Annual / Quarterly Financial Statement • Feb 19, 2025
Annual / Quarterly Financial Statement
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REPORT
(CONVENIENCE TRANSLATION INTO ENGLISH OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD TOGETHER WITH THE INDEPENDENT AUDITOR'S REPORT ORIGINALLY ISSUED IN TURKISH)
| Key Audit Matter | How the Matter was Addressed in the Audit |
|---|---|
| Reporting Revenue | |
| In cases where the outcome of a transaction related to the provision of services can be estimated reliably, the revenue related to the transaction is reflected in the financial statements by taking into account the level of completion of the transaction as of the end of the reporting period. The company's revenue amount related to health services, after deducting the refund and discount amounts, in return for the health services provided; - Invoice amounts for services that have been invoiced. - It includes the amounts found according to the services provided to patients whose treatment process is ongoing. In this context, determining the period in which the revenue is generated and recording the revenue in the specified period is important for our audit. Note 2.2, Note 6 and Note 26 include the Company's accounting policies and disclosures regarding revenue. |
Once the accounting policies regarding revenue reporting and the principles of their application are understood, the audit processes we conduct include the following. The revenue process was evaluated and the sales and collection process was controlled: Past transactions with the Social Security Institution (SSI) and insurance companies were examined and the timing of revenue recognition in the financial statements was evaluated. Focus has been placed on the parts of the ongoing treatment that have not been invoiced but have been finalized and recognized as revenue according to the completed service level through financial verification tests via MEDULA (SSI automation system) and the hospital information management system. Invoices issued in subsequent periods and $\overline{\phantom{a}}$ amounts accrued as income in previous periods were examined to test whether the revenue was recorded correctly. |
| We have not identified any significant findings as a result of our work regarding revenue. |
| Key Audit Matter | How the Matter was Addressed in the Audit |
|---|---|
| TMS-29 "Financial Reporting in High Inflation Economies" Application |
|
| According to TMS 29, financial statements must be rearranged according to the current purchasing power at the end of the reporting period. Therefore, transactions in 2024 and non- monetary balances at the end of the period have been restated to reflect purchasing power as of December 31, 2024. The implementation of TMS 29 causes comprehensive and significant changes in many items in the Company's financial statement. |
Our audit procedures for TMS 29 "Financial Reporting in High Inflation Economies" include the following: - The Company's current processes and accounting policies were examined. - Detailed lists of non-monetary items were obtained, their initial dates and amounts were checked, and it was checked whether appropriate indexes were used. |
| The impact of TMS 29 depends on the complex calculations and various management judgments used in restating many balance sheet items and current period transactions throughout the year. Many complex procedures are required to prepare financial statements using current purchasing power. Due to the management judgments applied during the reorganization process, the complexity of the calculations and the risk of incomplete or inaccurate data used, the application of TMS 29 has been determined by us as a key audit matter. |
- It has been checked whether the distinction between monetary and non-monetary items made by the Group is made in accordance with TFRS. - By checking the general price index rates with the method used; The preparation of non-monetary items, income statement and cash flow statement was tested for inflation effects |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION 1-2 | |
|---|---|
| CONSOLIDATED STATEMENT OF INCOME 3 | |
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 4 | |
| CONSOLIDATED STATEMENT OF CASH FLOWS 5 | |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 6-47 |
Consolidated Statement of Financial Position as of 31 December 2024
(Amounts are expressed in Turkish lira ("TRY") based on the purchasing power as of 31 December 2024, unless otherwise stated.)
| Current Period | |||
|---|---|---|---|
| Audited Previous Year Audited | |||
| ASSETS | Notes | 31 December 2024 | 31 December 2023 |
| Cash and Cash Equivalents | 4 | 98.450.436 | 54.308.171 |
| Trade Receivables | 585.808.463 | 483.570.590 | |
| -Related Parties | 29 | 65.791.378 | 33.532.846 |
| -Other | 6 | 520.017.085 | 450.037.744 |
| Other Receivables | 131.883.638 | 135.493.342 | |
| -Related Parties | 29 | 110.501.589 | 86.950.255 |
| -Other | 7 | 21.382.049 | 48.543.087 |
| Inventories | 8 | 202.341.741 | 145.673.370 |
| Prepaid Expenses | 230.591.852 | 143.644.114 | |
| - Related Parties | 29 | 22.758.895 | 24.752.259 |
| - Other | 17 | 207.832.957 | 118.891.855 |
| Current Tax Assets | 27 | 15.698.367 | 13.454.098 |
| Other Current Assets | 16 | 29.240.582 | 14.973.388 |
| Current Assets | 1.294.015.079 | 991.117.073 | |
| Other Receivables | 7 | 760.987 | 444.717 |
| Biological Assets | 9 | 83.621.000 | 73.192.818 |
| Investment Property | 13 | 92.795.801 | 30.520.904 |
| Tangible Assets | 10 | 1.489.847.230 | 1.422.852.031 |
| Right-of-Use Assets | 11 | 486.260.761 | 421.233.727 |
| Intangible Assets | 12 | 306.118.352 | 304.458.043 |
| Prepaid Expenses | 6.055.040 | 11.792.816 | |
| - Other | 17 | 6.055.040 | 11.792.816 |
| Deferred Tax Assets | 27 | 57.212.669 | 181.290.582 |
| Non-Current Assets | 2.522.671.840 | 2.445.785.638 | |
| Total Assets | 3.816.686.919 | 3.436.902.711 |
Consolidated Statement of Financial Position as of 31 December 2024
(Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise
stated.)
| Current Period | Previous Year Audited | ||
|---|---|---|---|
| Audited | |||
| LIABILITIES | Notes | 31 December 2024 | 31 December 2023 |
| Financial liabilities | 5 | 312,800,485 | 334,162,691 |
| Short-term portions of the long-term borrowings | 5 | 380,296,301 | 87,701,990 |
| Short-term financial leasing liabilities | 5 | 30,692,025 | 40,766,825 |
| Payables from rental transactions | 5 | 32,750,433 | 33,732,073 |
| Trade payables | 283,480,626 | 327,282,887 | |
| - Related parties | 29 | 13,319,640 | 15,705,087 |
| - Other | 6 | 270,160,986 | 311,577,800 |
| Other payables | 901,901 | 1,251,826 | |
| - Related parties | 29 | 338,921 | 308,126 |
| - Other | 7 | 562,980 | 943,700 |
| Payables regarding employee benefits | 18 | 74,187,753 | 80,975,574 |
| Deferred income | 17 | 122,111,249 | 98,363,798 |
| Short-term provisions | 27,517,172 | 17,913,662 | |
| - Short-term provisions for employee benefits | 15 | 23,766,593 | 12,718,924 |
| - Other short-term provision | 15 | 3,750,579 | 5,194,738 |
| Period profit tax liability | 27 | 10,142,878 | 24,205,977 |
| Other current liabilities | 16 | 21,959,426 | 24,471,724 |
| Short-term liabilities | 1,296,840,249 | 1,070,829,027 | |
| Financial liabilities | 5 | 296,768,185 | 112,964,681 |
| Long-term financial leasing liabilities | 5 | 9,946,572 | 58,559,732 |
| Payables from rental transactions | 5 | 63,065,435 | 93,882,313 |
| Deferred income | 17 | 10,303,257 | 22,019,463 |
| Long-term provisions | 64,103,376 | 161,825,303 | |
| - Long-Term Provisions for Employee Benefits | 15 | 64,103,376 | 161,825,303 |
| Long-term liabilities | 444,186,825 | 449,251,492 | |
| Paid-in share capital | 19 | 216,000,000 | 36,000,000 |
| Capital adjustment differences | 19 | 424,021,926 | 412,735,940 |
| Repurchased shares (-) | 19 | (105,201,319) | - |
| Other Comprehensive Income/ Expenses not to be Reclassified to | (76,997,468) | (96,336,955) | |
| Profit or Loss | |||
| - Remeasurement gains/losses of defined benefit plans | 19 | (76,997,468) | (96,336,955) |
| Other Comprehensive Income/ Expenses to be Reclassified to | 20,675,182 | 21,380,065 | |
| Profit or Loss | |||
| - Currency translation differences | 19 | 20,675,182 | 21,380,065 |
| Restricted profit reserves | 19 | 196,388,768 | 64,684,491 |
| Retained earnings | 991,075,675 | 892,288,880 | |
| Net profit/(losses) for the period | 239,780,539 | 465,147,842 | |
| Equity of the parent | 1,905,743,303 | 1,795,900,263 | |
| Non-controlling interests | 169,916,542 | 120,921,929 | |
| Total equity | 2,075,659,845 | 1,916,822,192 | |
| TOTAL LIABILITIES | 3,816,686,919 | 3,436,902,711 |
Consolidated Statement of Profit and Loss and Other Comprehensive Income for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise
| stated.) |
|---|
| ---------- |
| Current Period Audited |
Previous Year Audited |
||
|---|---|---|---|
| Notes | 1 January 2024 31 December 2024 |
1 January 2023 31 December 2023 |
|
| Revenue Cost of Sales (-) |
20 20 |
2,941,518,785 (2,432,433,717) |
2,736,765,481 (2,353,863,624) |
| Gross profits/(losses) | 509,085,068 | 382,901,857 | |
| General administrative expenses (-) | 21 | (174,363,240) | (146,171,535) |
| Marketing, sales and distribution expenses (-) | 21 | (53,145,833) | (60,154,156) |
| Other income from operating activities Other expenses from operating activities (-) |
22 23 |
98,367,119 (40,072,725) |
124,624,409 (56,615,074) |
| Operating profits/(losses) | 339,870,389 | 244,585,501 | |
| Income from investing activities | 24 | 63,471,193 | 1,962,210 |
| Operating profit/(losses) before financial expense | 403,341,582 | 246,547,711 | |
| Financial income | 25 | 7,196,733 | 13,629,025 |
| Financial expenses (-) | 26 | (386,018,429) | (209,267,393) |
| Monetary gain/(loss) | 32 | 372,732,476 | 412,695,722 |
| Profits/(losses) before tax | 397,252,362 | 463,605,065 | |
| Current period tax income/(expense) | 27 | (10,142,878) | (23,508,592) |
| Deferred tax income/(expense) | 27 | (117,631,419) | 39,514,061 |
| Net Profit/(Loss) for the Period | 269,478,065 | 479,610,534 | |
| Parent company shares Non-controlling interests |
239,780,539 29,697,526 |
465,147,842 14,462,692 |
|
| Other comprehensive income | 18,634,604 | (32,844,285) | |
| Not to be reclassified to profit or loss: | 19,339,487 | (51,224,842) | |
| Remeasurement Gains/(Losses) of Defined Benefit Plans | 19,339,487 | (51,224,842) | |
| To be reclassified to profit or loss | (704,883) | 18,380,557 | |
| Foreign currency conversion differences | (704,883) | 18,380,557 | |
| Total Comprehensive Income | 288,112,669 | 446,766,249 | |
| Distribution of total comprehensive income | |||
| Parent company shares Non-controlling interests |
258,415,143 29,697,526 |
432,303,557 14,462,692 |
|
| Earnings per share (TRY) | 28 | 2.6569 | 12.9208 |
The accompanying notes are an integral part of the consolidated financial statements.
Consolidated Statement of Changes in Shareholders' Equity for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Other Comprehensive Income and Expenses Not to be Reclassified in Profit or Loss |
Other Comprehensive Income or Expenses to be Reclassified in Profit or Loss |
Retained Profit | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Paid in Capital |
Capital Adjustment Differences |
Repurchased Shares (-) |
Defined Benefit Plans Remeasurement Gains/(Losses) |
Foreign Currency Conversion Differences |
Restricted Reserves Allocated from Profit |
Prior years Profit/Loss |
Net Profit/Loss for the Period |
Equity of the Parent Company |
Non-controlling shares |
Total Equity | |
| 1 January 2023 | 36,000,000 | 412,735,940 | - | (45,112,113) | 2,999,508 | 61,533,952 | 503,560,961 | 457,594,640 | 1,429,312,888 | 138,158,938 | 1,567,471,826 |
| Transfers | - - |
- - |
- - |
- - |
- - |
- 3,150,539 |
- 454,444,101 |
- (457,594,640) |
- | - - |
- |
| Change in non-controlling shares | - | - | - | - | - | - | 18,445,542 | - | 18,445,542 | (31,699,701) | (13,254,159) |
| Dividend distribution | - | - | - | - | - | - | (84,161,724) | - | (84,161,724) | - | (84,161,724) |
| Total comprehensive income/(expense) | - | - | - | (51,224,842) | 18,380,557 | - | - | 465,147,842 | 432,303,557 | 14,462,692 | 446,766,249 |
| Other comprehensive income/(expense) Period net profit |
- - |
- - |
- - |
(51,224,842) - |
18,380,557 - |
- - |
- - |
- 465,147,842 |
(32,844,285) 465,147,842 |
- 14,462,692 |
(32,844,285) 479,610,534 |
| 31 December 2023 | 36,000,000 | 412,735,940 | - | (96,336,955) | 21,380,065 | 64,684,491 | 892,288,880 | 465,147,842 | 1,795,900,263 | 120,921,929 | 1,916,822,192 |
| 1 January 2024 | 36,000,000 | 412,735,940 | - | (96,336,955) | 21,380,065 | 64,684,491 | 892,288,880 | 465,147,842 | 1,795,900,263 | 120,921,929 | 1,916,822,192 |
| Transfers Capital increase |
- 180,000,000 |
- 11,285,986 |
- - |
- - |
- - |
26,502,958 - |
438,644,884 (180,000,000) |
(465,147,842) - |
- 11,285,986 |
- - |
- 11,285,986 |
| Change in non-controlling shares | - | - | - | - | - | - | (26,686,317) | - | (26,686,317) | 19,297,087 | (7,389,230) |
| Dividend distribution | - | - | - | - | - | - | (43,215,608) | - | (43,215,608) | - | (43,215,608) |
| Increase/(decrease) due to share buyback transactions |
- | - | (105,201,319) | - | - | 105,201,319 | (105,201,319) | - | (105,201,319) | - | (105,201,319) |
| Increase/(decrease) due to other changes | - | - | - | - | - | - | 15,245,155 | - | 15,245,155 | - | 15,245,155 |
| Total comprehensive income/(expense) | - | - | - | 19,339,487 | (704,883) | - | - | 239,780,539 | 258,415,143 | 29,697,526 | 288,112,669 |
| Other comprehensive income/(expense) | - | - | - | 19,339,487 | (704,883) | - | - | - | 18,634,604 | - | 18,634,604 |
| Net profit/(loss) for the period | - | - | - | - | - | - | - | 239,780,539 | 239,780,539 | 29,697,526 | 269,478,065 |
| 31 December 2024 | 216,000,000 | 424,021,926 | (105,201,319) | (76,997,468) | 20,675,182 | 196,388,768 | 991,075,675 | 239,780,539 | 1,905,743,303 | 169,916,542 | 2,075,659,845 |
The accompanying notes are an integral part of the consolidated financial statements.
