Salhia Real Estate K S C P : Financial Results 31-03-2024

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Safat Square 13001, Kuwait

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF SALHIA REAL ESTATE COMPANY K.S.C.P.

Report on the Interim Condensed Consolidated Financial Information

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Salhia Real Estate Company K.S.C.P. (the "Parent Company") and its subsidiaries (collectively the "Group") as at 31 March 2024, and the related interim condensed consolidated statement of profit or loss, interim condensed consolidated statement of comprehensive income, interim condensed consolidated statement of changes in equity and the interim condensed consolidated statement of cash flows for the three months period then ended. The management of the Parent Company is responsible for the preparation and fair presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard (IAS) 34: Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently, it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34.

Report on Other Legal and Regulatory Requirements

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Parent Company. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016, as amended, and its executive regulations, as amended, or of the Parent Company's Memorandum of Incorporation and Articles of Association, as amended, during the three months period ended 31 March 2024 that might have had a material effect on the business of the Parent Company or on its financial position.

We further report that, during the course of our review, to the best of our knowledge and belief, we have not become aware of any material violations of the provisions of Law No. 7 of 2010 concerning establishment of Capital Market Authority "CMA" and organization of security activity and its executive regulations, as amended, during the three-months period ended 31 March 2024 that might have had a material effect on the business of the Parent Company or on its financial position.

BADER A. AL-ABDULJADER LICENCE NO. 207-A

EY

(AL AIBAN, AL OSAIMI & PARTNERS)

13 May 2024

Kuwait

Salhia Real Estate Company K.S.C.P. and Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UNAUDITED)

For the period ended 31 March 2024

Three months ended

31 March

		2024	2023
	Note	KD	KD
Revenue		11,156,012	9,804,230
Operating costs		(2,746,344)	(2,884,036)
		─────────	─────────
Gross profit		8,409,668	6,920,194
Share of joint venture's results, net of tax		1,230,172	(221,569)
General and administrative expenses		(1,414,740)	(1,247,794)
Depreciation and amortization		(1,937,463)	(1,466,541)
Sales and marketing expenses		(210,493)	(184,661)
Dividends income		16,878	-
Recovery of insurance claims		-	750,000
Other income, net		147,510	230,113
Finance costs		(3,218,715)	(865,301)
		─────────	─────────
PROFIT BEFORE PROVISION FOR CONTRIBUTION TO
KUWAIT FOUNDATION FOR THE ADVANCEMENT OF
SCIENCES ("KFAS"), NATIONAL LABOUR SUPPORT TAX		3,022,817	3,914,441
("NLST") AND ZAKAT
KFAS		(30,014)	(39,360)
NLST		(75,034)	(98,399)
Zakat		(30,014)	(39,360)
		─────────	─────────
PROFIT FOR THE PERIOD		2,887,755	3,737,322
		═════════	═════════
Attributable to:
Equity holders of the Parent Company		2,866,316	3,758,856
Non-controlling interests		21,439	(21,534)
		─────────	─────────
		2,887,755	3,737,322
		═════════	═════════
BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE	3	5.00 fils	6.55 fils
TO THE EQUITY HOLDERS OF THE PARENT COMPANY
		═════════	═════════

The attached notes 1 to 13 form an integral part of the interim condensed consolidated financial information. 3

Salhia Real Estate Company K.S.C.P. and Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

For the period ended 31 March 2024

	Three months ended
	31 March
	2024	2023
	KD	KD
Profit for the period	2,887,755	3,737,322
	─────────	─────────
Other comprehensive (loss) income
Items that may be reclassified to interim condensed consolidated statement
of profit or loss in subsequent periods:
Exchange differences on translation of foreign operations	(1,197,654)	373,225
	─────────	─────────
Net other comprehensive (loss) income that may be reclassified to interim
condensed consolidated statement of profit or loss in subsequent periods	(1,197,654)	373,225
	─────────	─────────
Items that will not be reclassified to interim condensed consolidated statement
of profit or loss in subsequent periods:
Changes in the fair value of equity instruments at fair value through other
comprehensive income	17,437	(167,913)
	─────────	─────────
Net other comprehensive income (loss) that will not be reclassified to
interim condensed consolidated statement of profit or loss in subsequent
periods	17,437	(167,913)
	─────────	─────────
Other comprehensive (loss) income for the period	(1,180,217)	205,312
	─────────	─────────
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	1,707,538	3,942,634
	═════════	═════════
Attributable to:
Equity holders of the Parent Company	1,729,459	3,968,207
Non-controlling interests	(21,921)	(25,573)
	─────────	─────────
	1,707,538	3,942,634
	═════════	═════════

The attached notes 1 to 13 form an integral part of the interim condensed consolidated financial information.

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