Lanitis Golf Public Co Ltd

Annual / Quarterly Financial Statement • Apr 29, 2025

Γεωργίου Γενναδίου αρ. 10 Αγαθάγγελος Κωρτ, 3ος΄οροφος Γραφείο 303 3041 Λεμεσός – Κύπρος

Τηλ.: +357 25871600 Φαξ: +357 25362001

Ανακοίνωση

κ. Νίκο Τρυπάτσα Αναπληρωτή Γενικό Διευθυντή Χ.Α.Κ. Λευκωσία

29 Απριλίου, 2025

Αγαπητέ κ. Τρυπάτσα,

Θέμα: Έγκριση και ανακοίνωση των Ελεγμένων Οικονομικών Καταστάσεων της Lanitis Golf Public Co Limited, για το έτος που έληξε στις 31 Δεκεμβρίου 2024

Συμφώνως των κανονισμών της Αναδυομένης Αγοράς του Χρηματιστηρίου Αξιών Κύπρου («Χ.Α.Κ.»), δια της παρούσης μας επιθυμούμε να σας πληροφορήσουμε ότι το διοικητικό συμβούλιο της Lanitis Golf Public Co Limited (η «Εταιρεία»), μελέτησε και έχει εγκρίνει τις Ετήσιες Οικονομικές Καταστάσεις για το έτος που έληξε στις 31 Δεκεμβρίου 2024 (η «Έκθεση»), η οποία ετοιμάστηκε σύμφωνα με τα Διεθνή Λογιστικά Πρότυπα και τα Διεθνή Πρότυπα Οικονομικής Αναφοράς, η οποία επισυνάπτεται στην παρούσα ανακοίνωση.

Η πλήρης Έκθεση θα είναι διαθέσιμη στα γραφεία της Εταιρείας που βρίσκονται στο Αγρόκτημα Λανίτη, στο Φασούρι, Λεμεσός και στην ιστοσελίδα του Χρηματιστηρίου Αξιών Κύπρου (www.cse.com.cy).

Η ετήσια γενική συνέλευση της Εταιρείας ορίστηκε στις 4 Ιουνίου 2025 και ώρα 9:00 π.μ. στα κεντρικά γραφεία της Εταιρείας που βρίσκονται στο Αγρόκτημα Λανίτη, στο Φασούρι, Λεμεσός.

Με εκτίμηση, Εκ μέρους της Εταιρείας

Μικαέλλα Π. Χαραλάμπους για P&D Secretarial Services Ltd Γραμματέας

Lanitis Golf Public Co Limited 1040 }

Report and financial statements 31 December 2024

Contents

	Page
Board of Directors and other officers	1
Declaration of the members of the Board of Directors and the Company Officials for the drafting of the financial statements	2
Management Report	3 - 6
Independent Auditor's Report	7 - 11
Statement of profit and loss and other comprehensive income	12
Balance sheet	13
Statement of changes in equity	14
Statement of cash flows	15
Notes to the financial statements	16 -

Board of Directors and other officers

Board of Directors

Platon E. Lanitis (Chairman) Marios E. Lanitis Costas Charitou Kevin Valenzia Mark Gasan Alec Mizzi Matthew Portelli Evagoras Lanitis

Company Secretary

P & D Secretarial Services Limited

10 Georgiou Gennadiou Street Agathangelos Court, 3rd Floor, 3041, Limassol, Cyprus

Registered office

10 Georgiou Gennadiou Street Agathangelos Court, 3rd Floor 3041, Limassol, Cyprus

Auditors

PricewaterhouseCoopers Limited PwC Central 43 Demostheni Severi Avenue CY-1080 Nicosia P O Box 21612 CY-1591 Nicosia, Cyprus Telephone: + 357 - 22555000 www.pwc.com/cy

Declaration of the members of the Board of Directors and the Company Officials for the drafting of the financial statements

According to Article 9, subsections (3) (c) and (7) of the Transparency Requirements According to Article 9, subsections (3) (c) and (7) and (1/2007 ('Act'), we the members of Lagiti (Traded Securities on a Regulated Matker) Act of 2001 (Internatial statements of Lanitis Golf Board of Directors and other officers responsible for the man onfirm that, to the best of our knowledge:

• (a) the annual financial statements presented on pages 12 to 49 were:
  • prepared in accordance with IFRS Accounting Standards as adopted by the (i) prepared in accordance with in NO Aosounting Oision of subsection (4) of the Act, and
  • (ii) give a true and fair view of assets and liabilities, financial position and the loss give a true and fall view of assets and he year ended 31 December 2024, and
• (b) The Management report provides a fair overview of the developments and The Management report provides and financial position of Lanitis Golf Public Col Limited performance of the business and manufal positivith a description of the principal risks and uncertainties faced by the Company

Members of the Board of Directors Chairman Platon E. Lanitis Directors Marios E. Lanitis Costas Charitou Kevin Valenzia Mark Gasan Alec Mizzi Mathew Portelli, Evagoras Lanitis Porti Responsible for Preparation of Financial Statements

lakovos Christofi - Financial Controller

Limassol, 29 April 2025

(2)

Management Report

1 The Board of Directors presents its report together with the audited financial statements of Lanitis Golf Public Co Ltd (the "Company") for the year ended 31 December 2024.

Principal activities and nature of operations of the Company

2 The principal activities of the Company are the development of a special leisure and residential golf course project. The application of the town planning permit with terms and conditions, was approved on 14 November 2012. On 26 July 2019, the Company has also obtained a building permit for the construction of its golf development project. Following a change in group structure on 15 January 2020, the Company has secured sufficient funds to enable it to commence its development plan. In 2021, the Company has begun the construction of the golf project and has also entered into agreements with buyers for the reservation and sale of plots and apartments. During 2022, 2023 and 2024 the Company has entered into additional agreements for the construction of the golf course, the clubhouse, villas, townhouses, two block of apartments and an internal road network. Additionally, agreements have also been entered with new buyers for the sale of apartments, villas and townhouses. During 2024, the transfer of control of some of the plots to the buyers has been completed, resulting in the recognition of revenue.

Review of developments, position and performance of the Company's business

3 Tserkezoi and Asomatos, in Limassol. The land is located next to the shopping center, My Mall Limassol, the Fasouri Waterpark and the Casino.

4 The Company aims to develop a fully integrated golf and real estate development project on its land. One of the main goals of the master plan is to create a contemporary designed, integrated leisure and residential community project that includes luxurious villas, townhouses and apartments, an 18 hole championship golf course, a golf club, spa and sports center and commercial and retail facilities, such as restaurants and shops.

5 By the end of 2024, the Company had incurred golf development expenditure amounting to €40.200.070 (2023: €19.462.763), which was financed by bank borrowings, borrowings from related parties and prepayments received from plots, apartments, villas and townhouses of clients. As at 31 December 2024, the Company's total assets amounted to €166.302.174 (2023: €147.128.888) and its net assets amounted to €64.385.118 (2023: €65.190.450). The financial position, development and performance of the Company as presented in these financial statements are considered satisfactory.

Principal risks and uncertainties

6 The principal risks and uncertainties faced by the Company are disclosed in Notes 1. 6. 7 and 26 of the financial statements.

Management Report (continued)

Use of financial instruments by the Company

7 The Company's activities expose it to a variety of financial risks, mainly credit risk and liquidity risk.

8 the susceptibility of the Company to financial risks such as credit risk and liquidity risk is monitored as part of its daily management of the business.

Cash flow interest rate risk

9 The Company's interest rate risk arises from interest-bearing assets and long-term borrowings. Interest-bearing assets and borrowings at variable rates expose the Company to cash flow interest rate risk.

10 rates amounted to €20.453.608 The Company's management monitors the interest rate fluctuations on a continuous basis and acts accordingly. The Company does not apply hedge accounting for cash flow interest rate risk.

Credit risk

11 loss for the other party by failing to meet an obligation Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost and deposits with banks and financial institutions.

12 Credit risk is managed on a group basis. For banks and financial institutions, only independently rated parties with a minimum rating of 'C' are accepted. The utilisation of credit limits is regularly monitored. The company's investments in debt instruments are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

13 The Company's credit risk arises from financial assets at amortised cost amounting to €1.148.705 (2023: €676.944) and bank balances amounting to €8.489.081 (2023: €24.886.121). As of 31 December 2024, all financial assets subject to credit risk were fully performing (stage 1).

Liquidity risk

14 Management monitors the current liquidity position of the Company based on expected cash flows and expected revenue receipts. On a long-term basis, liquidity risk is defined based on the expected future cash flows at the time of entering into new credit facilities or leases and based on budgeted forecasts. Management believes that it is successful in managing the Company's liquidity risk.

Management Report (continued)

Future developments of the Company

15 During the first quarter of 2025, the Company continued with the sale of apartments, villas and townhouses. Furthermore, the Company continues with the construction of the project's infrastructure and residential units.