Consolidated Statement of Cash Flows for the period ended 31 December 2024
(Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless
otherwise stated.)
| Current Period | Previous Year | ||
|---|---|---|---|
| Audited | Audited | ||
| 1 January 2024 31 December |
1 January 2023 31 December 2023 |
||
| Notes | 2024 | ||
| A. Cash Flows From Operating Activities | 248.389.268 | 629.936.271 | |
| Profit/(Loss) for the Period | 269.478.065 | 479.610.534 | |
| Adjustments Related to Reconciliation of Net Profit for the Period | 662.211.256 | 473.775.248 | |
| Adjustments to Depreciation and Amortization Expense | 10 ,11 ,12 | 379.870.604 | 342.215.031 |
| Adjustments to Impairment (Cancellation) - Adjustments to Impairment (Cancellation) in Receivables |
6 | 2.322.299 2.322.299 |
1.612.943 1.612.943 |
| Adjustments to Provisions | 47.204.286 | 42.173.861 | |
| -Adjustments to (Cancellation) Provisions related Employee Benefits | 15 | 47.690.806 | 41.084.727 |
| -Adjustments to Regarding Litigation and/or Penalty Provisions (Cancellation) | 15 | (486.520) | 1.089.134 |
| Adjustments to Interest (Income) Expenses | 278.475.084 | 152.098.780 | |
| -Adjustments to Interest Income | (41.335) | (4.084.791) | |
| -Adjustments to Interest Expenses | 278.516.419 | 156.183.571 | |
| Adjustments to Unrealized Currency Translation Differences Adjustments for Fair Value Loss (Gains) |
(704.883) (93.504.237) |
18.380.557 (25.047.346) |
|
| -Adjustments for Fair Value Losses (Gains) on Investment Properties | (62.274.896) | - | |
| -Adjustments for Fair Value Loss (Gains) of Biological Assets or Agricultural Products | 9 | (31.229.341) | (25.047.346) |
| Adjustments Regarding Tax (Income) Expense | 48.904.305 | (57.985.197) | |
| Adjustments for Losses (Gains) on Disposal of non-current Assets | (356.202) | 326.619 | |
| -Adjustments Related to Losses (Gains) on Disposal of Tangible Assets | (356.202) | 326.619 | |
| Changes in Working Capital | (655.315.281) | (291.944.781) | |
| Adjustments to Increase/(Decrease) in Trade Receivables | (253.198.843) | (277.800.797) | |
| -Adjustments to Increase/(Decrease) in Trade Receivables from Related Parties -Adjustments to Increase/(Decrease) in Trade Receivables from Third Parties |
29 6 |
(42.565.771) (210.633.072) |
(11.297.116) (266.503.681) |
| Adjustments to Increase/(Decrease) in Other Receivables Related to Operations | (38.490.853) | (90.275.659) | |
| -Adjustments to Increase/(Decrease) in Other Receivables from Related Parties related to Operations | 29 | (50.277.877) | (45.300.913) |
| -Adjustments to Increase/(Decrease) in Other Receivables from Third Parties Related to Operations | 7 | 11.787.024 | (44.974.746) |
| Adjustments to Increase/(Decrease) in Inventories | 8 | (56.668.371) | (8.279.915) |
| Increase/(Decrease) in Biological Assets | 9 | 20.801.159 | 5.581.213 |
| Adjustments to Increase/(Decrease) in Prepaid Expenses | 17 | (128.987.761) | (105.826.567) |
| Adjustments to Increase/(Decrease) in Trade Payables | 56.797.102 | 139.302.695 | |
| -Increase/(Decrease) in Trade Payables to the Related Parties -Increase/(Decrease) in Trade Payables to the Third Parties |
29 6 |
2.441.942 54.355.160 |
10.492.675 128.810.020 |
| Increase/(Decrease) in Payables related to Employee Benefit | 18 | 18.102.240 | 36.546.400 |
| Increase/(Decrease) in Other Payables Related to Operations | 34.858 | (1.878.206) | |
| -Increase/(Decrease) in Other Payables to the Related Parties Related to Operations | 29 | 125.506 | 308.126 |
| -Increase/(Decrease) in Other Payables to the Third Parties Related to Operations | 7 | (90.648) | (2.186.332) |
| Increase/(Decrease) in Deferred Income | 17 | 49.034.339 | 92.541.332 |
| Adjustments to Increase/(Decrease) in Working Capital | 12.671.225 | 2.717.202 | |
| -Increase/(Decrease) in Other Assets Related to Operations -Increase/(Decrease) in Other Liabilities Related to Operations |
16 | 7.661.468 5.009.757 |
(3.369.358) 6.086.560 |
| Monetary gain/(loss) | 16 | (335.410.376) | (84.572.479) |
| Cash Flows from Operations | 276.374.040 | 661.441.001 | |
| Payments made within the scope of provisions for employee benefits | 15 | (27.984.772) | (31.504.730) |
| B. Cash Flows from Investing Activities | (284.291.403) | (381.926.668) | |
| Cash Inflows from Sale of Tangible and Intangible Assets | 1.329.885 | 5.655.159 | |
| -Cash Inflows from Sale of Tangible Assets | 10 | 1.329.885 | 5.655.159 |
| Cash Outflows from Purchasing of Tangible and Intangible Assets | (285.662.623) | (391.666.618) | |
| -Cash Outflows from Purchasing of Tangible Assets | 10 | (261.215.867) | (315.872.714) |
| -Cash Outflows from Purchasing of Intangible Assets | (24.446.756) | (75.793.904) | |
| Interest Received C. Cash Flows from Financing Activities |
16 | 41.335 96.737.507 |
4.084.791 (258.478.108) |
| Cash Outflows Related to Acquisition of Own Shares and Other Equity Instruments of the Entity | (105.201.319) | - | |
| -Cash outflows from Sale of Repurchased Shares | 19 | (105.201.319) | - |
| Cash Inflows from Borrowings | 1.140.692.502 | 193.580.292 | |
| -Cash Inflows from Loans | 5 | 1.140.692.502 | 193.580.292 |
| Cash Outflows from Loans | (549.419.655) | (159.416.242) | |
| -Cash Outflows from Repayments of Borrowings | 5 | (549.419.655) | (159.416.242) |
| Cash Outflows Related to Debt Payments Arising from Rental Agreements | 5 | (67.601.994) | (52.296.863) |
| Dividends Paid Interest paided |
26 | (43.215.608) (278.516.419) |
(84.161.724) (156.183.571) |
| Net Increase (Decrease) on Cash and Equivalents Before the Effect of Currency Translation Differences | 60.835.372 | (10.468.505) | |
| D. Effect of Foreign Currency Translation Differences on Cash and Equivalents | - | - | |
| Net Increase/(Decrease) on Cash and Equivalents | 60.835.372 | (10.468.505) | |
| Cash and Equivalents at the Beginning of the Period | 54.308.171 | 106.734.418 | |
| E. Inflation Effect on Cash and Cash Equivalents | (16.693.107) | (41.957.742) | |
| Cash and Equivalents at the End of the Period | 98.450.436 | 54.308.171 |
İlişikteki dipnotlar konsolide finansal tabloların tamamlayıcı bir parçasıdır.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024
(Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Lokman Hekim Engürüsağ Sağlık, Turizm, Eğitim Hizmetleri ve İnşaat Taahhüt A.Ş. ("Parent Company", "Group" or "Company") established in Ankara, 1996. Firstly, it started to sell medical stuff and procure medical equipment.
The Company amended the main contract in the meeting conducted on 23 May 2010, after the 2009 Ordinary General Assembly Meeting, Company's title of "Engürüsağ Sağlık, Turizm, Eğitim Hizmetleri ve İnşaat Taahhüt A.Ş." changed as "Lokman Hekim Engürüsağ Sağlık, Turizm, Eğitim Hizmetleri ve İnşaat Taahhüt A.Ş." relying on this amendment.
The Company's head office is ln Dumlupınar Bulvarı Kentpark No:164/306 Çankaya, Ankara.
The main partnership capital and partnership structure are as follows;
| 31 December 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| TRY | % | TRY | % | |
| Group A | 1,738,868 | 0.81 | 289,811 | 0.81 |
| Group B | 214,261,132 | 99.19 | 35,710,189 | 99.19 |
| Total | 216,000,000 | 100 | 36,000,000 | 100 |
Group A shares are registered and cannot be sold in the stock exchange market. They cannot be transferred partially to third parties. Group A shareholder has priority for the sale of shares relying on real value (the value set jointly between parties). In the situation of conflict, revaluation of shares will be made during a month by an independent auditing firm which is jointly decided. At the transfers of Group A share, in the situation that there is one or more than one Group A shareholder which will take over, shares are transferred equally. When there is no Group A shareholder to take over Group A shares which are settled its value, shareholder is free to sell his shares to third parties over its settled value.
Affairs and management of the Group are conducted by board of directors consisted of minimum 7 or 9 people which are elected by General Board. If board of directors will consist of 7 people elected by General Board, 5 of them; and if board of directors will consist of 9 people, 6 of them will be elected by General Board between candidates jointly nominated by shareholders who have more than 51 percent of Group A shares.
There is no granted privilege to Group B shares.
The Company has an agreement with the Social Security Institution of Turkey (the "SSI") which includes service commitment in all branches disclosed in the Operations Approval Document. SSI is a state enterprise which pays the healthcare expenditures of the citizens of Turkey who are members of the social security system based on the law numbered 5510 and manages social security premiums and short and long term insurance expenses. According to the agreement, the Company is obliged to provide the healthcare services and to issue invoices to the SSI and patients in line with the Communiqué of Health Services published by the SSI. This transaction is performed through Medula, a web based software system, by assessing the right of the patient and obtaining provisions. As a result of the assessment the expenses relating to patients with no SSI, coverage is not charged to SSI. The healthcare expenses provided to the patients are invoiced based on the terms of the Communiqué of Health Services. In this Communiqué SSI determined a price list based on the treatments provided. Invoices are issued based on the price list announced by the Communiqué. SSI has the right not to pay the invoice or make a deduction if the treatments provided are not in compliance with the terms.
The Company registered to the Capital Markets Board ("CMB") and its shares quoted on the Borsa İstanbul A.Ş. ("BİAŞ or "Borsa" or "BİST") since 1 February 2011. According to the records of Central Registry Agency (CRA); shares representing 71.05% as of 30 June 2024 are accepted as "in circulation".
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
The subsidiaries which are in the Company, are subject to consolidation, are direct, and sphere of activities of these subsidiaries with its rate of share are as below;
| Company | Field of Activity | Participation Rate (%) | |
|---|---|---|---|
| 31 December 2024 | 31 December 2024 | ||
| Lokman Hekim Van Sağlık Hiz. ve İnş. Taah. A.Ş. | Health care | 51 | 51 |
| Engürüsağ Genel Ticaret Ltd. Şti. (Erbil) | Health care | 100 | 95 |
| Lokman Hekim Tıp Merkezleri A.Ş.* | Health care | 49 | 49 |
| Her Yerde Sağlık ve Elektronik Tic. A.Ş. | E-Health Service | 100 | 100 |
| HYS Sigorta Aracılık Hizmetleri A.Ş. | Insurance and Brokerage | 100 | 100 |
| Lokman Hekim İstanbul Sağlık Yatırımları A.Ş. | Health care | 100 | 100 |
| Lokman Hekim Lojistik A.Ş. | Logistics Service | 100 | 100 |
(*) The company has been included in the financial statements with the full consolidation method, as it has 49% privileged Group A registered shares, a minimum of 66% in management representation, 15 voting rights to each share, and 99.99% right to dividend.
In Etlik district in Ankara, Lokman Hekim Etlik Hastanesi building 11,900 m² of the indoor area has a capacity of 4 operating rooms, two delivery rooms, 21 beds for intensive care, 6 for newborn intensive care, 73 for patients with a total capacity of 100 beds.
The hospital has TUV-CERT ISO 9001:2008 Certificate of Quality Management System, and it supports the project of Baby-Friendly Hospital, which is conducted by UNICEF and the Ministry of Health. In this scope, the hospital has a Certificate of Baby-Friendly Hospital.
The hospital building that has eight floors and 17,500 m² indoor areas in the Sincan district in Ankara is the Company's asset. The hospital has six full-fledged operation rooms and one heliport for the air ambulance. The hospital has 51 intensive care rooms, 6 intensive care units for the cardiology department, one coronary room with four beds and 21 newborn intensive care incubators and 134 patient beds with a total capacity of 216 beds.
Özel Lokman Hekim Ankara Hastanesi leased all its fixed assets, including real estate, to the Lokman Hekim University Health Application and Research Center for three years as of 1 January 2020. Also, all employees transferred to Lokman Hekim University as of 31 December 2019. Due to the end of the 3-year lease term on 31 December 2022, it agreed that the previously agreed commercial conditions would remain in effect and the lease term would be extended for another 3 years as a result of mutual negotiations.
The rent between the "Company" and Lokman Hekim University will be calculated in variable consistency. The criteria considered in the rent calculation is the operating profit served by the foundation university hospitals but not private hospitals according to the regulations and amount paid by the Social Security Institution to the foundation university.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
The hospital license belonging to Lokman Hekim Ankara Hastanesi is conditionally donated to Lokman Hekim University as long as the University Hospital operation continues. Lokman Hekim Ankara Hospital is operated by Lokman Hekim University under the title of Lokman Hekim University SUAM as of 1 January 2020.
In Çankaya, Ankara, the 11-storey hospital built on an 18,000 m² total area was rented for 15 years and started its operation on 1 August 2016. The hospital has a total capacity of 126 beds, including three beds for internal intensive care, four beds for coronary intensive care, three for surgical intensive care, six for newborn intensive care incubators, nine for KVC intensive care units, and 101 for patients.
Özel Lokman Hekim Akay Hastanesi supports the TQCSI ISO 9001: 2008 Quality Management System Standards document and Ministry of Health and Baby Friendly Hospital Project carried out by UNICEF and has a Baby Friendly Hospital certificate.
The 9-story hospital, located in the center of Van, is built on a closed area of approximately 12,500 m². It features 5 fully equipped operating rooms. Within the hospital, there is a 16-bed internal intensive care unit, a 15-bed surgical intensive care unit, a 5-bed cardiovascular surgery intensive care unit, a 17-bed coronary intensive care unit, a neonatal intensive care unit with 64 incubators, and 99 patient beds, bringing the total capacity to 216 beds.
