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. 
Accumulated Losses Details
Company Capital
SAR 32.00 million
Accumulated Losses
SAR 16.76 million
Losses-to-Capital Ratio
52.38%
Date Losses Reached the Level
June 30, 2026
Date Board Was Notified of the Losses
Aug. 30, 2026
Latest Date for
Board to Disclose Its Recommendations
on the Accumulated Losses
Oct. 30, 2026
Latest Date for
Board to Call an EGM
to Consider the Company’s Continuity
Feb. 26, 2027
Application of
Procedures and Instructions
The procedures and instructions applicable to listed companies on the Saudi financial market whose accumulated losses have reached 50% or more of their capital will apply.
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.
Key Reasons for Accumulated Losses
Reason
Details
Higher Supply and Logistics Costs
The implementation costs of several projects were affected by higher prices of certain products, equipment and technology components, in addition to higher shipping, transportation, logistics and insurance costs, as well as challenges related to supply lead times and the availability of certain components.
Higher Procurement Costs
Supply challenges required the company to use alternative suppliers and sourcing channels to meet project requirements in line with technical and contractual specifications, resulting in higher actual procurement costs compared with costs estimated at the time of contracting.
Impact on Profit Margins of Certain Projects
Several projects were contracted based on previous pricing and cost levels, while execution costs increased during the project periods, resulting in higher actual costs and pressure on profit margins.
Higher Financing Costs
Longer collection cycles for certain projects and the timing gap between payments to suppliers and execution costs and collection of the company’s receivables increased financing needs. Higher borrowing and credit facility costs also increased the financing burden, weighing on the company’s financial results.
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.
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.
Accumulated Losses Details
Company Capital
SAR 32.00 million
Accumulated Losses
SAR 16.76 million
Losses-to-Capital Ratio
52.38%
Date Losses Reached the Level
June 30, 2026
Date Board Was Notified of the Losses
Aug. 30, 2026
Latest Date for
Board to Disclose Its Recommendations
on the Accumulated Losses
Oct. 30, 2026
Latest Date for
Board to Call an EGM
to Consider the Company’s Continuity
Feb. 26, 2027
Application of
Procedures and Instructions
The procedures and instructions applicable to listed companies on the Saudi financial market whose accumulated losses have reached 50% or more of their capital will apply.
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.
Key Reasons for Accumulated Losses
Reason
Details
Higher Supply and Logistics Costs
The implementation costs of several projects were affected by higher prices of certain products, equipment and technology components, in addition to higher shipping, transportation, logistics and insurance costs, as well as challenges related to supply lead times and the availability of certain components.
Higher Procurement Costs
Supply challenges required the company to use alternative suppliers and sourcing channels to meet project requirements in line with technical and contractual specifications, resulting in higher actual procurement costs compared with costs estimated at the time of contracting.
Impact on Profit Margins of Certain Projects
Several projects were contracted based on previous pricing and cost levels, while execution costs increased during the project periods, resulting in higher actual costs and pressure on profit margins.
Higher Financing Costs
Longer collection cycles for certain projects and the timing gap between payments to suppliers and execution costs and collection of the company’s receivables increased financing needs. Higher borrowing and credit facility costs also increased the financing burden, weighing on the company’s financial results.
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.
