Jazan Development and Investment Co. announces its Interim Financial results for the Period Ending on 2025-06-30 (Six Months)

1. Fair value gain of SAR 2.26 million from revaluation of biological assets under IAS 41, compared to a SAR Nill gain in the same quarter last year.

2. Increase in shrimp sales, in addition to better average selling prices realized for shrimp compared to the same quarter of the year 2024.

3. The company settled its zakat obligations for 2006-2023 (excluding 2018) for SAR 13.8 million, resulting in an income of SAR 8.8 million from the reversal of a previous provision.

1. The Company witnessed a strong recovery in shrimp production following significant losses incurred in early 2024. This recovery was enabled by better animal husbandry.

2. Improved culture enabled higher biomass production. As a result, a positive change in the fair value of biological assets was recognized in accordance with IAS 41, amounting to SAR 9.09 million, compared to a loss of SAR 32.08 million during the same period of the previous year.

3. Both local and international markets saw improved pricing during the current half.

4. The company settled its zakat obligations for 2006-2023 (excluding 2018) for SAR 13.8 million, recording SAR 8.8 million gain from the reversal of a previous provision.

We draw attention to Note (2-4) to the accompanying interim condensed consolidated financial statements, which indicates that the Group’s accumulated losses as at 30 June 2025 amounted to SR 106.8 million, representing 21% of its share capital. As of that date, the Group’s current liabilities exceeded its current assets by SAR 82.5 million, indicating the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern. The Group primarily relies on its ability to achieve its business plans to generate sufficient cash flows, enabling it to meet its obligations as they fall due without a significant reduction in its operations. Our conclusion has not been modified in this regard.

Our conclusion has not been modified in relation to this.

worth mentioning that, in accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, following the closure of the water factory, the assets were reclassified as "held for sale". Consequently, the operations were divided between continuing and discontinued operations, reflecting the requirements of IFRS 5 to separate and disclose discontinued operations and assets held for sale in the financial statements.

The restatement of the financial statements for the comparative period of 2024 includes the recognition of expected credit losses related to the loan guarantee of Al-Reef Sugar Refining Company. The impact was recognized in the financial statements for the year 2023 and the six-month period ended June 30, 2024, in the amounts of SAR 33.86 million and SAR 66.94 million, respectively.