Results

16 The Company's results for the year are set out on page 12. The loss for the year is carried forward.

Dividends

17 The Board of Directors does not recommend the payment dividend.

Share capital

18 There were no changes in the share capital of the Company.

Board of Directors

19 The members of the Board of Directors at 31 December 2024 and at the date of this report are shown on page 1. All of them were members of the Board throughout the year 2024.

Events after the balance sheet date

20 There were no material post balance sheet events, which have a bearing on the understanding of the financial statements.

Climate change

21 The Company management has taken note of global awareness and concerns about the potential impact of climate change. Currently, this matter has no significant impact on the Company's financial statements, and the future effects on the Company's activities and business plans are difficult to predict. Management continues to monitor developments in this area and will respond as necessary to ensure the Company's viability and will adopt all government guidelines if and when these are issued in the markets in which the Company operates.

Branches

22 The Company did not operate through any branches during the year.

Management Report (continued)

Independent Auditors

23 The Independent Auditors, PricewaterhouseCoopers Limited, have expressed their willingness to continue in office. A resolution giving authority to the Board of Directors to fix their remuneration will be proposed at the Annual General Meeting.

(6)

RIAL SEP By Order of the Board P & D Secretarial Serv ices Limited Company Secretary 本

Limassol, 29 April 2025

Independent Auditor's Report

To the Members of Lanitis Golf Public Co Limited

Report on the Audit of the Financial Statements

Our opinion

In our opinion, the accompanying financial statements of Lanitis Golf Public Co Limited (the "Company") give a true and fair view of the financial position of the Company as at 31 December 2024, and of its financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.

What we have audited

We have audited the financial statements which are presented in pages 12 to 49 and comprise:

• the balance sheet as at 31 December 2024:
• the statement of profit and loss and other comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, including material accounting policy information.

The financial reporting framework that has been applied in the financial statements is IFRS Accounting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Cyprus and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

PricewaterhouseCoopers Ltd, PwC Central, 43 Demostheni Severi Avenue, CY-1080 Nicosia P O Box 21612, CY-1591 Nicosia, Cyprus T: +357 - 22 555 000, F:+357 - 22 555 001, www.pwc.com.cy

PhoewaterhouseCopers Ltd is a private on Cycus (Rg. No 143504) Its registered offical st PvC Centel, 40 Demostheri Severi Avenue, entitles the corporate name, is kept by the company at its registered office PwC refers to the Cypous member firm, PricewaterhouseCopers Life and may sometimes refer to the PwC nework Each member firm is a separate legal entry. Please see www.pwc.com/structure for further details.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon and we do not provide a separate opinion on these matters.

Key Audit Matter	How our audit addressed the Key Audit Matter
Impairment assessment of Property, Plant and Equipment and determination of net realisable value for inventories	We performed the following audit procedures
Refer to Note 4, "Material accounting policy information", Note 7, "Critical Accounting Estimates and Judgements", Note 14, "Property, Plant and Equipment" and Note 19, "Inventories".	to address the risks of material misstatement associated with this Key Audit Matter: · We obtained an understanding of the process followed by management to
The Company commenced the development of its land to a special leisure and residential golf course project and has also entered into agreements with buyers for the reservation and sale of plots, apartments, villas and townhouses.	determine whether there is a need to write down Property, Plant and Equipment and Inventories to recoverable amount/net realisable value. We also assessed the design
As at 31 December 2024 the carrying value of Inventories amounted to €120.139.929	and implementation of the relevant internal controls.
representing approximately 72% of Company's total assets and the carrying value of land for the construction of the golf course and commercial activities amounted to €26.488.757 representing approximately 16% of the Company's total assets.	We evaluated the competency and capabilities of the Company's management in the context of preparing the discounted cash flow model in relation to the project.
Inventories are stated at the lower of cost and net realisable value in accordance with the provisions of IAS 2 whilst land for the construction of the golf course and commercial activities is classified as Property, Plant and Equipment and is stated at cost less impairment in accordance with the provisions of IAS 16.	We confirmed the existence and ownership of land by obtaining and reviewing the relevant title deeds and visiting the site. We obtained and verified the validity of the licenses issued to the Company by various Government departments in relation to the development of the Golf Course
For the purpose of assessing the net realisable	project. The ownership of the land and

value / recoverable amount the Board of Directors utilised the valuation prepared by management using the discounted cash flow approach. Our audit procedures focused on assessing any need to write down the above assets to their net realisable value / recoverable amount at 31 December 2024. Considering the size of these assets, the level of judgement required in making these assessments and the time and effort we spent in performing our audit procedures in relation to this matter, we concluded that this area is considered a key audit matter for the purposes of our audit.

• the validity of the licenses form important parameters in the valuation of the project.
• We assessed, with the involvement of auditor's experts, the appropriateness of the methodology used of the discounted cash flow model and whether the critical assumptions made by management were reasonable. Furthermore, we verified the mathematical accuracy of the calculations.

Key Audit Matter

How our audit addressed the Key Audit Matter

The results of the above procedures were considered satisfactory for the purposes of our audit.

Reporting on other information

The Board of Directors is responsible for the other information comprises the information included in the Management Report and the Declaration of the members of the Board of Directors and the Company Officials for the drafting of the financial statements, but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and Those Charged with Governance for the Financial Statements

The Board of Directors is responsible for the preparation of the financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Auditor's Responsibilities for the Audit of the Financial Statements (continued)

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• · Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• · Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• · Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• · Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are basad on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• · Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying tras, notions and events in a manner that achieves a true and fair view.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats on safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report porlood and or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh thap rublic interest benefits of such communication.

Report on Other Legal Requirements

Pursuant to the additional requirements of the Auditors Law of 2017, we report the following:

• In our opinion based on the work undertaken in the course of our audit, the Management Report has been prepared in accordance with the requirements of the Cyprus Companies Law, Cap. 113, and the information given is consistent with the financial statements.
• In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we are required to report ifwe have identified material misstatements in the Management Report. We have nothing to report on this respect.

Other Matter

This report, including the opinion, has been prepared for and only for the Company's members as a body in accordance with Section 69 of the Auditors Law of 2017 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whose knowledge this report may come to.

The engagement partner on the audit resulting in this independent auditor's report is Nicos A. Theodoulou.

�-�-�kL.

Nicos A. Theodoulou Certified Public Accountant and Registered Auditor for and on behalf of

PricewaterhouseCoopers Limited Certified Public Accountants and Registered Auditors PwC Central, 43 Demostheni Severi Avenue CY-1080 Nicosia Cyprus

29 April 2025

Statement of profit and loss and other comprehensive income for the year ended 31 December 2024

	Note	2024 ਵ	2023 ਵ
Revenue Cost of sales	8 10	10,341,237 (8.344.959)
Gross profit		1.996.278
Administration expenses Other income	10 ி	(2.961.588) 151.240	(3.090.247)
Operating loss		(814.070)	(3.090.247)
Finance costs Loss before income tax	12	(34.191) (848.261)	(39.958) (3.130.205)
Income tax credit Loss and total comprehensive loss for the year	13	42.929 (805.332)	346.103 (2.784.102)
Other comprehensive income:
(Loss) per share attributable to the equity holders of the Company during the year (expressed in cents per share)
- Basic	22	(29.16)	700 87

Balance sheet at 31 December 2024

	Note	દર્ભદ્ય e	LULU ਵ
Assets Non-current assets Property plant and equipment Right of use assets Intangible assets Deferred income tax assets	14 15 16 24	28.204.475 455.938 13.193 1.148.566 29.822.172	16.061.380 608.133 26.387 1.105.637 17.801.537
Current assets Inventories Other non-financial assets Contract assets Financial assets at amortised cost Cash and cash equivalents	19 18 8 17 20	120.139.929 6.592.287 180.000 1.148.705 8.489.081 136.480.002	95.706.634 8.057.652 676.944 24.886.121 129.327.351
Total assets		166.302477	147.128.888
Equity and liabilities Capital and reserves Share capital Capital contribution Share premium Retained earnings Total equity	21 21 21	4.722.462 2.556.501 25,730,893 31.375.262 64,385,118	4.722.462 2.556.501 25.730.893 32.180.594 65.190.450
Non-current liabilities Borrowings Lease liabilities Deferred income tax liabilities	23 15 24	15.941.971 345.018 5.988.947 22.275.936	16.354.224 480.825 5.988.947 22.823.996
Current liabilities Trade and other payables Contract liabilities Lease liabilities Borrowings	25 00 15 23	9.372.324 46.601.756 146.046 23.520.994 79.641.120	6.559.713 38.210.738 152.252 14.191.739 59.114.442
Total liabilities		101.917.056	81.938.438
Total equity and liabilities		166.302.174	147.128.888

On 29 April 2025 the Board of Directors of Lanitis Golf Public Co Limited authorised these financial statements for issue.

