Company News and Press Releases

Zamil Air Conditioners has completed the supply, including start-up and commissioning work, of an assortment of air handling units and air-cooled condensing units of various capacities and sizes for the Assiut Oil Refining Company’s (ASORC’s) naphtha complex project, located in Assiut, southern Egypt.

The project, which is being executed by a consortium of major companies, aims to produce 800,000 tons annually of all octane types, and to increase butane production to meet the demand of Upper Egypt’s governorates. The $450 million project adds value to the Assiut refinery, which provides 60–65% of the petroleum products consumed by Upper Egypt and the South Valley. It aligns with Egypt’s Vision 2030 sustainable development plan to secure fuel for the local market and Upper Egypt.
Zamil Steel has successfully completed the contract for the design, manufacture, and supply of pre-engineered steel buildings for a multi-story mall located in the central region of Saudi Arabia.

This huge multi-story shopping mall is spread over a built-up area of more than 23,000 square meters in Buraidah, the capital of the Al-Qassim region of Saudi Arabia. Zamil Steel’s scope of work included the provision of large spans of clear width and nearly 18 meters in height, and the supply of more than 2,800 metric tons of custom-made steel structures.
Saudi Aramco honored Zamil Air Conditioners and Zamil Steel at the 2020 Local Manufacturers Quality Awards Ceremony, organized by Saudi Aramco for the third consecutive year on Wednesday, December 16, 2020. Zamil companies were honored for providing high-quality products despite the effects of the COVID-19 pandemic.

Saudi Aramco seeks, through its policies, its business system, the IKTVA program, and other programs such as the Local Manufacturers Quality Awards 2020, to raise the percentages of local content so that the goods, products, and equipment produced by the Saudi factories that deal with Aramco are of high quality by international standards. The company has cooperated and worked closely with local manufacturers to spread the culture of quality in two ways. Firstly, it qualifies and works with them, to enable them to develop and implement quality systems. Secondly, it ensures that they have highly-skilled people in technical, operational, and administrative areas.

Zamil Air Conditioners received the Quality Award in the Large Manufacturers category. At the same time, Zamil Steel was honored in the Most Improved Manufacturers category, its work having undergone a remarkable development in quality.

Aramco is keen to contribute to the development of the country’s national industries, and to make them more competitive. It is keen that the label “Made in Saudi Arabia” becomes a preferred brand and enjoys the confidence of customers around the world, aware of the dedication of local manufacturers and their commitment to quality. Their maintenance of high standards, ensuring an uninterrupted flow of goods despite the challenges posed by the pandemic, and the high reliability and flexibility of local industry, supports the national objective of developing local content.

This event provides a platform for Saudi Aramco and prominent supporters in the manufacturing sector to enhance excellence and quality in various industries. From this, the company aims to highlight high-quality national products, encourage competition between national manufacturers to increase efficiency, and raise the level of localization of jobs in the field of quality in the industrial sector. It also aims to promote and upgrade the local industry to compete globally, during a year full of particular challenges.
Zamil Industrial Investment Company announces receiving letters from the General Authority of Zakat & Tax (GAZT) amending the Zakat declarations submitted for the years from 2014 to 2018. The letters demand the payment of Zakat differences for the years for a total amount of SAR 229,252,852.

Zamil Industrial has submitted its Zakat declarations for the subject years and paid the Zakat based on audited financial statements for the respective fiscal years. Zamil Industrial has the right to object and file an appeal to these amendments during the statutory period (sixty days) from the date of receiving the letters. Accordingly, the company will raise the list of objections to those amendments and appeal within the statutory period.

Zamil Industrial will determine the financial impact at a later stage and announce any updates in due course.
Zamil Air Conditioning & Refrigeration Services Co. Ltd. (Zamil CoolCare) has been awarded a three-year contract by the National Grid SA company for the maintenance and repair of HVAC systems at the Saudi Electricity Company’s substations in the eastern region of Saudi Arabia.

Under the agreement, Zamil CoolCare will handle the HVAC systems’ maintenance and repair at high-voltage national grid substations in the Dammam and Jubail areas. The substations are managed by the Eastern Operation Area (EOA) of National Grid SA.

National Grid SA is a wholly-owned subsidiary of the Saudi Electricity Company. It plans, designs, develops, operates, and maintains the electricity transmission grid across the Kingdom of Saudi Arabia. It makes use of the highest global standards and best practices to deliver reliable and cost-effective services to its customers. Its transmission network spans more than 86,000 circuit kilometers and covers more than 13,000 cities, towns, villages, and communities across the Kingdom.

Zamil Air Conditioning & Refrigeration Services is a key provider of products and services in Saudi Arabia’s industrial expansion. It specializes in designing custom solutions for all types of complex operations. It is uniquely positioned to meet the needs of its clients in a timely and cost-effective manner.
Zamil Steel has successfully completed the contract for the design, manufacture, and supply of steel structures for the Saudi Falcons Club, located in the central region of Saudi Arabia.

This prestigious project, spread over a built-up area of more than 28,000 square meters in the heart of the capital city of Riyadh, included the provision of large spanning spaces of fifty meters clear width and nearly 15 meters in height and utilized large metric tons of custom-made steel structures and sandwich panels.

The club aims to preserve the historical heritage and traditions associated with the culture of falconry. The club seeks to promote awareness, training, research, and action programs to protect falcons and to ensure that the flourishing sport of falconry remains a legacy in the Saudi kingdom’s succeeding generations.
Zamil Air Conditioners has recently supplied an assortment of HVAC systems, including chillers, air handling units, and fan coil units, for the Sur City Walk project—a part of the Sur Gate project in Sur, in the Sultanate of Oman. The supplied HVAC systems will provide a total cooling capacity of 340 tons.

The City Walk project was developed by Al Sharqiya Real Estate Development and Investment Company, in cooperation with the investment arm of the General Establishment for Industrial Estates. It is a world-class commercial and entertainment project located in the Sur Industrial Zone, and constructed on a plot measuring around 200,000 square meters.

Featuring a multitude of designs and presentations, the project incorporates a variety of shops, fast food & fine dining outlets, cafés, banks, pharmacies, entertainment games halls, kids’ zones, and many other facilities.
Zamil Air Conditioners has been awarded contracts for the supply, start-up, and commissioning of vast air handling units and air-cooled condensing units for several of Dubai Electricity & Water Authority’s (DEWA’s) high-voltage substations in Dubai, UAE. The supplied HVAC systems will provide a total cooling capacity of 1,800 tons.

The substations are equipped with state-of-the-art digital technologies, contributing to their efficiency and reliability, and highlighting the construction and economic development plans for Dubai.

Since the start of 2020, DEWA has commissioned several new 132/11 kilovolt (kV) substations to connect different areas of Dubai. This ensures the efficiency, reliability, and availability of DEWA’s 132 kV transmission networks. Additionally, it will help in managing the growing demand for electricity for multiple uses, and ensure the continuity and stability of supply to customers at all times.
Zamil Steel Construction Company (ZSCC) has recently been awarded a contract by Al Bawani Company for the supply of various steel structures for the Saudi Aramco Innovation Center project in the eastern region of Saudi Arabia.

According to the contract, ZSCC will supply and erect 490 metric tons of steel structures and more than 2,260 square meters of custom-fabricated metal decks, as well as applying around 6,000 square meters of fireproofing intumescent paint for a building at the Saudi Aramco Innovation Center in Dhahran.

