AICTEC deepens H1 2026 net loss to SAR 4.1M

Advance International Company for Communication and Information Technology (AICTEC) widened its losses to SAR 4.1 million in H1 2026 from SAR 2.77 million in the year-earlier period.

The company attributed the wider loss mainly to higher cost of revenue, driven by increased prices of products and technical equipment, as well as higher shipping and logistics costs.

Import and supply challenges, along with regional conditions, also raised the cost of executing some projects above the levels estimated when contracts were signed. Lower profit margins on some projects further weighed on results.

Higher financing costs also contributed to the loss, as longer collection cycles and higher borrowing and credit facility costs increased financing charges.

These factors were partly offset by higher revenue, driven by stronger wholesale sales amid rising demand for technology products and solutions in Saudi Arabia, supported by continued digital transformation and the growing adoption of technology by government and private-sector entities.

The company said its expanding customer base, rising demand for specialized technology products, and continued digital transformation and technology infrastructure projects in the Kingdom provide further growth opportunities in wholesale sales.

It said it plans to capitalize on this growth by strengthening relationships with suppliers and customers, expanding its product and solutions portfolio, and improving its ability to meet market demand efficiently and competitively.

Sequentially, the company narrowed its net loss from SAR 14.88 million in H2 2025.

Total shareholders' equity, with no minority interests, stood at SAR 15.1 million as of June 30, 2026, compared with SAR 34.13 million a year earlier.

Accumulated losses stood at SAR 16.76 million, equivalent to 52% of its capital.

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