P Platon E. Lanitis Chairman Kevin Valenzia , Director

Statement of changes in equity for the year ended 31 December 2024

	Share capital €	Capital contribution ਵ	Share premium ਵ	Retained earnings(1) €	Total ਵ
Balance at 1 January 2023	4.722.462	2.556.501	25.730.893	34.964.696	67.974.552
Comprehensive loss Loss for the year
				(2.784.102)	(2.784.102)
Total comprehensive loss for the year				(2.784.102)	(2.784.102)
Balance at 31 December 2023/1 January 2024	4.722.462	2.556.501	25.730.893	32.180.594	65.190.450
Comprehensive loss
Loss for the year				(805.332)	(805.332)
Total comprehensive loss for the year				(805.332)	(805.332)
Balance at 31 December 2024	4.722.462	2.556.501	25.730.893	31 375 262	64 385 118

(1) Defence of the Republic Law, by the end of the two years after the end of the year of assessment to which the profits refer, will be deemed to have distributed this amount as dividend. Special contribution for defence at the rate of 17% will be payable on such deemed dividend to the extent that the shareholders for deemed tividend distribution purposes at the end of the period of two years from the end of the year of assessment to which the profits refer, are Cyprus tax residents and domiciled. From 1 March 2020, the deemed dividend distribution is subject to a 2,65% contribution to the National Health System, with the exception of April 2020 until June 2020 when the 1,70% rate was applicable. The amount of this deemed dividend distribution is reduced by any actual dividend paid out of the relevant year by the end of the end of the period of two years from the end of the year of assessment to which the profits refer. This special contribution of the Company for the eccount of the shareholders.

Statement of cash flows , Illips ni ae for the year ended 31 December 2024

	2024	2023
Note	ਵ	€
		(3.130.205)
14	38.777	43.419
15	191.163	185.610
16	13.194	14.226
12	34.191	39.796
	(931)
	(571.867)	(2.847.154)
	(21.912.110)	(9.740.485)
	1.535.365	(4.532.784)
	(180.000)
	(471.761)	(291.721)
	2.812.611	3.843.328
	8.391.018	17.945.269
	(10.396.744)	4.376.453
14		(9.861.910)
14	1.400
16		(39.580)
15	(214.241)	(202.645)
	(12.264.482)	(10.104.135)
		13.435.397
	1.800.000	7.050.000
	6.264.186	20.485.397
		14.757.715
	24.886.121	10.128.406
20	8.489.081	24.886.121
	20 20 28(III) 28(iii)	(848.261) (12.051.641) 20.945.225 (16.331.039) (150.000) (16.397.040)

Notes to the financial statements

1 General information

Country of incorporation

Lanitis Golf Public Co Limited (the "Company" ) was incorporated in Cyprus on 18 April 2007 as a limited liability company in accordance with the provisions of the Cyprus Companies Law, Cap. 113. On 28 February 2014, the Company was converted from a private limited liability company to a public limited liability company under the Cyprus Companies Law, Cap. 113 and is listed on the Emerging Companies Market of the Cyprus Stock Exchange ("CSE"). Its registered office is at 10 Georgiou Gennadiou Street, Agathangelos Court, 3041, Limassol, Cyprus.

Principal activities

The principal activities of the Company are the development of a special leisure and residential golf course project. The application of the town planning permit with terms and conditions, was approved on 14 November 2012. On 25 July 2019, the Company has also obtained a building permit for construction of its golf development project. In 2021, the Company has begun the construction of the golf project and has also entered into agreements with buyers for the reservation and sale of plots and apartments. During 2022, 2023 and 2024 the Company has entered into additional agreements for the construction of the golf course, the clubhouse, villas, townhouses, two block of apartments and an internal road network. Additionally, agreements have also been entered with new buyers for the sale of apartments, villas and townhouses. During 2024, the transfer of control of some of the plots to the buyers has been completed, resulting in the recognition of revenue.

Operating environment of the Company

War between Russia and Ukraine

In response to the military operation of Russia in Ukraine, a number of sanctions have been imposed on Russian entities to restrict them from having access to foreign financial markets, including removing access of several Russian banks to the international SWIFT system.

The EU, UK and US (amongst others) have also imposed sanctions against the Russian central bank, restricting the access of the Russian state to foreign currency reserves, and introduced further asset freezes against designated individuals/entities and sectoral sanctions.

The situation is still evolving and further sanctions and limitations on business activity of companies operating in the region, as well as consequences on the Russian economy in general, may arise but the full nature and possible effects of these are unknown.

Nonetheless, the Company is not significantly impacted from the conflict, as its operations are not affected by the situation however it will continue monitoring the situation and take action if required.

Management has taken and continues to take necessary measures to ensure minimum disruption and sustainability of the Company's operations.

General information (continued) ﮩ

Operating environment of the Company (continued)

Israel - Gaza conflict

The Israel-Gaza conflict has escalated significantly after Hamas launched a major attack on 7 October. Companies with material subsidiaries, operations, investments, contractual arrangements or joint ventures in the War area might be significantly exposed. Entities that do not have direct exposure to Israel and Gaza Strip are likely to be affected by the overall economic uncertainty and negative impacts on the global economy and major financial markets arising from the war. This is a volatile period and situation, however, the Company is not directly exposed. The Management will continue to monitor the situation closely and take appropriate actions when and if needed.

2 Basis of preparation

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), and the requirements of the Cyprus Companies Law, Cap. 113.

IFRS Accounting Standards comprise the following authoritative literature:

• IFRS Accounting Standards;
• IAS Standards; and

· Interpretations developed by the IFRS Interpretations Committee (IFRIC Interpretations) or its predecessor body, the Standing Interpretations Committee (SIC Interpretations).

As of the date of the authorization of the financial statements, all IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) that are effective as of 1 January 2024 and are relevant to the Company's operations have been adopted by the European Union through the endorsement procedure established by the European Commission.

The material accounting policies applied in the preparation of these financial statements are set out below in Note 4. Apart from the accounting policy changes resulting from the adoption of the new standards, amendments to existing standards and interpretations effective from 1 January 2024, as set out in Note 3, these policies have been consistently applied to all the years presented, unless otherwise stated (refer to Notes 3 and 4).

The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 7.

3 Adoption of new or revised standards and interpretations

During the current year the Company adopted all the new and revised IFRS Accounting Standards that are relevant to its operations and are effective for accounting periods beginning on 1 January 2024. This adoption did not have a material effect on the accounting policies of the Company.

4 Material accounting policy information

These policies have been consistently applied to all the years presented in the financial statements, unless otherwise stated.

Management seeks not to reduce the understandability of these financial statements by obscuring material information with immaterial information. Hence, only material accounting policy information is disclosed, where relevant, in the related disclosure notes.

Revenue

Revenue and profit on sale of sites and buildings

The Company develops and sells residential properties. Revenue is recognised when control over the property has been transferred to the customer. The properties have generally no alternative use for the Company due to contractual restrictions. However, an enforceable right to payment does not arise until legal title or control has passed to the customer. Therefore, revenue is recognised at a point in time when the legal title or control has passed to the customer.

The revenue is measured at the transaction price agreed under the contract. In most cases, the consideration is due when legal title or control has been transferred. While deferred payment terms may be agreed in rare circumstances, the deferral never exceeds twelve months. The transaction price is therefore not adjusted for the effects of a significant financing component.

Contract assets and contract liabilities

In case the goods transferred or services rendered by the Company as of the reporting date exceed the payments made by the customer as of that date and the Company does not have the unconditional right to charge the client for the services rendered, a contract asset is recognised. The Company assesses a contract asset for impairment in accordance with IFRS 9 using the simplified approach permitted by IFRS 9 which requires expected lifetime losses to be recognised from initial recognition of the contract asset. An impairment of a contract asset is measured, presented and disclosed on the same basis as a financial asset that is within the scope of IFRS 9. The Company recognises any unconditional rights to consideration separately from contract assets as a trade receivable because only the passage of time is required before the payment is due. If the payments made by a customer exceed the services rendered under the relevant contract, a contract liability is recognised.

Contract assets are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than 180 days past due.

4

Employee benefits

The Company and the employees contribute to the Government Social Insurance Fund based on employees' salaries. In addition, the Company operates a defined contribution scheme the assets of which are held in a separate trustee-administered fund. The scheme is funded by payments from employees and by the Company. The Company's contributions are expensed as incurred and are included in staff costs. The Company has no further payment obligations once the contributions have been paid. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Company recognised termination benefits at the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those benefits; and (b) when the entity recognised costs for a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value,

Foreign currency translation

(i) Functional and presentation currency

Items included in the Company's financial statements are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The financial statements are presented in Euro (€), which is the Company's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Current and deferred income tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

4

Current and deferred income tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the country in which the Company operates and generates taxable income. Management periodically evaluates onputions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. If applicable tax regulation is subject to interpretation, it astablishes provision where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognised using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts the financial statements. However, deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of transaction affects neither accounting nor taxable profit or loss. In accounting for the tax effects of on-balance sheet leases, the Company views the right-of-use asset and lease liability separately and considers that the temporary difference on each item does not give rise to deferred tax since the initial recognition exception applies.

Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

The deferred tax liability in relation to investment property that is measured at fair value is determined assuming the property will be recovered entirely through sale.

Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on the Company where there is an intention to settle the balances on a net basis.