In the center of Van, there are 2 operating rooms, 13 beds medical and surgical intensive care units, 26 newborn intensive care units and 30 patient beds in a 5-storey hospital which is installed in a closed area of approximately 4,500 m² and has a Total capacity of 69 beds.
In 2013, a 100% stake was acquired in the company established in Erbil, Iraq. Founded to provide imaging and diagnostic center services, the company operates in a four-story building with approximately 850 m² of closed area. The center includes radiology and laboratory units.
It was established in the Demetevler district of Yenimahalle in Ankara with a capital of TRY 50,000 on 12 April 2016, to provide a closed area of 2,400 m², outpatient treatment and health services. Licensing and furnishing studies of the Lokman Hekim Demet Tıp Merkezi were completed, and patient admission started on 11 October 2016.
According to the Regulations Regarding Private Health Establishments Diagnosed and Treated Outside of the Company, the share of the company's capital is limited to 49%. Preemptive right with (49%) Company A shares that the Company have as founder shareholder and (51%) shares that were paid during establishment; The Company's share rate is 100%. The absolute amount of profit share belongs to the Company.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Her Yerde Sağlık ve Elektronik Tic. A.Ş. (HYSET) is established in Teknopark Ankara with a capital of TRY 500,000, and It will operate in digital transformation and marketing in healthcare. HYSET is designed as a platform where the content, presentation form and prices of the services provided by the contracted health service providers can be compared, appointments can be prepared and purchased, and real user experiences can be shared. It participated at 100% in the formation of the Company.
HYS Sigorta Aracılık Hizmetleri A.Ş.'s (the Company) main field of activity is insurance and brokerage services, with a capital of TRY 300,000 in which Her Yerde Sağlık ve Elektronik Ticaret A.Ş. which is 100% shareholding is a partner in Ankara.
Lokman Hekim İstanbul Sağlık Yatırımları A.Ş. (Adatıp Sağlık Hizmetleri A.Ş.) has been taken over by Lokman Hekim Engürüsağ as of 1 April 2022, corresponding to its paid-in capital of TRY 20.000.000. Adatıp Sağlık Hizmetleri A.Ş. was established on 17 January 1990, for the provision of health services in Sakarya province. In accordance with the decision taken at the extraordinary general assembly of Adatıp Sağlık Hizmetleri A.Ş. dated 1 April 2022, the new trade name was changed to Lokman Hekim İstanbul Sağlık Yatırımları A.Ş. It decided that the hospital would continue to provide services uninterruptedly under the name Lokman Hekim Istanbul Hastanesi. The main field of activity of the company is the provision of health services. The company operates Lokman Hekim Istanbul Hastanesi in the Pendik district of Istanbul. The hospital has a capacity of 200 beds in a closed area of 25,000 m² on a land of 17.000 m². The hospital currently has a hospital license with a total of 115 beds.
The hospital has JCI (Joint Commission International) accreditation.
According to the decision taken by the Company's Board of Directors, Lokman Hekim Lojistik A.Ş. was established with a capital of TRY 1,000,000, 100% of the capital belonging to the company, and for the purpose of carrying out the logistics works of all facilities within the group. The establishment and registration of the company was carried out on 28 July 2023.
Operating in the Haymana and Bala districts of Ankara, Hay Süt, as an enterprise with European standards and purity certificate, produces milk and livestock production Hay Süt ve Süt Ürünleri Hayvancılık Gıda İth. İhr. A.Ş; Lokman Hekim Engürüsağ Health, Tourism, Education Services and Construction Contracting Inc. was taken over as a whole with its assets and liabilities with the facilitated merger method due to its 100% ownership.
The laboratories located in the hospitals are members of the ONEWORLD ACCURACY. The laboratory instruments' reliability and measurement results are regularly checked with the External Quality Control Programs.
Anesthesia and re-animation, nutrition and dietetics, brain and nerve surgery, pediatric health and diseases, newborn, dermatology, radiology, physical medicine and rehabilitation, gastroenterology, general surgery, chest diseases, ophthalmology, hematology, internal medicine, gynecology and obstetrics, cardiology, cardiovascular surgery, otolaryngology, neurology, nephrology, orthopedics and traumatology, urology, dentistry, thoracic surgery, endocrinology, psychiatry, pediatric surgery, plastic reconstructive and aesthetic surgery, emergency medicine, biochemistry, microbiology, infectious diseases, pathology, interventional radiology, medical oncology, pediatric cardiology.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Duty | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Doctor | 262 | 264 |
| Health Service | 802 | 970 |
| Health Support Services | 470 | 489 |
| Administrative Support Services | 558 | 437 |
| Administrative staff | 214 | 186 |
| Veterinarians and Workers | 10 | 14 |
| Total | 2,316 | 2,360 |
The Company prepares and keeps its statutory records and legal financial statements in accordance with the Turkish Commercial Code ("TCC") and accounting principles determined by the tax legislation.
The consolidated financial statements of the Company have been prepared in accordance with the Turkish Financial Reporting Standards ("TFRS"), and interpretations, as adopted in line with international standards by the Public Oversight Accounting and Auditing Standards Authority of Turkey ("POA") in line with the communiqué numbered II-14.1 "Communiqué on the Principles of Financial Reporting In Capital Markets" ("the Communiqué") announced by the Capital Markets Board of Turkey ("CMB") on 13 June 2013, which is published on Official Gazette numbered 28676. TFRS are updated in harmony with the changes and updates in International Financial and Accounting Standards ("IFRS") by the communiqués announced by the POA.
Consolidated financial statements are presented in accordance with the formats specified in the "Announcement on TMS Taxonomy" published by the POA and the Financial Statement Examples and User Guide published by the CMB.
Based on the announcement made by the POA on 23 November 2023 and the "Implementation Guide on Financial Reporting in Hyperinflationary Economies", the Group has prepared its financial statements for the period ended 31 December 2024 by applying TAS 29 "Financial Reporting in Hyperinflationary Economies" Standard. According to the standard, financial statements prepared based on the currency of a hyperinflationary economy are prepared in the purchasing power of this currency at the balance sheet date and comparative information is expressed in terms of the current measurement unit at the end of the reporting period for comparison purposes with the previous period financial statements. Therefore, the Group has presented its financial statements as of 31 December 2023 and 31 December 2024 based on the purchasing power principle as of 31 December 2024.
In accordance with the decision of the CMB dated 28 December 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of TAS 29, starting from their annual financial reports for the accounting periods ending as of 31 December 2024.
The restatements made in accordance with TMS 29 were made using the correction coefficient obtained from the Consumer Price Index ("CPI") in Turkey published by the Turkish Statistical Institute ("TSI"). As of 31 December 2024, the indices and correction coefficients used in the correction of the financial statements are as follows:
| Date | Index | Adjustment Coefficient |
|---|---|---|
| 31 December 2024 | 2,684.55 | 1.0000 |
| 31 December 2023 | 1,859.38 | 1.44379 |
| 31 December 2022 | 1,128.45 | 2.37897 |
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
The main elements of the Group's adjustment for financial reporting purposes in hyperinflationary economies are as follows:
The main outlines of TMS 29 indexing procedures are as follows:
The company reported the financial statements according to the going concern principle,
| Company | Field of Activity | Participation Rate (%) | |
|---|---|---|---|
| 31 December 2024 | 31 December 2023 | ||
| Lokman Hekim Van Sağlık Hiz. ve İnş. Taah. A.Ş. | Health care | 51 | 51 |
| Engürüsağ Genel Ticaret Ltd. Şti. (Erbil) | Health care | 100 | 95 |
| Lokman Hekim Tıp Merkezleri A.Ş.* | Health care | 49 | 49 |
| Her Yerde Sağlık ve Elektronik Tic. A.Ş. | E-Health Service | 100 | 100 |
| HYS Sigorta Aracılık Hizmetleri A.Ş. | Insurance and Brokerage | 100 | 100 |
| Lokman Hekim İstanbul Sağlık Yatırımları A.Ş. | Health care | 100 | 100 |
| Lokman Hekim Lojistik A.Ş. | Logistics Services | 100 | 100 |
All of the above companies have been consolidated within the framework of the principles explained below.
(*) The company has been included in the financial statements using the full consolidation method since it holds 49% of the privileged Class A registered shares, granting it a minimum of 66% representation in management, 15 voting rights per share, and 99.99% entitlement to profit distribution.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Comparative information is reclassified when necessary to ensure compliance with the presentation of the current period financial statements.
Functional currency of the the Company is Turkish Lira (TRY) and attached consolidated financial statements and notes to consolidated financial statements are presented in Turkish Lira (TRY).
Attached financial statements of the Company have been confirmed by the Board of Directors of the Company as of 19 February 2025. The right to change the attached consolidated financial statements belongs to the General Assembly of the the Company or legal authorities.
Financial assets and liabilities are presented on a net basis when there is a legally enforceable right, an intention to settle the assets and liabilities on a net basis, or when the realization of the assets and the settlement of the liabilities occur consecutively.
Financial statements of partnerships and subsidiaries in foreign countries are prepared in accordance with the host countries' standards and law. The accounting principles of the Company are adjusted according to these laws and standards.
If the currencies of the Group companies are different from reporting currency, then the translation method is below;
Notes to the Consolidated Financial Statements for the period ended 31 December 2024
(Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
The accounting policies used in preparing the consolidated financial statements for the accounting period ending as 31 December 2024, are consistent with those used in the previous year, except for the new and amended Turkish Accounting Standards ("TAS")/TFRS and TMS/TFRS interpretations valid as of 1 January 2024, which are summarized below. The effects of these standards and interpretations on the financial position and performance of the Company are explained in the relevant paragraphs.
The purpose of these changes is to ensure consistent application of the requirements of the standard by assisting companies in the decision-making process regarding whether debts and other liabilities in the statement of financial position that do not have a specific maturity should be classified as short-term (expected to be paid within one year) or long-term.
These amendments to TAS 1 will be postponed for one year and will be applied in annual accounting periods beginning on or after 1 January 2024, although early application is also permitted.
These amendments to TFRS 16 clarify how a seller-lessee subsequently measures sale and leaseback transactions that meet the requirements in TFRS 15 to be accounted for as sales.
These amendments to TFRS 16 will be applied in annual accounting periods beginning on or after 1 January 2024, although early application is also permitted.
The amendments to TAS 1 explain how the conditions that an entity must satisfy within twelve months after the reporting period affect the classification of a liability.
These amendments to TMS 1 will be applied in annual accounting periods beginning on or after 1 January 2024, although early application is also permitted.
The potential impacts of these standards, amendments and improvements on the Group's consolidated financial position and performance are being assessed.
The amendments to TAS 7 and TFRS 7 add signposts to existing disclosure requirements requiring entities to provide qualitative and quantitative information about supplier finance arrangements and disclosure requirements. The amendments are effective for annual periods beginning on or after 1 January 2024.
A business can only apply accounting policies; can change in the following cases:
a) If required by a TAS/TFRS, or
b) It is such that the effects of transactions and events on the financial position, performance or cash flows of the entity are presented more appropriately and reliably in the financial statements.
When an accounting policy is changed, the total amount of adjustments for periods prior to that presented in the financial statements is included in the retained earnings for the next period. Other information on previous periods is also restated. When changes in accounting policies have an effect on the current period, previous periods or the results of operations of successive periods; The reasons for the change, the amount of the adjustment for the current period and previous periods, the adjustment amounts for the previous periods and the comparative information are restated or this application is not made because it requires an excessive cost.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Many financial statement items cannot be accurately measured due to the uncertainties present in operating activities, but they can be estimated. Estimates are made based on the most up-to-date and reliable information.
Changes in an accounting estimate are applied prospectively in the current and future periods in which the change is made.
Errors that occur during the recognition, measurement, presentation and disclosure of financial statement items are corrected retrospectively in the first set of financial statements to be approved after they are recognized. Correction process:
Where the cumulative effect of all prior periods of error cannot be calculated for the beginning of the current period, the entity restates prospectively from the beginning of the period as soon as it is possible to apply the comparative information.
When the company fulfills or fulfills its performance obligation by transferring a promised good or service to its customer, it records the revenue in its financial statements. An asset is transferred when (or when) control of an asset is transferred to the customer. The company records the revenue in its financial statements in line with the following basic principles:
Accordingly, the goods or services promised in each contract with customers are first assessed, and each commitment to transfer those goods or services is identified as a separate performance obligation. Subsequently, it is determined whether the performance obligations will be fulfilled over time or at a specific point in time. If the company transfers control of a good or service over time and, consequently, satisfies the related performance obligations over time, revenue is recognized in the financial statements over time by measuring progress toward the complete fulfillment of the performance obligations. Revenue related to performance obligations involving the transfer of goods or services is The company recognizes a contract with a customer as revenue if all of the following conditions are met:
a) The parties to the contract have approved the contract (written, verbal or in accordance with other commercial practices) and undertake to perform their own acts,
b) The company can define the rights related to the goods or services to be transferred by each party,
c) The company can define payment terms for the goods or services to be transferred,
d) The contract is commercial in nature,
e) It is probable that the Company will collect a price for the goods or services to be transferred to the customer. In assessing whether a consideration is likely to be collectible, an entity considers only the customer's ability and intent to pay the consideration as due.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
If an uncertainty arises about the collectability of the revenue amount that was previously recognized in the financial statements, the amount that cannot be collected or whose probability of being collected is not probable is recognized as an expense instead of adjusting the revenue initially recognized.
The company reports the income accruals of the patients whose treatment continues at the end of the period, within the health service sales revenues.
Cost of inventories includes all costs of purchase, cost of conversion, and other costs incurred in bring the inventories to their present location and condition. In inventory purchases with payments, the differences between the cash value and the forward value are accounted for as finance expense in the period they occur.
Inventory method is weighted average cost method.
Inventories are valued with the lowest of cost and net realizable value. Net realizable value is the value expected sales value under normal conditions less the total of expected costs of completion and expected sales costs in order to perform the sale.
It is assumed that the production activities would be at normal capacity on the distribution of fixed general production costs to conversion costs. Normal capacity is the expected average production amount under normal conditions within one or a few periods or sessions considering the loss of capacity due to the planned repair and maintenance works. If the real production level is close to the normal capacity, then this capacity is considered as normal capacity. If the actual production level is continuously below from the pre-determined normal capacity, then the normal capacity is accepted as realized actual capacity and all the fixed production costs add into the production costs of services.
Biological assets are recognized initially at cost. They are valued at fair value at the end of each reporting period. In cases where fair value cannot be calculated or determined clearly, so-called biological asset is re-valued through its cost less all related accumulated depreciation and accumulated provisions for loss. Gains or losses on the values are linked with the period profit or loss.
