Qatar Industrial Manufacturing Company Q.P.S.C. ($QIMD)

Good morning, everybody. I think we are all good, I mean to start up this session. Thank you for making time to join this conference call for QIMC results Q1 '26. I've got on my left the Finance Manager, Mr. Mazen Abu Safa and Senior Business Analyst speaker, Surya K. Narayanan. And myself, Aktham Al-Baqali, Chief Corporate Support Services Officer. We will be going through 4 elements of our presentation today. A quick overview of our company, and then financial performance, then operational highlights, and then we'll open the floor for the Q&A. Surya, proceed.

Good morning, everybody. Hope you can see the screen, the presentation. As Mr. Aktham mentioned, we have our company overview and then financial performance and operational highlights. So let's look at the company overview. For those who are attending our conference call for the first time, QIMC was established in 1990 as a Qatari public shareholding company. We are listed in the Qatar Stock Exchange from the inception. As of March 31, 2026, we have a paid-up share capital of QAR 475.2 million, that's 477.2 million shares of nominal value QAR 1. Our core competency lies in establishing and managing small- and medium-sized manufacturing companies. We have a diversified portfolio across different sectors like chemicals, petrochemicals, energy services, construction materials, paper and plastic and food processing. We have 8 subsidiaries and 12 associates. And these are our subsidiaries. When we mean subsidiaries, companies which are 100% owned by us, all of those in which we have management control. The first company is Qatar Acids, which manufactures sulfuric acid, and we have 100% stake in this company. The second company is KLJ Organic Qatar, which manufactures Chlorinated Paraffin Wax, Caustic Soda Prills, Hydrochloric Acid and hypo. And in this company we have a 60% stake and the 40% stake is held by Indian company, KLJ India. Then we have Qatar Sand Treatment Plant, which produces washed sand and aggregates. We have 100% ownership of this company. We have NAPICO, National Paper Industries Company, which produces facial tissues, toilet rolls, kitchen rolls, and other paper-related sanitation material. And in this company we have 100% ownership. Then we have Q-COAT, Qatar Metals Coating Company, which produce epoxy coated steel bars. This is a joint venture with Qatar Steel. We have 50% stake and Qatar Steel has got 50% stake. Then we have Taabia, which is a tea packaging company. We have 100% ownership in this. Then we have Gizaz, the Gulf Glass Company, which produces glass bottle, jars and containers. We have 50% ownership in this and the remaining 50% is held by other investors. Then you have Qatar Paving Stones, which produces hollow blocks, interlocks, paving stones and curb stones, and we have 100% ownership in this company. Now if we look at our associates starting with Qatar Aluminium Extrusion Company, which produces millfinished, powder coated, and special purpose aluminum profiles, taking aluminum billet from Qatalum, and we have 52% stake in this company. And we have Qatar Plastic Products Company, which produces FFS film and shrinkable film and wooden pallets. In this company, we got 2/3 stake, 66.66%. The remaining 33.33% is held by QAPCO. Then we have Q-JET, which is an aviation fuel distribution company. In this we have 60% -- 40% stake and 60% is held by WOQOD. Then we have GFC, Gulf Formaldehyde Company, which produces urea formaldehyde. And in this company we have a 30% stake. Then we have Gasal, which is industrial gases company. And in this company we got 29.5% stake, remaining stakes are held by Qatar Energy and Air Liquide-France. United Chemicals is a subsidiary of KLJ Organic Qatar. It produces calcium chloride. And KLJ India -- KLJ Organic Qatar has got 65% stake in United Chemicals. Then we have Mahaseel, which is a National Food Company. In this company we had 20% stake and remaining 80% is held by Hassad Food. And the other, Tunisian Food -- Oil and Food Company, this company is a subsidiary of Mahaseel. And the next company is Qatari-Saudi Gypsum Company, which produces gypsum powder. And in this company we've got 1/3, 33.3% stake. Then we have Amiantit Qatar Pipes, which produces glass reinforced pipes. And in this company, we got...

There is a small correction in Mahaseel. We have changed it -- it is NAFCO. Well, Mahaseel is some other business.