Uncertain tax positions

The Company's uncertain tax positions are reassessed by management at the end of each reporting period. Liabilities are recorded for income tax positions that are determined by management as more likely than not to result in additional taxes being levied if the positions were to be challenged by the tax authorities. The assessment is based on the interpretation of tax laws that have been enacted or substantively enacted by the end of the reporting period, and any known court or other rulings on such issues. Liabilities for penalties, interest and taxes other than on income are recognised based on management's best estimate of the expenditure required to settle the obligations at the end of the reporting period. Adjustments for uncertain income tax positions, other than interest and fines, are recorded within the income tax charge. Adjustments for uncertain income tax positions in respect of interest and fines are recorded within finance costs and other gains/(losses), net, respectively.

4

Property, plant and equipment

Land and buildings comprising mainly golf courses under construction and other development activities are shown as costs less subsequent depreciation. Historical cost included expenditure that is directly attributable to the acquisition of property, plant and equipment.

Land and buildings under construction that are not ready for their indented use are not depreciated. Depreciation on other property, plant and equipment is calculated using the straight-line method to allocate their cost to their residual values, over their estimated useful lives. The annual depreciation rates are as follows:

10
17
10
20
10
20
10
33

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Expenditure for repairs and maintenance of property, plant and equipment is charged to the profit or loss of the year in which they were incurred. The cost of major renovations and other subsequent expenditure are included in the carrying amount of the asset or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

Gains and losses on disposal of property, plant and equipment are determined by comparing proceeds with carrying amount and are recognised in "other gains/(losses) net" in profit or loss.

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to prepare for its intended use, are capitalised as part of the cost of that asset, when it is probable that they will result in future economic benefits to the Company and the costs can be measured reliably.

4 Material accounting policy information (continued)

Leases

The Company is the lessee

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company, with limited exceptions s s st out below.

Contracts may contain both lease and non-lease components. The Company has elected not to separate lease and non-lease components and instead accounts for the as a single lease component.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the fixed lease payments (including in-substance fixed payments).

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company's incremental borrowing rate is used, being the rate that the Company would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the Company:

• · where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received,
• · uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by Company, which does not have recent third party financing, and
• · makes adjustments specific to the lease, e.g. term, country, currency and security.

The Company is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Right-of-use assets are measured at cost comprising the following:

• · the amount of the initial measurement of lease liability;
• · any lease payments made at or before the commencement date less any lease incentives received;
• · any initial direct costs; and

4

Leases

The Company is the lessee

restoration costs

Any remeasurement of the lease liability arising if the cash flows change based on the original terms and conditions of the lease results in a corresponding adjustment to the right-of-use asset. The adjustment can be positive or negative.

Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset's useful life. Depreciation on the items of the right-of-use assets is calculated using the straight-line method over their estimated useful lives.

In determining the lease term, management of the Company considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the Company.

Right-of-use assets are reviewed for impairment in accordance with the Company's accounting policy for impairment of non-financial assets.

As an exception to the above, payments associated with short-term leases and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.

Computer software

Costs that are directly associated with identifiable and unique computer software products controlled by the Company and that will probably generate economic benefits exceeding costs beyond one year are recognised as intangible assets. Subsequently computer software is carried at cost less any accumulated amortisation and any accumulated impairment losses. Expenditure, which enhances or extends the performance of computer software programmes beyond their original specifications is recognised as a capital improvement and added to the original cost of the computer software. Costs associated with maintenance of computer software programmes are charged to the profit or loss of the year in which they were incurred.

Computer software costs are amortised using the straight line method over their estimated useful lives, not exceeding a period of five years. Amortisation commences when the computer software is available for use and is included within administrative expenses.

4

The Company is the lessor

Impairment of non-financial assets

Intangibles that have an indefinite useful life, including goodwill, are not subject to amortisation and are tested annually for impairment or more frequently if events and changes in circumstances indicate that they might be impaired. Assets that are subject to depreciation or amortisation are reviewed for impairos imparter events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets, other than goodwill, that have suffered an impairment are reviewed for possible reversal of the impairment at each reporting date

Financial assets

Financial assets - Classification

The classification depends on the Company's business model for managing the financial assets and the contractual cash flow characteristics of the assets. Management determines the classification of financial assets at initial recognition.

The Company classifies its financial assets at amortised cost. Financial assets at amortised cost are held for collection of contractual cash flows and their cash flows represent solely payments of principal and interest (SPPI). They are included in current assets, except for maturities greater than twelve months after the balance sheet date. These are classified as non-current assets. The Company's financial assets measured at amortised cost (AC) comprise: cash and cash equivalents, bank deposits with original maturity over 3 months, trade receivables and financial assets at amortised cost.

Financial assets - Recognition and derecognition

All purchases and sales of financial assets that require delivery within the time frame established by regulation or market convention ("regular way" purchases and sales) are recorded at trade date, which is the date when the Company commits to deliver a financial instrument. All other purchases and sales are recognized when the entity becomes a party to the contractual provisions of the instrument.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in "other gains!({losses}" together with foreign exchange gains and losses.

4

Financial assets

Financial assets - Measurement

At initial recognition, the Company measures financial assets classified at amortised cost at their fair value plus incremental transaction costs that are directly attributable to the acquisition of the financial assets. Subsequently, these are measured at amortised cost.

Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets.

Financial assets - impairment - credit loss allowance for expected credit losses

The Company assesses on a forward-looking basis the expected credit losses (ECL) for debt instruments measured at AC. The Company measures ECL and recognises credit loss allowance at each reporting date. The measurement of ECL reflects: (i) an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future conditions.

The carrying amount of the financial assets is reduced through the use of an allowance account, and the amount of the loss is recognised in the income statement within "net impairment losses on financial and contract assets". Subsequent recoveries of amounts for which loss allowance was previously recognised are credited against the same line item.

Debt instruments measured at amortised cost are presented in the balance sheet net of the allowance for ECL.

The impairment methodology applied by the Company for calculating expected credit losses depends on the type of financial asset assessed for impairment. Refer to Note 6, Credit risk section for a description of impairment methodology applied by the Company for calculating expected credit losses for debt instruments measured at AC.

Financial assets - Reclassification

Financial instruments are reclassified only when the business model for managing those assets changes. The reclassification has a prospective effect and takes place from the start of the first reporting period following the change.

Financial assets - write-off

Financial assets are written-off, in whole or in part, when the Company exhausted all practical recovery efforts and has concluded that there is no reasonable expectation of recovery. The write-off represents a derecognition event. The Company may write-off financial assets that are still subject to enforcement activity when the Company seeks to recover amounts that are contractually due, however, there is no reasonable expectation of recovery.

4

Financial assets

Financial assets - modification

The Company sometimes renegotiates or otherwise modifies the contractual terms of the financial assets. The Company assesses whether the modification of contractual cash flows is substantial considering, among other, the following factors any new contractual terms that substantially affect the risk profile of the asset (e.g. profit share or equity-based return), significant change in interest rate, change in the currency denomination, new collateral or credit enhancement that significantly affects the credit risk associated with the asset or a significant extension of a loan when the borrower is not in financial difficulties.

If the modified terms are substantially different, the rights to cash flows from the original asset expire and the Company derecognises the original financial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the of initial recognition for subsequent impairment calculation purposes, including determining whether a SICR has occurred. The Company also assesses whether the new loan or debt instrument meets the SPPI criterion. Any difference between the carrying arount of the original asset derecognised and fair value of the new substantially modified asset is recognised in profit or loss, unless the substance of the difference is attributed to a capital transaction with owners.

In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to make the originally agreed payments, the Company compares the original and revised expected cash flows to assets whether the risks and rewards of the ssgland substantially different as a result of the contractual modification. If the risks and rewards do not change, the modified asset is not substantially different from the original asset and the modification does not result in derecognition. The Company recalculates the gross carrying amount by discounting the modified contractual cash flows by the original effective interest rate, and recognises a modification gain or loss in profit or loss.

Classification as cash and cash equivalents

In the statement of cash flows, cash and cash equivalents includes cash in hand, deposits held at call with banks with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. In the balance sheet bank overdrafts are shown within borrowings in current liabilities. Cash and cash equivalents are carried at AC because: (i) they are held for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated at fair value through profit or loss.

Classification as financial assets at amortised cost

These amounts generally arise from transactions outside the usual operating activities of the Company. These are held with the objective to collect their contractual cash flows and their cash flows represent solely payments of principal and interest. Accordingly, these are measured at amortised cost using the effective interest method, less provision for impairment. Financial assets at amortised cost are classified as current assets if they are due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current assets.

4 - Material accounting policy information (continued)

Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings, using the effective interest method, unless they are directly attributable to the acquisition, construction of a qualifying asset, in which case they are capitalised as part of the cost of that asset.

Borrowings are classified as current liabilities, unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.

Covenants that the Company is required to comply with, on or before the end of the reporting period, are considered in classifying loan arrangements with covenants as current or non-current. Covenants that the Company is required to comply with after the reporting period do not affect the classification at the reporting date.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment (for liquidity services) and amortised over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires). The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as "other income" or "finance costs".

