Abdulmohsen Alhokair Group for Tourism and Development announces its Annual Financial Results for the Period Ending on 2022-12-31

Element List	Current Year	Previous Year	%Change
Sales/Revenue	720.89	708.42	1.76
Gross Profit (Loss)	136.02	103.77	31.08
Operational Profit (Loss)	-23.09	-101.04	-77.15
Net Profit (Loss) after Zakat and Tax	-81.49	-173.72	-53.09
Total Comprehensive Income	-81.88	-173.3	-52.75
Total Share Holders Equity (after Deducting Minority Equity)	290.17	372.04	-22
Profit (Loss) per Share	-2.59	-2.97
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	Item one -The Group's net loss during the current period 2022 decreased by SAR 92.23 million -53.1% compared to the same period of the previous year as the Group recorded a net loss of SAR 81.49 million during the current period compared to a net loss of SAR 173.72 million during the same period of the previous year where the Group financial performance was as follows

1- Revenues increased by SAR 12.48 million -1.8% as the Group achieved revenues of SAR 720.89 million compared to revenues of SAR 708.42 million and the performance of its main sectors was as follows

1.1-Revenues of the hotel segment decreased by SAR 25.09 million -6.6% as the segment achieved revenues of SAR 356.8 million compared to revenues of SAR 381.89 million which was mainly due to the implementation of the Group policy of closing some low-performing hotels to improve profit margins as well as the evacuation of some hotels due to the expropriation of the state from the lessor main shareholder for the public interest

1.2- Revenues of the entertainment sector increased by SAR 40.25 million -14% as the segment achieved revenues of SAR 327.72 million compared to revenues of SAR 287.47 million mainly due to the improvement in the pace of business and the increase in the number of visitors to entertainment centers despite the decrease in the total number of entertainment sites as a result of the Group's policy of closing low-performing sites to improve profit margins and achieve revenues against the implementation of projects awarded to the Group

1.3- Revenues of other sectors decreased by SAR 2.69 million as these sectors achieved revenues of SAR 36.37 million compared to revenues of SAR 39.06 million

2-Gross profit increased by SAR 32.25 million 31.1% as the Group achieved a gross profit of SAR 136.02 million compared to a total profit of SAR 103.77 million which was mainly due to the increase in Group revenues in addition to the decrease in direct costs due to the closure of some low-performing hotels and entertainment sites and obtaining rental discounts one-time from the main shareholder and other lessors in addition to the Group's continued upgrading of its operations and the renegotiation of supply and lease contracts to achieve sustainable savings in them

3-Operating loss decreased by SAR 77.95 million -77.1% as the Group recorded an operating loss of SAR 23.09 million compared to an operating loss of SAR 101.04 million mainly due to the increase in gross profit in addition to the net financial impact of non-recurring critical operations positively of SAR 13.4 million which included during the current year the amount of SAR 9.2 million representing a reversal of provisions for a decrease in the value plus SAR 6.3 million represents gains from reversing lease obligations registered in accordance with IFRS 16

4- Net loss decreased by SAR 92.23 million 53.1% as the Group recorded a net loss of SAR 81.49 million compared to a net loss of SAR 173.72 million mainly due to the decrease in operating losses as well as the financial impact of the company's share in the profits of joint ventures which had a positive impact of SAR 6.8 million

5-Total comprehensive loss decreased by SAR 91.43 million -52.8% as the Group recorded a total comprehensive loss of SAR 81.88 million compared to a total comprehensive loss of SAR 173.3 million which was mainly due to the decrease in net loss

Item Two - Loss per share The loss per share amounted to SAR 2.59 per share as at the end of the year 2022 compared to a loss of SAR 2.97 per share as at the end of the previous year 2021

Item Three - Shareholders Equity Total shareholders equity amounted to SAR 290.17 million as at the end of 2022 compared to SAR 372.04 million as at the end of the previous year, a decrease of SAR 81.88 million -22%

Item Four - Accumulated losses The accumulated losses amounted to SAR 24.61 million as at the end of 2022 representing 7.8% of the Group subscribed capital of SAR 315 million Statement of the type of external auditor's report Unmodified opinion Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion We draw attention to Note 2 to the accompanying consolidated financial statements which indicates that the Group incurred a net loss of Saudi Riyals 81.5 million for the year ended December 2022. In addition, the Group current liabilities exceeded its current assets by Saudi Riyals 229.2 million and accumulated losses amounted to 24.6 million. The Group is mainly dependent on the successful execution of the Group’s business plan to generate sufficient cashflows so as to enable it to both meet its obligations as they fall due and for the continuity of its operations without significant curtailment. These conditions along with other matters as set forth in Note 2 indicate the existence of a material uncertainty that may cast significant doubt on the Group ability to continue as a going concern. Our opinion is not modified in respect of this matter Reclassification of Comparison Items During the current period the Group has reassessed the presentations of certain items in the interim condensed consolidated financial statements. This was to ensure that the proposed disclosures were in compliance with the requirements of IAS 1 Presentation of Financial Statements as approved in the Kingdom of Saudi Arabia. As a result some comparative figures have been restated to reflect changes in presentation in the current period

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