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

Element List	Current Year	Previous Year	%Change
Sales/Revenue	-	-	-
Gross Profit (Loss)	-525,171	-935,993	-43.891
Operational Profit (Loss)	-2,594,016	-4,059,412	-36.098
Net Profit (Loss) after Zakat and Tax	-2,222,121	-67,473,419	-96.706
Total Comprehensive Income	-2,239,364	-67,470,162	-96.68
Total Share Holders Equity (after Deducting Minority Equity)	143,004,545	145,243,909	-1.541
Profit (Loss) per Share	-0.3	-0.9
All figures are in (Actual) 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 for the decrease in the net loss during the current year compared to the previous year is:

Significant decrease in operating costs for this year compared to the previous year as a result of the company’s resort during the year 2020 to excluding a group of assets from its records after selling them and thus a significant decrease in the depreciation expenses of these assets, in addition to the fact that during the year 2019 the company excluded the value of part of the government grant land Registered in the company’s records after the issuance of the Ministry of Environment, Water and Agriculture’s decision approved by the Supreme Order to own the company less than the area registered in its records, which resulted in a significant increase in the net losses of the past year compared to this year. Also, the decrease in administrative expenses during this year compared to the year The former had a clear effect in the decrease in net losses this year compared with the net losses of last year. 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 Attention: The external auditor, in the report of the financial statements for the fiscal year 2020, drew attention to the existence of a fundamental uncertainty and may cast great doubts on the ability of the establishment to survive and continue as the company's current liabilities exceeded its current assets by an amount of 42,071,751 in addition to the absence of any operating revenues during this year As a result of the suspension of the main activities of the company in addition to the existence of installments due to be paid during the subsequent period to one of the banks against the loan granted to the company and the General Authority for Zakat and Income demand for the amounts owed by the company and the need to pay them, which indicates a fundamental lack of certainty about the ability of the company to manage liquidity, but the company’s management thinks it is capable. To fulfill its obligations for a period not less than 12 months from the date of the accompanying financial statements Reclassification of Comparison Items Certain comparative figures have been reclassified to conform with IAS Additional Information Attention: The external auditor, in the report of the financial statements for the fiscal year 2020, drew attention to the existence of a fundamental uncertainty and may cast great doubts on the ability of the establishment to survive and continue as the company's current liabilities exceeded its current assets by an amount of 42,071,751 in addition to the absence of any operating revenues during this year As a result of the suspension of the main activities of the company in addition to the existence of installments due to be paid during the subsequent period to one of the banks against the loan granted to the company and the General Authority for Zakat and Income demand for the amounts owed by the company and the need to pay them, which indicates a fundamental lack of certainty about the ability of the company to manage liquidity, but the company’s management thinks it is capable. To fulfill its obligations for a period not less than 12 months from the date of the accompanying financial statements.

The sales for the operating year appear at zero, due to the absence of any operating revenues during this year, as a result of the continued suspension of the company's main activities that took place during the year 2018.

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