The Company displays livestock and agricultural products at fair value. Agricultural products that are not harvested valued after deducting estimated sales costs from their market values.
Tangible assets that are expected to be used in the business for more than one year are initially recorded at cost. Fixed assets are also valued based on the cost model. Assets are adjusted according to TAS 29 using the month index of the date they were purchased.
The company calculates short-term depreciation for its fixed assets according to the straight-line depreciation method.
The Company takes the useful life of the asset as a basis while determining the depreciation life of tangible fixed assets.
Costs of fixed assets acquired through financial leasing are net of interest and foreign exchange differences. Interest and exchange differences are recognized as financial expense in the relevant periods.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Company' s beneficial lives for tangible assets are below;
| Buildings | 50 Years |
|---|---|
| Machinery, plants and equipment | 5 – 20 Years |
| Vehicles | 5 Years |
| Fixtures | 2 – 20 Years |
| Assets purchased through leasing | 5 – 20 Years |
| Other intangible assets | 3 – 15 Years |
| Intangible Assets; |
Intangible assets that are expected to be used in the business for more than one year are initially recorded at cost. In subsequent periods, they are valued based on the cost model. Assets are adjusted according to TAS 29 using the month index of the date they were acquired.
"Doctor Staff and Medical License Fee" are reported in intangible assets as Rights for Lokman Hekim Akay Hastanesi, Lokman Hekim İstanbul Hastanesi, Lokman Hekim Demet Hastanesi, Lokman Hekim Van Hastanesi and Lokman Hekim Hayat Hastanesi.
According to the issued change in the Official Journal on 11 July 2013, transfer of staff and license is allowed with article 6 of the Private Hospital Regulation.
The Company takes the useful lives of the assets into consideration when determining the depreciation lives of the intangible assets.
The Company determined useful lives for its intangible assets for 3 to 15 years. Intangible assets with indefinite useful lives (doctor staff fees and hospital licenses) are not subject to amortization but are tested for impairment.
According to IAS 36 – Decline in the Values of Assets standard, book values of tangible and intangible assets and their recoverable values can be compared if necessary due to domestic and international economic indications. If it is forecasted that the book value of the asset exceeds the recoverable value, then it is accepted that there is a decline in the asset's value. Recoverable value is the lesser of the exercise price and market price. The forecasted decline in the value is registered as a loss at the term in which it is determined.
Under the Turkish Labor Law, the company is obliged to pay a severance pay equal to 30-day salary to the employee who quit their job due to retirement after serving at least one year or is terminated by the employer except for immoral, dishonourable or malicious conduct, or other similar behaviour. Therefore, the Company has to estimate the future payments which represent the total liability, and the estimated payments should be discounted and brought to the net present value. The company reports the discounted net value of its total liability as of the balance sheet date.
The company assumes that all of its staff will retire when they reach their seniority by working 25 years for men and 20 years for women. Severance pay is also considered to be paid on this retirement date. The company aims to determine the employee's expected severance pay liability when they retire or are laid off. The net present value of the portion the personnel are entitled to receive regarding their seniority as of the balance sheet date in this total liability, which is estimated to be paid, is recorded in the statement of financial position as a provision for employment termination benefits. It is assumed that the ratio of the number of personnel who left without receiving any severance pay in the previous periods to the total personnel who left their job will also be repeated in the future. This ratio reduces the total burden.
The difference in the total severance pay burden between the two periods is distributed to cost of interest, cost of service for the current period and actuarial income/loss. Cost of interest is the cost of use of the liability in the previous period's statement of financial position and equals to the liability amount at the beginning of the period for the employees who
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
are still working multiplied by the discount rate used in that year. The cost of service for the current period is the portion of the severance pay at the time it is going to be paid, which the employees get the right for severance pay for their services at the time of balance sheet through discount rate. All other differences are reflected in actuarial income and loss. Actuarial income/loss are presented in equity, interest cost and cost of services are presented in the comprehensive income statement.
Except from the regular wages, bonuses and other social benefits provided to the employees, there is no contribution plan to be paid in the periods after retirement or leaving the job.
Tax payable in the attached financial statements is consist of tax provision for the current period and deferred tax. The provision for the liabilities regarding to the corporate tax to be resulted from the activities in the current period is set based on the legal tax rates at the time of balance sheet.
DTA (Deferred Tax Asset) /(Liability) is the difference between account value and tax value (timing difference). Current tax rate is considered on the calculation of DTA (Deferred Tax Asset). DTL (Deferred Tax Liability) is presented in the financial statements for all taxable or deductible provisional differences, but DTA (Deferred Tax Asset) is presented in the financial statements provided that there are taxable profits are possible from which the deductible provisional differences can be set off. Net DTA (Deferred Tax Assets) resulting from the timing differences are reduced at the rate of the tax deductions provided that it is not certain that they can be used in the following years according to the information on hand.
For these financial statements, shareholders, critical management personnel and members of the Board of Directors, their families and companies controlled or affiliated with them, affiliates and partnerships and minority shareholders of subsidiaries are considered and expressed as related parties. Shareholders and principal executives of these companies and members of the Company's board of directors and their families are also included in the scope of related parties. Transactions with related parties were generally carried out following market conditions. Key management personnel are expressed as the related party of the Company.
Bank loans received against interest are recorded based on the net amount received after deducting the purchase cost. Income or expenses incurred during the redemption process or recording of liabilities are associated with the statement of comprehensive income. Borrowing costs are recognized on an accrual basis, even if they do not become due in the period they arise.
The Company reflects a right-of-use asset and a lease liability in its financial statements at the commencement date of the lease.
The right-of-use asset is initially accounted for using the cost method and includes:
(d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories.
When applying the company cost method, the right-of-use asset;
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
(a) Accumulated depreciation less accumulated impairment losses; and
(b) at cost adjusted for the remeasurement of the lease liability.
While depreciating the right-of-use asset, the Company applies the depreciation provisions of TAS 16 Tangible Fixed Assets. If the Supplier transfers ownership of the underlying asset to the Company at the end of the lease term, or if the cost of the right-of-use asset indicates that the Company will exercise a call option, the Company depreciates the right-of-use asset from the date the lease actually commences to the end of the useful life of the underlying asset. In other cases, the Company depreciates the right-of-use asset over the shorter of the asset's useful life or the lease term, starting from the actual commencement date of the lease.
The company applies TAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and to account for any identified impairment losses.
At the commencement date of the lease, the Company measures the lease liability at the present value of the lease payments not paid at that date. Lease payments are discounted using the implied interest rate in the lease, if that rate can be easily determined. If this rate cannot be easily determined, the company uses its own incremental borrowing interest rate.
At the commencement date of the lease, the lease payments included in the measurement of the lease liability consist of the following payments to be made for the right to use the underlying asset during the lease term, which were not paid at the commencement date of the lease;
(a) the amount obtained by deducting any lease incentive receivables from the fixed payments;
After the actual commencement of the lease, the Company measures the lease liability as follows;
(a)increase the carrying amount to reflect the interest on the lease liability;
(b)reduce its carrying amount to reflect lease payments made; and
(c)Remeasure book value to reflect reassessments and restructurings or to reflect revised lease payments that are fixed in substance.
The interest on the lease liability for each period in the lease term is the amount found by applying a fixed periodic interest rate to the remaining balance of the lease liability. The periodic rate of interest is the implied rate of interest in a lease, if it can be easily determined. If this rate cannot be easily determined, the company uses its own alternative borrowing interest rate.
After the actual commencement of the lease, the Company remeasures the lease liability to reflect changes in lease payments. The Company reflects the remeasurement amount of the lease liability as an adjustment to the right-of-use asset in its financial statements.
The Company re-measures its lease liability by discounting the revised lease payments at a revised discount rate if one of the following conditions occurs;
(a) There is a change in the lease term. The company determines the revised lease payments based on the revised lease term.
(b) There is a change in the assessment of the option to purchase the underlying asset. The company determines the revised lease payments to reflect the change in the amounts payable under the option to buy.
The Company may use the revised discount rate for the remainder of the lease term, as this rate if the implied interest rate in the lease can be easily determined; If it cannot be determined easily, it is determined as the alternative borrowing interest rate of the Company at the date of reassessment.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
The Company re-measures the lease liability by discounting the revised lease payments if one of the following situations occurs;
(a) A change in the amounts expected to be paid under a residual value commitment. The company determines the revised lease payments to reflect the change in the amounts expected to be paid under the residual value commitment.
(b) A change in those payments as a result of a change in an index or rate used to determine future lease payments. The Company remeasures the lease liability only when there is a change in cash flows to reflect those revised lease payments.
The Company determines the revised lease payments for the remaining lease term based on the revised contractual payments. The company uses an unmodified discount rate in this case.
The Company accounts for the restructuring of the lease as a separate lease if both of the following conditions are met;
(a) the restructuring expands the scope of the lease by adding the right to use one or more of the underlying assets; and (b) the rental price increases by the amount of appropriate adjustments to that stand-alone price to reflect the stand-alone price of the increase in coverage and the terms of the relevant contract.
The Company reflects the fixed assets acquired through financial leasing on the consolidated balance sheet over the fair value at the start date of the lease or, if lower, the value of the minimum lease payments at the balance sheet date (included in the relevant tangible asset items in the consolidated financial statements). While calculating the present value of the minimum lease payments, if the rate applicable in the financial leasing transaction can be determined practically, that value, otherwise, the borrowing interest rate is used as the discount factor. The costs incurred during the initial acquisition of the fixed asset subject to financial leasing are included in the cost. The liability arising from the financial leasing transaction is separated as the interest payable and principal debt. Interest expenses are calculated over a fixed interest rate and included in the income statement accounts of the relevant period. Leased fixed assets reflected in the consolidated financial statements are depreciated according to their economic life and lease term, whichever is shorter.
If a seller-lessee transfer of an asset does not meet the requirements in TFRS 15 to be accounted for as a sale of assets:
(a) The seller-lessee continues to present the transferred asset in its financial statements and recognizes a financial liability equal to the transfer price. It accounts for the said financial liability within the scope of TFRS 9.
(b) The buyer-lessor does not recognize the transferred asset and recognizes a financial asset equal to the transfer price. It accounts for the financial asset in question within the scope of TFRS 9.
The company does not consider the sales of fixed assets through sell-lease-repurchase transactions as sales transactions due to their nature, and reflects the financial liability equal to the transfer price in its financial statements.
Earnings (loss) per share is computed by dividing the net profit or loss by the weighted average number of common shares outstanding in the current period.
In Turkey, companies can raise their share capital by distributing "Bonus Shares" to shareholders from retained earnings. In computing earnings per share, such "Bonus Share" distributions are assessed as issued shares. Accordingly, the retrospective effect for those share distributions determines the weighted-average number of outstanding shares used in this computation.
In the event of adjusting events occurring after the balance sheet date, the amounts recognized in the financial statements are adjusted accordingly. In the case of non-adjusting events occurring after the balance sheet date, they are disclosed in the relevant period if they are significant.
Provisions;
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Provisions are recognized only when the Company has a past and present obligation if it is probable that an outflow of resources embodying economic benefits to the Company due to this obligation, and a reliable estimate of the amount of obligation can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates of the management.
Transactions that give rise to commitments and contingent liabilities refer to situations whose realization depends on the outcome of one or more upcoming events. Therefore, some transactions are not included in the statement of financial position in terms of possible future losses, risks or uncertainties. If an estimate is made for possible future liabilities or losses, these liabilities are considered expenses and liabilities for the Company. However, income and profits that are likely to occur in the future are reflected in the financial statements.
Assets denominated in foreign currency in the statement of financial position The Central Bank is converted into Turkish Lira using the foreign exchange buying rate and the debts are converted into Turkish Lira using the foreign exchange selling rate. Foreign currency transactions realized during the period are converted into Turkish Lira using the actual exchange rates on the transaction date. Exchange rate difference income and expenses arising from these transactions are included in the income statements.
The preparation of financial statements requires management to make a number of judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, the probable liabilities and commitments, and the reported amounts of income and expense during the reported periods. Although management believes these judgements, estimates and assumptions to be reasonably accurate, actual results may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis.
The important estimates and assumptions used by the Company while preparing its financial statements are as follows;
An entity is allowed to change an accounting policy only if the change;
Users of financial statements should be able to identify trends in the entity's financial position, performance, and cash flows by studying and analysing the information contained in those statements. Therefore, an entity shall select and apply its accounting policies consistently unless a change in accounting policy meets one of the conditions set out in the paragraph above.