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds, including interest on borrowings, amortisation of discounts or premium relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings, finance lease charges and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset, being an asset that necessarily takes a substantial period of time to get ready for its intended use or sale, are capitalised as part of that asset, when it is probable that they will result in future economic benefits to the Company and the costs can be measured reliably.

Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and other payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

4

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average cost method. Inventories consist of the cost of land in work in progress in connection with the construction of the residential units and infrastructure works, and include raw materials, direct labour, other direct costs and expenses associated with the construction work including borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business less costs to complete.

Share capital and share premium

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

Share premium is the difference between the fair value of the consideration receivable for the issue of shares and the nominal value of the shares. Share premium account can only be resorted to for limited purposes, which do not include the distribution of dividends, and is otherwise subject to the provisions of the Cyprus Companies Law on reduction of share capital.

Capital contribution

Capital contribution constitutes contributions made by the Company's shareholders other than for the issue of shares by the Company in their capacity as equity owners of the Company for which the Company has no contractual obligation to repay them. Such contributions are recognised directly in equity as they constitute transactions with equity owners in their capacity as equity owners of the Company.

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Prepayments

Prepayments are carried at cost less provision for impairment. A prepayment is classified as non-current when the goods or services relating to the prepayment are expected to be obtained after one year, or when the prepayment relates to an asset which will itself be classified as non-current upon initial recognition. Prepayments to acquire assets are transferred to the carrying amount of the asset once the Company has obtained control of the asset and it is probable that future economic benefits associated with the asset will flow to the Company.

Other prepayments are written off to profit or loss when the goods or services relating to the prepayments are received. If there is an indication that the assets, goods or services relating to a prepayment will not be received, the carrying value of the prepayment is written down accordingly and a corresponding impairment loss is recognised in the income statement.

4

Segmental Analysis

The Company considers that there are no separate operating segments under IFRS 8 "Operating Segments" for which there is discrete financial information for making decisions on allocating resources and evaluating their performance. The Management of the Company (Board of Directors) (upper body for making operational decisions) take decisions for resource allocation and assessing their performance based on internal reports at Company level. These reports are in accordance with IFRS used for the preparation of the financial statements. There is no additional information on the performance of individual segments.

5 New accounting pronouncements

At the date of approval of these financial statements a number of new standards interpretations and amendments to existing standards are effective for annual periods beginning after 1 January 2024, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the Company.

6 Financial risk management

(i) Financial risk factors

The Company's activities expose it to a variety of financial risks: credit risk and liquidity risk.

The Company does not have a formal risk management policy programme. Instead the susceptibility of the Company to financial risks such as interest rate risk, credit risk and liquidity risk is monitored as part of its daily management of the business.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost and deposits with banks and financial institutions.

(i) Risk management

Credit risk is managed on a individual basis

For banks and financial institutions,the Company has established policies whereby the majority of bank balances are held with independently rated parties with a minimum rating of 'C'.

The Company's investments in debt instruments are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

These policies enable the Company to reduce its credit risk significantly.

Financial risk management (continued) 6

(i) Financial risk factors

Credit risk

(ii) Impairment of financial assets

The Company has two types of financial assets/instruments that are subject to the expected credit loss model:

• · financial assets at amortised cost (receivables from related parties and other receivables)
• . cash and cash equivalents

The impairment methodology applied by the Company for calculating expected credit losses depends on the type of financial asset assessed for impairment. Specifically:

For all financial assets that are subject to impairment under IFRS 9, the Company applies general approach – three stage model for impairment. The Company applies a three-stage model for impairment, based on changes in credit quality since initial recognitian A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1. Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months or until contractual maturity, if shorter ("12 Months ECL"). If the Company identifies a significant increase in credit risk ("SICR") since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until contractual maturity but considering expected prepayments, if any ("Lifetime ECL"). If the Company determines that a financial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL.

Financial assets at amortised cost

The Company assesses, on an individual basis, its exposure to credit risk arising from financial assets at amortised cost. This assessment takes into account, amongst others, the period the loan receivable or other receivable balance is past due (in days) and history of defaults in the past, adjusted for forward looking information. The Company uses two categories for loans, receivables and other receivables, debt securities which reflect their credit risk and how the loss provision is determined for each of those categories.

The estimated loss allowance for financial assets at amortised cost as at 31 December 2024 and 31 December 2023 was immaterial. All financial assets at amortised cost were performing (Stage 1) as at 31 December 2024 and 31 December 2023.

6 Financial risk management (continued)

Financial risk factors (i)

Credit risk

Cash and cash equivalents

The Company assesses, on an individual basis, its exposure to credit risk arising from cash at bank. This assessment takes into account, ratings from external credit rating institutions and internal ratings, if external are not available.

The gross carrying amounts below represent the Company's maximum exposure to credit risk on these assets as at 31 December 2024 and 31 December 2023:

	Rating	2024	2023
		ਵ	ட
Moody's	Baa1	1.951
Moody's	Baa2	8.186.056	22.279.449
Other external non-rated banks -
satisfactory credit quality (performing)		300.344	2.605.949
Total cash at bank			8.488.351 24.885.398

The rest of the balance sheet item 'cash and cash equivalents' is cash on hand.

All cash and bank balances were performing (Stage 1) as at 31 December 2024 and 31 December 2023.

The Company does not hold any collateral as security for any cash at bank balances.

The estimated loss allowance on cash and cash equivalents as at 31 December 2024 and 31 December 2023 was immaterial. All cash and cash equivalents were performing (Stage 1) as at 31 December 2024 and 31 December 2023.

6 Financial risk management (continued)

(i) Financial risk factors

Liquidity risk

Liquidity risk is the risk that the Company will not have sufficient financial resources to meet its liabilities and obligations as they fall due.

The table below analyses the Company's financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months, with the exception of borrowings, equal their carrying balances as the impact of discounting is not significant.

At 31 December 2023	Less than 1 year (S	and 2 years ਣ	Between 1 Between 2 to 5 years ਵ
Borrowings Trade and other payables (excluding statutory	15.410.929	11.316.620	8.013.751
liabilities) Lease liabilities	6.196.831 183.906	156.970	388.738
	21.791.666	11.473.590	8.402.489
	Less than 1 year ਵ	Between 1 and 2 years ਦ	Between 2 to 5 years ਵ
At 31 December 2024 Borrowings Trade and other payables (excluding statutory	24.928.239	6.866.997	12.751.826
liabilities) Lease liabilities	8.306.576
	163.962	142.490	233.522

(ii) Capital risk management

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including 'current and non-current borrowings' as shown in the balance sheet) less cash and cash equivalents. Total capital is calculated as 'equity' as shown in the balance sheet plus net debt.

Financial risk management (continued)

(ii) Capital risk management

During 2024, the Company's strategy, which was unchanged from 2023, was to maintain the gearing ratio at low levels. The gearing ratios at 31 December 2024 and 2023 were as follows:

	2014 ਵ	2017 ਵ
Total borrowings (Note 23)	39.462.965	30.545.963
Less: cash and cash equivalents (Note 20)	(8.489.081)	(24.886.121)
Net debt	30.973.884	5.659.842
Total equity	64.385.118	65.190.450
Total capital as defined by management	95,359.002	70.850.292
Gearing ratio	32%	8%

7 Critical accounting estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the company's accounting policies.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Impairment test for inventories and property, plant and equipment

Refer to note 14 for the relevant disclosure for the impairment assessment made by the Company's management. A sensitivity analysis has been performed on the key assumptions used by management in carrying its assessment. If the selling prices of units were 10% lower then no impairment would have been recognised on inventories and property, plant and equipment. If WACC increased from 12,33% to 13,33% then no impairment would have been recognised on inventories and property, plant and equipment. If construction costs were 10% higher then no impairment would have been recognised on inventories and property, plant and equipment. If the sales velocity is extended by one year then no impairment would have been recognised on inventories and property, plant and equipment. A combined decrease of 10% in selling prices of units and increase of construction costs by 10% with all other parameters remaining the same then an impairment of €16,7 million would have been recognized.