The building was designed using the ConXtech system, a special system that allows for faster and more cost-effective erection processes. The new American modular system simplifies design, detailing, fabrication, and field assembly, accelerating the delivery of a structural frame by 2–5 times versus any conventional method.
Zamil Air Conditioners has completed the contracts for the supply, start-up, and commissioning of HVAC systems for several power stations and substations in the Sultanate of Oman.

In accordance with the contract terms, Zamil Air Conditioners has supplied 30 high-efficiency packaged rooftop units for several of the Oman Electricity Transmission Company’s and Duqm Power Company’s high-voltage power stations and substations, in the cities of Ibri, Al-Khaburah, Duqm, and Salalah.

The supplied HVAC systems will provide a total cooling capacity of more than 1,600 tons. They will also provide a comfortable indoor climate, as well as optimal temperature and humidity conditions for the efficient operation of the power stations and substations across Oman. 
Zamil Steel Construction Company has recently been awarded a contract by China Railway 18TH Bureau Group Co. Ltd. for the supply of various steel structures for the King Salman Energy Park (SPARK), which is operated by Saudi Aramco and located in the eastern region of Saudi Arabia.

The scope of the contract includes the supply and erection of 480 metric tons of steel structures, as well as more than 5,500 square meters of custom-fabricated metal decks and more than 1,000 square meters of roof and wall sandwich panels for the Administration Office Building at SPARK.

The administration building was designed using the ConXtech system, which allows efficient and precise structural steel fabrication, a simplified steel design, improved site safety, easy future expansion, and an approximately 50% reduction in the time it will take to erect the steel. Zamil Industrial brought this new American modular system to the Kingdom of Saudi Arabia, and the company has a specialized factory in Dammam to produce steel structures using the ConXtech system.

King Salman Energy Park is a new megaproject being constructed and is located between Dammam and Al-Ahsa in the Eastern Province of Saudi Arabia. This project is being developed, operated, and managed by Saudi Aramco in partnership with the Saudi Authority for Industrial Cities and Technology Zones. SPARK will be a fully integrated city. It is planned to seamlessly intertwine industrial areas, such as factories, workshops, yards, and the Logistics Zone, with vibrant residential, educational, and commercial areas.
Zamil Process Equipment Co. (ZPEC) has begun the supply of custom-made mounded bullet tanks for the storage of liquefied petroleum gas (LPG) for the National Gas and Industrialization Company (GASCO). Each bullet measures 62.8 meters in length and 9.4 meters in diameter, and weighs over 820 metric tons. The tanks will be used for the client’s LPG plant in the central region of Saudi Arabia.

The work, divided into two phases, includes the design and manufacturing of nine bullet tanks, and their transportation and installation on the foundation at GASCO’s filling stations and facilities.

The LPG storage bullet tanks are designed and manufactured to ASME and EEUMA 190 international standards. The design was analyzed and optimized using finite element analysis. The material selection was determined by the low design temperature and the high strength requirement, to withstand mound loads and pressure at −46°C.

Specially designed 1,000-ton rollers were obtained for final assembly work on fabricated sections during the manufacturing process.
Saudi Pre-Insulated Pipes Industries (SPPI), a member company of Gulf Insulation Group, a sector business of Zamil Industrial Investment Co., has recently been awarded contracts by Gulf Group for Mechanical & Electrical Works Company for the fabrication and supply of pre-insulated chilled water piping systems for the facilities at Sheikh Salem Al-Ali Al-Salem Al-Sabah Camp in Kuwait.

According to the contracts, SPPI will insulate and supply 23,500 meters of pre-insulated and bare pipes, as well as over 8,990 fittings and field joints, including an advanced water leak detection system.

Saudi Pre-Insulated Pipes Industries, located in the Second Industrial City in Riyadh, Saudi Arabia, is engaged in the manufacturing of pre-insulated piping systems utilizing spray and injection methods. The company is also involved in the manufacturing of extruded high-density polyethylene (HDPE) pipes, steel welding, and the fabrication and anticorrosion coating (fusion-bonded epoxy [FBE] or 3LPE) of pipes. The company’s innovative products have been utilized in projects by clients throughout the Kingdom, as well as in the GCC and Middle East regions.
Zamil Process Equipment Co. (ZPEC) has received a special certificate of appreciation from the Onshore Maintain Potential Project Department at Saudi Aramco. This was in recognition and appreciation of ZPEC’s partnership and its outstanding dedication in repairing three oil stabilizer columns for the client’s Abqaiq plants in a record time of four months, and manufacturing and delivering two new stabilizer columns for the Abqaiq and Khurais plants in an unprecedented seven months.

This achievement reflects the professionalism and great capabilities that support the Kingdom of Saudi Arabia’s industrial growth. It also adds to the history of collaboration between Saudi Aramco and ZPEC.

Additionally, certificates of appreciation were presented to a number of Saudi engineers and technicians at ZPEC, Arif Al-Haddad, Salman Al-Qarni, and Wael Al-Asiri, by the Abqaiq and Khurais Restoration Projects Division, marking their tremendous efforts in the restoration of Saudi Aramco’s Abqaiq and Khurais facilities in 2019 and 2020.

ZPEC looks forward to receiving new and varied challenges from its clients, and will address them with appropriate, cost-effective solutions that result in high levels of customer satisfaction.
Zamil Industrial has a commitment to the continual improvement of the standards of health and safety of its employees at all levels within the organization, and to providing them with all information and support necessary to work safely at all times. In collaboration with the Saudi Ministry of Health, Zamil Industrial has launched its annual seasonal flu vaccination campaign at the start of the winter season.

The campaign took place on November 1–5, 2020 in both the First and Second Industrial Cities in Dammam.
The Local Content and Governmental Procurement Authority has signed a cooperation agreement with Zamil Air Conditioners and Home Appliances Co. to develop and increase local content in the manufacturing sector in the Kingdom of Saudi Arabia, in order to reach the highest potential and enhance domestic spending in line with the strategic goals of the two parties.

The agreement was signed between the CEO of the Local Content and Governmental Procurement Authority, Mr. Abdulrahman bin Abdullah Al-Samari, and the CEO of Zamil Industrial Investment Co., Abdulla Mohammed Al Zamil.

According to the agreement, the authority will work on developing a comprehensive strategy and program for developing local content that includes proposed amendments to Zamil Air Conditioners’ procurement regulations and systems. The authority will also prepare a framework for improving manufacturers and suppliers that deal with the company, standardizing the methodologies and measuring mechanisms of local content, and defining the baseline of local content and its future objectives in the company.

In addition, Zamil Air Conditioners will define and identify investment opportunities to develop local content in the materials and goods produced by the company, as well as its services, which the authority can take advantage of to increase the percentage of local content in each of them. Additionally, the company will not only share previous procurement data and expected future needs for related materials and services with the authority, but also share the best practices and experiences of the two parties. These steps will enhance the local content, in addition to the studies related to raising its percentage, including the experiences that support localization opportunities and the transfer of technologies and skills.

On this occasion, Abdulrahman bin Abdullah Al-Samari stated that the signing of the agreement is a continuation of the authority’s efforts to develop local content in various sectors, including the manufacturing sector, which is considered a main pillar for the sustainability of economic growth. The manufacturing sector’s contribution to the Kingdom’s non-oil GDP reached about 7.5% in 2018, while the share of other manufacturing industries (other than oil refining) reached about 70% of the GDP of the industrial sector.

