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Jabal Omar Development Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )

ELEMENT LISTCURRENT QUARTERSIMILAR QUARTER FOR PREVIOUS YEAR%CHANGEPREVIOUS QUARTER% CHANGE
Sales/Revenue43.121.932,134.19677.29-44.21
Gross Profit (Loss)-64.86-67.16-3.424-46.7538.737
Operational Profit (Loss)-57.99-208.5-72.187-227.41-74.499
Net Profit (Loss) after Zakat and Tax-270.04-236.9513.964270.57-
Total Comprehensive Income-270.04-236.9513.964270.57-
All figures are in (Millions) Saudi Arabia, Riyals

ELEMENT LISTCURRENT PERIODSIMILAR PERIOD FOR PREVIOUS YEAR%CHANGE
Sales/Revenue141.98144.96-2.055
Gross Profit (Loss)-200.06-248.11-19.366
Operational Profit (Loss)-422.96-460.13-8.078
Net Profit (Loss) after Zakat and Tax -344.77-917.78-62.434
Total Comprehensive Income-344.77-917.78-62.434
Total Share Holders Equity (after Deducting Minority Equity)6,643.587,410.01-10.343
Profit (Loss) per Share-0.37-0.99
All figures are in (Millions) Saudi Arabia, Riyals

ACCUMULATED LOSSESCAPITALPERCENTAGE %
2,4739,29426.6
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 increase in the net loss during the current quarter compared to the same quarter of the last year is due to :
1- The increase in financial charges expenses in current quarter compared to same quarter of last year due to exemption of financial charges owed to Alinma Makkah Real Estate Fund in the comparative quarter

2 – Zakat provision booked during the current quarter
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The reason of the increase in the net loss during the current quarter
compared to the previous period of the current year is:

1 – Decrease in other income compare to previous quarter due to gain recognized in previous quarter on sale of plot of land in Jabal Omar project which was announced on Tadawul on 13 December 2020.

2 – Zakat provision booked during the current quarter
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 of decrease in the net loss during the current period compared to similar period last year is mainly due to the increase in other income compare to similar period last year due to gain recognized on sale of plot of land in Jabal Omar project which was announced on Tadawul on 13 December 2020.
Statement of the type of external auditor's reportQualified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor OpinionThe net carrying value of property, plant and equipment, investment properties and properties for development and sale (“the Assets”) as reported in these financial statements (refer notes 6, 5 and 10) amounts to SR 17,857 million, SR 5,025 million and SR 1,478 million, respectively as of 30 September 2021. In view of substantial reduction in cash generated from the Group’s hotels and commercial area operations and interruption in development of the Group’s projects due to outbreak of COVID-19, the Group’s management performed an impairment assessment (including using an external valuer) of the Assets as at 30 September 2021 to determine the recoverable amount, being the higher of fair value less costs to sell and value in use. It was management’s assessment that no additional impairment provision is required. While performing the review procedures, we sought to review the judgment, assumptions and estimates by the Group’s management such as determination of appropriate valuation methodologies and key estimates and assumptions used. However, for these Assets comprising property, plant and equipment and investment properties with net carrying values of SR 7,612 million and SR 1,534 million respectively as at 30 September 2021, we have requested but not been provided with the appropriate rationale and/or basis used in the determination of valuation methodologies, future margins and terminal values. Consequently, we were unable to determine whether any impairment provision would be required against these Assets as at 30 September 2021.
Except for the adjustments to the interim condensed consolidated financial statements that we might have become aware of had it not been for the situation described above, based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 as endorsed in the Kingdom of Saudi Arabia.

We draw attention to note 1 to the interim condensed consolidated financial statements, which indicates that the Group incurred a loss of SR 345 million and negative operating cash flows amounting to SR 596 million during the nine-month period ended 30 September 2021. In addition, the Group’s current liabilities exceeded its current assets by SR 5,793 million and the Group had accumulated losses amounting to SR 2,473 million as at 30 September 2021. These conditions, along with other matters set forth in note 1, indicate the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
Reclassification of Comparison ItemsNot applicable
Additional InformationThe accumulated losses as at 30 September 2021 amounted to SR 2,473 million, equivalent to 26.6% of the Company's capital.
The company will implement the procedures and instructions issued by the Capital Market Authority regarding companies whose shares are listed in the Saudi Stock Exchange, whose accumulated losses amounted to more than 20% of their capital.

Other Disclosures

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