8 Revenue

(a) Disaggregation of revenue from contracts with customers

	2024 ਵ	2023 ਵ
Revenue from sale of plots (recognised at a point in time)	10.341.237
Total revenue from contracts with customers	10.341.237
(b) Assets and liabilities related to contracts with customers
	2024	2023
	ਵ	ਵ
Total current contract assets Total contract assets	180.000
	180.000
Current contract liabilities - Sales of inventories (plots, apartments,
twonhouses, villas) not yet delivered Total contract liabilities	46.601.756 46,601.756	38.210.738 38.210.738
9 Other income
	2024	2023
Income from cancellations of contracts	ਵ 151.240	€
	151,240
10 Expenses by nature
	2024 €	2023 ਵ
Depreciation of right-of-use assets(Note 15)	191.163	185.610
Depreciation and amortisation of property, plant and equipment
and intangibles (Notes 14 and 16)	51.971	57.645
Repairs and maintenance	195.213	16.325
Insurance	1.755	1.504
Auditors' remuneration charged by statutory audit firm	29.000	22.000
Auditors' remuneration prior year	656	876
Staff costs (Note 11) Advertising and promotion	1.354.803	1.263.053
Transportation and hospitality expenses	584.265	693.725
Other expenses	41.587	63.210
Bank charges	130,331	120.351
Municipal and property taxes	54.906	159.244
Motor vehicle expenses	8.831	5.619
Legal Fees	40.069	39.312
Head office administration expenses	13.089	43.700
Mortgages expenses	3.600	18.000
Commitment fees		71.928
Professional Services	111.503 49.311	212-770
Entertaining expenses	61.315	23.944
Subscriptions, donations and gifts	10.180	51.660
Utilities expenses	28.040	12.080 27.691
Cost of plots sold (Note 19)	7.818.631
Cost of plots sold - Agency fees	526.328
Total administrative expenses	11,306,547	3.090.247

10 Expenses by nature (continued)

The total fees charged by the Company's statutory auditor for the statutory audit of the annual financial statements of the Company for the year ended 31 December 2024 amounted to €29.000 (2023: €22.000). The total fees charged by the Company's statutory auditor for the year ended 31 December 2024 for other non-assurance services amounted to €18.450 (2023: €14.450).

11 Staff costs

	2024 ਵੰ	2023 €
Salaries	1.075.492	1.071.420
Bonus	70.988	13.245
Social insurance and other costs	147.939	126.158
Provident fund contributions	37.435	31.855
Social cohension fund	22.949	20.375
	1,354,803	1.263 053
Average number of staff employed during the year	24	20

The Company participates in an external provident fund scheme run by an independent party, which is funded separately and prepares its own financial statements whereby employees are entitled to payment of certain benefits upon retirement or prior termination of service.

12 Finance costs

	2024 €	2023 ਵ
Interest and finance charges paid/payable for lease liabilities and financial liabilities not at fair value through profit or loss:
Lease liabilities (Note 15)	34.191	39.796
Total interest and finance charges	34.191	39.796
Net foreign exchange loss		162
Total finance costs	34.191	ਤੌਰ ਰੋਵੇਂ ਕੇ 2018 ਦੀ 2017 ਦੀ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017 ਵਿੱਚ 2017

13 Income tax credit

	2024	2023
Deferred tax (Note 24):
Tax losses carried forward	(42.929)	0 (346.103)
Income tax credit	(42.929)	(346.103)

13 Income tax credit (continued)

	2024 ਵ	2023 ਵ
Loss before tax	(848.261)	(3.130.205)
Tax calculated at the applicable corporation tax rate of 12.5% Tax effect of expenses not deductible for tax purposes Tax effect of allowances and income not subject to tax Effect of tax losses expired Income tax credit	(106.033) 41.509 (30.768) 52.363 (42.929)	(391.276) 42.133 (28.162) 31.202 (346.103)

The Company is subject to income tax on taxable profits at the rate of 12,5% .

Brought forward losses of only five years may be utilized.

Under certain conditions, interest may be exempt from income tax and be subject only to special contribution for defence at the rate of 30%.

In certain cases, dividends received from abroad may be subject to special contribution for defence at the rate of 17%. In addition, in certain cases, dividends received from other Cyprus tax resident companies may also be subject to special contribution for defence.

Gains on disposal of qualifying titles (including shares, bonds, debentures, rights thereon, etc) are exempt from Cyprus income tax.

14 Property, plant and equipment

	At 1 January 2023	Accumulated depreciation Net book amount	Year ended 31 December 2023 Opening net book amount Additions	Interest capitalised during the vear Depreciation charge (Note 10)	Accumulated depreciation Closing net book amount At 31 December 2023	Net book amount	Opening net book amount At 1 January 2023 Additions	Interest capitalised during the year Depreciation charge (Note 10) Disposals - net book value Closing net book amount	Accumulated depreciation At 31 December 2024
Leasehold improvements	t ਵ		20.926	488) 17.438 3.	20.926 (3.488)	17.438	17.438	3.949 (3.489)	20.924 (6.975)	13.949
Plant and machinery	ട. ഏറ്റവ (4.893) モ	.096	1.096 -	(200) 497	5.989 5.492)	497	.565 497 1.504.	.991 (71) 504.	1.510.554 (5.563)	1.504.991
fittings Hardware and Furniture and Combuter	(18.260) 59.681 €	41.421	104.184 41.421	124.595 (21.010)	163.865 (39.270)	124.595	124.595 27.157	(24.028) 127.724	191.023 63.299)	127.724
vehicles Motor	3.500 1.400) ਦੇ	100 ਟ	2.100 -	(700) 400	3.500 2.100)	1.400	1.400 15.500 (1.400)	400 3.100) 12.	15.500 3.100)	12.400
Golf € Development Land and	6.130.866	130.866 ે.	6.130.866 9.722.278 34 653	15.887.797	15.887.797	15.887.797	10.469.329 15.887.797	131.631 26.488.757	26.488.757	26,488.757
Prefab house €	22.878 (3.168)	19.710	10.922 19.710	(3.380) .252 27	(6.548) 33.800	27.252	27.252 35.090	(6.889) 453 55.	13.437) 68.890	453 55
Signages ਵ	39.128 26.085)	13.043	13.043 3.600	2.401 14.242	42.728 (40.327)	2.401	2.401	.200) 201	42.728 (41.527)	1.201
ਵ Total	6.262.042 (53.806)	6.208.236	9.861.910 6.208.236 34.653	(43.419) 16.061.380	16.158.605 (97.225)	16.061.380	16.061.380 (1.400) 12.051.641	28,204,475 (38.777) 131.631	28.338.376 (133.901)	28.204.475

(37)

14 Property, plant and equipment (continued)

Interest amounting to €131.631 (2023: €34.653) relating to loans granted to the Company for financing the cost of construction and development of the project, were capitalised during the year and were included in the cost of development. The weighted average interest rate used for the capitalisation is 8,12 % (2023: 5%) and represents the borrowing cost of the project in 2024 (Note 23). The total interest capitalised in property, plant and equipment since the commencement of the project in 2024 is €227.566 (2023: €95.935).

The management of the Company carried out an assessment of the net realisable value / recoverable amount of its inventories and property, plant and equipment. The exercise utilised valuations prepared by management. The valuation methodology used by management was that of the Discounted Cash Flows. The valuation model is performed using the aggregated projected cash flows of both classes of assets, property , plant and equipment and inventories as they are considered as one cash-generating unit and the generation of cash flows by each class largely depends on each other. The results of the measurement depend largely on management's assessment of future cash flows and in subject to considerable variability and material estimation uncertainty, particularly as a result of the fact that the project is at an early stage of development. The result of management's assessment did not indicate that there is any impairment of property, plant and equipment or that net realisable value of inventories is below the carrying amount as at the balance sheet date. The exercise compared the Net Present Value of the project with the carrying amount of property, plant and equipment, inventories and deferred expenditures related to the project less contract liabilities for units sold but not delivered by the Company as at 31 December 2024.

Depreciation expense of €38.777 (2023: €43.419) has been charged in "administrative expenses".

In the cash flow statement, proceeds from sale of property, plant and equipment comprise:

	2024 ਵ	2023
Net book amount Profit on sale of property, plant and equipment	1.400
Proceeds from sale of property, plant and equipment

15 Leases

This note provides information for leases where the Company is a lessee.

(i) The Company's leasing arrangements

The Company leases buildings and motor vehicles. Rental contracts are typically made for fixed periods of 1 year to 6 years, but may have extension options.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

(ii) Amounts recognised in the balance sheet

The balance sheet shows the following amounts relating to leases:

	2024	2023
	ਵ	ਵ
Right-of-use assets
Motor vehicles	155.088	233.121
Buildings	300.850	375.012
	455,938	608.133
Lease liabilities
Current	146.046	152.252
Non-current	345.018	480.825
	491.064	633.077

Additions to the right-of-use assets and lease liabilities during the 2024 financial year were €62.397 (2023: €639.105).

Modifications to the right-of-use assets was €23.429 (2023: Enil) and lease liabilities was €24.360 (2023: Enil) during the 2024 financial year.

The net gain on lease modifications during the year was €931 (2023: Enil).

(iii) Amounts recognised in profit or loss

The income statement shows the following amounts relating to leases:

2024 ਵ	2023 ਵ
	73.397
114.734	112.213
191.163	185.610
34.191	39.796
34.191	39 796
	76.429

The total cash outflow for leases in 2024 was €214.241 (2023: €202.645).

