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Jabal Omar Development Co. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )

ELEMENT LISTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR%CHANGEPREVIOUS QUARTER%CHANGE
Sales/Revenue454.46281.6561.36317.0943.32
Gross Profit (Loss)236.6897.25143.37122.2593.6
Operational Profit (Loss)213.3841.11419.05102.13108.93
Net Profit (Loss) after Zakat and Tax-79.84-128.62-37.9211.93-
Total Comprehensive Income-79.84-128.62-37.9211.93-
All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT LISTCURRENT PERIODSIMILAR PERIOD FOR PREVIOUS YEAR%CHANGE
Sales/Revenue 771.54391.2997.18
Gross Profit (Loss)358.9371.51401.93
Operational Profit (Loss)315.51-31.11-
Net Profit (Loss) after Zakat and Tax-67.91-311.09-
Total Comprehensive Income-67.91-311.09-78.17
Total Share Holders Equity (after Deducting Minority Equity)12,617.24 7,615.64 65.67
Profit (Loss) per Share-0.06-0.33-
All figures are in (Millions) Saudi Arabia, Riyals

Accumulated LossesCapitalPercentage %
6811,5450.59
All figures are in (Millions) Saudi Arabia, Riyals

Element ListExplanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The reason of the decrease in net loss by 49 million in the current quarter compared to same quarter of last year is mainly due to:
- Increase in revenue by 61% compared to the same quarter of the last year as a result of the strong improvement in hotel occupancy and average room rates

- Decrease in financial charges expense by 45% due to capitalization of finance cost in current quarter, which was being expensed in the same quarter of the previous year due to partial suspension of development activities .

Although an additional zakat provision was recorded of for an amount of SR 190 million , which led to achieving a net loss in the current quarter instead of achieving a net profit of SR 110 million in the current quarter had the said zakat provision not recorded.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The reason for net loss of SR 80 million in the current quarter compared to net profit of SR 12 million in previous quarter is mainly due recording of additional zakat provision of SR 190 million , which resulted in a net loss in the current quarter despite the increase in Group's revenue by 43% due to Improvement in hotel occupancy, average room rates and 20 days Ramadan and the Hajj season being falling within current quarter
We would like to point out that had there been no amendment to the zakat provision for the previous periods, the group would have achieved a net profit of SR 110 million in the current quarter, which would have been 2nd profitable quarter in a row.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The reason for decrease in net loss by SR 243 million during the current period compared to same period of last year is mainly mainly due to:
- The Company's revenue increased by 97% compared to the same period of last year as a result of the strong improvement in hotel occupancy and average room rates, in addition to growth in the commercial centers revenue.

- The reversal of expected credit loss allowance of amount SR 44 million due to improvement in collection of receivables

-Decrease in financial charges expense by 35% due to capitalization of finance cost in current period, which was being expensed in the corresponding period of the previous year due to partial suspension of development activities.

Although an additional zakat provision was recorded of for an amount of SR 190 million, which led to achieving a net loss in the current period instead of achieving a net profit of SR 122 million in the current period had the said zakat provision not recorded.
Statement of the type of external auditor's report Qualified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion As of 30 June 2023, the Group’s total assets include Property, Plant and Equipment and Investment Properties (collectively referred to as the ‘Properties’) amounting to SR 21,852 million and SR 3,473 million respectively (31 December 2022: SR 19,502 million and SR 5,048 million respectively).
As disclosed in note 5, due to the presence of impairment indicators identified in the current and previous financial periods, management has performed an impairment exercise in those respective periods. Pursuant to managements’ impairment assessment carried out during the six month period ended 30 June 2023 which included a retrospective review of recoverable amount of the Properties in prior periods, management identified that certain properties required an impairment adjustment of SR 0.7 billion as at 1 January 2022. Accordingly, management recognized the adjustment by restating the corresponding balances of Property, Plant and Equipment and Accumulated Losses as of that date. The effect of the restatement is disclosed in note 20. In management’s view, the estimates of recoverable amount used in carrying out the foregoing impairment assessment and the resulting restatement are based on assumptions and judgments existing as of the date of such restatement i.e., 1 January 2022. However, due to the elapse of time and significant changes in market conditions since the date of restatement, we are unable to conclude whether those assumptions and judgments were reasonable as at 1 January 2022 and unaffected by the events, circumstances and information arising subsequent to the restatement date and therefore do not incorporate any hindsight. Accordingly, we were unable to conclude whether any adjustment is required to the reported amounts of the Properties and Accumulated Losses as of 1 January 2022 as well as to the amount of expenses reported in the statement of profit or loss and other comprehensive income for the comparative three-month and six-month periods ended 30 June 2022. Our conclusion on these condensed consolidated interim financial statements is modified because of the possible effect of this matter on the comparability of the current period’s figures and the corresponding figures.

Based on our review, except for the possible effects on the corresponding figures for the three-month and six-month periods ended 30 June 2022 of the matter described in the basis for qualified conclusion section of our report, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements of Jabal Omar Development Company and its subsidiaries are not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’ as endorsed in the Kingdom of Saudi Arabia.

We draw attention to note 2.4 of the condensed consolidated interim financial statements, which indicates that as at the six-month period ended 30 June 2023 the Group's current liabilities exceed its current assets by SR 1,349 million. As stated in note 2.4, this event and condition, 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 conclusion is not modified in respect of this matter.
Reclassification of Comparison Items Not applicable
Additional Information Not applicable
All figures are in (Millions) Saudi Arabia, Riyals

Other Disclosures

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