The current period financial statements of the Company are prepared comparatively with the previous period to get insight into the financial situation and performance trends. Comparative amounts are reclassified when necessary to comply with the presentation of items in the current period's financial statement
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
The company prepares its sales as its operating on the basis of hospital, major buyers, types of activities and outpatient and inpatient services.
| Revenues by Field of Activities | 01.01.2024- 31.12.2024 | 01.01.2023- 31.12.2023 | |||
|---|---|---|---|---|---|
| Amount | % | Amount | % | ||
| Health income | 2,471,569,730 | 84.02 | 2,423,835,140 | 88.57 | |
| Livestock, milk, feed sales | 56,912,686 | 1.93 | 66,954,043 | 2.45 | |
| Hospital rental income | 260,868,307 | 8.87 | 179,749,985 | 6.57 | |
| Logistics revenues | 96,399,370 | 3.28 | 57,748,611 | 2.11 | |
| Other income | 55,768,693 | 1.90 | 8,477,702 | 0.31 | |
| Total Sales | 2,941,518,785 | 100 | 2,736,765,481 | 100 |
| Health Revenues by Institution | 01.01.2024- 31.12.2024 01.01.2023- 31.12.2023 |
|||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Sales to SSI | 533,106,454 | 21.57 | 620,320,993 | 25.59 |
| Sales to other persons, organizations | 1,938,463,276 | 78.43 | 1,803,514,147 | 74.41 |
| Total Sales | 2,471,569,730 | 100 | 2,423,835,140 | 100 |
| Trade Receivables on Institutional Basis | 31 December 2024 31 December 2023 |
|||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Receivables from SSI | 215,455,205 | 37 | 226,396,257 | 47 |
| Receivables from other persons, organizations | 370,353,258 | 63 | 257,174,329 | 53 |
| Total Receivables | 585,808,463 | 100 | 483,570,586 | 100 |
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Cash | 454,775 | 1,831,181 |
| Banks | 48,901,431 | 36,015,520 |
| - Current deposit | 48,901,431 | 36,015,520 |
| TRY | 39,409,215 | 32,747,662 |
| USD | 5,148,565 | 2,372,194 |
| EUR | 4,343,651 | 895,664 |
| Other Current Assets* | 49,094,230 | 16,461,470 |
| Total | 98,450,436 | 54,308,171 |
(*) Average maturity of credit card receivables is 40 days (31 December 2023: 40 days).
| Short Term Financial Liabilities | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Short-term bank loans | 312,800,485 | 334,162,691 |
| Short-term portions of long-term bank loans | 380,296,301 | 87,701,990 |
| Payables from rental transactions | 32,750,433 | 33,732,073 |
| Financial lease liabilities | 30,692,025 | 40,766,825 |
| - Financial leasing debts | 39,760,048 | 70,403,526 |
| - Deferred interest costs | (9,068,023) | (29,636,701) |
| Total | 756,539,244 | 496,363,579 |
| Long Term Financial Liabilities | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Long-term bank loans | 296,768,185 | 112,964,681 |
| Payables from rental transactions | 63,065,435 | 93,882,313 |
| Financial lease liabilities | 9,946,572 | 58,559,732 |
| - Financial leasing debts | 11,644,976 | 73,699,297 |
| - Deferred interest costs | (1,698,404) | (15,139,565) |
| Total | 369,780,192 | 265,406,726 |
Bank loans, financial lease liabilities, and lease obligations have the following maturities:
| Bank Loans | 31 December 2024 | 31 December 2023 |
|---|---|---|
| 0 – 3 Months | 200,853,150 | 29,583,807 |
| 3 – 12 Months | 492,243,636 | 392,280,874 |
| 1 – 5 Years | 269,345,166 | 112,964,681 |
| More than 5 years | 27,423,019 | - |
| Total | 989,864,971 | 534,829,362 |
Mortgages amounting to TRY 2,574,902,000 were given for the loans (31.12.2023:TRY 2,179,746,021).
| Financial Leasing Debts | 31 December 2024 | 31 December 2023 |
|---|---|---|
| 0 – 3 Months | 8,839,267 | 18,210,230 |
| 3 – 12 Months | 21,852,758 | 22,556,595 |
| 1 – 5 Years | 9,946,572 | 58,559,732 |
| Total | 40,638,597 | 99,326,557 |
| Payables from Rental Transactions | 31 December 2024 | 31 December 2023 |
|---|---|---|
| 0 – 3 Months | 7,686,380 | 3,295,818 |
| 3 – 12 Months | 25,064,053 | 30,436,255 |
| More than 1 Year | 63,065,435 | 93,882,313 |
| Total | 95,815,868 | 127,614,386 |
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Short term Trade Receivables | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Trade receivables* | 502,372,052 | 448,613,778 |
| Notes receivable | 32,257,783 | 1,554,092 |
| Trade receivables from related parties** | 65,791,378 | 33,532,846 |
| Doubtful trade receivables | 8,120,239 | 6,393,597 |
| Provision for doubtful trade receivables (-) | (8,120,239) | (6,393,597) |
| Accrued interest expense (-) | (14,612,750) | (130,130) |
| Total | 585,808,463 | 483,570,586 |
(*) An amount of TRY 199,138,947 (31.12.2023: TRY 121,332,953) in the account consists of accrued revenue from patients undergoing treatment.
(**) Related party transactions are explained in Note-29.
The average interest rate used in the calculation of accrued interest expenses is 48% (31.12.2023: 53%).
Movement of doubtful trade receivables during the year is as follows:
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Doubtful Receivables | 31 December 2024 | 31 December 2023 |
| Beginning of the period | 6,393,597 | 7,877,223 |
| Increases during the year | 2,335,082 | 1,612,943 |
| Bad debts, collection/(cancellations) | (12,783) | - |
| Monetary gain/(loss) | (595,657) | (3,096,569) |
| End of the period | 8,120,239 | 6,393,597 |
| Short term trade payables | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Trade payables | 209,528,799 | 211,721,323 |
| Debt securities | 67,525,861 | 65,937,051 |
| Trade payables to related parties* | 13,319,640 | 15,705,087 |
| Other trade payables | 24,844,527 | 36,819,187 |
| Accrued interest income (-) | (31,738,201) | (2,899,761) |
| Total | 283,480,626 | 327,282,887 |
(*) Related party transactions are explained in Note-29 .
The average interest rate used in the calculation of accrued interest income is 48%, (31.12.2023: 53%).
| Short Term Other Receivables | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Miscellaneous other receivables* | 21,008,891 | 48,485,344 |
| Other receivables from related parties** | 110,501,589 | 86,950,255 |
| Receivables from staff | 333,164 | - |
| Deposits and guarantees given | 39,994 | 57,743 |
| Other doubtful receivables | 1,237,500 | 1,786,687 |
| Provision for other doubtful receivables (-) | (1,237,500) | (1,786,687) |
| Total | 131,883,638 | 135,493,342 |
(*) Other miscellaneous receivables consist of tax, incentive and insurance claims.
(**) Related party transactions are explained in Note-29.
Notes to the Consolidated Financial Statements for the period ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Long Term Other Receivables | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Deposits and guarantees given | 760,987 | 444,717 |
| Total | 760,987 | 444,717 |
| Other Short-Term Payables | 31 December 2024 | 31 December 2023 |
| Miscellaneous other debts | 562,980 | 923,487 |
| Deposits and guarantees received | - | 20,213 |
| Other payables to related parties* | 338,921 | 308,126 |
| Total | 901,901 | 1,251,826 |
(*) Related party transactions are explained in Note-29.
| Inventories | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Raw Materials | 177,725,681 | 125,420,355 |
| Trade goods | 5,029,369 | 176,585 |
| Other goods | 19,586,691 | 20,076,430 |
| Total | 202,341,741 | 145,673,370 |
| Dairy and Livestock | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Registered value | 62,686,006 | 50,695,000 |
| Change in fair value | 20,934,994 | 22,497,818 |
| Total | 83,621,000 | 73,192,818 |
Biological assets are initially recognized at cost. At the end of each reporting period, they are measured at fair value. In the current period, there has been a change of TRY (1,322,211) in the fair value of dairy and fattening livestock (31.12.2023: TRY 25,047,346).
As of 31 December 2024, the number of biological assets of the company is 576 (31.12.2023: 557 units).
Total insurance amount on biological assets is TRY 4,489,000 (31.12.2023: TRY 6,481,162).
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Tangible Asset | 1 January 2024 | Additions | Disposals | 31 December 2024 |
|---|---|---|---|---|
| Land and lands | 76,963,605 | - | - | 76,963,605 |
| Buildings | 315,528,442 | 21,885,637 | - | 337,414,079 |
| Machinery plant and devices | 765,306,146 | 9,724,095 | (1,816,199) | 773,214,042 |
| Vehicles | 25,271,436 | 5,254,183 | - | 30,525,619 |
| Furniture and fixtures | 938,602,999 | 63,854,666 | (11,339,229) | 991,118,436 |
| Fixed assets acquired through finance leases | 252,362,167 | - | - | 252,362,167 |
| Specific costs | 485,405,894 | 78,665,728 | (62,187) | 564,009,435 |
| Ongoing investments | 11,312,072 | 81,831,558 | - | 93,143,631 |
| Total | 2,870,752,761 | 261,215,867 | (13,217,615) | 3,118,751,014 |
| Accumulated depreciation | 1 January 2024 | Depreciation Expense | Disposals | 31 December 2024 |
|---|---|---|---|---|
| Buildings | (11,575,145) | (6,545,342) | - | (18,120,487) |
| Machinery plant and devices | (452,556,012) | (46,054,555) | 1,222,863 | (497,387,704) |
| Vehicles | (14,617,220) | (3,037,695) | - | (17,654,915) |
| Furniture and fixtures | (611,264,137) | (70,407,644) | 11,020,033 | (670,651,748) |
| Fixed assets acquired through finance leases | (173,499,925) | (11,462,235) | - | (184,962,160) |
| Specific costs | (184,388,292) | (55,739,515) | 1,036 | (240,126,770) |
| Total | (1,447,900,731) | (193,246,986) | 12,243,932 | (1,628,903,784) |
| Net | 1,422,852,030 | 1,489,847,230 |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024
(Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Tangible Asset | 1 January 2023 | Additions | Disposals | 31 December 2023 |
|---|---|---|---|---|
| Land and lands | 47,078,491 | 29,885,114 | - | 76,963,605 |
| Buildings | 296,708,095 | 18,820,347 | - | 315,528,442 |
| Machinery plant and devices | 768,223,483 | 4,281,116 | (7,198,453) | 765,306,146 |
| Vehicles | 22,202,140 | 3,829,403 | (760,107) | 25,271,436 |
| Furniture and fixtures | 824,107,674 | 119,907,454 | (5,412,129) | 938,602,999 |
| Fixed assets acquired through finance leases | 252,362,166 | - | - | 252,362,166 |
| Specific costs | 356,367,310 | 129,038,584 | - | 485,405,894 |
| Ongoing investments | 1,202,516 | 10,110,694 | (1,137) | 11,312,073 |
| Total | 2,568,251,875 | 315,872,712 | (13,371,826) | 2,870,752,761 |
| Accumulated depreciation | 1 January 2023 | Depreciation Expense | Disposals | 31 December 2023 |
|---|---|---|---|---|
| Buildings | (5,264,280) | (6,310,865) | - | (11,575,145) |
| Machinery plant and devices | (409,866,669) | (47,434,888) | 4,745,545 | (452,556,012) |
| Vehicles | (11,964,184) | (2,729,048) | 76,012 | (14,617,220) |
| Furniture and fixtures | (505,933,689) | (107,898,939) | 2,568,492 | (611,264,136) |
| Fixed assets acquired through finance leases | (130,393,333) | (43,106,593) | - | (173,499,926) |
| Specific costs | (144,599,752) | (39,788,539) | - | (184,388,291) |
| Total | (1,208,021,907) | (247,268,872) | 7,390,048 | (1,447,900,730) |
| Net | 1,360,229,968 | 1,422,852,031 |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Right of use assets | 1 January 2024 | Additions Classification/Revaluation | Disposals | 31 December 2024 | |
|---|---|---|---|---|---|
| Right of use assets | 975,437,478 | 238,289,923 | - | - | 1,213,727,401 |
| Total | 975,437,478 | 238,289,923 | - | - | 1,213,727,401 |
| Accumulated depreciation | 1 January 2024 | Depreciation Expense Classification/Revaluation | Disposals | 31 December 2024 | |
| Right of use assets | (554,203,751) | (163,837,185) | (9,425,704) | - | (727,466,640) |
| Total | (554,203,751) | (163,837,185) | (9,425,704) | - | (727,466,640) |
| Net | 421,233,727 | 486,260,761 |
| Right of use assets | 1 January 2023 | Additions Classification/Revaluation | Disposals | 31 December 2023 | |
|---|---|---|---|---|---|
| Right of use assets | 975,437,478 | - | - | - | 975,437,478 |
| Total | 975,437,478 | - | - | - | 975,437,478 |
| Accumulated depreciation | 1 January 2023 | Depreciation Expense Classification/Revaluation | Disposals | 31 December 2023 | |
|---|---|---|---|---|---|
| Right of use assets | (469,535,340) | (84,668,411) | - | - | (554,203,751) |
| Total | (469,535,340) | (84,668,411) | - | - | (554,203,751) |
| Net | 505,902,138 | 421,233,727 |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Intangible Assets | 1 January 2024 | Additions | 31 December 2024 |
|---|---|---|---|
| Rights | 82,134,880 | 24,446,746 | 106,581,626 |
| Doctor Staff and Medical License Fee | 234,822,215 | - | 234,822,215 |
| Other Intangible Assets | 21,178,168 | - | 21,178,166 |
| Total | 338,135,263 | 24,446,756 | 362,582,007 |
| Accumulated Amortization | 1 January 2024 | Amortization Expense | 31 December 2024 |
| Rights | (18,796,743) | (14,365,430) | (33,162,174) |
| Other Intangible Assets | (14,880,478) | (8,421,003) | (23,301,481) |
| Total | (33,677,221) | (22,786,433) | (56,463,655) |
| Intangible Assets | 1 January 2023 | Additions | 31 December 2023 |
|---|---|---|---|
| Rights | 13,176,710 | 68,958,170 | 82,134,880 |
| Doctor Staff and Medical License Fee | 234,822,216 | - | 234,822,216 |
| Other Intangible Assets | 14,342,434 | 6,835,733 | 21,178,167 |
| Total | 262,341,360 | 75,793,903 | 338,135,263 |
NET 304,458,042 306,118,352
| Accumulated Amortization | 1 January 2023 | Amortization Expense | 31 December 2023 |
|---|---|---|---|
| Rights | (10,321,250) | (8,475,496) | (18,796,746) |
| Other Intangible Assets | (13,078,223) | (1,802,251) | (14,880,474) |
| Total | (23,399,473) | (10,277,748) | (33,677,220) |
| NET | 238,941,887 | 304,458,043 |
| Investment Properties | 1 January 2024 | Revaluation | 31 December 2024 |
|---|---|---|---|
| Buildings | 30,520,905 | 62,274,896 | 92,795,801 |
| Total | 30,520,905 | 62,274,896 | 92,795,801 |
| Investment Properties | 1 January 2023 | 31 December 2023 |
|---|---|---|
| Buildings | 30,520,905 | 30,520,905 |
| Total | 30,520,905 | 30,520,905 |
The Company consists of independent units rented to the Higher Education Credit and Hostels Institution located in Bağlıca Etimesgut Ankara.
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless
otherwise stated.)
| CPM's Given by the Company | 31 December 2024 | 31 December 2023 |
|---|---|---|
| A. CPM's Given on Behalf of Company's Own Legal Entity | 2,912,442,738 | 2,582,958,744 |
| B. CPM's Given on Behalf of the Consolidated Companies | 30,975,750 | 40,176,341 |
| C. CPM's Given for Continuation of Its Activities on Behalf of Third Parties | - | - |
| D. Total Amount of Other CPM's | - | - |
| - Total Amount of CPM's Given on Behalf of the Majority Shareholder | - | - |
| - Total Amount of CPM's Given on Behalf of Company Companies Which are | ||
| not In Scope of B and C. | - | - |
| - Total Amount of CPM's Given on Behalf of Third Parties Which are not In | ||
| Scope of C. | - | - |
| Total | 2,943,418,488 | 2,623,135,085 |
| Contingent Liabilities | 31 December 2024 | 31 December 2023 |
| Mortgages issued | 2,574,902,000 | 2,316,415,896 |
| Checks and promissory notes issued | 333,066,600 | 266,542,848 |
| Letters of guarantee issued | 35,449,888 | 40,176,341 |
Total 2,943,418,488 2,623,135,085 Companies included in the scope of consolidation have cross-guarantees for bank loans in favor of each other. In all loan
and leasing contracts used, at least two of the Chairman of the Board of Directors Mustafa Sarıoğlu and the members of the Board of Directors Mehmet Altuğ, İrfan Güvendi and Celil Göçer have personal guarantees.