He added that these figures reflect the importance and dynamism of the manufacturing sector in the Kingdom, especially its contribution to diversifying the local industrial base. Moreover, they showcase the promising opportunities of this sector to enhance local content through the participation of Saudi elements in the workforce, goods, services, productive and technical assets, and the like, thereby enhancing domestic spending on these elements.

Abdulla Al Zamil indicated that this agreement is a continuation of the efforts undertaken by Zamil company at various levels to support the nation by enhancing local content and increasing the percentage of Saudization to achieve the objectives of the Kingdom’s 2030 vision. The agreement also comes within the framework of the authority’s initiative to increase the elements of local content in various industries, including the manufacturing sectors in the Kingdom, in a manner that leads to strengthening the role of the private sector in developing local content and contributing more effectively to achieving the development goals of the Kingdom’s Vision 2030, especially in terms of creating job opportunities and diversifying the national economy.

It is worth noting that this agreement is part of a series of cooperation agreements in various sectors, signed by the Local Content and Governmental Procurement Authority with several organizations from the public and private sectors in order to develop local content and increase its share in the contracts and purchases of government sectors.
ELEMENT LIST CURRENT QUARTER SIMILAR QUARTER FOR PREVIOUS YEAR % CHANGE PREVIOUS QUARTER % CHANGE
Sales/Revenue 867,943 1,096,441 (20.8%) 754,159 15.1%
Gross Profit (Loss) 103,458 144,072 (28.2%) 79,440 30.2%
Profit (Loss) Operational (20,137) 6,216 – (39,017) (48%)
Net Profit (Loss) after Zakat and Tax (38,495) (28,134) 36.8% (58,308) (34.0%)
Total Comprehensive Income (35,324) (29,491) 19.8% (59,430) (40.7%)

All figures are in thousands of Saudi Riyals


ELEMENT LIST CURRENT PERIOD SIMILAR PERIOD FOR PREVIOUS YEAR % CHANGE
Sales/Revenue 2,544,596 3,163,983 (19.6%)
Gross Profit (Loss) 304,105 373,927 (18.7%)
Profit (Loss) Operational (68,570) (49,674) 38.0%
Net Profit (Loss) after Zakat and Tax (125,627) (124,267) 0.6%
Total Comprehensive Income (128,004) (124,267) 3.0%
Total Shareholders' Equity (after deducting minority equity) 1,150,763 1,291,679 (10.9%)
Profit (Loss) per Share (2.09) (2.08) –

All figures are in thousands of Saudi Riyals


ELEMENT EXPLANATION
Reasons for increase (decrease) in net profit during current quarter compared with same quarter last year Net loss increased due to:
1) Reduction in sales across all sectors.
2) Lower gross profit margin in the AC and Steel sectors.
3) Lower operating margin in the AC and Steel sectors.
Reasons for increase (decrease) in net profit during current quarter compared with previous quarter Net loss decreased due to:
1) Increase in sales across all sectors.
2) Higher gross profit margin in the Steel and Insulation sectors.
3) Improved operating margin in the Steel and Insulation sectors.
4) Higher profits from associated companies and other income.
5) Lower zakat and income tax.
Reasons for increase (decrease) in net profit during current period compared with same period last year Net loss increased marginally due to:
1) Reduction in sales across all sectors.
2) Lower gross profit margin in the Steel and Insulation sectors.
3) Lower operating margin in the Steel and Insulation sectors.

The impact of the above is partially offset by:
1) Better gross profit margin in the AC sector.
2) Lower operating expenses and financial charges.
3) Higher profits from associated companies and other income.
External auditors' opinion The external auditors reviewed the financial statements and issued an unmodified report.
Reclassifications in quarterly financial results Comparative figures have been reclassified to conform with the presentation in the current period.
Additional information  
Zamil Industrial, in cooperation with the Saudi German Hospital in Dammam and Zahra Association, organized an awareness campaign for its female employees about the early detection of breast cancer during Breast Cancer Awareness Month in October.

The campaign aimed to define breast cancer types, identify their dangers, and educate employees on ways of self-examination and the necessity of preventing the disease through regular screenings.

The campaign included providing medical consultations and discussing the best ways to prevent breast cancer. It also involved distributing awareness materials and urging the attendees to have screenings for breast cancer, visiting the oncology clinic in case of any early symptoms, and taking care of their health and diet.
Zamil Industrial is proud to announce that a group of eight employees, representing a cross-section of Zamil Industrial sectors, business units, and functional areas, has successfully completed the Human Resources Development Fund (HRDF) Leadership Development Program. It was hosted by the HRDF Academy for Leadership in Saudi Arabia and included direct training and virtual meetings.

Another group of 13 employees is currently attending the new training sessions of the leadership development program, which is expected to be completed in late November.

The purpose of the 12-week program is to prepare and develop future leaders in the private sector, and to ensure they lead their organizations in accordance with the Kingdom’s Vision 2030 that corroborates the qualitative localization of leadership in terms of providing high-caliber leaders with excellent planning and innovation capabilities.

Zamil Industrial thanks the HRDF Academy for developing such high-quality leadership programs for our citizens, and for its valuable contribution to equipping trainees with the necessary knowledge, techniques, and skills to meet the requirements of the 21st century, in order to achieve optimal human investment in the national establishments.
Zamil Air Conditioners recently completed a contract awarded by GFH Financial Group for the supply, delivery, start-up, and commissioning of more than 760 fan coil units and ten fresh air handling units for the Harbour Heights (Villamar) project, located on the Manama waterfront in the Kingdom of Bahrain.

The Harbour Heights project, which was developed by GFH Properties, the real estate arm of GFH Financial Group, is a mixed-use residential, retail, hospitality, and leisure complex spread over 35,900 square meters. It is at the heart of Bahrain Financial Harbor, featuring a built-up area of more than 250,000 square meters.

The project is one of the flagship projects on Bahrain’s skyline. It is considered to be one of the most advanced and exclusive residential complexes, offering privacy with its island location, as well as close proximity and easy access to key business and retail districts in the kingdom.
Zamil Air Conditioners has successfully completed the supply, start-up, and commissioning of 29 air handling units and 129 fan coil units for the Mall of Dilmunia, located in the heart of Dilmunia Island, Muharraq, on a built-up area of 125,000 square meters in the Kingdom of Bahrain.

The Mall of Dilmunia provides fun and educational entertainment facilities and offers a wide range of entertainment for families, including Funscape Adventure, Funscape Play Zone, Funscape Ice, and Funscape Sport and Aquarium. The mall features an array of exclusive international brands opening their doors for the first time in the kingdom. It will also provide visitors with the opportunity to enjoy an abundance of luxurious amenities, dining outlets and cafés amid breathtaking views of Muharraq Island.
Zamil Air Conditioning & Refrigeration Services Co. has been awarded a contract for the design, supply, installation, start-up, and commissioning of numerous hygienic air handling units for the newly opened Oncology Center at King Hamad University Hospital in the Kingdom of Bahrain.

The custom-made air handling units are designed and manufactured to meet all applicable standards and requirements, including Health Technical Memorandum standards, for use in healthcare and other hygienic applications.

Zamil hygienic air handling units incorporate state-of-the-art technology to provide refrigeration and to meet the standards of filtration, pressurization, humidity control, and contamination control required for critical applications where ultra-clean air is needed. The units are individually engineered to produce the specified psychometric conditions and to achieve the environmental design criteria for the area being served. They are the answer when clean, conditioned air is needed for today’s hygienic applications, such as hospitals, pharmaceutical manufacturing facilities, food factories, and laboratories.
Zamil Steel Buildings Vietnam has successfully completed a 2,000 metric tons production facility for an international manufacturer of gas-fueled products and gas appliances in southern Vietnam.

