In 2022, equity decreased by (15%) compared to 2021, which is the result of a reduction in the balance of retained earnings due to a net loss in 2022 and the distribution of cash dividends to shareholders. of the Company for the second half of fiscal year 2021 and for the first half of fiscal year 2022, where these distributions were approved and paid in fiscal year 2022. The end-of-service bonus includes approximately SAR 13.04 million and SAR 11.5 million for the years 2022 and 2021, respectively for employees of the subsidiary company.
Short-term financing
Long-term financing
The following table shows the consolidated company's long-term financing for 2022 (thousands of Saudi Riyals). The following financing table shows the short-term financing trend of the consolidated company for 2022 (in thousands of Saudi Riyals).
Company activities and strategy
Al Yamamah Steel Industries Company was established as a Saudi municipal company, registered in Riyadh with the commercial register No. The company's authorized and paid-up capital is only SR Five hundred eight million Saudi Riyal and divided into shares only fifty million eight hundred thousand shares of equal value, each with a nominal value of SAR 10, all of which are ordinary shares in kind and paid in cash by shareholders in full value. The company and the subsidiary are engaged in the manufacture of steel products to serve the construction sector in the Kingdom, which includes steel fabricator, Rebar, and serving the electricity and communication sector by manufacturing poles and masts for the distribution of electric power and street . lighting, manufacture of steel towers for the transmission of electric power and the carrier antennas in the field of communication and manufacture of steel works required for solar power systems, construction is underway for Al Yamamah project to manufacture the steel towers required for wind power systems in Yanbu Industrial City, and the project is expected to be completed and commissioned during the third quarter of fiscal year 2023.
Subsidiary: Al Yamamah Company for Reinforcing Steel Bars (closed stock company)
Intrinsic developments during fiscal year 2022
Towers activity
Pipes Activity
Wind Power Activity
Related Parties Transactions
The company's commercial transactions in the sale of the company's products for the fiscal year 2022 amounted to SAR (578) Million, representing 39% of revenue/. The table below shows the company's consolidated income from related parties (no preferential terms) (thousands of Saudi Riyal). Transactions with Abdulqadir Al Muhaidib & Sons include Masdar Building Materials Company and Thabat Contracting Company.
Also includes dealings with Rashid AbdulRahman al, Rashid Sons, the Saudi Electrical and Mechanical Business Services Company Al-Rashid, a building materials company. The table below shows the company's consolidated purchases from related parties (without preferential terms) in thousands of Saudi Riyals. The table below shows the contracts of projects implemented in fiscal year 2022 with Saudi Services for Electro Mechanic Works for the supply of electrical towers (SAR):
Future outlook and risks
The company will continue to be cautious and careful against fluctuations in raw material prices and their impact on costs, stock valuation, minimizing their negative effects, maximizing their positive effects on the company's results, and providing raw materials locally and internationally, with the support of the company's good financial position and the strength of the company's relationship with supply chains. All necessary measures and precautions will be taken to increase loan fees by reducing inventory levels, monitoring collections, monitoring the disbursement of wind farm loans with the Saudi Industrial Development Fund and obtaining competitive loan fees from local banks. The company will continue to retain domestic and foreign personnel, while at the same time continuing to implement the necessary plans for this and attracting reputable personnel to fill vacancies resulting from the operation of expansions in the company's business units.
Statutory payments
Zakat differences for the years 2015-2019 amounted to SAR 4.7 million According to the claims of the Zakat, Taxation and Customs Authority, the company has paid SAR 1.4 million representing Zakat differences for the years 2016 and 2018. It contested the amount of 3.3 million Saudi Riyals for years, an amount of 1.5 Saudi Riyals was accepted from the objection submitted for these differences and the company paid an amount of 1.8 million Saudi Riyals representing the total differences that were not accepted by the authority, and thus there were no zakat differences for those years. The company has submitted zakat returns for the years from the start of business to the fiscal year ending on September 30, 2021 and has paid the appropriate zakat on those returns and a final zakat certificate valid until January 30, 2023 has been received.
