Jabal Omar Development Co. — Earnings Release 2021

Mar 31, 2021

Jabal Omar Development Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

4250 · 31/03/2021 08:05:52 · Announcement #62522 · View on Saudi Exchange

Jabal Omar Development Co. announces its Annual Financial Results for the Period Ending on 2020-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	176.68	885.22	-80.041
Gross Profit (Loss)	-424.69	150.84	-
Operational Profit (Loss)	-790.7	-6.86	11,426.239
Net Profit (Loss) after Zakat and Tax	-1,339.01	-635.1	110.834
Total Comprehensive Income	-1,340.83	-633.63	111.61
Total Share Holders Equity (after Deducting Minority Equity)	6,987.02	8,312.69	-15.947
Profit (Loss) per Share	-1.44	-0.68
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	The reason of the increase in the net loss during the current year compared to last year is:

1- Significant decrease in revenue because operations of Hotels and Commercial malls were shut-down due to the precautionary measures taken to limit the spread of the Coronavirus pandemic.

2 - Decrease in other operating income is due to loss incurred on fair value of the investment through the income statement compared to the profits in the previous year

3 - Increase in allowances for expected credit losses

4 - Increase in zakat provision

It should be noted that the above negative results were offset by a decrease in general and administrative expense and the reduction in financial charges due to the waiver from financial charges owed to the Alinma Makkah Real Estate Fund for the period from 10 March 2020 to 01 November 2020 due to the negative effects of the Corona pandemic Statement of the type of external auditor's report Emphasis of matter Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion We draw attention to Note 1 to the consolidated financial statements, which indicates that the Group incurred a total comprehensive loss and negative operating cash flows amounting to Saudi Riyals 1,341 million and Saudi Riyals 271.4 million, respectively, during the year ended 31 December 2020. In addition, the Group’s current liabilities exceeded its current assets by Saudi Riyals 2,425.6 million and the Group had accumulated losses amounting to Saudi Riyals 2,128.2 million as at 31 December 2020. The Group is dependent on the successful execution of management’s plans to generate sufficient cash flows to enable it to meet its obligations as they fall due and for the continuity of its operations without significant curtailment. These conditions, along with other matters set forth in Note 1, indicate the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter Reclassification of Comparison Items not applicable Additional Information With reference to note 36 to the Consolidated Financial Statements for the year ended 31 December 2020, the Group has reconsiderd prior years accounting treatments. Accordingly, the Group has restated its financial statements retrospectively for the years ended 31 December 2019 and 31 December 2018.

Following is the impact of restatements on 2019 and 2018 Consolidated Financial Statements:

- Decrease of non-current assets by SR 2,483 million and SR 2,431 million in 2019 and 2018 respectively

- Decrease of current assets by SR 379 million and SR 387 million in 2019 and 2018 respectively

- Decrease of non-current liabilities by SR 2,488 million and SR 2,944 million in 2019 and 2018 respectively

- Increase of current liabilities by SR 533 million and SR 798 million in 2019 and 2018 respectively

Net impact of aforementioned restatements resulted in decrease of equity by SR 908 million and SR 671 million in 2019 and 2018 respectively

The above restatements have resulted in increase in net loss and loss per share reported for the year ended 31 December 2019 by SR 241 million and SR 0.26

The accumulated losses for the year ended 31 December 2020 amounted to SR 2,128 million, equivalent to 22.90% of the Company's capital. Reasons mainly include restatements as disclosed in note 36 and loss for the year ended 31 December 2020.

The company will implement the procedures and instructions issued by the Capital Market Authority regarding companies whose shares are listed in the Saudi Stock Exchange, whose accumulated losses amounted to more than 20% of their capital.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.