Jabal Omar Development Co. — Interim / Quarterly Report 2021

May 17, 2021

Jabal Omar Development Co. announces its Interim Financial Results for the Period Ending on 2021-03-31 ( Three Months )

4250 · 17/05/2021 08:35:26 · Announcement #63399 · View on Saudi Exchange

Jabal Omar Development Co. announces its Interim Financial Results for the Period Ending on 2021-03-31 ( Three Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	21.57	189.79	-88.634	31.72	-31.998
Gross Profit (Loss)	-88.45	-1.68	5,164.88	-176.57	-49.906
Operational Profit (Loss)	-137.57	-84.14	63.501	-330.57	-58.384
Net Profit (Loss) after Zakat and Tax	-345.3	-237.86	45.169	-421.23	-18.025
Total Comprehensive Income	-345.3	-237.86	45.169	-423.05	-18.378
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Share Holders Equity (after Deducting Minority Equity)	6,643.04	8,074.85	-17.731
Profit (Loss) per Share	-0.37	-0.26
All figures are in (Millions) Saudi Arabia, Riyals

	Accumulated Losses	Capital	Percentage %
	2,473	9,294	26.6
All figures are in (Millions) Saudi Arabia, Riyals

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

1- Significant decline in revenues due to the decrease in the occupancy rate of Hotels and Commercial malls due to the precautionary measures taken to limit the spread of the Coronavirus pandemic.

2 – Increase in financial charges is due to non-capitalization of borrowing cost because of no significant development activities during the period.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The reason of the decrease in the net loss during the current quarter compared to previous quarter is:

1- Decrease in cost of revenue from business operation becasue of various cost reduction measures implemeted at hotels and commercial mall.

2 – No zakat provision during the current quarter.

3- Decrease in general and adminstrative expenses and expected credit losses on receivable.

It should be noted that the above positive results were offset by an increase in finance charges.Statement of the type of external auditor's report Emphasis of matterModification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion We draw attention to Note 1 to the condensed consolidated interim financial statements, which indicates that the Group incurred a loss of Saudi Riyals 345 million and negative operating cash flows amounting to Saudi Riyals 5 million during the three-month period ended 31 March 2021. In addition, the Group’s current liabilities exceeded its current assets by Saudi Riyals 6,077 million and the Group had accumulated losses amounting to Saudi Riyals 2,473 million as at 31 March 2021. The Group is dependent on the successful execution of management’s plans to generate sufficient cash flows to enable it both 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 about the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.Reclassification of Comparison Items Not applicableAdditional Information With reference to note 23 to the condensed consolidated interim financial statements for the period ended 31 March 2021, the Group has reconsiderd prior period accounting treatments. Accordingly, the Group has restated its financial statements retrospectively for the period ended 31 March 2020.

Following is the impact of restatements on Q1 2020 condensed consolidated interim financial statements:

- Increase in net loss and loss per share reported for the period ended 31 March 2020 by SR 20.6 million and SR 0.03 respectively

Net impact of restatements resulted in decrease of equity reported as of 31 March 2020 by SR 928.7 million

The accumulated losses as at 31 March 2021 amounted to SR 2,473 million, equivalent to 26.6% of the Company's capital.

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

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.