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Chairman's Message

CEO

In the name of Allah, Praise be to Allah and may the blessings and peace of Allah be upon the most honored of messengers our master Muhammad and upon all his family, companion and those guided by his guidance.

Dear Shareholders, Greetings. It gives me great pleasure to welcome you today to the General Assembly meeting and to present to you the annual report of AAYAN Leasing & Investment Company, the report of the Fatwa and Sharia Supervisory Board, the governance report, the internal control report as well as the auditor's report and the financial statements for the financial year ended 31 December 2018. The year 2018 has been no better than 2017, as the political crises in the Middle East continue to negatively impact investor sentiment in the investment, real estate and investment activity sectors in general.

Domestically, despite the improvement in oil prices over the past two years, the price of Kuwaiti oil has fallen by about 16.6% over the past period. In spite of the fact that the real estate transactions were relatively better in 2018 compared to 2017, the real estate activity is shrouded in a state of uncertainty that dominates the expectations of the real estate market performance in light of the suffering of the investment real estate sector.

As well as the retail and commercial sector from major and significant declines in rental values as a result of oversupply and low demand. Undoubtedly, all the circumstances surrounding the company's business activities did not deter it from moving forward with the restructuring plan and trying to find root solutions to the remaining part of its debts by dealing with transparency with creditors and informing them of the latest developments regarding the restructuring plan.

As well as its ability to adhere to the pre-set plan and future planning to ensure the success of cooperation and coordination between the company and creditors in serious efforts towards restructuring. In this context, the company succeeded in repaying KD 14 million of which KD 10 million of the principal is, in addition to KD 4 million of the profit payment debt due to creditors. At the end of 2018, the company achieved total revenue of KD 30 million resulting in a net profit of KD 3 million. The following table presents the main profitability items and important 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% 

Finally, the last seven years since the signing of the plan and the company's commitment to provide liquidity, despite the decline in the performance of the surrounding local economic sectors, confirms the company's seriousness in dealing with its obligations to creditors. Nevertheless, the biggest challenge for the company in the coming period is to achieve the liquidity needed to meet the remaining obligations of the restructuring plan. The Company also looks forward to continuing its commitment to serve its shareholders and all its stakeholders.