Riyadh — Mubasher: Al Battal Chemical Industries Factory Company recently announced its board of directors’ recommendations to address accumulated losses that have reached 74.29% of the capital, according to a bourse filing.
The proposal follows an initial disclosure on 31 August 2026 regarding the financial position and the breach of the 50% loss threshold under Article 132 of the Companies Law.
The board recommended transferring SAR 10 million from the share premium account, as recorded in the financial statements for the period ended on 30 June 2026 to the accumulated losses account to partially extinguish the deficit.
Furthermore, the board advised the Extraordinary General Assembly (EGM) to approve the continuity of the company’s operations, citing improved performance during 2026.
The recovery plan includes the collection of remaining insurance compensation based on loss adjuster reports and a broader restructuring of equity.
These measures are intended to gradually improve financial performance and enable the company to manage its losses in the coming period.
Meanwhile, the recommendations remain subject to shareholder approval at the next EGM, for which a meeting invitation will be issued once regulatory requirements are finalized.
