Jazan Development and Investment Co. announces its Interim Financial results for the Period Ending on 2025-03-31 (Three Months)

1. Fair value gain of SAR 6.8 million from revaluation of biological assets under IAS 41, compared to a SAR 32.1 million loss in the same quarter last year, driven by increased production volumes.

2. Better average selling prices realized for shrimp compared to Q1 2024.

3. SAR 1.25 million gain on disposal of assets related to the water production line.

4. In Q1 2024, the company recognized a restated loss of SAR 66.9 related to its guarantee obligation to the Saudi Industrial Development Fund (SIDF) for the loan default of Al-Reef Sugar Refining Company. No such expense occurred in Q1 2025.

1. The Company witnessed a strong recovery in shrimp production following the heavy losses incurred in early 2024. This recovery was supported by improved pond management, better biosecurity practices, and the resumption of normal growth cycles.

2. The stability of the shrimp farm led to a rise in biomass. This contributed to a positive change in the fair value of biological assets in accordance with IAS 41, which is valued at SAR 6.8 million.

3. Both domestic and international markets recorded improved pricing during the quarter.

4. Operational efficiency, including feed efficiency, contributed to the stability of the current quarter's performance

5. No losses were recorded from provisions or non-recurring items in the current quarter compared to the previous quarter as they affected previous periods.

We would like to draw attention to note (2-4) to the accompanying condensed interim consolidated financial statements, which indicates that the Group's accumulated losses as at 31 March 2025 amounted to SAR 123.9 million representing 25% of the capital, and on that date the Group's current liabilities exceeded its current assets by SAR 112.9 million, indicating a material uncertainty that may raise significant doubt about the Company's ability to remain a going concern. The Group relies primarily on its ability to deliver on its business plans to generate sufficient cash flows to enable it to meet its obligations when due and without a material reduction in its operations.

Our conclusion has not been modified in relation to this.

2. Certain figures of comparative period have been reclassified to conform with the current period’s presentation it is 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.