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Chairman's Message

CEO

In the name of Allah, praise be to Allah, peace and blessings be upon Prophet Mohamed, his family, companions and followers.

Dear Shareholders ... Peace and Blessings of Allah be upon you

It is my pleasure to welcome you at this annual general meeting and to present to you the annual report of Aayan Leasing and Investment Company, Sharia Supervisory Board Report, Governance report and internal auditor’s report in addition to the Auditors' Report and the financial statements for the financial year ended 31/12/2018.

The year 2018 was not much better than 2017 as the political crisis in the Middle East continued to negatively affect investors’ trends in investment and real estate sectors, and investment activities in general.

Locally, despite the improvement of oil prices during the past two years, the price of Kuwaiti oil barrel declined by around %16.6 during the previous period, naturally this decline will cast its shadow over the pace of the government spending.

On the other hand, although the real estate dealings where relatively better in 2018 compared to 2017, the real estate activity is shrouded in a state of uncertainty that controls the expectations of the performance of the real estate market, in light of the suffering of the real estate sector, investment and the retail and commercial sectors from significant and tangible declines in rental values due to the increase in supply and the decrease in demand.

Despite all the circumstances surrounding company activities, it was not deterred from moving forward towards observing the restructuring plan and attempt to find fundamental solutions for the remaining debts through transparency with creditors and informing them of the latest developments regarding the restructuring plan, and the extent of its ability to adhere to the established plan and future planning to ensure the successful cooperation and coordination between the company and creditors in serious endeavors towards restructuring.

In this context, the company succeeded in repaying an amount of 14 million Kuwaiti dinars, of which 10 million Kuwaiti dinars are of principal, in addition to 4 million Kuwaiti dinars in payment of the profits of the debt owed to the creditors. By the end of 2018 Aayan was able to achieve gross revenue of 30 million Kuwaiti dinars, resulting in net profits around 3 million Kuwaiti dinars.

The following table shows major profitability and financial indicators:

 20182017Percentage change (%)
Net profit (loss) in Kuwaiti Dinars3,029,336(850,114)456%
Total revenues in Kuwaiti Dinars30,220,08716,515,04283%
Total expenses in Kuwaiti Dinars23,727,25618,942,23025%
Total assets in Kuwaiti Dinars307,055,819312,839,821-2%
Total Liabilities in Kuwaiti Dinars186,270,355195,402,554-5%
Ratio of total liabilities to total assets60.7%62.5% 

In conclusion, the past seven years since signing the restructuring plan and the company’s commitment to providing liquidity despite the decline in performance of the surrounding local economic sectors emphasizes the company's seriousness in fulfilling its obligations to creditors. However, the biggest challenge facing the company during the coming period is to achieve the necessary liquidity to meet the remaining obligations of the restructuring plan. In addition, Aayan looks forward to continuing its commitment to serve all shareholders and stakeholders.