Jabal Omar Development Co. announces its Annual Financial Results for the Period Ending on 2022-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	849.5	310.36	173.71
Gross Profit (Loss)	51.76	-224.64	-
Operational Profit (Loss)	-190.91	-458.34	-58.35
Net Profit (Loss) after Zakat and Tax	-352.43	946.21	-
Total Comprehensive Income	-355.59	948.7	-
Total Share Holders Equity (after Deducting Minority Equity)	13,385.15	8,626.72	55.16
Profit (Loss) per Share	-0.35	1.02	-
All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT LIST	EXPLANATION
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	The reason for net loss in current year compared to profit in the last year is mainly attributed to following: - Recognition of gain of around SR 1 billion on sale of 2 plots of land - loan modification gain in 2021.
Statement of the type of external auditor's report	Qualified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion	"We have audited the consolidated financial statements of Jabal Omar Development Company (“the Company”) (and its subsidiaries) (“the Group”), which comprise the consolidated statement of financial position as at 31 December 2022, the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements, comprising significant accounting policies and other explanatory information. In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2022, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (SOCPA). As of 31 December 2022, the Group’s total assets include Property, Plant and Equipment and Investment Property (collectively referred to as the ‘Properties’) amounting to SR 20,202 million and SR 5,048 million respectively (31 December 2021: SR 19,370 million and SR 5,024 million respectively). Due to the existence of impairment indicators, an impairment exercise was performed to compare the carrying amounts of these Properties with their corresponding recoverable amounts (being the higher of fair value or value in use) as at 31 December 2022. Pursuant to our audit procedures carried out in respect of management’s determination of recoverable amounts, which included detailed assessment of the valuation methodology and approach used by the valuation experts engaged by management, certain significant assumptions and judgments (such as in relation to the growth rate used with respect to the disposal cashflows) used by management in the determination of recoverable amounts of certain properties, were not found to be reasonable and appropriate in the context of the nature, type and location of these properties. Had management used reasonable and appropriate assumptions, the recoverable amounts of these properties as at 31 December 2022 would have been estimated to be lower than their corresponding carrying values by approximately SR 0.7 billion and accordingly, as of that date, the carrying amounts of Properties and the total equity of the Group would have been lower by the same amount. The foregoing assessment of recoverable amounts includes various elements such as consideration of highest and best use from market participant perspective as well as the use of appropriate assumptions and application of judgment by the management which represents an estimate at a point in time and is highly sensitive to the matters further explained in note 5, such as the reasonableness of highest and best use scenarios, identification of comparable transactions and adjustments thereto, as well the developments disclosed in note 2.4. Therefore, such foregoing matters, judgments, assumptions and developments, or changes thereto, may have a material impact on the estimated recoverable amounts. A similar impairment exercise was also performed in prior periods and as described in the other matter paragraph, the opinion expressed by the predecessor auditor on the financial statements of the Group for the year ended 31 December 2021 and conclusions expressed on the financial statements of the Group for the periods ended 31 March 2022 and 30 June 2022 were qualified opinion / conclusion since the predecessor auditor assessed the valuation approach to be inappropriate and certain significant assumptions to be not reasonable. Our report for the current year is also qualified due to the effects of these matters on the comparability of the current year’s figures and the corresponding figures as well as their impact on the current year amounts included in the consolidated financial statements as at and for the year ended 31 December 2022. We conducted our audit in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards), that is endorsed in the Kingdom of Saudi Arabia, that are relevant to our audit of the consolidated financial statements, and we have fulfilled our other ethical responsibilities in accordance with the Code’s requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. We draw attention to Note 1 of the consolidated financial statements, which indicates that the Group incurred a net loss of SR 352 million and negative operating cash flows amounting to SR 164 million during the year ended 31 December 2022 and, as of that date, the Group's current liabilities exceed its current assets by SR 1,065 million. As stated in Note 2.4, these events and conditions, along with other matters set forth therein, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter."
Reclassification of Comparison Items	Not applicable
Additional Information	There are no accumulated losses as of 31 December 2022

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