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AGM Approved Distributing Cash Dividends of 6% of the
Nominal Value and Elected Board Members for a Three-year Tenure
April 15, 2019
“Aamal Company Q.P.S.C.” (Aamal), one of the GCC’s fastest growing
diversified conglomerates, held its Annual Ordinary and Extra
Ordinary General Assembly Meeting, after the quorum was achieved
on Monday, April 15th, 2019 in Shangri La Hotel Doha.
H.E. Sheikh Faisal Bin Qassim Al Thani - Chairman of Aamal Company –
welcomed the attendees saying:
“In the name of Allah Most Gracious Most Merciful, my dear guests,
allow me to welcome you to the Annual Ordinary and Extra
Ordinary General Assembly Meeting of Aamal Company. On behalf of
the Board of Directors, it gives me great pleasure to share with
you Aamal’s Annual Report for the year ending 31 December 2018.
We are proud of our performance in 2018. Although the year saw a
decline in revenue and net profit compared to the previous year,
our performance was in line with expectations and impacted by
already known medium-term factors. Our 2018 success demonstrates
Aamal’s unwavering ability to remain one-step ahead of the
competition through our ongoing investment, our ability to take
advantage of the opportunities offered by the strength of the
Qatari economy and our agility in responding to challenges.
Further, I would like to take a moment to express my gratitude and
appreciation to the Board of Directors and the Executive
Management for their boundless efforts and directorship in
leading the company to achieve such growth during the year 2018.
I would also like to emphasize that without the wise leadership of
the Government of Qatar and its efforts to overcome and manage
the challenges the country has faced and committing to providing
inordinate support to the private sector, we would not have been
able to achieve the results we have achieved this year.
The Vice Chairman, Sheikh Mohamed Bin Faisal Al Thani will now read
to you the Chairman’s report.
Thank you for your support and trust in us may peace and blessings
of Allah be upon you.”
Then the AGM commenced according to the Agenda of the Extra Ordinary
General Assembly Meeting as follows:
To discuss and approve the amendments to the Articles of Association
of the Company in accordance with the requirements of the
Corporate Governance Code for listed companies and legal
entities issued by Qatar Financial Markets Authority’s (QFMA)
Board directive no. (5) for the year 2016 and the directives
issued by QFMA regarding splitting the nominal value of the
Company’s stock.
The General Assembly approved all amendments to the Articles of
Association of the Company in accordance with the requirements
of the Corporate Governance Code for listed companies and legal
entities issued by Qatar Financial Markets Authority’s (QFMA)
Board directive no. (5) for the year 2016 and the directives
issued by QFMA regarding splitting the nominal value of the
Company’s stock.
Referencing the above mentioned point (1) to authorize the Chairman
of the Board, Sheikh Faisal Qassim Al Thani, to sign the new
Articles of Association for the purposes of authenticating the
new Articles of Association by the relevant authorities, and to
approve the Chairman delegating the Company’s staff undertaking
the necessary steps to complete the authentication and
registration of the new Articles of Association with the
relevant authorities.
Referencing the above mentioned point (1) the General Assembly
authorized the Chairman of the Board, Sheikh Faisal Qassim Al
Thani, to sign the new Articles of Association for the purposes
of authenticating the new Articles of Association by the
relevant authorities, and to approve the Chairman delegating the
Company’s staff undertaking the necessary steps to complete the
authentication and registration of the new Articles of
Association with the relevant authorities.
By this, the Extra-Ordinary General Assembly Meeting has been
completed.
Then, the assembly went on to discuss the agenda of the Ordinary
Annual General Assembly meeting as follows:
To hear and approve Chairman’s report on the Company’s activities
and the financial position for the financial year ended 31
December 2018, and hearing the Company’s future business plan.
The General Assembly approved
the Chairman’s report on the Company’s activities and the
financial position for the financial year ended 31 December
2018, and the Company’s future business plan. Sheikh Mohammed
Bin Faisal Al Thani, CEO and Managing Director Delivered the
Chairman’s report as follows:
“We are proud of our performance in 2018. Although the year saw a
decline in revenue and net profit compared to the previous year,
our performance was in line with expectations and impacted by
already known, medium-term factors. Our 2018 success
demonstrates Aamal’s unwavering ability to remain one-step ahead
of the competition through our ongoing investment, our ability
to take advantage of the opportunities offered by the strength
of the Qatari economy, and our agility in responding to
challenges.