16 Intangible assets

	Computer software	Total
At 1 January 2023	ਵ	€
Cost Accumulated amortisation and impairment Net book amount	6.401 (5.368)	6.401 (5.368)
	1.033	1.033
Year ended 31 December 2023 Opening net book amount	1.033	1.033
Additions	39.580	39.580
Amortisation charge (Note 10)	(14.226)	(14.226)
Closing net book amount	26.387	26.387
At 31 December 2023 Cost
Accumulated amortisation and impairment	45.981	45.981
Net book amount	(19.594)	(19.594)
	26.387	26.387
Year ended 31 December 2024
Opening net book amount Amortisation charge (Note 10)	26.387 (13.194)	26.387 (13.194)
Closing net book amount	13.193	13.193
At 31 December 2024 Cost
Accumulated amortisation and impairment	45.981	45.981
Net book amount	(32.788)	(32.788)
	13.193	13.193

17 Financial assets

Financial assets at amortised cost

Financial assets at amortised cost include the following debt investments:

	2024 ਵ	2023 ਵ
Current
Receivables from parent entities (Note 28(ii)) Receivables from other related party (Note 28(ii))	935-926	163.895
Other receivables	176.640
Total current	36.139 1.148.705	513.049 676.944
Financial assets at amortised cost - net	1.148.705	676.944

(i) Current financial assets at amortised cost

Due to the short-term nature of the current financial assets at amortised cost, their carrying amount is considered to be the same as their fair value.

The carrying amounts of the Company's financial assets at amortised cost are denominated in the following currencies:

	2024 ਵ	2023
Euro - functional and presentation currency	1.148.705	676.944
(ii) Impairment and risk exposure	= 1.148.705	676.944

Note 6 sets out information about the impairment of financial assets and the company's exposure to credit risk.

Other non-financial assets 18

	2024	2023
	ਵ
Prepayments	409.223	766.190
Advances to subcontractors - construction contracts	1.183.603	2.428.220
Deferred expenses	4.929.461	4.863.242
	6.522.287	8.057.652

19 Inventories

	2024 ਵ	2023 e
Opening balance	95.706.634	85.302.433
Interest capitalised during the year	2.521.185	663.716
Development costs capitalised during the year	29.730.741	9.740.485
Cost of plots sold	(7.818.631)
Closing balance	120.139.929	95.706.634

Capitalised costs of €29.730.741 (2023: €9.740.485) includes costs which were incurred in relation to the construction and development of residential premises.

Interest amounting to €2.521.185 (2023: €663.716) relating to loans granted to the Company for financing the cost of construction and development of the project, were capitalised during the year and were included in the cost of development. The weighted average interest rate used for the capitalisation is 8,12% (2023: 5%) and represents the borrowing cost of the project in 2024 (Note 23). The total interest capitalised in inventories since the commencement of the project in 2024 is €4.358.652 (2023: €1.837.467).

All inventories items are stated at cost with the exception of inventory that was transferred on 15 January 2020 from investment property which is presented at its fair value at the date of transfer. For information regarding the management assessment of the net realisable value of inventories refer to Note 14.

20 Cash and cash equivalents

	2024 ਵ	2023 ਵ
Cash at bank and in hand	8.489.081	_24.886.121
Cash and cash equivalents are denominated in the following currencies:
	2024 ਵ	2023 €

Euro - functional and presentation currency

Principal non-cash investing and financing transactions

The principal non-cash investing and financing transactions during the current and the prior year were the acquisition of right-of-use assets using leases for €62.397 (2023: €639.105).

_24.886.121

8,489,081

20 Cash and cash equivalents (continued)

Reconciliation of liabilities arising from financing activities:

	Bank Borrowings C	Loans from related parties the	Lease liabilities €	ا رال الرابط liabilities from financing activities €
Opening Balance at 1 January 2024 Cash flows:	13.605.492	16.940.471	633.077	31.179.040
Proceeds from borrowings Repayment of principal Repayment of interest Other non-cash changes:	20.945.225 (14.506.439) (1.824.600)	1.800.000 (150.000)		22.745.225 (214.241) (14.870.680) (1.824.600)
Additions Terminations Interest expense Unwinding of interest expense	1.654.505	522.121 476.190	62.397 (24.360) 34.191	62.397 (24.360) 2.210.817 476.190
Closing Balance 31 December 2024	19.874.183	19.588.782	491 064	39.954.029
	Bank Borrowings C	Loans from related parties €	Lease liabilities ਵ	Total liabilities from financing activities €
Opening Balance at 1 January 2023 Cash flows:		9.362.197	156.821	9.519.018
Proceeds from borrowings Repayment of principal Other non-cash changes:	13.435.397	7.050.000	(202.645)	20.485.397 (202.645)
Additions Interest expense Unwinding of interest expense	170.095	74.759 453.515	639.105 39.796	639.105 284.650 453.515
Closing Balance 31 December 2023	13.605.492	16,940.471	633.077	31.179.040

21 Share capital and share premium

	Number of shares	Share	Capital capital Contribution	Share premium	Total
At 31 December 2023 / 31 December 2024			2 761 674 4.722.462 _ 2.556.501 _ 25.730.893 33.009.856

The total authorized number of ordinary shares is 3 000 000 shares (2023: 3 000 000 shares) with a par value of €1,71 per share. All issued shares are fully paid.

22

	2024	2023
Loss attributable to shareholders (€)	(805.332)	(2.784.102)
Weighted average number of ordinary shares in issue during the year	2.761.674	2.761.674
Basic loss per share attributable to equity holders of the parent (cent per share)	(29.16)	100.81)

(42)

23 Borrowings

	2024	2023
	ਦ	는
Current
Borrowings from related parties (Note 28(iii))	10.187.661	688.311
Bank borrowings	13.333.333	13.503.428
	23.520.994	14.191.739
Non-current
Bank borrowings	6.540.850	102.064
Borrowings from related parties (Note 28(iii))	9.401.121	16.252.160
	15.941.971	16.354.224
Total borrowings	39.462.965	30.545.963
Maturity of non-current borrowings
Between 1 and 2 years	6.540.850	9.234.110
Between 2 and 5 years	9.401.121	7.120.114
	15.941.971	16.354.224

The bank borrowings are secured as follows:

(i) By first and second mortgage on the Company's Land for €43.150.000

(ii) By first and second floating charge on the Company's assets for €43.150.000

(iii) By Corporate Guarantees of MCY Development Limited for €43.150.000 (Note 28(iv)).

(iv) By pledging of Fire Policy for €15.626.208

(v) By pledging of Cash for €2.677.089

Current - Borrowings from related parties

(1) During the previous financial years, the Company received a loan from a related party amounting to €683.666. During 2024, the Company repaid €150.000. The loan is repayable by 2025 and bears interest 3.5% plus the 3-month Euribor. During the year total interest expense of €2.040 and €39.074 (2023: €230 and €4.415) was capitalised as part of property, plant and equipment and inventories respectively, as apportioned using the building coefficient of the project.

(2) As part of the share purchase agreement concluded on 15 January 2020, the Company received an interest free loan from a related party amounting €10.000.000 which is repayable during 2025. The interest free loan was fair valued at initial recognition using the market interest rate (5%) for bank borrowings available to the Company. The fair value gain recognised at initial recognition of €2.556.501, was credited in the statement of changes in equity as Capital Contribution. The unwinding of interest expense following the intial recognition, is capitalised against inventories and property, plant and equipment as apportioned using the building coefficient of the project. During the year total unwinding of interest expense of €23.628 and €452.562 (2023: €22.503 and €431.012) was capitalised as part of property, plant and equipment and inventories respectively.

23 Borrowings (continued)

Non-current

(3) On 16 August 2023, the Company has entered into new loan agreements for €7.050.000 for the construction of the project. The loans are repayable upon the request of lender but always after the settlement of the bank borrowings and the loan facility of €10.000.000 (2). The loans bears interest of 6,7%. During the year total interest expense of €23.671 and €453.377 (2023: €3.479 and €66.635) was capitalised as part of property, plant and equipment and inventories respectively, as apportioned using the building coefficient of the project.

(4) On 23 December 2024, the Company has entered into new loan agreements for €2.900.000 for the construction of the project. The first €1.800.000 was drawndown in 2024, and the remaining €1.100.000 will be drawn in 2025. The loans are repayable at the discretion of Company's directors depending on the profits and cash availability of Company, and always after the Company has settled the bank borrowing, the loan facility of €10.000.000 (2) and the loan facility of €7.050.000 (3). The loans bears interest of 6,7%. During the year total interest expense of €196 and €3.763 was capitalised as part of property, plant and equipment and inventories respectively, as apportionallou the building coefficient of the project.

Bank Borrowings

On 24 September 2020, the Company has signed an agreement with Hellenic Bank for a €34m loan term facility related to the construction of the infrastructure of the resort and €3.15m ancillary facilities in the form of bank guarantees and overdraft facility. The loan term facility will be available to the Company for utilisation once the Company has reached €30m of confirmed sales.

On 21 October 2022, the Company has signed an amended and restated agreement with Hellenic Bank to which the confirmed sales have been reduced to €25m and the loan repayment period has been extended to 2026.

On 9 June 2023, the Company has signed an amended and restated agreement with Hellenic Bank to which the loan term facility has been increased to €40m and the confirmed sales have been increased to €37m. During the year, the Company has utilised €20.945.225 (2023: €13.435.397) of the loan term facility, the total interest expense of €82.096 (2023: €8.441) and €1.572.409 (2023: €161.654) was capitalised as part of property, plant and equipment and inventories respectively, as apportional by the building coefficient of the project and has repaid €16.331.039 (2023: Enil). As per the agreement an amount of €13.333.333 plus the respective interest is repayable by 31 December 2025 and the remaining is repayble by 31 December 2026.