Details of short-term provisions are as follows;
| Short-Term Provisions for Employee Benefits | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Provisions for leave of absence | 23,766,593 | 12,718,924 |
| Total | 23,766,593 | 12,718,924 |
| Other Short-Term Provisions | 31 December 2024 | 31 December 2023 |
| Litigation provisions | 3,750,579 | 5,194,738 |
| Total | 3,750,579 | 5,194,738 |
The changes in litigation provisions during the period are as follows;
| 1 January 2024 31 December 2024 |
1 January 2023 31 December 2023 |
|
|---|---|---|
| Opening Balance | 5,194,738 | 6,764,924 |
| Addition/(cancellation) | (486,520) | 1,089,134 |
| Monetary gain/(loss) | (957,639) | (2,659,320) |
| Closing Balance | 3,750,579 | 5,194,738 |
According to the applicable labor law in Turkey, in case the employment contract is terminated for any reason, the Company is obliged to pay to itself or to the beneficiaries the wages of the annual leave periods that the employees are entitled to but not used, over the wages on the date of the termination of the contract.
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
The movements in the period in provisions for leave of absence are as follows;
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Opening Balance | 12,718,924 | 17,740,250 |
| Addition/(cancellation) | 14,957,179 | 1,952,440 |
| Monetary gain/(loss) | (3,909,510) | (6,973,766) |
| Closing Balance | 23,766,593 | 12,718,924 |
Details of long-term provisions are as follows;
| Long-Term Provisions for Employee Benefits | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Provision for severance pay | 64,103,376 | 161,825,303 |
| Total | 64,103,376 | 161,825,303 |
The company assumes that all of its personnel will resign when they reach their seniority by working 25 years for men and 20 years for women. Thus, when he retires, he finds the portion of the severance pay that is appropriate for his seniority on the balance sheet date. The amount of severance pay is subject to an upper limit that is redefined every year. During these calculations, the upper limit of the salary based on severance pay has been taken into account. This upper limit is TRY 46,655.43 effective from 01.01.2025. (31.12.2023: TRY 35,058,58)
The movements in the provision for severance pay during the period are as follows;
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Opening Balance | 161,825,303 | 115,005,787 |
| Service Cost | 6,132,404 | 32,536,513 |
| Interest Cost | 26,601,223 | 6,595,774 |
| Payments during the year | (27,984,772) | (31,504,730) |
| Actuarial gains / losses | (25,785,983) | 84,401,212 |
| Monetary gain/(loss) | (76,684,799) | (45,209,253) |
| Closing Balance | 64,103,376 | 161,825,303 |
| Other Current Assets | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Transferred VAT | 9,077,378 | 6,250,750 |
| Business advances | 12,419,647 | 8,171,869 |
| Income accruals | 7,743,557 | 550,769 |
| Total | 29,240,582 | 14,973,388 |
| Other Short-Term Liabilities | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Taxes and funds to be paid | 19,105,933 | 21,425,647 |
| Other liabilities to be paid | 973,825 | 569,067 |
| Expense accruals | 1,879,668 | 2,477,010 |
| Total | 21,959,426 | 24,471,724 |
| Short Term Prepaid Expenses | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Order advances given | 191,733,038 | 101,853,413 |
| Order advances given to related parties* | 22,758,895 | 24,752,259 |
| Expenses for the upcoming months | 16,099,919 | 17,038,442 |
| Total | 230,591,852 | 143,644,114 |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
(*) Related party transactions are explained in Note-29.
| Long Term Prepaid Expenses | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Expenses for the upcoming years | 6,055,040 | 11,792,816 |
| Total | 6,055,040 | 11,792,816 |
| Short Term Deferred Incomes | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Received advances | 104,392,065 | 78,049,475 |
| Salary promotion contract income for future months | 17,719,184 | 20,314,323 |
| Total | 122,111,249 | 98,363,798 |
| Long Term Deferred Incomes | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Salary promotion contract income for the next years | 10,303,257 | 22,019,463 |
| Total | 10,303,257 | 22,019,463 |
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Staff wage accruals | 52,951,282 | 45,191,127 |
| Social security deductions payable | 21,236,471 | 35,784,447 |
| Total | 74,187,753 | 80,975,574 |
| Shareholder | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Group A | 1,738,868 | 289,811 |
| Group B | 214,261,132 | 35,710,189 |
| Paid-in Capital | 216,000,000 | 36,000,000 |
| Capital inflation adjustment positive differences | 424,021,926 | 412,735,940 |
| Total | 640,021,926 | 448,735,940 |
The company is subject to the registered capital system, and the registered capital ceiling for the years 2024–2028 has been increased to TRY 1,000,000,000, which was approved by the CMB on 15.02.2024. Additionally, the company increased its capital by TRY 180,000,000 (a 500% bonus issue), raising its existing capital to TRY 216,000,000. The capital increase was registered in the Turkish Trade Registry Gazette on 16.09.2024.
Repurchased Shares;
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Repurchased Shares; | (105,201,319) | - |
| Total | (105,201,319) | - |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Actuarial Gain/(Loss) | (76,997,468) | (96,336,955) |
| Total | (76,997,468) | (96,336,955) |
A Total severance pay burden between the two periods, interest expense in the current period service cost and actuarial gains/(losses) are divided into sections. The interest cost of the previous fiscal year and the cost of the use of the balance sheet or in the period of the obligation to those who continue to work for the amount of the liability at the beginning of the period, multiplied by the amount of the discount rate used in that year. The service cost in the current accounting period of the severance pay they deserve to be paid for the employees' work in the amount of the discount rate, expected to reach the part resulting from the balance sheet da. Other differences reflect the actuarial gains and losses. Actuarial gains/(losses) recognized in equity and current service and interest costs are recognized in the statement of comprehensive income.
The Company's functional currency is the Turkish Lira. Engürüsağ Genel Ticaret Ltd, Şti, (Erbil), which operates in Iraq, prepares its financial statements in U.S. dollars. Related companies' financial statements are translated into functional currency. Financial statements exchanged into Turkish Lira in accordance with the International Accounting Standards (IAS) No. 21, "The Effects of Changes in Foreign Exchange Rates".
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Currency Translation Differences | 20,675,182 | 21,380,065 |
| Total | 20,675,182 | 21,380,065 |
In the translation, asset items are converted into the functional currency using the exchange rate on the balance sheet date, liabilities are converted using the exchange rate on the balance sheet date, equity is converted using the exchange rate on the transaction date, and income and expenses are converted using the exchange rates on the transaction dates.
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Legal Reserves | 91,187,448 | 64,684,491 |
| Legal Reserves Allocated from Repurchased Shares | 105,201,320 | - |
| Total | 196,388,768 | 64,684,491 |
Restricted reserves allocated from the profit are those given from the previous period's profit due to obligations arising from law or contract or for purposes other than profit distribution.
General Legal Reserves are separated according to Article 519 of the Turkish Commercial Code and are used according to the principles specified in this article. These principles are as follows;
1) Five percent of the annual profit is allocated to general legal reserves until it reaches twenty percent of the paidin capital.
2) After reaching the limit in the first paragraph;
a) The portion of the premium provided for issuing new shares that has not been used for issuance expenses, redemption provisions and charitable payments,
b) The portion remaining after deducting the costs of issuing new bills from the amount paid for share certificates canceled due to Extinguishment,
c) Ten percent of the total amount to be distributed to people who will receive a share from the profit, after a five percent dividend is paid to the shareholders, is added to the general legal reserve.
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
3) If the general legal reserve does not exceed half of the capital or the issued capital, it can only be used to cover losses, to continue the business when things are not going well, or to take measures to prevent unemployment and mitigate its consequences.
4) The provisions of subparagraph (c) and third paragraph of the second paragraph do not apply to holding companies whose primary purpose is to join other enterprises.
5) The provisions regarding the reserves of joint stock companies subject to special laws are reserved.
As of December 31, 2024, the equity accounts presented in accordance with the Tax Procedure Law and TMS/TFRS are compared as follows:
| 31 December 2024 | PPI indexed legal | Legal records indexed | TPL-TAS/IFRS |
|---|---|---|---|
| records | by CPI | Difference | |
| Capital adjustment differences | 529,202,168 | 424,021,926 | 105,180,242 |
| Restricted reserves allocated from profit | 103,953,889 | 196,388,768 | (92,434,879) |
| Previous year profits/losses | 619,235,938 | 991,075,675 | (371,839,737) |
| Revenues by Field of Activities | 01.01.2024- 31.12.2024 | 01.01.2023- 31.12.2023 | ||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Health income | 2,471,569,730 | 84.02 | 2,423,835,140 | 88.57 |
| Livestock, milk, feed sales | 56,912,686 | 1.93 | 66,954,043 | 2.45 |
| Hospital rental income | 260,868,307 | 8.87 | 179,749,985 | 6.57 |
| Logistics revenues | 96,399,370 | 3.28 | 57,748,611 | 2.11 |
| Other income | 55,768,693 | 1.90 | 8,477,702 | 0.31 |
| Total Sales | 2,941,518,785 | 100 | 2,736,765,481 | 100 |
Biological assets are initially recorded at cost. They are valued at fair value at the end of each reporting period. In the current period, there has been a change of TRY (1,322,211) in the fair value of dairy and beef animals (31.12.2023: TRY 25,047,346).
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Cost of goods sold | (8,354,849) | (11,500,583) |
| Cost of merchandise sold | (17,507,301) | (19,896,299) |
| Cost of services sold | (2,406,571,567) | (2,322,466,742) |
| Total | (2,432,433,717) | (2,353,863,624) |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless
otherwise stated.)
The distribution of expenses according to their nature is as follows;
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Salaries and equivalents expense | (1,469,089,946) | (1,421,332,622) |
| Raw materials and materials used | (306,919,007) | (327,797,067) |
| Depreciation and Amortization Expense | (202,410,117) | (238,900,851) |
| Right-of-use assets depreciation expense | (160,237,624) | (83,107,166) |
| Energy, fuel and water expenses | (93,018,246) | (119,634,795) |
| Rental expenses | (72,959,545) | (34,118,869) |
| Maintenance and repair expenses | (59,797,281) | (41,510,267) |
| Telephone, internet, cargo, mail, transportation, insurance, parking expenses |
(10,092,173) | (10,815,076) |
| Stationery, education, textile expenses, fixtures recorded as expenses | (8,999,434) | (9,985,841) |
| Representation Hospitality | (1,595,939) | (692,272) |
| Consulting expenses | (3,243,742) | (1,140,722) |
| Miscellaneous expenses | (18,208,513) | (33,431,194) |
| Total | (2,406,571,567) | (2,322,466,742) |
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Operating expenses | 31 December 2024 | 31 December 2023 |
| General and Administrative Expenses (-) | (174,363,240) | (146,171,535) |
| Marketing, Selling and Distribution Expenses (-) | (53,145,833) | (60,154,156) |
| Total | (227,509,073) | (206,325,691) |
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| General and Administrative Expenses | 31 December 2024 | 31 December 2023 |
| Salaries and equivalents expense | (75,509,766) | (68,129,407) |
| Consultancy, consultancy, litigation, execution and notary expenses | (48,104,230) | (33,170,949) |
| Depreciation and Amortization Expense | (13,623,300) | (18,645,766) |
| Miscellaneous expenses | (8,611,671) | (5,889,251) |
| Rental expenses | (8,220,521) | (6,070,115) |
| Taxes, duties, fees, insurance, bank, license, dues expenses | (8,163,622) | (3,587,431) |
| Representation, travel and travel expenses | (4,650,123) | (5,891,063) |
| Right-of-use assets depreciation expense | (3,599,563) | (1,561,245) |
| Energy, fuel and water expenses | (1,586,745) | (1,868,276) |
| Communication expenses | (2,293,699) | (1,358,032) |
| Total | (174,363,240) | (146,171,535) |
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Marketing, Selling and Distribution Expenses | 31 December 2024 | 31 December 2023 |
| Advertising and advertisement expenses | (22,165,125) | (24,050,705) |
| Personnel expenses | (13,029,678) | (14,111,066) |
| Commission expenses | (9,022,334) | (10,582,565) |
| Other expenses | (7,750,396) | (8,052,800) |
| Rental expenses | (1,178,300) | (3,357,020) |
| Total | (53,145,833) | (60,154,156) |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
The explanation regarding the fees for the services provided by the independent audit firm, which was prepared by the Group in accordance with the Board Decision published in the duplicate Official Gazette dated March 30, 2021, by the CMB (Capital Markets Board) and based on the principles outlined in the CMB's letter dated August 19, 2021, is as follows:
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Audit Fee | 31 December 2024 | 31 December 2023 |
| Audit Fee | 760,000 | 622,044 |
| Toplam | 760,000 | 622,044 |
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Other income from main operations | 31 December 2024 | 31 December 2023 |
| Rediscount ıncome | 35,838,500 | 4,261,904 |
| Royalty income | 52,099,070 | 47,021,892 |
| Provisions No Longer Required | 256,528 | 5,177 |
| Gains on Sale of Non-current Assets | 454,863 | - |
| Other ıncome | 9,718,158 | 73,335,436 |
| Total | 98,367,119 | 124,624,409 |
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Other expenses from main operations | 31 December 2024 | 31 December 2023 |
| Rediscount expenses | (19,078,196) | (1,663,056) |
| Provision Expenses | (4,670,046) | (2,710,170) |
| Tax and other liabilities | (1,247,360) | (14,921,660) |
| Losses on Sale of Non-current Asset | (98,661) | (326,619) |
| Grants and Donations | (58,121) | (28,445,971) |
| Other expenses | (14,920,341) | (8,547,598) |
| Total | (40,072,725) | (56,615,074) |
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Income from investing activities | 31 December 2024 | 31 December 2023 |
| Rental income | 1,196,297 | 1,962,210 |
| Investment property fair value differences | 62,274,896 | - |
| Total | 63,471,193 | 1,962,210 |
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Financial income | 31 December 2024 | 31 December 2023 |
| Foreign Exchange Gains | 7,155,398 | 9,544,234 |
| Participation (profit) share income | 41,335 | 4,084,791 |
| Total | 7,196,733 | 13,629,025 |
| Financial Expenses | 1 January 2024 31 December 2024 |
1 January 2023 31 December 2023 |
|---|---|---|
| Loan interest expenses | (220,503,804) | (118,854,377) |
| Participation (profit) share expenses | (58,012,615) | (37,329,194) |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless
otherwise stated.)
| Letter of guarantee expenses | (2,426,981) | (1,887,527) |
|---|---|---|
| Exchange loss | (2,347,654) | (2,021,547) |
| Other financial expenses | (30,570,518) | (6,872,577) |
| Commission expenses | (43,402,351) | (11,753,657) |
| Right-of-use assets financing expense | (28,754,506) | (30,548,514) |
Corporate Tax;
The corporate tax rate is 25% applied to the legal tax base to be found by adding the non-deductible expenses following the tax laws to the commercial earnings of the institutions and deducting the exemptions in the tax laws.