As noted in our quarterly results announcements throughout the year,
Aamal continues to feel the impact of the reclassification of
two business entities within the Industrial Manufacturing
segment from subsidiaries to joint ventures, with a consequent
change in their accounting presentation. This change will
continue to impact our financial results until the first quarter
of 2019, at which point the change will have fully annualised.
The year-on-year decline in revenue and net profit was also partly
attributable to the Property segment, specifically the
continuing redevelopment of our flagship ‘City Center Doha’
shopping mall. This work continues to progress to schedule and
will significantly enhance the longer-term performance of the
shopping center, despite the short-term impact.
We continue to pursue a long-term investment approach and remain
alert to new value-creating opportunities to support profitable
growth for our shareholders. For example, in early 2018 we
embarked on three new major industrial projects through Senyar
Industries Qatar Holding subsidiary for the production of
copper, aluminium, and drums. These will further strengthen our
industrial manufacturing base and facilitate synergies across
our operations.
Our Trading and Distribution segment delivered a particularly strong
performance across the year led by Ebn Sina Medical, a fully
owned subsidiary and Qatar’s leading provider of
pharmaceuticals, hospital supplies and consumer health products.
Aamal’s Managed Services segment also saw positive results,
particularly in terms of operational efficiency, led by ECCO
Gulf and Aamal Services.
It is against this backdrop that I am delighted to announce that
Aamal’s Board of Directors has recommended a cash dividend of
QAR 0.60 a share, subject to approval at the Annual General
Assembly Meeting, which took place on 15 April 2019.
The General Assembly will also discuss Aamal’s plans to implement a
10 for 1 stock split in compliance with the stock split
directive issued by the Qatar Financial Market Authority (QFMA)
to all Qatar Stock Exchange (QSE) listed companies. This
market-wide initiative aims to make trading in QSE-listed shares
more accessible and attractive to retail investors, and to
improve liquidity and trading volumes on the QSE. The stock
split will divide each share with a nominal value of QAR 10.0
into 10 shares each with a nominal value of QAR 1.0, thereby
increasing Aamal’s total number of shares from 630,000,000 to
6,300,000,000 shares and leaving the total value of Aamal’s
paid-up capital unchanged at QAR 6.3 billion.
Owing to the tremendous efforts of Aamal’s management team, we have
further enhanced our compliance with the new corporate
governance code, ensuring that Aamal’s leadership will continue
to drive and deliver long-term excellence. In 2018, we finalised
the restructuring of our Board with key changes including the
addition of three independent directors. The breadth and depth
of experience they provide positions the Board extremely well to
lead the Company forward. We also successfully completed the
design for our internal controls processes, which I am positive,
will have a valuable impact on our operations.
Turning to our broader market environment, Aamal remains well
positioned in one of the world’s fastest growing and most
successful economies. In 2018, the QSE rebounded significantly
and was the second-best major stock market in the world in terms
of performance. It saw a surge in foreign net inflows,
demonstrating the confidence in the outlook for Qatar amongst
foreign investors. Furthermore, as per the Global
Entrepreneurship Monitor (GEM) Report, Qatar topped the Global
Entrepreneurship Environment Index.
Looking ahead, I remain confident in Aamal’s future, with the
Company’s resilient and diversified business model supported by
a clearly defined long-term strategy helping us to achieve
sustainable growth for our shareholders. We will continue to
explore new opportunities, using our first mover advantage to
introduce innovative projects and supporting our beloved country
in achieving its National Vision under the wise leadership of
the Emir, Sheikh Tamim bin Hamad Al Thani, and the Government of
Qatar.
Finally, I would like to take this opportunity to thank our esteemed
Board of Directors, respected partners, valued shareholders,
management, staff and all other stakeholders across the Aamal
Group for their tremendous work, commitment and passion
throughout 2018. This has allowed Aamal to successfully grow and
develop and I have huge confidence in our people to continue
delivering on this trajectory through 2019.”
To hear and approve the External Auditor’s report on the Company’s
Financial Statements for the year ended 31 December 2018
The General Assembly approved
the External Auditor’s report on the Company’s Financial
Statements for the year ended 31 December 2018.