The project extends over an area of nearly 20,000 square meters, and it is part of the clients’ expansion plans for its production facilities for high-quality gas products and equipment. The project consists of three buildings utilizing more than 2,000 metric tons of steel structures. The project took nearly four months to complete.
The Human Resources Department at Zamil Industrial recently launched a series of virtual workshops running online throughout this year. More than 650 employees, representing a cross section of Zamil Industrial sectors, business units, and functional areas, participated in these online workshops and training sessions.

The workshops covered various key topics, including Zamil Industrial’s core values, together with critical business skills, transformative change, absence management, diversity at work, stress management, customer service orientation, communication skills, financial and commercial awareness, people management, results orientation, technological awareness, and more. It also included policy refresher sessions so that employees could better comprehend the nature and functions of certain policies.

The workshops aimed at creating a platform for learning within the “new normal” by taking advantage of technological advances and making learning tools readily available for Zamil Industrial employees. It also aimed at developing critical skills needed for employees to efficiently carry out their everyday functions at work and supporting the development of critical competencies and employee credibility. The workshops were tailored to reflect the demands of the organization and to increase team effectiveness and productivity toward maximizing return on investment.

The workshops were well-received by all participants and received excellent reviews.
Zamil Air Conditioning & Refrigeration Services Co. Ltd. (Zamil CoolCare) has signed a distribution partnership agreement with Johnson Controls-Hitachi Air Conditioning, a leading global air conditioning manufacturer.

Under the agreement, Zamil CoolCare will offer split units and cassette units across the Kingdom of Bahrain, as well as the ducted and Variable Refrigerant Flow (VRF) range of Hitachi Air Conditioning products. This will be backed up by robust after-sales and engineering operations.

Zamil CoolCare and Johnson Controls-Hitachi Air Conditioning are both global leaders in technology and engineering. This new partnership will enable them to deliver innovative solutions to the commercial and residential markets in Bahrain.

The distribution agreement expands Zamil CoolCare’s range of products and services, enabling it to better meet the growing demand for energy efficiency and VRF applications in the region.
Zamil Air Conditioners recently launched customized mobile air conditioning units specifically designed for healthcare applications. The newly produced units deliver high-performance cooling solutions to hospitals, clinics, laboratories, emergency rooms, pharmaceuticals, and other medical facilities. Besides their effective cooling performance, the units prevent air leakage and are fitted with a special air filtration system that helps curb the spread of diseases like COVID-19. 

The units are also equipped with advanced technology for achieving optimum air quality, along with a HEPA filter with 99.99% efficiency that contains moisture resistant micro-glass paper media, which can prevent microbial growth and can easily remove air contaminants, such as fine dust, smoke, vapor, soot, pollen, and bacteria. The antimicrobial flexible air ducts offer a hygienic, safe ventilation system that protects indoor air quality.

These custom-built mobile air conditioning units continue the company’s long tradition of designing and manufacturing technologically innovative, high-quality air conditioning systems.

Zamil Air Conditioners & Home Appliances Co. (Zamil Air Conditioners) has been selected by the Saudi Authority for Industrial Cities and Technology Zones (MODON) for the National Productivity Program Initiative, a Saudi Vision 2030 program.

Earlier this year, the company signed a program participation agreement with MODON following Zamil Air Conditioners’ compliance with the criteria and standards set by MODON, the Saudi Industrial Development Fund, and King Abdulaziz City for Science and Technology.

Consequently, Zamil Air Conditioners has moved forward with implementing the program's initiatives, which are aimed at enabling the industry and enhancing national productivity through studies and digital transformation plans from a global technical partner. This step will place Zamil Air Conditioners in the ranks of national companies contributing to the creation of a growing industrial environment and sustainable development.

The National Industrial Development and Logistics Vision Realization Program aims to transform the Kingdom into a leading industrial power and an international logistics platform in a number of promising areas, with a focus on the application of 4G technologies for industries, in a way that will generate ample employment opportunities for Saudi cadres, boost trade balance, and maximize local content.

The program focuses on four key sectors, namely industry, mining, energy, and logistics, and designs and provides a range of essential enablers that include: developing appropriate systems; providing the required financing; developing infrastructure, industrial lands, and private areas; expanding the implementation of digitization procedures; enhancing research, innovation, and training; raising the efficiency of available cadres, and more.

This agreement is expected to achieve positive future effects that will help Zamil Air Conditioners reduce industrial costs and various operating expenses, as well as improve quality levels and enhance employee productivity.
Zamil Structural Steel Co. has successfully completed the contract awarded by Adwan Chemical Industries Company (ACIC) for the manufacture, supply and delivery of various structural steel products, including equipment support structures, silos, and buildings for the ACIC Sand Screening project in Algeria.

The project is expected to increase the production capacity of ACIC’s sand screening plant in Algeria. Adwan Chemical Industries Company specializes in manufacturing industrial Silica, Silica based chemicals, and other inorganic chemicals. The company operates several manufacturing facilities in the Middle East and North Africa.

Known worldwide as the Middle East’s leading structural steel fabricator, Zamil Structural Steel Co. was established in 1983. It provides expertise in the fabrication and installation of structural steel and plate works for a wide range of industrial and commercial applications. The company has gained the confidence of major international engineering, procurement, and construction contractors and has built a solid reputation among its customers as a preferred partner for structural steelwork.

ELEMENT LIST CURRENT QUARTER SIMILAR QUARTER FOR PREVIOUS YEAR % CHANGE PREVIOUS QUARTER % CHANGE
Sales/Revenue 754,159 1,046,565 (27.9%) 922,494 (18.2%)
Gross Profit (Loss) 79,440 102,100 (22.2%) 121,207 (34.4%)
Profit (Loss) Operational (39,017) (49,887) (21.8%) (9,416) 314.4%
Net Profit (Loss) after Zakat and Tax (58,307) (49,553) (17.7%) (28,825) 102.3%
Total Comprehensive Income (59,430) (47,761) (24.4%) (33,250) 78.7%

All figures are in thousands of Saudi Riyals


ELEMENT LIST CURRENT PERIOD SIMILAR PERIOD FOR PREVIOUS YEAR % CHANGE
Sales/Revenue 1,676,653 2,067,542 (18.9%)
Gross Profit (Loss) 200,647 229,855 (12.7%)
Profit (Loss) Operational (48,433) (55,889) (13.3%)
Net Profit (Loss) after Zakat and Tax (87,132) (96,705) (9.9%)
Total Comprehensive Income (92,680) (94,776) (2.2%)
Total Shareholders' Equity (after deducting minority equity) 1,186,087 1,321,170 (10.2%)
Profit (Loss) per Share (1.45) (1.61) –

All figures are in thousands of Saudi Riyals


ELEMENT EXPLANATION
Reasons for increase (decrease) in net profit during current quarter compared with same quarter last year Net loss increased due to:
1) Reduction in sales across all sectors.
2) Lower gross profit margin in the Steel and Insulation sectors.
3) Lower operating margin in the Steel and Insulation sectors.
Reasons for increase (decrease) in net profit during current quarter compared with previous quarter Net loss increased due to:
1) Sales reduction in the Steel and Insulation sectors.
2) Lower gross profit margin across all sectors.
3) Lower operating margin in the Steel and Insulation sectors.
4) Reduction in profits from associated companies and other income.
5) Increase in zakat and income tax.
Reasons for increase (decrease) in net profit during current period compared with same period last year Net loss decreased due to:
1) Better gross profit and operating margin in the AC Sector.
2) Lower operating expenses.
3) Increase in profit from associated companies.
4) Decrease in financial charges.
External auditors' opinion The external auditors reviewed the financial statements and issued an unmodified report.
Reclassifications in quarterly financial results Comparative figures have been reclassified to conform with the presentation in the current period.
Additional information  
Zamil Central Air Conditioners has been recognized by the Air-Conditioning, Heating and Refrigeration Institute (AHRI) certification program for achieving a 100 percent success rate in the performance testing of a variety of industry-leading, innovative HVAC solutions for three consecutive years.