Dividend distributions are subject to withholding tax and this withholding tax liability is accrued in the period in which the dividend is paid. Dividend payments other than those made to non-resident corporations which have a place of business or permanent representative in Turkey and resident corporations are subject to withholding tax at the rate of 10%.
In the application of withholding tax rates for profit distributions to non-resident corporations and real persons, the withholding tax rates in the related Double Tax Treaty Agreements are also taken into consideration. Allocation of retained earnings to capital is not considered as profit distribution and therefore is not subject to income tax.
The provisions on transfer pricing are set out in Article 13 of the Corporate Tax Law, under the heading "Disguised Profit Distribution through Transfer Pricing". The 18 November 2007 dated general communiqué on disguised profit distribution through transfer pricing contains provisions on implementation. If a taxpayer trades goods or services with related parties and the prices are not determined in a manner in which both parties are independent and do not dominate each other, the related profits are deemed to be distributed in a disguised manner through transfer pricing. Such hidden profit distributions are not deductible for corporate tax purposes.
According to Turkish tax legislation, financial losses can be carried forward for five years to be offset against future corporate profits. However financial losses can not be offsetted from last year's profits.
Under Turkish tax legislation, tax losses can be carried forward to offset against future taxable income for up to five years. However, tax losses cannot be offset against retained earnings. In Turkey, there is no such practice as reconciliation with the tax administration on taxes payable. Corporate tax returns are filed within four months following the close of the accounting period. Tax authorities may examine tax returns and the underlying accounting records for a period of five years following the accounting period and may make a re-assessment based on their findings.
| Income Tax Liability of the Period | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Period profit tax liability | 10,142,878 | 24,205,977 |
| Prepaid taxes and funds | (15,698,367) | (13,454,098) |
| Total | (5,555,489) | 10,751,879 |
Tax income/(expense) are as follows;
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| Tax Income/(Expense) | 31 December 2024 | 31 December 2023 |
| Tax Expense for the Period | (10,142,878) | (23,508,592) |
| Deferred Tax Income/(Expense) | (117,631,419) | 39,514,061 |
| Total | (127,774,297) | 16,005,469 |
DTA (Deferred Tax Assets) and DTL (Deferred Tax Liabilities) are calculated by taking into account the effects of temporary differences that arise as a result of the different evaluations between the financial statements of financial position items prepared in accordance with TAS/IFRS published by POA and their legal financial statements.
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Cumulative Temporary Differences | Deferred Tax Assets/ (Liabilities) | |||
|---|---|---|---|---|
| 31 December 2024 | 31 December 2023 | 31 December 2024 | 31 December 2023 |
|
| Fixed asset adjustments | 763,607,732 | 258,278,267 | (190,901,933) | (64,569,567) |
| Reduced corporate tax | (825,992,664) | (656,826,769) | 206,498,166 | 164,206,692 |
| Financial debt adjustments | (95,815,868) | (128,550,635) | 23,953,967 | 32,137,659 |
| Severance pay provision | (64,103,376) | (161,825,303) | 16,025,844 | 40,456,326 |
| Provision for unused paid leave | (23,766,593) | (12,718,924) | 5,941,648 | 3,179,731 |
| Financial Loss | - | (12,802,835) | - | 3,200,709 |
| Prepaid expense adjustments | (1,248,078) | 2,365,301 | 312,020 | (591,325) |
| Salary promotion adjustments | 3,641,583 | (318,043) | (910,396) | 79,511 |
| Other receivables adjustment differences |
17,125,451 | (1,021,008) | (4,281,363) | 255,252 |
| Doubtful trade receivables | (7,629,689) | (5,599,767) | 1,907,422 | 1,399,942 |
| Provisions for litigation | (3,750,579) | (5,192,428) | 937,645 | 1,298,107 |
| Doctor's entitlement premium adjustment |
(829,790) | (2,018,671) | 207,448 | 504,668 |
| Stock adjustments | 12,414,771 | 3,039,689 | (3,103,693) | (759,922) |
| Other doubtful receivables | (1,237,500) | (1,786,687) | 309,375 | 446,672 |
| Other adjusments | (1,266,076) | (184,516) | 316,520 | 46,130 |
| Deferred tax asset (liability)-net | 57,212,670 | 181,290,585 |
| Portion recognized | ||||
|---|---|---|---|---|
| Current period | in other | |||
| deferred tax | comprehensive | 31 December | ||
| 31 December 2023 | income/(expense) | income | 2024 | |
| Fixed asset adjustments | (64,569,567) | (126,332,366) | - | (190,901,933) |
| Reduced corporate tax | 164,206,692 | 42,291,474 | - | 206,498,166 |
| Financial debt adjustments | 32,137,659 | (8,183,692) | - | 23,953,967 |
| Severance pay provision | 40,456,326 | (17,983,986) | (6,446,496) | 16,025,844 |
| Provision for unused paid leave | 3,179,731 | 2,761,917 | - | 5,941,648 |
| Financial Loss | 3,200,709 | (3,200,709) | - | - |
| Prepaid expense adjustments | (591,325) | 903,345 | - | 312,020 |
| Salary promotion adjustments | 79,511 | (989,907) | - | (910,396) |
| Other receivables adjustment | ||||
| differences | 255,252 | (4,536,615) | - | (4,281,363) |
| Doubtful trade receivables | 1,399,942 | 507,480 | - | 1,907,422 |
| Provisions for litigation | 1,298,107 | (360,462) | - | 937,645 |
| Doctor's entitlement premium | ||||
| adjustment | 504,668 | (297,220) | - | 207,448 |
| Stock adjustments | (759,922) | (2,343,771) | - | (3,103,693) |
| Other doubtful receivables | 446,672 | (137,297) | - | 309,375 |
| Other adjusments | 46,130 | 270,390 | - | 316,520 |
| Deferred tax asset (liability)-net | 181,290,585 | (117,631,419) | (6,446,496) | 57,212,670 |
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Portion recognized | ||||
|---|---|---|---|---|
| Current period | in other | |||
| deferred tax | comprehensive | 31 December | ||
| 31 December 2022 | income/(expense) | income | 2023 | |
| Fixed asset adjustments | (114,509,667) | 49,940,100 | - | (64,569,567) |
| Reduced corporate tax | 174,273,249 | (10,066,557) | - | 164,206,692 |
| Financial debt adjustments | 267,382 | 31,870,277 | - | 32,137,659 |
| Financial Loss | 38,042,839 | (34,842,130) | - | 3,200,709 |
| Severance pay provision | 23,001,158 | 4,648,957 | 12,806,211 | 40,456,326 |
| Provision for unused paid leave | 3,548,052 | (368,321) | - | 3,179,731 |
| Stock adjustments | 365,124 | (1,125,046) | - | (759,922) |
| Doubtful trade receivables | 1,930,721 | (530,779) | - | 1,399,942 |
| Provisions for litigation | 1,352,985 | (54,878) | - | 1,298,107 |
| Other doubtful receivables | - | 446,672 | - | 446,672 |
| Prepaid expense adjustments | - | (591,325) | - | (591,325) |
| Other adjusments | (730,563) | 776,693 | - | 46,130 |
| Other receivables adjustment | ||||
| differences | (56,285) | 311,537 | - | 255,252 |
| Doctor's entitlement premium | ||||
| adjustment | 676,674 | (172,006) | - | 504,668 |
| Salary promotion adjustments | 808,644 | (729,133) | - | 79,511 |
| Deferred tax asset (liability)-net | 128,970,313 | 39,514,061 | 12,806,211 | 181,290,585 |
| 1 January 2024 | 1 January 2023 | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Net Profit for the Period (Parent Shares) | 239,780,539 | 465,147,840 |
| Weighted average number of shares | 90,246,575 | 36,000,000 |
| Earnings/(Loss) per share | 2.6569 | 12.9208 |
Earnings/(loss) per share is calculated by dividing the Parent Company's profit/(loss) for the period by the number of shares with a restated nominal value of TRY 1.
According to IAS 24, – "Related Party Disclosures"; shareholders, key management personnel and Board of Directors members, their close family members and the legal entities over which these related parties exercise control and significant influence are considered and expressed as "related parties".
All transactions with related parties are significant and measurable.
As of 31 December 2024, and 31 December 2023, the summary of balances and transactions between the Company related parties is as follows;
| Trade Receivables from Related Parties | 31 December 2024 | 31 December 2023 | ||
|---|---|---|---|---|
| Commercial Non-Commercial | Commercial | Non-Commercial | ||
| T.C. Lokman Hekim Üniversitesi SUAM* | 60,905,617 | - | 33,239,714 | - |
| Sevgi Vakfı | - | 110,501,589 | - | 86,950,255 |
| Other | 4,885,761 | - | 293,132 | - |
| Total | 65,791,378 | 110,501,589 | 33,532,846 | 86,950,255 |
(*) Lokman Hekim University's receivable from SUAM consists of commercial receivables (rent, material, expense reflection) due to the leasing of Lokman Hekim Ankara hospital.
Notes to the Consolidated Financial Statements for the Period Ended 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Prepaid Expenses to Related Parties | 31 December 2024 | 31 December 2023 | ||
|---|---|---|---|---|
| Short term | Long term | Short term | Long term | |
| Lokman Hekim Tıbbi Hizmetler Ltd. Şti. | 21,492,217 | - | 19,214,147 | - |
| Other | 1,266,678 | - | 5,538,112 | - |
| Total | 22,758,895 | - | 24,752,259 | - |
| Payables to Related Parties | 31 December 2024 | 31 December 2023 | ||
|---|---|---|---|---|
| Commercial | Non-Commercial | Commercial | Non-Commercial | |
| Etlik Gayrimenkul Yatırım A.Ş. | 5,729,797 | - | 13,518,924 | - |
| Other | 7,589,843 | 338,921 | 2,186,163 | 308,126 |
| Toplam | 13,319,640 | 338,921 | 15,705,087 | 308,126 |
As of December 31, 2024 and December 31, 2023, income and expense balances with related parties are as follows;
| 1 January 2024 | 1 January 2023 | |||
|---|---|---|---|---|
| Income/(Expense) | 31 December 2024 | 31 December 2023 | ||
| Income | Expense | Income | Expense | |
| T.C. Lokman Hekim Üniversitesi SUAM | 319,981,012 | - | 177,893,134 | - |
| Lokman Hekim Tıbbi Hizmetler Tic. Ltd. Şti. | 9,692,807 | (50,177,506) | 1,045,181 | (52,301,935) |
| Benefits provided for the Executive Management | - | (40,434,982) | - | (33,303,553) |
| Total | 329,673,819 | (90,612,488) 178,938,315 | (85,605,488) |
Notes to the Consolidated Financial Statements for the Period Ended on 31 December 2023 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Credit Risk; The Company's credit risk can arise from its trade receivables. Company management evaluates its trade receivables considering past experiences and current economic situation. Company management does not envision additional risk about trade receivables.
| Receivables | ||||||
|---|---|---|---|---|---|---|
| Trade Receivables | Other Receivables | |||||
| 31 December 2024 | Related Parties | Other | Related Parties | Other | Bank Deposits | Other |
| The Maximum Amount of Exposure to Credit Risk as of Reporting Date (A+B) |
65,791,378 | 520,017,085 | 110,501,589 | 22,143,036 | 48,901,431 | 49,549,005 |
| - The Amount of Maximum Risk that Have Been Secured with Collaterals, Etc, |
- | - | - | - | - | - |
| A, Net Book Value of Financial Assets that are neither Past Due nor Impaired |
65,791,378 | 520,017,085 | 110,501,589 | 22,143,036 | 48,901,431 | 49,549,005 |
| B, Net Book Value of Impaired Assets | - | - | - | - | - | - |
| - Overdue (Gross Book Value) |
- | 8,120,239 | - | 1,237,500 | - | - |
| - Impairment (-) |
- | (8,120,239) | - | (1,237,500) | - | - |
| Receivables | ||||||
|---|---|---|---|---|---|---|
| Trade Receivables | Other Receivables | |||||
| 31 December 2023 | Related Parties | Other | Related Parties | Other | Bank Deposits | Other |
| The Maximum Amount of Exposure to Credit Risk as of Reporting Date (A+B) |
33,532,846 | 450,037,740 | 86,950,255 | 48,987,804 | 36,015,520 | 18,292,652 |
| - The Amount of Maximum Risk that Have Been Secured with Collaterals, Etc, |
- | - | - | - | - | - |
| A, Net Book Value of Financial Assets that are neither Past Due nor Impaired | 33,532,846 | 450,037,740 | 86,950,255 | 48,987,804 | 36,015,520 | 18,292,652 |
| B, Net Book Value of Impaired Assets | - | - | - | - | - | - |
| - Overdue (Gross Book Value) |
- | 6,393,597 | - | 1,786,687 | - | - |
| - Impairment (-) |
- | (6,393,597) | - | (1,786,687) | - | - |
Notes to the Consolidated Financial Statements for the Period Ended on 31 December 2023 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Liquidity risk comprises the risks arising from the inability to fund the increase in the assets, the inability to cover the liabilities due and the operations performed in illiquid markets. In the framework of liquidity risk management, funding sources are being diversified and sufficient Cash and Equivalents are held, statement that demonstrates the company's current and previous liquidity risk is below.
