plan covers improving project management and execution efficiency and working to enhance profit margins, reviewing and controlling operating costs and expenses and improving operational efficiency and strengthening working capital and cash flow management.

Meanwhile, the plan includes accelerating the collection of receivables and outstanding dues, reviewing procurement and sourcing policies and negotiating with suppliers to help improve procurement costs, reviewing financing sources and costs and working to reduce the financing burden as much as possible and focusing on projects and opportunities with better profit margins.

This comes in addition to leveraging the group’s existing companies and the company’s strategic and commercial partnerships to enhance integration across activities and make more efficient use of available resources, capabilities and expertise.

AICTEC will also work in the coming period to enhance integration with group companies and develop its existing and new partnerships, helping improve operations, increase efficiency, expand business and project opportunities, and diversify revenue sources.

The company expects these measures, together with leveraging its group companies and strategic and commercial partnerships, to improve profit margins and strengthen financial and operational performance and cash flows in the coming periods, supporting its ability to address accumulated losses and achieve sustainable growth.

These measures form part of the company’s plan to improve its cost structure, increase operational efficiency, improve profit margins, strengthen its financial position and enhance its ability to meet its obligations and continue its operations.

The company noted that the above dates were set in accordance with Article 132 of the Companies Law, which stipulates that if a joint-stock company’s losses reach half of its issued capital, the board must disclose this and its findings regarding such losses within 60 days of becoming aware that they have reached that level. The board must also call an Extraordinary General Meeting (EGM) within 180 days from the date of becoming aware of the losses to consider whether the company should continue operating, take necessary measures to address the losses, or dissolve the company.

The company affirmed that it will continue taking the necessary measures to address accumulated losses and improve its financial and operational performance, and will announce any material developments in this regard in accordance with the applicable laws, regulations and instructions.