BAAN says accumulated losses reach 99.28% of capital

Logo of BAAN Holding Group Co. 

BAAN Holding Group Co. announced that its accumulated losses reached SAR 312.73 million, or 99.28% of capital.

In a statement to Tadawul, the company explained that the main reason for the increase in accumulated losses is the impact on the performance of the hotel and entertainment segments as a result of changes in consumer behavior and intensified competition, in addition to a decline in revenues in some locations and branches with weak operational performance.

The results were also affected by the recognition of impairment provisions for certain assets, in addition to book losses resulting from the exit from a number of economically non-viable branches and locations, it added.

This comes within the framework of the group’s implementation of its transformation strategy, which includes restructuring the business portfolio, exiting non-viable activities, re-evaluating assets, and future expansion into high-quality hotel and entertainment projects, with the aim of improving operational efficiency and enhancing financial sustainability over the medium and long term.

According to the company, the actions to be taken to address these accumulated losses include completing the procedures related to the two agreements signed on Dec. 29, 2024, which include the acquisition of real estate assets through a capital increase of SAR 304.96 million, after obtaining the necessary regulatory approvals.

This is in addition to continuing with the restructuring of the group’s segments to enhance operational and administrative efficiency, expanding into new and high-quality entertainment and hotel projects with economically viable returns, after exiting non-economically viable projects and branches, and focusing on promising sectors, foremost among them the catering sector, to support growth and improve financial performance.

Moreover, the group will continue implementing the strategic transformation program and plan.

The group also affirmed its commitment to implementing its transformation strategy and continuing efforts to improve operational efficiency and maximize returns from assets, in a way that enhances its ability to achieve sustainable financial performance and create added value for shareholders in the long term.

The last date for the board of directors to disclose its recommendations on addressing accumulated losses is May 30, 2026, while the final date to call for an extraordinary general meeting (EGM) to consider the company’s continuation is scheduled on Sept. 27, 2026.

The procedures and instructions applicable on Tadawul-listed companies whose accumulated losses reach 20% or more out of capital will be applied.