The company terminated its Zakat position with the General Authority of Zakat and Taxes for the years from the date of incorporation of the company until the fiscal year ending September 30, 2019. The General Meeting, in determining the share interest in net profit, decides form other reserves, insofar as this is in the interest of the company or ensures that fixed dividends are paid out to the shareholders as much as possible. The Association may also deduct amounts from net profits to establish social institutions for the company's employees or to support existing institutions.
Secondly
Company Governance
The ownership structure of the company
Below is a list of shareholders who directly own more than 5% of the company's capital and there is no debt instrument issued by the company. The following table shows the ownership of shares by the board members, their spouses and minor children and there is no debt instrument issued by the company.
Structure of Board of Directors and Members Classifications
Chairman of the Board of Directors - Al Yamamah Marble and Granite Company - Vice Chairman of the Board of Directors of the Chamber of Commerce in Riyadh. Member of the Board of Directors - Dhahran International Exhibitions Company Dammam - Board Member - Food Industries Company (DIMA). During the past decades, he has held various positions in the presidency and membership of the boards of various companies until now and he has participated in a few different industrial and commercial organizations as well as participated in a few different charitable and social organizations.
Managing Director Al-Fawzan Metals - Board Member - United Electronics Company (Extra) - Board Member Al Majal Real Estate Development. Chairman of the audit committee at Zajel Rapid Logistics - member of the Jazz Arabian Services audit committee. He has over 22 years of experience in the power pole industry and business management.
Board of Directors Meetings
Business Unit Manager for Al Yamamah Electrical Poles and Accessories Factory in Al Yamamah Steel Industries Co. Members and senior managers who have been approved by the general meeting in the financial year 2022. Remuneration of the chairman, managing director or secretary, if he is a member. Remuneration for consultations & management work, management and.
3-Board committees
It recommends that the board of directors appoint and dismiss the external auditors, determine their fees and ensure their independence. The Audit Committee is responsible for preparing and publishing the Committee's annual report to the Board of Directors and other reports required in accordance with applicable rules, laws and regulations. The nomination and remuneration committee is appointed by the Board of Directors and consists of three members and is chaired for three years by Mr.
The Committee reviews the composition of each committee of the Board and recommends the Board approve the members of each committee. Identify the strengths and weaknesses of the Board and recommend solutions that are in the company's interest. The Board discusses the report of the Nomination and Remuneration Committee for board members, committee members and senior managers, and the Board approves the awards of its members and its committees and senior managers in accordance with the regulations and policy.
Executive Committee tasks
Disclosure Policies
The Information Disclosure Policy Charter (Regulations) is an integral part of the Governance Regulation Guide for Al Yamamah Steel Industries and any shareholder may consult it at the Company's registered office or on the Company's website (www.yamsteel.com) . The company has disclosed the most important events and changes as they occurred, and the company has announced its quarterly and annual financial results, as well as the most important material events affecting the company's results and the meeting of the General Meeting of Shareholders. according to the period specified by the Capital Market Authority and announced on the company page on the Saudi Stock Market (Tadawul) website.
Results of the annual audit of the effectiveness of internal control procedures
7 - Penalties, restrictions, and sanctions against the company
8 - The report of the company's external auditor
- Procedures taken by the Board of Director to inform its members with the shareholder’s proposals and observations
- General Assemblies of the Shareholders and shareholders register
- Social responsibility
- Declarations of the Board of Directors and the Company's Management
Al Yamamah Steel Industries Company is one of the public joint stock companies in the Kingdom of Saudi Arabia, listed on the Saudi Stock Exchange. The company constantly strives to fulfill its obligations to the youth, who are the backbone of the society, and to fulfill its obligations to its members in a way that serves their interests and develops their consciousness, especially the society they rely on. the future for the completion and development of the construction and delivery process. Accepting visits from students of electrical engineering faculties at universities in the Kingdom to closely study the latest developments in modern technologies in the design and manufacture and design of electrical equipment.
With the support of the Human Resources Development Fund, the company managed to attract many Saudi professionals to work in the company, as the number of Saudi employees reached 336 on September 30, 2022, which represents a rate of 32.90% of all employees. The Company issued an Environmental, Social and Governance (ESG) Practices Report, which was published on the Company's website and highlighted the Company's commitment to the Company's practices related to Environmental, Social and Governance (ESG) elements. The Audit Committee has no comments regarding the external auditor of PKF - Al Bassam & Co.
Conclusion