From 2017 to 2019 various Zamil Central Air Conditioners air-conditioning systems, in various product categories, were tested against their published data. On each occasion, and on the first attempt, they passed the performance evaluation conducted by the AHRI. The equipment tested included: Air-Cooled Water-Chilling Packages using the Vapor Compression Cycle; Forced Circulation Air-Cooling and Air-Heating Coils; Central Station Air-Handling Unit Supply Fans; and Room Fan-Coil Air-Conditioners.

AHRI certification programs increase the integrity and accuracy of the HVACR and water heating industry’s performance ratings, earning the confidence of consumers, regulators, designers, building owners and contractors. They create a level playing field for competing manufacturers and enhance the reputation of the industry. The recognition of, and demand for, AHRI performance certified products has increased significantly.

At the same time, AHRI has continued its efforts to uphold its standard of excellence with the continuous review and implementation of program changes that assure the quality of every test. Only those manufacturers whose products have passed the primary performance evaluation for three consecutive years receive the Performance Awards recognition.

AHRI certification demonstrates Zamil Central Air Conditioners’ commitment to industry leadership and to providing properly rated products to the marketplace.
Zamil Construction India Pvt. Ltd., a subsidiary of Zamil Industrial, has received Integrated Management System (IMS) certification for its facilities in Pune, Maharashtra, India. This certification unifies the three key standards – ISO 9001:2015 Quality Management System; ISO 14001:2015 Environmental Management System; and OHSAS 18001:2007 Occupational Health & Safety Management System – into one coherent system. 

Additionally, Zamil Steel Buildings India Pvt. Ltd. has successfully completed the second IMS surveillance audits conducted by third-party auditors from Bureau Veritas India (BVIS), with a further continuation of certification. 

BVIS performed the rigorous assessment and evaluation of the companies’ management systems and confirmed their satisfaction with both companies’ Quality, Occupational Health & Safety, and Environment standards. It took an outstanding and combined team effort to attain this certification within a short duration. The focus of the audit was to ensure continued compliance with the latest ISO standards and to take any corrective steps, as needed.

IMS Certification refers to a company-wide quality system that improves process and service quality throughout the business, leading to increased efficiency through waste reduction, more efficient utilization of resources, and the streamlining of the current practices used by the company.

The achievement of this class of certification reaffirms the continuing commitment of Zamil Industrial businesses to full compliance with global standards and to the delivery of the highest quality products and the most cost-effective solutions to its valuable clients.

Zamil Steel has successfully completed the contract for the design, fabrication, and supply of approximately 1,000 metric tons of pre-engineered steel buildings for the Al Jomaih Beverages Company’s mega distribution center and warehouse (PEPSI ABC warehouse), located in Al-Ahsa in the eastern region of Saudi Arabia.

Al Jomaih Beverages Company is a major player in the beverage industry in the region. Dedicated to manufacturing excellence since its inception, Al Jomaih Bottling Plants grew fast from one glass bottling facility operating with a capacity of 1,920 bottles per hour to three state-of-the-art manufacturing lines producing over 100 SKUs in the Kingdom. Operating in conformity with PepsiCo quality and service standards, the company focuses on innovative technology and world-class customer service to maintain its leading position in the manufacturing industry.

Since its inception in 1977, Zamil Steel has designed, manufactured, and supplied over 75,000 pre-engineered steel buildings to our valued customers spread over 90 countries around the world. The company is recognized as the global leader in the provision of steel building and steel structure solutions on five continents.
ELEMENT LIST CURRENT QUARTER SIMILAR QUARTER FOR PREVIOUS YEAR % CHANGE PREVIOUS QUARTER % CHANGE
Sales/Revenue 922,494 1,020,977 -9.6% 1,114,243 -17.2%
Gross Profit (Loss) 121,207
127,756 -5.1% 232,289 -47.8%
Profit (Loss) Operational (9,416) (6,002) 56.9% 31,380 –
Net Profit (Loss) after Zakat and Tax (28,825) (47,152) -38.9% (13,970) 106.3%
Total Comprehensive Income (33,250) (47,015) -29.3% (12,352) 169.2%

All figures are in thousands of Saudi Riyals


ELEMENT LIST CURRENT PERIOD SIMILAR PERIOD FOR PREVIOUS YEAR % CHANGE
Total Shareholders' Equity (after deducting minority equity) 1,245,517 1,368,931 -9.0%
Profit (Loss) per Share (0.48) (0.79) -38.9%

All figures are in thousands of Saudi Riyals


ELEMENT EXPLANATION
Reasons for increase (decrease) in net profit during current quarter compared with same quarter last year The Net Loss reduction is due to:
1) Better Gross Profit Margin in the AC Sector
2) Better Operating Margin in the Steel Sector
3) Increase in profit from associated companies and other income
4) Decrease in Financial Charges
5) Decrease in Zakat and Income Tax.
Reasons for increase (decrease) in net profit during current quarter compared with previous quarter The Net Loss increased due to:
1) Reduction in sales across all sectors
2) Lower Gross Profit Margin across all sectors
3) Lower Operating Margin in the AC and Steel Sectors
4) Lower Other Income.
Type of the external auditors' opinion The external auditors reviewed the financial statements and issued an unmodified report.
Reclassifications in quarterly financial results Comparative figures have been reclassified to conform with the presentation in the current period.
Additional information –
ELEMENT LIST EXPLANATION
Introduction Zamil Industrial Investment Company is pleased to announce the results of the Extraordinary General Assembly meeting, which convened on Thursday, 7 May 2020 at 22:00 after securing the required quorum.
City and Location of the General Assembly’s Meeting The EGM was held remotely via modern technological means.
Date of the General Assembly’s Meeting 7 May 2020 Corresponding to 14 Ramadan 1441H
Time of the General Assembly’s Meeting 22:00
Percentage of Attending Shareholders 61.13%
Names of the Board of Directors' Members Present at the General Assembly's Meeting and Names of the Absentees The following Board Members attended the meeting:
1- Mr. Khalid Abdullah Hamad Al Zamil (Chairman of the Board)
2- Mr. Abdallah Saleh Juma’h Al Dosari (Vice Chairman of the Board)
3- Mr. Ahmed Abdullah Hamad Al Zamil
4- Mr. Adib Abdullah Hamad Al Zamil
5- Mr. Mohammed Ahmed Mahmoud Al Ghaith
6- Mr. Mohammad Sulaiman Mohammad Al Harbi
7- Mr. Khalid Mohammed Saleh Al Fuhaid
8- Mr. Abdulla Mohammed Abdulla Al Zamil
Names of the Chairmen of the Committees Present at the General Assembly's Meeting or Members of such Committees Attending on Their Behalf The following Committee Chairmen attended the meeting:
1- Mr. Abdallah Saleh Juma’h Al Dosari (Remuneration and Nomination Committee Chairman)
2- Mr. Mohammad Sulaiman Mohammad Al Harbi (Audit Committee Chairman)
Voting Results on the Items of the General Assembly's Meeting Agenda's

