Molan reports accumulated losses at 27.79% of capital

Logo of Molan Steel Co.

Molan Steel Co. reported that its accumulated losses reached 27.79% of its SAR 26 million capital, according to the company’s preliminary financial statements for the period ended June 30, 2025.

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In a statement to Tadawul, the company said accumulated losses amounted to SAR 7.39 million as of June 30, 2025.

Molan attributed these losses mainly to the acquisition of Mayar International Industry Co., which resulted in provisions for obsolete inventory, supplier advance payments, and expected credit losses totaling SAR 2.3 million.

It added that financing the acquisition through internal resources also weighed on working capital and operating efficiency.

The company will comply with the procedures and guidelines applicable to Saudi-listed firms whose accumulated losses reach 20% or more of capital.

According to Argaam data, Molan’s losses rose to SAR 2.8 million by the end of H1 2025, compared to SAR 2.5 million in the same period of 2024.

In December 2024, Molan signed an agreement with Yara International Ltd. to acquire 100% of Mayar International for SAR 34.88 million.