| 31 December 2024 | |||||||
|---|---|---|---|---|---|---|---|
| Contractual Maturities | Book Value | Total Cash Outflow According to Contract (VI=I+II+III+IV+V) |
Less than 3 Months (I) |
3-12 Months (II) | 1-5 Years (III) |
More than 5 Years (IV) |
On Demand (V) |
| Non-Derivative Financial Liabilities | |||||||
| Bank Loans | 989,864,971 | 1,134,066,427 | 224,741,153 | 556,213,041 | 324,807,046 | 28,305,187 | - |
| Finance Lease Liabilities | 40,638,597 | 51,045,799 | 12,322,038 | 27,078,785 | 11,644,976 | - | - |
| Operating Lease Liabilities | 95,815,868 | 222,286,471 | 13,064,542 | 45,250,997 | 139,214,965 | 24,755,967 | - |
| Total Cash Outflow | Less than 3 |
1-5 Years |
More than 5 | On Demand | |||
| Expected Maturities | Book Value | According to Contract | Months (I) | 3-12 Months (II) | (III) | Years (IV) | (V) |
| Non-Derivative Financial Liabilities | (VI=I+II+III+IV+V) | ||||||
| Trade Payables | 283,480,626 | 315,218,827 | 161,076,822 | 154,142,005 | - | - | - |
| Other Payables | 901,901 | 901,901 | - | 901,901 | - | - | - |
| Debt Provisions | 3,750,579 | 3,750,579 | - | 3,750,579 | - | - | - |
| Other Liabilities | 21,959,426 | 21,959,426 | 21,959,426 | - | - | - | - |
Notes to the Consolidated Financial Statements for the Period Ended on 31 December 2023 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| 31 December 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Contractual Maturities | Book Value | Total Cash Outflow According to Contract (VI=I+II+III+IV+V) |
Less than 3 Months (I) |
3-12 Months (II) |
1-5 Years (III) |
More than 5 Years (IV) |
On Demand (V) |
| Non-Derivative Financial Liabilities | |||||||
| Bank Loans | 534,829,362 | 612,742,183 | 33,893,514 | 449,427,530 | 129,421,139 | - | - |
| Finance Lease Liabilities | 99,326,557 | 124,763,251 | 22,873,716 | 28,333,149 | 73,556,386 | - | - |
| Operating Lease Liabilities | 127,614,386 | 296,056,928 | 7,646,080 | 70,610,097 | 217,800,751 | - | - |
| Expected Maturities | Book Value | Total Cash Outflow According to Contract (VI=I+II+III+IV+V) |
Less than 3 Months (I) |
3-12 Months (II) |
1-5 Years (III) |
More than 5 Years (IV) |
On Demand (V) |
| Non-Derivative Financial Liabilities | |||||||
| Trade Payables | 327,282,887 | 330,182,648 | 168,723,334 | 161,459,314 | - | - | - |
| Other Payables | 1,251,826 | 1,251,826 | - | 1,251,826 | - | - | - |
| Debt Provisions | 5,194,738 | 5,194,738 | - | 5,194,738 | - | - | - |
| Other Liabilities | 24,471,724 | 24,471,724 | 24,471,724 | - | - | - | - |
| Provisions for Employee Benefits | 174,544,227 | 174,544,227 | - | 12,718,924 | - | - | 161,825,303 |
Foreign Exchange Rate Risk;
Notes to the Consolidated Financial Statements for the Period Ended on 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| TRY Equivalent | |||
|---|---|---|---|
| Foreign Currency Position Table- 31 December 2024 | (Functional | USD | EUR |
| Currency) | |||
| 1.Trade Receivables | - | - | - |
| 2a. Monetary Financial Assets (Cash. Bank Accounts Included Etc.) | 9,492,216 | 145,933 | 118,239 |
| 2b. Non-Monetary Financial Assets | - | - | - |
| 3.Other | 15,107,871 | 428,224 | - |
| 4.Current Assets (1+2+3) | 24,600,087 | 574,157 | 118,239 |
| 5.Trade Receivables | - | - | - |
| 6a. Monetary Financial Assets | - | - | - |
| 6b. Non-Monetary Financial Assets | - | - | - |
| 7. Other | - | - | - |
| 8. Non-Current Assets (5+6+7) | - | - | - |
| 9. Total Assets (4+8) | 24,600,087 | 574,157 | 118,239 |
| 10. Trade Payables | - | - | - |
| 11. Financial Liabilities | 113,544,706 | 3,218,360 | - |
| 12a. Other Monetary Liabilities | - | - | - |
| 12b. Other Non-Monetary Liabilities | - | - | - |
| 13.Short-Term Liabilities (10+11+12) | 113,544,706 | 3,218,360 | - |
| 14.Trade Payables | - | - | - |
| 15.Financial Liabilities | 176,401,500 | 5,000,000 | - |
| 16a. Other Monetary Liabilities | - | - | - |
| 16b. Other Non-Monetary Liabilities | - | - | - |
| 17.Long-Term Liabilities (14+15+16) | 176,401,500 | 5,000,000 | - |
| 18. Total Liabilities (13 +17) | 289,946,206 | 8,218,360 | - |
| 19. Off-Balance Sheet Foreign Currency Derivative Instruments Net Asset/(Liability) Position (19a-19b) |
- | - | - |
| 19a. Active-Balance Sheet Foreign Currency Derivative Assets | - | - | - |
| 19b. Off-Balance Sheet Foreign Currency Derivative Assets | - | - | - |
| 20. Net Foreign Currency Asset/(Liability) Position (9-18+19) | (265,346,119) | (7,644,203) | 118,239 |
| 21. Monetary Accounts Net Foreign Currency Asset/(Liability) Position | (280,453,990) | (8,072,427) | 118,239 |
| (1+2a+5+6a-10-11-12a-14-15-16a) | |||
| 22. Fair Value Of Financial Instruments Used To Manage Foreign Currency Position |
- | - | - |
| 23. Amount Of Hedged Foreign Currency Assets | - | - | - |
| 24. Amount Of Currency Hedged Liabilities | - | - | - |
| 25.Export | - | - | - |
| 26.Import | - | - | - |
Notes to the Consolidated Financial Statements for the Period Ended on 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Foreign Currency Position Table- 31 December 2023 | TRY Equivalent (Functional Currency) |
USD | EUR |
|---|---|---|---|
| 1.Trade Receivables | - | - | - |
| 2a. Monetary Financial Assets (Cash. Bank Accounts Included Etc.) | 3,267,858 | 55,813 | 19,045 |
| 2b. Non-Monetary Financial Assets | - | - | - |
| 3.Other | - | - | - |
| 4.Current Assets (1+2+3) | 3,267,858 | 55,813 | 19,045 |
| 5.Trade Receivables | - | - | - |
| 6a. Monetary Financial Assets | - | - | - |
| 6b. Non-Monetary Financial Assets | - | - | - |
| 7. Other | - | - | - |
| 8. Non-Current Assets (5+6+7) | - | - | - |
| 9. Total Assets (4+8) | 3,267,858 | 55,813 | 19,045 |
| 10. Trade Payables | - | - | - |
| 11. Financial Liabilities | - | - | - |
| 12a. Other Monetary Liabilities | - | - | - |
| 12b. Other Non-Monetary Liabilities | - | - | - |
| 13.Short-Term Liabilities (10+11+12) | - | - | - |
| 14.Trade Payables | - | - | - |
| 15.Financial Liabilities | - | - | - |
| 16a. Other Monetary Liabilities | - | - | - |
| 16b. Other Non-Monetary Liabilities | - | - | - |
| 17.Long-Term Liabilities (14+15+16) | - | - | - |
| 18. Total Liabilities (13 +17) | - | - | - |
| 19. Off-Balance Sheet Foreign Currency Derivative Instruments Net Asset/(Liability) Position (19a-19b) |
- | - | - |
| 19a. Active-Balance Sheet Foreign Currency Derivative Assets | - | - | - |
| 19b. Off-Balance Sheet Foreign Currency Derivative Assets | - | - | - |
| 20. Net Foreign Currency Asset/(Liability) Position (9-18+19) | 3,267,858 | 55,813 | 19,045 |
| 21. Monetary Accounts Net Foreign Currency Asset/(Liability) Position (1+2a+5+6a-10-11-12a-14-15-16a) |
3,267,858 | 55,813 | 19,045 |
| 22. Fair Value Of Financial Instruments Used To Manage Foreign Currency Position |
- | - | - |
| 23. Amount Of Hedged Foreign Currency Assets | - | - | - |
| 24. Amount Of Currency Hedged Liabilities | - | - | - |
| 25.Export | - | - | - |
| 26.Import | - | - | - |
Notes to the Consolidated Financial Statements for the Period Ended on 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Sensitivity analysis made in order to indicate the base scenario that 20% depreciation and appreciation of the Turkish Lira against the exchange rate and assuming that all the variables, including the interest rates are fixed. (31 December 2023: 20%)
| 31 December 2024 | Gain/(Loss) | ||||
|---|---|---|---|---|---|
| Foreign Exchange Appreciation |
Foreign Exchange Deppreciation | ||||
| In case +/- 20% Fluctuation of USD Rate | |||||
| 1- U.S. Dollar Net Asset/(Liability) | (53,937,955) | 53,937,955 | |||
| 2- Hedged Portion from U.S. Dollar Risk (-) | - | - | |||
| 3- U.S. Dollar Net Effect (1 +2) | (53,937,955) | 53,937,955 | |||
| In case +/- 20% Fluctuation of EURO Rate | |||||
| 4- EURO Net Asset/(Liability) | 868,730 | (868,730) | |||
| 5- Hedged Portion from EURO Risk (-) | - | - | |||
| 6- EURO Net Effect (4+5) | 868,730 | (868,730) | |||
| TOTAL (3+6) | (53,069,225) | 53,069,225 |
| 31 December 2023 | Gain/(Loss) | |||
|---|---|---|---|---|
| Foreign Exchange Appreciation |
Foreign Exchange Deppreciation | |||
| In case +/- 20% Fluctuation of USD Rate | ||||
| 1- U.S. Dollar Net Asset/(Liability) | 474,439 | (474,439) | ||
| 2- Hedged Portion from U.S. Dollar Risk (-) | - | - | ||
| 3- U.S. Dollar Net Effect (1 +2) | 474,439 | (474,439) | ||
| In case +/- 20% Fluctuation of EURO Rate | ||||
| 4- EURO Net Asset/(Liability) | 179,132 | (179,132) | ||
| 5- Hedged Portion from EURO Risk (-) | - | - | ||
| 6- EURO Net Effect (4+5) | 179,132 | (179,132) | ||
| TOTAL (3+6) | 653,572 | (653,572) |
Fair value is the amount which can be measurable with the closest market price that can be obtained in a sale process except for forced sale or liquidation in which there are applicants for both selling and buying. The estimated fair values of financial instruments are determined using available market information by the Company, using appropriate valuation methodologies. However, judgment is necessary to interpret market data to determine the estimated fair value. While the management of the Company has used available market information in estimating the fair values, the market information may not fully reflect the value that could be realized in the current circumstances. The following methods and assumptions are used to determine fair values of financial instruments.
Fair values of Cash and Cash Equivalents, including accrued interest and other financial assets, are assumed to approximate their carrying amounts due to their short-term maturity and being subject to insignificant credit risk. Fair values of trade receivables net of doubtful receivables are assumed as approximate to their carrying amounts.
Notes to the Consolidated Financial Statements for the Period Ended on 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
Trade payables and other monetary liabilities are thought that their fair value converges to their real value due to their shortterm natüre. Bank loans are denoted by rediscounted costs, and transaction costs are added to the initial residual cost of bank loans. Banks loans are predicted to be valued by their fair values since interest rates are updated by considering the changing market conditions. It is foreseen that the trade payables are close to their fair values after deducting the provision for rediscount.
As of 30 June 2024, and 31 December 2023, the Company has financial assets and liabilities held at fair value in the balance sheet. The Company determines and shows the fair value and price using the following hierarchy:
Level 1: Identical assets and liabilities quoted in active markets,
Level 2: Direct and indirect observation of inputs that may significantly affect the fair value reflected in the financial statements,
Level 3: Determination of inputs that may have a material effect on the fair value reflected in the financial statements without observable market data.
| 31 December 2024 | |||
|---|---|---|---|
| Valuation Inputs to Fair Value | Level 1 | Level 2 | Level 3 |
| Biological Assets | - | - | 83,621,000 |
| Land and Buildings | - | - | 396,257,197 |
| Doctor Staff and Medical License Fee | - | - | 234,822,215 |
| Investment Property | - | - | 92,795,801 |
| 31 December 2023 | |||
|---|---|---|---|
| Valuation Inputs to Fair Value | Level 1 | Level 2 | Level 3 |
| Biological Assets | - | - | 73,192,818 |
| Land and Buildings | - | - | 380,916,902 |
| Doctor Staff and Medical License Fee | - | - | 234,822,216 |
| Investment Property | - | - | 30,520,905 |
Notes to the Consolidated Financial Statements for the Period Ended on 31 December 2024 (Amounts are expressed in Turkish lira ("TRY") based on its purchasing power as of 31 December, 2024, unless otherwise stated.)
| Financial Position Statement Items | 31 December 2024 |
|---|---|
| Financial investments | 47,426,257 |
| Other receivables from third parties | (130,273) |
| Inventories | 18,077,672 |
| Prepaid Expenses to Third Parties | (644,813) |
| Current tax related assets | 288,298 |
| Investment properties | 9,381,437 |
| Tangible fixed assets | 245,465,345 |
| Right-of-use assets | 138,395,756 |
| Intangible fixed assets | 173,644,161 |
| Payables from lease transactions | (3,327,917) |
| Deferred income | 6,247,835 |
| Other short-term liabilities | 319,873 |
| Deferred income | 292,052 |
| Capital adjustment differences | (103,203,625) |
| Repurchased shares (-) | 14,278,565 |
| Accumulated Other Comprehensive Income and Expenses That Will Not Be Reclassified to Profit | |
| or Loss | |
| - Gains/losses on remeasurement of defined benefit plans | 35,108,860 |
| Restricted reserves separated from profit | (24,901,987) |
| Retained earnings / (losses) | (406,860,579) |
| Profit or Loss Statement Items | |
| Revenues | (280,874,813) |
| Cost of sales (-) | 314,906,925 |
| General administrative expenses (-) | 7,788,925 |
| Marketing, sales and distribution expenses (-) | 6,856,748 |
| Other income from main activities | 6,051,883 |
| Other expenses from main activities (-) | 4,969,702 |
| Income from investment activities | 71,190,423 |
| Financing income | (7,311,069) |
| Financial expenses (-) | 36,836,367 |
| - Deferred tax income/(expense) | 62,460,468 |
| Net Monetary Position Gains / (Losses) | 372,732,476 |
Within the scope of the Company's buyback program, a total of 6,681,952 shares were sold to domestic institutional investors via special order at a unit price of TRY 21 on 31.01.2025. The unit cost of the shares in question was TRY 13.20 and a profit of 52 million TL was obtained from the sale.
The Company's application for the Regular Issue, which was made to the Capital Markets Board on 07/01/2025, for the issuance of lease certificates in the amounts of 150,000,000 Turkish Lira and 300,000,000 Turkish Lira, based on a 100% Management Agreement, to be sold to qualified investors domestically without a public offering, in which the fund user, Kuveyt Türk Yatırım Menkul Değerler AŞ, will be included as the authorized investment institution, was approved by the Capital Markets Board. The first management agreement-based lease certificate issuance in the amount of TRY 150,000,000 was realized on 17.01.2025 and the payment maturity is 16.05.2025.
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