So the Amiantit Qatar Pipes Company produces glass reinforced pipes and we've got 40% stake in this company. And FiberTie, a subsidiary of Amiantit Qatar Pipes Company, and it owns a 75% stake in FiberTie, that also produces GRP pipes using a different technology for a different purpose. Then we have Qatar Clay Bricks Company, which produces concrete blocks, hollow blocks and also distribute clay bricks. And in this company, we've got 46.35% stake. So these are our associates. And an ongoing project, which is Qatar Salt project. It's a salt production plant in Um Al Houl area. And it is a joint venture between Mesaieed Petrochemical Holding Company and Qatar Industrial Manufacturing Company. This company will use locally produced raw materials to produce salt, which are used by different chemical companies across the country. Now we move on to the financial performance of the company for the first quarter. So the total assets of the company as of 31st March stood at QAR 4.36 billion compared to QAR 4.08 billion at the end of March 31, 2025. Out of that total current assets stood at QAR 616.96 million compared to QAR 527.64 million as of March 31, 2025. Total noncurrent assets, QAR 3749.95 million compared to QAR 3552.77 million. Total current liabilities, QAR 613.62 million compared to QAR 490.32 million. Total equity to the shareholders is QAR 1981.16 million compared to QAR 1918.32 million as of March 31, 2025. The gross income posted by the company in the group for the first quarter is QAR 137.26 million compared to QAR 117.92 million in the first quarter of 2025. Profit before taxes and provisions QAR 25.29 million compared to QAR 31.3 million last year. Out of this, other income contributes 11.16% compared to 8.62% last year. The earnings per share is QAR 0.05 per share compared to QAR 0.07 in the first quarter of last year. The net book value per share stands at QAR 4.17 per share compared to QAR 4.04 per share. The equity attributable to noncontrolling interest stands at QAR 98.87 million compared to QAR 57.08 million in the first quarter of last year. Total revenues, if you can see, QAR 137.26 million compared to QAR 117.92 million. The net profit is QAR 25.29 million compared to QAR 31.3 million. Now these are comparative analysis between the first quarter of last year and first quarter of this year. The net profit of last year was there. And then we have gross profit, which is slightly less. But the share of results from associates has been high. Sales and administration expenses slightly higher than last year. Dividend from shares higher than last year. Other income higher than last year. Finance cost has increased. Nonoperational gains like adjustments for IFRS is also more than last year. Noncontrolling interest contributed the remaining and net profit stands at QAR 25.2 million. So our total assets QAR 4080.41 million as on 31st March. And today, as of 31st March 2026, we stand QAR 4366.91 million. Total equity is QAR 1981.16 million compared to QAR 1918.32 million. Earnings per share, as we saw, is QAR 0.053 compared to QAR 0.066 in the first quarter of last year. The return on assets is 0.6% compared to 0.79% in the first quarter of last year. Now some update on the Qatar Salt project. Project management company, senior process engineer has been mobilized. Disciplined leads completed, but most likely, we'll be using in-house people. Then draft marketing report has been received, and it was reviewed, but the senior management will be looking at a -- want a face-to-face meeting with the consultants to finalize this. Then FEED study in different aspects are going on. Overall project -- progress about 85% complete. A lot of milestones have been achieved, preliminary risk workshop completed and register has been issued. Initial HAZID workshop completed, QSalt HAZID plant in May 2026. Technology selection workshops conducted and RFI issued to vendors. Conceptual PFD and PID -- P&ID issued. Pre-feasibility pipeline, logistics studies completed, site selection completed. Overall, pre-FEED engineering risk technology and definition activities are well advanced. Consultant bidders have submitted their revised commercial proposals and it is being reviewed. Now with further milestones, pre-FEED and FEED activities will continue along with -- will continue. Kickoff meeting with the geotechnical and topographical contractors are being planned. We'll issue LOA and DA for EI and QRA studies. Finalization of the marketing draft after face-to-face meeting with the senior management, and then we'll prepare the scope of work for third-party consultants for the main FEED review. So these are updates we have in the QSalt project. So that completes our presentation for the first quarter. Back to you, Mr. Aktham.

Yes. Thank you, Surya for this informative presentation about the outcome of Q1. And I think it is time right now for our shareholders and the stakeholders to raise up their questions. We are all yours. Please proceed if you have any questions.

[ Mr. Peter ], do you have any question?

Regarding QSalt, I will just give some more information regarding the QSalt. And just giving some time for our attendees, I mean to think if they want to raise up anything. The final investment decision call will take place by mid of October. Hopefully, by that time, we will be having the detailed feasibility study ready and submitted to the respective boards of the shareholders. And at that time, we'll be making an announcement and disclosure to the QSE. This is regarding the QSalt. Gentlemen, again, if you do have any questions, please you -- you are more than welcome, I mean, to raise your voice and speak up. I guess we can call this session off. And please make sure that if you do have any questions, any concerns, anything to share, any comments, please contact us. We will be more than happy to, I mean, to host you here at QIMC and entertain all of your questions either by physical meetings or by online meetings or by phones, by any means, by email. Thank you, gentlemen, for making time to join us for this call and hope that things will settle down by the time we meet again for the mid half. Thank you.

And the presentation that we used today will be posted in our website, both the English and Arabic versions. So you are most welcome to go through them, and our contact details are provided in the presentation. Please feel free to contact us.