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• ABU DHABI NATIONAL CO. FOR BUILDING MATERIALS
Details accumulated losses
For the Q3-Year 2023
Date 14 September , 2023
Company Name Abu Dhabi National Co. for building Materials- Bildco.
Period of the financial statement Financial Year 2023
The value of accumulated losses as of September 30, 2023 is (315,718,567)
Accumulated losses
dirhams
Accumulated losses to capital ratio As of September 30, 2023 the percentage of accumulated losses reached 105%.
The main reasons leading to these the company achieved net losses of (3,861,944) dirhams, compared to a net loss of
accumulated losses and their (2,600,000) dirhams for the same period of the last year, the company’s financial
history statements as of September 30,2023 showed accumulated losses of
(315,718,567) dirhams, at 105 % of the capital, compared to accumulated losses of
(313,047,262) as of December 31,2022 due to the following reasons:
1- 1- Events that look place during the year 2023, the most important of which arc:
The slowdown in the construction sector and the real estate sector had the greatest
impact on the performance of the company and the decline in demand for building
materials in large proportions, which affected the company’s forced to reduce the
selling prices of products, while this was not accompanied by the same percentage
decrease in the prices of raw materials on which the company depends in
Produced.
- The financial impact as a result of lawsuits filed by a bank against the company,
and the difficulty of the company obtaining any kind of banking facilities, as well
as facilities from suppliers, which limited the company's ability to compete and
implement future plans.
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P.O. Box : 2443, ABU DHABI, United Arab Emirates - Tel.: 6455500 - Fax : 6455544 - Telex : 22299 BILDCO EM - T.R : 15904
E-mail: bildco(q)emirates.nel.aeABU DHABI NATIONAL CO. FOR BUILDING MATERIALS
. ....... J ABU DHABI NATIONAL CO. FOR BUILDING MATERIALS
he economic implications of the spread of the new Covid 19 epidemic, and the
consequent stoppage of commercial movements for long periods.
Delay in the completion of the company's plans to realize profits as a result of the
delay by the implementing authorities as a result of the spread of the emerging
Covid 19 epidemic.
Energy prices increased significantly during the third quarter of the year, especially
diesel prices, which is an essential component of production, as well as its
significant impact on the prices of transporting raw materials to the factory, as well
as transporting products to customers, which severely affected the profitability of
contracts concluded with clients.
Measures to be taken to address The company's executive management submitted a work plan to the board of
accumulated losses directors for approval. This plan is crystallized in the following axes:
Amortizing the losses accumulated by the company, along wih the capital,
which opens the doors in the future towards increasing the company's capital, and
restructuring the company's financial conditions.
Increase the company’s capital by issuing bonds that can be converted into
shares with priority rights for old shareholders, to enable the company to complete
its future plans.
Giving a strong impetus to marketing the company's products, opening
new local markets.
- Increase sales by: -
Apply for ADQCC certification and open new markets by dealing with
ADNOC
Apply for a local component certificate (hat qualifies the company to
obtain purchase orders from the concerned governments, and obtain discounts of
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P.O. Box : 2443, ABU DHABI, United Arab Emirates - Tel.: 6455500 - Fax : 6455544 - Telex : 22299 BILDCO EM - T.R : 15904
E-mail: bildco@emirates.net.aeI
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up to 40% on electricity bills.
Entering into negotiations with suppliers of raw materials to obtain new
prices and searching for other sources for those materials at lower prices.
Adjusting the selling prices of the company's products to comply with the
current circumstances.
Work to complete the project to convert the Dubai factory to rely on solar
energy instead of electricity, which saves more than 45% of the cost of the
electricity used.
Preparing a plan for meeting with the company’s suppliers of raw
materials to understand lower prices and give financial and time facilities.
Preparing a marketing campaign for customers to provide some facilities
to attract more of them and thus increase sales and thus reduce costs, which will
have an impact on maximizing revenues.
Work to prepare a detailed medium-term business plan and search for new
sources of funds through the strategic investor, whether local or foreign.
Salah Al Junaibi
CliierExecutive Manager
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P.O. Box : 2443, ABU DHABI, United Arab Emirates - Tel. : 6455500 ’ Fax : 6455544 - Telex : 22299 BILDCO EM - T.R : 15904
E-mail: bildco@emirates.net.aeDetailed Analysis Form for Accumulated Losses
Date: September 14,2023
Listed company name: Abu Dhabi National Co. for Building
Materials (B1LDCO)
Determine the period of Financial statements - first quarter 2
Financial Statements:
Amount of accumulated 315,718,567 AED
losses:
Ratio of accumulated
losses to paid-up capital %105
(%):
The main reasons that led -the loss start in the company from 2012
to the accumulation of - Due to the coincidence of the company's
losses and the history of ambitious expansion plan in 2008 with the
their appearance establishment of Bildco Light Bricks
(Determine the period in Factory at a cost of approximately 200
which these losses began million AED and the establishment of
to appear in the Bildco Steel Industries Factory, at a cost of
company’s balance sheet: approximately 150 million AED, with the
events of the global financial crisis in 2008,
which resulted in the collapse of the
economy in all countries of the world and
the bankruptcy of many companies inside
and outside the country and the
construction projects stopped almost
completely for several years and the
collapse of iron ore prices. This led to the
delay in completing the construction of the
Bildco Light Bricks Factory until 2015 and
the lack of binding to complete the Bildco
Factory for Steel Industries until now.
- The company obtained loans and bank
facilities to complete the expansion plan
and financing existing projects and the
difficulty of repaying those loans, and the
company may reschedule loans over longer
periods.