The interest rates at the balance sheet date were as follows:

	2024 %	2023 ಕ್ಕಳ
Bank borrowings	8,21	8,9
Borrowings from related parties (Note 28(iii))	5-6,7	3-5

The carrying amounts of the Company's borrowings are denominated in the following currencies:

	2024 ਵ	2023
Euro - functional and presentation currency	39,462,965	30.545.963

24 Deferred income tax liabilities

The gross movement on the deferred income tax account is as follows:

	Tax losses	Fair value gains	Total
	€	ਵ	ਵ
At 1 January 2023	(759.534)	5.988.947	5.229.413
Charged/(credited) to: Profit or loss (Note 13)	(346.103)		(346.103)
At 31 December 2023/1 January 2024	(1.105.637)	5.988.947	4.883.310
Charged/(credited) to:			(42.929)
Profit or loss (Note 13)	(42,929)
At 31 December 2024	(1.148.566).	5.988.947	4.840.381

Deferred income tax assets are recognised for the tax losses carried forward to the extend that the realisation of the related tax benefit through future taxable profits is probable.

As at 31 December 2024, the Company had tax losses carried forward amounting to €9.188.530 for which a deferred tax asset was recognised. From these losses an amount of €1.585.728 expires in 2025, €2.031.769 expires in 2026, €1.790.255 expires in 2027, €3.018.442 expires in 2028 and €762.336 expires in 2029.

25 Trade and other payables

	2024	2023
	€	ਦ
Retentions	2.543.732	830.248
Payables to related parties (Note 28(ii))	270.445	353.653
Other payables	1.353.454	1.256.915
Accrued expenses	4.138.945	3.756.015
Total financial payables within trade and other payables at amortised cost	8.306.576	6.196.831
Social insurance and other taxes	70.457	57.318
VAT Payable	995.291	305.564
Total other payables	1.065.748	362.882
Trade and other payables	9.372.324	6.559.713

The fair value of trade and other payables which are due within one year approximates their carrying amount at the balance sheet date.

The carrying amounts of the Company's trade and other payables are denominated in the following currencies:

2024	2023
Euro - functional and presentation currency	9.372.324 6559.713

26 Contingencies

As of 31 December 2024, the Company has repaid to the Cyprus Government authorities an amount of E830.000 in relation to the construction of a potable water pipeline. However, a subsequent ministerial decision communicated to the company in 2024 revised the Company's obligation to €1.886.590 according to a revised budget by the Ministry in relation to the estimated construction cost of the water pipeline. Consequently, the Company potentially faces an additional liability of €1.056.590, which represents the difference between the revised budget and the amount already paid. The Company is strongly disputing the revised amount and filed an appeal that was originally set for hearing at the court on 4 February 2025 but was postponed for a future date. As of the date of approval of these financial statements, there is no final decision.

27 Commitments

(a) The Company has entered in a contract for the construction of a golf course in 2022 for the amount of €14,1 million plus €8 million as variation orders that were agreed subsequently. The remaining commitments from the Company related to this contract as at 31 December 2024 are €3,7 million, which is expected to be paid according to construction progress. Expected completion of this contract is June 2025.

(b) The Company has entered in a contract for the construction of the two blocks of apartments in 2023 for the amount of €16,8 million plus €0,6 million as a variation orders that were agreed subsequently. The remaining commitments from the Company related to this contract as at 31 December 2024 are €6,4 million, which is expected to be prid according to construction progress. Expected completion of this contract is June 2025

(c) The Company has entered in a contract for the construction of internal road network and the relevant infrastructure in 2023 for the amount of €13 million plus €0,8 million as a variation orders that were agreed subsequently. The remaining commitments from the Company related to this contract as at 31 December 2024 are €5,3 million, which is expected to be paid according to construction progress. Expected completion of this contract is May 2025.

(d) The Company has entered in a contract for the construction of the clubhouse in 2023 for the amount of €3,6 million plus €0,2 million as variation orders that were agreed subsequently. The remaining commitments from the Company related to this contract as at 31 December 2024 are €1,7 million, which is expected to be paid according to construction progress. Expected completion of this contract is July 2025.

(e) The Company has entered in a contract for the construction of 12 townhouses in 2023 for the amount of €5,3 million plus €0,2 million as variation orders that were agreed subsequently. The remaining commitments from the Company related to this contract as at 31 December 2024 are €1,6 million, which is expected to be paid according to construction progress. Expected completion of this contract is April 2025.

(f) The Company has entered in a contract for the construction of 11 villas in 2023 for the amount of €8,4 million plus €0,2 million as variation orders that were agreed subsequently. The remaining commitments from the Company related to this contract as at 31 December 2024 are €4,9 million, which is expected to be paid according to construction progress. Expected completion of this contract is June 2025.

27 Commitments (continued)

(g) The Company has entered in a contract for the construction of 8 villas in 2024 for the amount of €6,9 million. The remaining commitments from the Company related to this contract as at 31 December 2024 are €6,9 million, which is expected to be paid according to construction progress. Expected completion of this contract is June 2026.

28 Related party transactions

The company is controlled by MCY Development Limited who owns the 99.99% of the issued share capital. The share capital of MCY Development Limited is equally owned by Lanitis Farm Limited and AMOL Enterprises Limited.

(i) Related party transactions

2024 ਵ	2023 ਵ
7.039	18.679
3.600	18.000
175.612
5.367	4.913
18.737.195	10.541.902
785.479	2.041.989
19.714.292	12.625.483

(ii) Year-end balances with related parties

	2024	2023
	ਵ
Receivables from related parties (Note 17):
MCY Development Limited (Parent Company)	177.963	163.895
AMOL Enterprises Limited (Intermediate Parent Company)	757.963
LG Golf Limited (Entity under common control)	172.900
Silverlake Property Management Limited (Entity under common
control)	3.651
Lanitis E.C. Holdings Limited (Ultimate Parent entity)	89
	1.112.566	163.895
Payables to related parties (Note 25):
AMOL Enterprises Limited	37.163	29.533
Carobmill Restaurants Ltd		2.254
Cybarco Development Limited	126.466	66.700
Lanitis E.C. Holdings Limited	1.624
Cybarco Contracting Limited	92.887	251.277
Lanitis Farm Limited	12.305	3.888
	270.445	353.653

The above balances bear no interest and are repayable on demand.

28 Related party transactions (continued)

(iii) Borrowings from related parties

	2024	2023
Borrowings from related parties:	ਵ	e
At beginning of year	16.940.471	9.362.197
Borrowings advanced during year	1.800.000	7.050.000
Interest charged	522-121	74.759
Unwinding of interest expense	476.190	453.515
Repayment	(150.000)
At end of year (Note 23)	19,588.782	16.940.471

(1) During the previous financial years, the Company received a loan from a related party amounting to €683.666. During 2024, the Company repaid €150.000. The loan is repayable by 2025 and bears interest 3.5% plus the 3-month Euribor. During the year total interest expense of €2.040 and €39.074 (2023: €230 and €4.415) was capitalised as part of property, plant and equipment and inventories respectively, as apportioned using the building coefficient of the project.

(2) As part of the share purchase agreement concluded on 15 January 2020, the Company received an interest free loan from a related party amounting €10.000.000 which is repayable during 2025. The interest free loan was fair valued at initial recognition using the market interest rate (5%) for bank borrowings available to the Company. The fair value gain recognised at initial recognition of €2.556.501, was credited in the statement of changes in equity as Capital Contribution.

(3) On 16 August 2023, the Company has entered into new loan agreements for €7.050.000 for the construction of the project. The loans are repayable upon the request of lender but always after the settlement of the bank borrowings and the loan facility of €10.000.000 (2). The loans bears interest of 6,7%. During the year total interest expense of €23.671 and €453.377 (2023: €3.479 and €66.635) was capitalised as part of property, plant and equipment and inventories respectively, as apportioned using the building coefficient of the project.

(4) On 23 December 2024, the Company has entered into new loan agreements for €2.900.000 for the construction of the project. The first €1.800.000 was drawndown in 2024, and the remaining €1.100.000 will be drawn in 2025. The loans are repayable at the discretion of Company's directors depending on the profits and cash availability of Company, and always after the Company has settled the bank borrowing, the loan facility of €10.000.000 (2) and the loan facility of €7.050.000 (3). The loans bears interest of 6,7%. During the year total interest expense of €196 and €3.763 was capitalised as part of property, plant and equipment and inventories respectively, as apportioned using the building coefficient of the project.

(iv) Corporate Guarantees

The bank borrowings of the Company are secured by corporate guarantees of MCY Development Limited for €43.150.000. (Note 23).

29 Events after the balance sheet date

There were no material events after the balance sheet date, which have a bearing on the understanding of the financial statements.

Independent Auditor's Report on pages 7 to 11.