1) Approve the Board of Directors report for the fiscal year ending 31/12/2019;

2) Approve the external auditors’ report for the fiscal year ending 31/12/2019;

3) Approve the consolidated financial statements for the fiscal year ending 31/12/2019;

4) Approve discharging the Board of Directors from any liabilities for the fiscal year ending 31/12/2019;

5) Approve the distribution of SAR 1,600,000 as Board Remuneration for the year ending 31/12/2019 at SAR 200,000 per Board Director;

6) Approve the the appointment of Ernst & Young as the external auditors, as per the recommendation of the Audit Committee, to review and audit the company’s quarterly and annual accounts for the second quarter, third quarter, and annual statements for the year 2020 and the first quarter of 2021 and agree to their service fee;

7) Approve the Intention to Purchase its shares (Share Buyback) with a maximum of 3 million shares and not exceeding 5 percent of total outstanding shares, and with a total value not exceeding 50 million Saudi Riyals; to retain them as Treasury Shares for purposes of stabilizing the fluctuating share price since the Board considers that the share price on the exchange is lower than its fair value; the purchase of these shares will be funded through the company’s internal resources from available cash; to authorize the Board or whoever the Board delegates to execute the purchase either in one phase or in several phases within 12 months of the extraordinary general assembly’s approval date; the company may retain the Treasury Shares for a maximum period of 5 years without selling them or allocating them for employee stock options;

8) Approve the related party transactions between the company and Zamil Architectural Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an indirect interest. Total purchase value in 2019 was SAR 3,008,419 and was agreed upon with the prevailing commercial terms;

9) Approve the related party transactions between the company and Zamil Chem-Plast Industries, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an indirect interest. Total purchase value in 2019 was SAR 3,530,053 and was agreed upon with the prevailing commercial terms;

10) Approve the related party transactions between the company and Zamil Trade & Services Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an indirect interest. Total purchase value in 2019 was SAR 14,825,479 and was agreed upon with the prevailing commercial terms;

11) Approve the related party transactions between the company and Zamil Real Estate Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an indirect interest. Total purchase value in 2019 was SAR 3,033,165 and was agreed upon with the prevailing commercial terms.
The COVID-19 pandemic has gripped the world, with the focus now having turned to preventing its spread. People around the world have been urged to avoid crowded areas and to stay home, to minimize the effect of the virus.

The circulated air inside homes and other indoor areas can contribute to the spread of microbes, such as bacteria and viruses. This highlights the role that heating, ventilation and air conditioning (HVAC) systems can play in preventing the transmission of COVID-19 and other airborne diseases.

The government is making a considerable effort to protect people and to control the spread of this virus. Zamil Air Conditioners is making its own contribution through its dependable Indoor Air Quality (IAQ) solutions for hygienic applications.

In hospitals and medical facilities, for example, good air quality is vital, to protect the staff and patients and their visitors from airborne diseases and infections, and to provide a healthy environment. Infections acquired in hospitals due to airborne transmission can be eliminated or prevented by installing a proper infection control system, a suitable air movement system, and the most appropriate purification and filtration systems.

Zamil Air Conditioners’ products and applications are designed to greatly improve the IAQ in any facility, by recirculating and cleaning air, removing viruses, bacteria and dust from circulation, and removing chemical contaminants.

Zamil Air Conditioners’ hygienic air handling units (AHUs) offer all the necessary selections, features, and controls for operation at the highest efficiency and performance. They control air cooling, heating, humidification, and filtration, air distribution, outside air supply, diffusion, dehumidification, and more. They conform to the strict hygiene requirements, based on international standards such as VDI 6022 Part 1 and DIN-1946 Part 4, in addition to mechanical and performance standards EN1886 and EN13053. They have been developed expressly to suit diverse hygienic applications—not only in hospitals and healthcare centers, but also pharmaceutical manufacturing plants, laboratories, food preparation facilities, and other places where clean air is essential.

Contact Zamil Air Conditioners for more information on integrated or independent air purification systems, filtration systems offering up to 99.995% purity, gaseous and chemical filtration systems, UV light purification systems for bacteria and viruses, and AHU energy recovery solutions suitable for hygienic applications.
Due to the precautionary and preventive measures taken by the competent authorities in the Kingdom of Saudi Arabia to combat the spread of the novel coronavirus (COVID-19), Zamil Industrial Investment Company hereby announces that all factories are operating at significantly reduced and intermittent shifts, while others are completely shut down due to government restrictions in some countries we operate in.

In view of the inability to determine or know the duration of these precautionary and preventive measures, it is hard to determine the resultant financial impact at the present time. The company will announce any significant developments in time.

As for the government’s decisions regarding its support of the private sector to limit the effects of the precautionary measures to control this pandemic, the company values these decisions and works with the relevant authorities to follow the developments in this regard. Any substantial developments or financial impacts, if any, will be announced in due course.

ELEMENT LIST EXPLANATION
Introduction The Board of Directors of Zamil Industrial Investment Company invites all its shareholders to convene in an extraordinary session (the first meeting and the second meeting will be an hour later) via Tadawulaty technical mediums. It will be held on Thursday, 14 Ramadan 1441H corresponding to 7 May 2020 at 22:00 p.m. at the Zamil Air Conditioners Auditorium in Dammam’s First Industrial City. Pursuant to the Capital Market Authority (CMA) circular, all listed companies’ general assembly meetings will be conducted remotely through the technical mediums; physical attendance at all meetings is suspended until further notice for the well-being of everyone. These directives are in line with the precautionary and exceptional measures taken by the relevant health authorities and the continuous efforts made by all Saudi government agencies to combat the new Coronavirus (COVID-19) outbreak and to ensure public safety. The following agenda items will be discussed.
 
City and Location of the General Assembly’s Meeting Zamil Air Conditioners Auditorium in Dammam’s First Industrial City.
URL for the Meeting Location https://goo.gl/maps/1xeBXFCxVV82
Date of the General Assembly’s Meeting 7 May 2020 Corresponding to 14 Ramadan 1441H
Time of the General Assembly’s Meeting 22:00
Attendance Eligibility Shareholders registered in the company register at the Securities Depository Center (Depository Center) have the right to attend the general assembly at the end of the trading session preceding the meeting and should register attendance and vote through Tadawulaty.
Quorum for Convening the General Assembly’s Meeting The quorum for this meeting is for shareholders representing at least 50 percent of the company’s paid-up capital. If such quorum is not attained, a second meeting can be held one hour after the time when the first meeting was supposed to convene. In all cases, the second meeting shall be deemed valid if 25 percent of the paid-up capital is represented therein.
General Assembly Meeting Agenda

1) Vote on the Board of Directors report for the fiscal year ending 31/12/2019;

2) Vote on the external auditors’ report for the fiscal year ending 31/12/2019;

3) Vote on the consolidated financial statements for the fiscal year ending 31/12/2019;

4) Vote on discharging the Board of Directors from any liabilities for the fiscal year ending 31/12/2019;

5) Vote on the distribution of SAR 1,600,000 as Board Remuneration for the year ending 31/12/2019 at SAR 200,000 per Board Director;