- In 2019, banks initiated judicial Actions
and directly and effectively affected the
company's business.
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P.O. Box : 2443, ABU DHABI, United Arab Emirates - Tel. : 6455500 - Fax : 6455544 - Telex : 22299 BILDCO EM - T.R : 15904
E-mail: bildco(q)emirates.net.aeABU DHABI NATIONAL CO. FOR BUILDING MATERIALS
■ Events that took place during the year
2022 and the first 9 Months of the year
2023, the most important of which are
the following: -
- The slowdown experienced by the
construction sector and the real estate
sector had the greatest impact on the
company's performance and the decline in
demand for building materials in large
proportions. This affected the company's
necessity to reduce the selling prices of the
products, while this was not accompanied
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P.O. Box : 2443, ABU DHABI, United Arab Emirates - Tel. : 6455500 - Fax : 6455544 - Telex : 22299 BILDCO EM - T.R : 15904
— by a decrease in the same proportion in the
prices of the raw materials on which the
company relies in its production.
- The financial impact as a result of
lawsuits filed by a bank on the company
and the difficulty of the company obtaining
any type of bank facilities. As well as
facilities from suppliers, which limited the
company's ability to compete and
implement future plans.
- The economic effects of the spread of the
new Covid-19 epidemic, and the
consequent suspension of commercial
movements for long periods.
- The delay in completing the company's
plans to achieve profits as a result of the
delay by the implementing agencies as a
result of the outbreak of the new Covid-19
epidemic.
- The significant increase in energy prices
during the third quarter of the year,
especially diesel prices, which is an
essential element of production, as well as
its significant impact on the prices of
transporting raw materials to the factory.
As well as the transfer of products, the
transfer of products to customers, which
strongly affected the profitability of
contracts with customers.
E-mail: bildco@emirates.net.aeABU DHABI NATIONAL CO. FOR BUILDING MATERIALS
A summary of the actions 1. The initial plan was prepared to address
taken or to be taken by the accumulated losses by increasing the
the company to address capital by issuing bonds convertible into
the accumulated losses: shares at a value of 100 million AED,
and it was approved by the Board of
Directors on: 5/ 2021.
2. The contract was signed with Trust
Financial Consulting Limited Co., one
of the consulting companies registered
with the Securities and Commodities
Authority, to review the Board of
Directors' initial plan and prepare the
final plan.
3. The plan submitted by Trust for
Financial Consulting has been approved
by the Board of Directors and a copy
has been sent to the Securities and
Commodities Authority.
4. The application was submitted to the
Securities and Commodities Authority
to obtain approval to issue the bonds on
June 2022.
5. The Actions for issuing bonds were
halted due to the existence of a seizure
from one of the creditor banks on the
company's bank accounts, and thus the
impossibility of issuing bonds.
6. The executive management is
intensifying all its efforts to reach a
settlement with the creditor banks and
lift the seizure of the company's bank
accounts. So we can issue’the" bonds,
and the negotiations have progressed
well with the creditor banks.
Based on the above, the company is
exerting all its efforts to complete the
negotiations with the banks no later than
December 2023. Thus opening the way
for financial restructuring and bond
issuance
_____
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P.O. Box : 2443, ABU DHABI, United Arab Emirates -Tel.: 6455500 - Fax : 6455544 - Telex : 22299 BILDCO EM - T.R : 15904
E-mail: bildco@eniira(es.net.ae(■ BI[DCO’
ABU DHABI NATIONAL CO. FOR BUILDING MATERIALS
Date of disclosure and ■ Accumulated Loss Treatment Plan
approval by the Disclosure: Reposted April 27, 2020.
company’s general
assembly of the ■ The accumulated losses treatment plan
accumulated losses was approved at the General Assembly
treatment plan: meeting held on: April 29, 2020
(For listed local public
shareholding companies,
if their accumulated
losses reach 50% or more
of their paid-up capital)
Details of the actions that shall be taken to deal with the accumulated
losses and the approved plan
Action The time What has been Reasons for Any
s frame for implemented not modification
implcmentin of the Action implementing s or changes
g the Action and the the Action or made to the
according to percentage of delaying its Action
the approved implementatio implementatio
plan n according to n according to
the approved the approved
plan plan
First Negotiating Under Delay in N/A
Action with creditor negotiation Reconciliation
banks, Actions with
reaching a banks
settlement,
and
removing
the
company’s
assets, which
are expected
to be
completed
during the
last quarter
of2023.
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P.O. Box : 2443, ABU DHABI, United Arab Emirates - Tel. : 6455500 - Fax : 6455544 - Telex : 22299 BILDCO EM - T.R : 15904
E-mail: bildco@eniirates.net.aeSecon increasing Final studies Pending a final N/A
d the capital by arc being settlement with
Action issuing prepared the banks
convertible
bonds into
shares, which
are expected
to be
completed
upon
reaching a
settlement
with the
banks and no
later than the
last quarter
of 2023
Third Opening It has already N/A N/A
Action foreign been exported
markets for to the
the Sultanate of
company's Oman and the
products by State of
exporting to Kuwait, and
neighboring work is
countries undeiway to
increase the
volumes.
Name of the Authorized Mr. Salah Khamis Al Junaibi
-Signatory: -------------
Title: Chief Executive Officer
Signature and Date: September 14,2023
Company Sealr ?_______
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P.O. Box : 2443, ABU DHABI, United Arab Emirates - Tel. : 6455500 - Fax : 6455544 - Telex : 22299 BILDCO EM - T.R : 15904
E-mail: bildco@emirates.net.ae

Sentiment: neutral