To discuss and approve the Company’s Financial Statements, profits
and losses for the financial year ended 31 December 2018.
The General Assembly approved
the Company’s Financial Statements, profits and losses for the
financial year ended 31 December 2018.
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Financial Highlights
Total revenue down 19.8% to QAR 1,286.6m (2017: QAR 1,604.2m),
primarily due to the reclassification of two business entities
within the Industrial Manufacturing segment from subsidiaries to
joint ventures from 1 April 2017
Gross profit down 14.4% to QAR 467.2m (2017: QAR 545.6m)
Net profit before share of net profits of associates and joint
ventures, accounted for using the equity method and fair value
gains on investment properties (“net underlying profit”) down
17.4% to QAR 347.6m (2017: QAR 421.0m)
Net underlying profit margins have increased by 0.7 percentage
points to 27.0% (2017: 26.3%)
Share of net profits from associates and joint ventures accounted
for using the equity method decreased 2.0% to QAR 100.0m (2017:
QAR 102.0m)
There were no fair value gains on investment properties during 2018,
or in 2017
Total Company net profit1 down 14.4% to QAR 447.6m (2017: 523.1m),
with net profit attributable to Aamal equity holders down 11.1%
to QAR 445.3m (2017: QAR 500.9m)
Reported earnings per share decreased 11.3% to QAR 0.71 (2017: QAR
0.80)
Net capital expenditure up 172.0% to QAR 289.6m (2017: 106.5m),
reflecting variations in contractor billing profiles that are
milestone-based
Total Company net profit is before the deduction of net profit
attributable to non-controlling interests
To discuss and approve the proposal of the Board of Directors to
distribute cash dividends equaling 6% of the nominal value of
each share of the Company to the current shareholders that own
Company shares at the close of the trading hours on the date of
holding the Annual General Assembly of the Company which took
place on April 15th 2019.
The General Assembly approved the proposal by the Board of Directors
to distribute cash dividends equaling 6% of the nominal value of
each share of the Company to the current shareholders that own
Company shares at the close of the trading hours on the date of
holding the Annual General Assembly of the Company which took
place on April 15th 2019.
To discharge Members of the Board of Directors from their
directorship responsibilities having been met for the financial
year ended 31 December 2018 and to determine their bonus.
The General Assembly approved discharging Members of the Board of
Directors from their directorship responsibilities having been
met for the financial year ended 31 December 2018 and approved
their bonus, which was set at QAR 1,800,000 divided in the
following manner:
To discuss and approve the Company’s Corporate Governance Report for
the year 2018.
The General Assembly approved the Company’s Corporate Governance
Report for the year 2018.
To elect board members that shall serve for a three-year period
starting from April 15th, 2019 until the date of holding the
Company’s Annual General Assembly for the year ending 31
December 2021.
The Board nominated the following 9 candidates to present to the
General Assembly for elections during the AGM proceedings:
HE Sheikh Faisal Bin Qasim Al Thani
(In his personal capacity)
HE Sheikh Mohammed Bin Faisal Al Thani
(In his personal capacity)
HE Sheikh Jabr Bin Abdulrahman Al Thani
(representing Al Faisal Holding)
Mr. Kamel Al Agla
(representing City Limousine Company)
HE Sheikh Abdullah Hamad Jassim Faisal Al Thani
(representing Al Jazi Real Estate)
HE Sheikha Al Jazi Bint Faisal Al Thani
(Al Rayyan International Educational)
HE Faisal bin Abdullah bin Zayed Almahmoud
(in his personal capacity – Independent)
HE Sheikh Faisal Fahad Jasim Al Thani
(in his personal capacity – Independent)
Mr. Yousef Bin Rashed Alkhater
(in his personal capacity – Independent)
The General Assembly elected by default the above mentioned
nominees. The board members shall serve for a three-year period
starting from April 15th 2019 till the date of holding the
Company’s Annual General Assembly for the financial year ending
December 31st 2021.
To appoint the External Audit for the Financial Year of 2019 and
decide their fees.
The General Assembly approved appointing Price Waterhouse Coopers as
the Company’s External Auditor for the Financial Year 2019 and
set their fees for the external audit services for the financial
year 2019.
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