6) Vote on the appointment of the external auditors as per the recommendation of the Audit Committee to review and audit the company’s quarterly and annual accounts for the second quarter, third quarter, and annual statements for the year 2020 and the first quarter of 2021 and agree to their service fee;

7) Vote on the Intention to Purchase its shares (Share Buyback) with a maximum of 3 million shares and not exceeding 5 percent of total outstanding shares, and with a total value not exceeding 50 million Saudi Riyals; to retain them as Treasury Shares for purposes of stabilizing the fluctuating share price since the Board considers that the share price on the exchange is lower than its fair value; the purchase of these shares will be funded through the company’s internal resources from available cash; to authorize the Board or whoever the Board delegates to execute the purchase either in one phase or in several phases within 12 months of the extraordinary general assembly’s approval date; the company may retain the Treasury Shares for a maximum period of 5 years without selling them or allocating them for employee stock options;

8) Vote on the related party transactions between the company and Zamil Architectural Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an indirect interest. Total purchase value in 2019 was SAR 3,008,419 and was agreed upon with the prevailing commercial terms;

9) Vote on the related party transactions between the company and Zamil Chem-Plast Industries, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an indirect interest. Total purchase value in 2019 was SAR 3,530,053 and was agreed upon with the prevailing commercial terms;

10) Vote on the related party transactions between the company and Zamil Trade & Services Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an indirect interest. Total purchase value in 2019 was SAR 14,825,479 and was agreed upon with the prevailing commercial terms;

11) Vote on the related party transactions between the company and Zamil Real Estate Holding Company, in which Mr. Adib Al Zamil (representative of Zamil Group Holding Company) has an indirect interest. Total purchase value in 2019 was SAR 3,033,165 and was agreed upon with the prevailing commercial terms.

Proxy Form Pursuant to CMA circular, all listed companies’ general assembly meetings will be conducted remotely through the technical mediums and suspend the physical attendance of all meetings until further notice for the well-being of everyone. These directives are in line with the precautionary and exceptional measures taken by the relevant health authorities and the continuous efforts made by all Saudi government agencies to combat the new Coronavirus (COVID-19) outbreak and to ensure public safety.
E-Vote Eligible shareholders can cast their votes remotely via Tadawulaty electronic services. Voting will commence from 10:00 a.m. on Sunday 3 May 2020 until the adjournment of the meeting. The company encourages its shareholders to actively participate and vote online by visiting the Tadawulaty webpage www.edaa.com.sa, a free service available to all shareholders.
Eligibility for Attendance Registration and Voting Registering attendance for the meeting concludes when the Votes Counting Committee work is completed.
Method of Communication Shareholders are welcome to send their inquiries by directly contacting our Corporate Communications & Investor Relations by phone (+966138108180) or by email (investors@zamilindustrial.com).
Additional Information Remote casting of votes will be enough.
ELEMENT LIST EXPLANATION
Introduction Zamil Industrial Investment Company announces its intention to purchase its shares (Share Buyback) to retain them as Treasury Shares with a maximum of 3 million shares and not exceeding 5% of total outstanding shares, and with a total value not exceeding 50 million Saudi Riyals
 
Board Approval’s Date 02-08-1441 corresponding to 26-03-2020
Purpose of Purchase To retain them as Treasury Shares
Purpose of Purchase (If the Purpose to Keep the Shares as Treasury Shares) To retain them as Treasury Shares for purposes of stabilizing the fluctuating share price since the Board considers that the share price on the exchange is lower than its fair value
Number of Shares to be Bought 3 million shares
Shares Class Ordinary shares
Method of Financing the Purchasing Process The purchase of these shares will be funded through the company’s internal resources from available cash
Current Percentage of the Treasury Shares at the Company out of the Total Class of Shares Purchased Currently, there are no Treasury Shares held by the company
Approvals and Meeting the Conditions of Financial Appropriateness The company must receive consent from the Extraordinary General Assembly for the Purchase. The company must also obtain a solvency report as stipulated in Paragraph (3) of Article (12) of the Regulatory Standards and Procedures issued pursuant to the Companies Law
Voting Right Purchased shares will not have any voting rights in any general assemblies
Zamil Steel Buildings Vietnam has signed a new contract with general contractor Técnicas Reunidas, S.A. of Spain in connection with the new Chemicals and Refining Integrated Singapore Project (CRISP) located on Jurong Island, Singapore. The project marks the latest investment by American multinational oil and gas corporation ExxonMobil to further expand its multi-billion-dollar integrated manufacturing complex in Singapore.
 
As stated by Exxon Mobil Singapore, the project is expected to apply new chemical technologies to integrate the crude cracker and refining complex, and to increase the production of clean fuels with lower sulfur content by 48,000 barrels per day. Engineering, procurement and construction (EPC) contracts have been awarded to Técnicas Reunidas, with the aim to start operations by 2023.

Under the contract signed by Zamil Steel Buildings Vietnam and Técnicas Reunidas, Zamil Steel’s scope of work will include the design, fabrication, and supply of steel structures for reactors and equipment platforms. Parts of the steel structures will be painted in-house with special intumescent paint to provide two-hour fireproofing, using AkzoNobel Chartek 2218. Engineering work started in March 2020 so that fabrication could start in May 2020. 

With its engineering excellence and large production capacity, Zamil Steel has been entrusted by Técnicas Reunidas for many of its biggest and most advanced oil refinery projects around the world.
ELEMENT LIST CURRENT YEAR PREVIOUS YEAR % CHANGE
Sales/Revenue 4,278,226 4,313,649 -0.8%
Gross Profit (Loss) 597,947 715,370 -16.4%
Profit (Loss) Operational (29,325) (13,075) 124.3%
Net Profit (Loss) after Zakat and Tax (138,809) (139,833) -0.7%
Total Comprehensive Income (136,619) (169,006) -19.2%
Total Shareholders' Equity (after deducting minority equity) 1,278,767 1,415,946 -9.7%
Profit (Loss) per Share (2.31) (2.33) –

All figures are in thousands of Saudi Riyals


ELEMENT EXPLANATION
Reasons for increase (decrease) in net profit for current year compared to last year Net loss marginally decreased for the year due to:
a) Increase in profit of associated companies;
b) Increase in other income;
c) Lower provision for expected credit loss of financial assets;
d) Reduction in loss from discontinued operations.

However, the impact of the above is offset by the following:
a) Reduction in gross profit margins in the AC and Steel sectors due to increase in input costs, pressure on selling prices and severe competition;
b) Increase in financial charges;
c) Increase in tax.
 
External auditors' opinion The external auditors reviewed the financial statements and issued an unmodified report.
Reclassifications in annual financial results Comparative figures have been reclassified to conform with the presentation in the current year.
Additional information  
Zamil Steel recently manufactured and supplied pre-engineered steel buildings, spread over a built-up area of 22,000 square meters, for Tariq Glass Industries’ new factory (Float Glass Unit-2), located in Sheikhupura, Pakistan. The new factory is expected to quickly double the production capacity of Tariq Glass Industries and strengthen its efforts to redefine the glass market.

Since its inception in 1977, Zamil Steel has designed, manufactured, and supplied over 75,000 pre-engineered steel buildings to its valued customers in over 90 countries around the world. The company is recognized as the global leader in the provision of steel buildings and steel structures on five continents.
Zamil Steel Buildings Vietnam has signed a contract with Turkish hygiene products manufacturer, Hayat Kimya Vietnam Co., Ltd, for its new factory project in Binh Phuoc province. The project is expected to be completed by December 2020 and put into operation in 2021.

The proposed factory will cover an area of approximately 50,000 square meters, and the buildings will be outfitted with MaxSEAM® roof systems and special mezzanine floors. Sandwich panels with insulation specially imported from Turkey will be used for in the wall construction, to ensure thermal resistance and fire safety.

Zamil Steel was previously entrusted by Hayat Kimya to construct some of its world-class plants in Africa and other locations. Future coordination between the two companies is expected as Hayat Kimya expands its operations in the Asia-Pacific region.
Zamil Steel has successfully completed the contract awarded by Al Bawani Company for the supply and erection of pre-engineered steel buildings for a new Saudia Cargo terminal in Riyadh, Saudi Arabia. The steel buildings, spread over a built-up area of 28,000 square meters, had to be delivered within a very short period of time, in addition to the fabrication of high-performance sandwich panels for the terminal.

Being strategically located in the Kingdom of Saudi Arabia, Saudia Cargo is uniquely positioned to provide a bridge between East and West via its hubs, thus giving increased flexibility to use its capacity efficiently and move cargo with minimal ground handling time.

Zamil Steel’s pre-engineered steel building products are certified to international quality standard ISO 9001.
Zamil Steel has supplied pre-engineered steel buildings, spread over a built-up area of 15,000 square meters, for the Daily Food Company’s new factory (Maestro Pizza), located in the central region of Saudi Arabia.

The design of the steel structures for this project was highly complex and challenging, as they had to be manufactured for ten different areas of the new factory.  

Daily Food Company is Saudi Arabia’s fastest growing QSR (Quick Serve Restaurant) chain, specializing in an international pizza experience. The new factory is expected to increase the production capacity of Daily Food Company and strengthen its efforts to redefine the pizza market in a short duration of time.

Zamil Steel demonstrates its commitment to service at the local level by maintaining a network of 55 area offices located in 34 countries around the world. These facilities are fully staffed and equipped to provide quick and comprehensive responses to customer inquiries.
Zamil Steel Buildings Co., Egypt, recently celebrated its 20th anniversary, marking its two decades of excellence in Egypt and the African continent. The celebration ceremony was held at the Mövenpick Media City Hotel, 6th of October City, Cairo, in the presence of Osama Al-Bunyan, Chief Operating Officer of Zamil Industrial, Khaled Saad, general manager of Zamil Steel Egypt, and all of the executives, managers, and supervisors at the company.

During the event, Zamil Steel Egypt presented 75 employees, who have all completed 20 years of service with the company, with awards and appreciation certificates in recognition of their long service.

Zamil Steel Egypt produces and supplies high-end, pre-engineered steel buildings, steel structures, and other steel products for customers located in more than 30 African and European countries as well as in the free zones in Egypt.
Zamil Air Conditioning & Refrigeration Services Co. Ltd. (Zamil CoolCare) has signed a distribution agreement with Emerson, a global technology and engineering company providing innovative solutions for customers in industrial, commercial, and residential markets.

Under the agreement, Zamil CoolCare will market and distribute Emerson’s product offering, which includes refrigeration and cold chain solutions, monitoring and temperature management solutions, and industrial refrigeration in the Kingdom of Saudi Arabia. The agreement also allows the company to appoint additional distributors to market Emerson products and solutions, as specified in the agreement.

The distribution agreement expands Zamil CoolCare’s product and service offerings to better meet the needs and requirements of its Saudi-based customers by offering a wide range of high-quality refrigeration products and solutions from Emerson.

Emerson Commercial and Residential Solutions have had a beneficial and supportive commercial relationship with the company for over 40 years, and they look forward to building on these ties through focus on continuous growth within the Kingdom of Saudi Arabia.

Zamil will work hand-in-hand with Emerson to solve client problems and issues and to satisfy their need for smooth, uninterrupted operations. Zamil CoolCare’s trained and highly qualified sales force, located in company offices and showrooms across the Kingdom, will be able to respond promptly to customer demands and technical queries on Emerson refrigeration products and systems.

Emerson is setting the standard for commercial refrigeration. Their condensing units and multi-compressor racks with the Copeland compressor line up have continuously set the standard in performance and reliability. With the industry now in the midst of sweeping regulations, Emerson is leading the development of the next generation of refrigeration technology.

Zamil has built client trust in its products and services over a period of 46 years, and it will continue to do so by expanding its range of high-quality products and technical know-how on refrigeration systems. This will further support Zamil’s position in Saudi Arabia as one of the main players in the refrigeration industry. With remote monitoring and temperature management, the company will provide energy-efficiency and food safety solutions, as targeted by Saudi Vision 2030.  
Zamil Steel has successfully completed the contract awarded by Nesma & Partners Contracting Co. for the design, manufacture, and supply of steel structures for Al-Ula Airport’s new terminal, located in the western part of Saudi Arabia.

The design of the steel structures for this vital project was highly complex and challenging and had to be delivered within a very short period of time. Zamil Steel’s well-experienced and professional team of engineers and technicians managed to overcome all the challenges to complete the project within a record time of four weeks.

Prince Abdul Majeed bin Abdulaziz Domestic Airport in Al-Ula is planning to transform the domestic airport into an aviation hub that can welcome a marked increase in tourists. The airport development will include the construction of an extended apron area to accommodate more aircraft, a new executive suite, and new digital information systems for both the departure and arrival areas.

Zamil Steel not only offers the most comprehensive services to all its clients through its sophisticated engineering and estimating systems but it also provides the most extensive after-sales support service in the industry.
The Director of Information Technology at Zamil Industrial Investment Co. (Zamil Industrial), Abdulbary Atassi, participated as a speaker at Oracle OpenWorld Middle East 2020, held on January 14–15, 2020, at the World Trade Center in Dubai, UAE.

The event included keynotes by business and thought leaders, technologists, innovators, and shapers of the future; case studies from leading organizations to explore solutions designed to resolve some of their biggest challenges; and hands-on demos and experiences with products, solutions and services from Oracle and Oracle PartnerNetwork companies.

Abdulbary participated in two breakout discussion sessions, titled “Migrating On-Premise Oracle Workloads to The Cloud” and “Pave the Way for a New Finance Operating Model.” He highlighted two aspects of Zamil Industrial’s digital transformation program. The first was about how to enhance the quality of current services and reduce operational costs by consolidating the infrastructure landscape and centralizing controls, using Oracle Cloud Infrastructure. The second aspect was about how Zamil Industrial is changing its entire financial and operational model by transforming to Oracle’s latest applications technology (Fusion) through the “ASaaS” program, and how it is handling all the implementation and change management activities.

Oracle OpenWorld Middle East 2020 explored how leading companies are exposing and unlocking insights with data to re-engineer the core of their businesses, elevating the value they deliver to customers, pioneering new ways of working, and driving completely new opportunities. It also investigated the transformational and autonomous technologies that are fundamentally changing work and life.
Zamil Steel has successfully completed the manufacture and supply of pre-engineered steel buildings, spread over a built-up area of 22,000 square meters, for the Agility Logistics warehouses project in the Eastern region of Saudi Arabia. The steel structures for this huge warehouse construction job were manufactured and supplied within a period of seven weeks.

Zamil Steel’s vision is to be the world’s most reliable and innovative manufacturer, service and solution provider in the steel industry.

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