Eshraq Investments : Quarterly Result 1 2024

ESHRAQ INVESTMENTS PJSC

Review report and condensed consolidated financial information for the three-month period ended 31 March 2024

ESHRAQ INVESTMENTS PJSC

Review report and condensed consolidated financial information for the three-month period ended 31 March 2024

	Pages
Report on review of interim financial information	1
Condensed consolidated statement of financial position	2 - 3
Condensed consolidated statement of profit or loss	4
Condensed consolidated statement of comprehensive income	5
Condensed consolidated statement of changes in equity	6
Condensed consolidated statement of cash flows	7 - 8
Notes to the condensed consolidated financial statements	9 - 32

Deloitte & Touche (M.E.)

Level 11, Al Sila Tower

Abu Dhabi Global Market Square

Al Maryah Island

P.O. Box 990

Abu Dhabi

United Arab Emirates

Tel: [phone]

Fax:[phone]

www.deloitte.com

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF ESHRAQ INVESTMENTS PJSC

Introduction

We have reviewed the accompanying condensed consolidated statement of financial position of Eshraq Investments PJSC (the "Company") and its subsidiaries (together referred to as the "Group") as at 31 March 2024 and the related condensed consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the three-month period then ended and other explanatory notes. Management is responsible for the preparation and presentation of this interim financial information in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Our responsibility is to express a conclusion on this interim 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 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 financial information is not prepared, in all material respects in accordance with IAS 34 Interim Financial Reporting.

Deloitte & Touche (M.E.)

Firas Anabtawi

Registration No. 5482

14 May 2024

Abu Dhabi

United Arab Emirates

Akbar Ahmad (1141), Cynthia Corby (995), Faeza Sohawon (5508), Firas Anabtawi (5482), Georges Najem (809), Jazala Hamad (1267), Mohammad Jallad (1164), Mohammad Khamees Al Tah (717), Musa Ramahi (872), Mutasem M. Dajani (726), Nurani Subramanian Sundar (5540), Obada Alkowatly (1056), Rama Padmanabha Acharya (701) and Samir Madbak (386) are registered practicing auditors with the UAE Ministry of Economy.

ESHRAQ INVESTMENTS PJSC				2
Condensed consolidated statement of financial position
at 31 March 2024
		31 March		31 December
		2024	2023
		AED'000		AED'000
	Notes	(unaudited)		(audited)
ASSETS
Non-current assets
Property and equipment	5	6,697	6,924
Investment properties	6	687,518	687,518
Financial assets at fair value through other comprehensive
income	7	21,376	21,450
Debt investment at amortised cost	8	7,859	7,859
Trade and other receivables - net of current portion	10	99,136	99,169
		-----------		-----------
Total non-current assets		822,586	822,920
		-----------		-----------
Current assets
Inventories		58	50
Wakala investment	12	11,400	11,400
Trade and other receivables	10	34,948	32,010
Financial assets at fair value through profit or loss	9	1,047,137	1,350,889
Due from related parties	20	631	633
Cash and bank balances	11	50,806	58,772
		-----------		-----------
Total current assets		1,144,980	1,453,754
		-----------	------------
Total assets		1,967,566	2,276,674
EQUITY AND LIABILITIES
Equity
Share capital	14	2,820,433	2,820,433
Share discount	14	(623,283)	(623,283)
Treasury shares	14	(73,080)	(73,000)
Statutory reserve	15	58,979	58,979
Retained earnings		(329,273)	(23,222)
Investment revaluation reserve	16	(47,085)	(47,126)
		-----------		-----------
Total equity		1,806,691	2,112,781
		-----------		-----------

The accompanying notes form an integral part of the condensed consolidated financial statements.

ESHRAQ INVESTMENTS PJSC

4

Condensed consolidated statement of profit or loss for the three-month period ended 31 March 2024

		Three-month ended 31 March
		2024				2023
				AED'000		AED'000
	Notes	(unaudited)	(unaudited)
Revenue from commercial operations		4,050				11,674
Direct operating expenses		(1,132)		(3,348)
Gross profit from commercial operations		2,918				8,326
Finance income		1,796				1,302
Finance costs		(2,473)		(4,279)
Net finance loss		(677)		(2,977)
Net changes in fair value of financial assets at FVTPL	9	(305,394)		(8,026)
Net loss from investments		(305,394)		(8,026)
Total operating loss		(303,153)		(2,677)
General and administrative expenses		(2,909)		(3,953)
Loss on disposal of assets held for sale	13	-				(27,287)
Selling and marketing expenses		-				(195)
Other income		11			24
Loss before tax		(306,051)		(34,088)
Tax expense		-		-
Loss after tax		(306,051)		(34,088)
Basic and diluted loss per share (AED)	21	(0.1140)		(0.0123)

The accompanying notes form an integral part of the condensed consolidated financial statements.

ESHRAQ INVESTMENTS PJSC					5
Condensed consolidated statement of comprehensive income
for the three-month period ended 31 March 2024
		Three-month ended 31 March
		2024	2023
			AED'000	AED'000
	Note	(unaudited)	(unaudited)
Loss after tax		(306,051)	(34,088)
Other comprehensive income:
Items that will not be reclassified subsequently to
profit or loss
Net changes in fair value of equity instruments
designated at fair value through other comprehensive
income ("FVOCI")	7	41		845
Total other comprehensive income		41		845
Total comprehensive loss for the period		(306,010)	(33,243)

The accompanying notes form an integral part of the condensed consolidated financial statements.

ESHRAQ INVESTMENTS PJSC

6

Condensed consolidated statement of changes in equity for the three-month period ended 31 March 2024

									(Accumulated
										losses)/		Investment
	Share	Share	Treasury	Statutory		retained		revaluation	Total
	capital	discount	shares	reserve		earnings		reserve	equity
	AED'000	AED'000	AED'000	AED'000		AED'000		AED'000	AED'000
Balance at 1 January 2023 (audited)	2,820,433		(623,283)	(26,151)	58,979	525,113	(51,426)	2,703,665
Loss for the period	-		-		-		-		(34,088)	-		(34,088)
Other comprehensive income for the period	-		-		-		-		-		845	845
	_______________	_______________	_______________	_______________	_______________	_______________	_______________
Total comprehensive (loss)/income for the period	-		-		-		-		(34,088)	845	(33,243)
Treasury shares purchased (Note 14)	-		-		(12,881)	-		-		-		(12,881)
	_______________	_______________	_______________	_______________	_______________	_______________	_______________
Balance at 31 March 2023 (unaudited)	2,820,433		(623,283)	(39,032)	58,979	491,025	(50,581)	2,657,541
Balance at 1 January 2024 (audited)	2,820,433		(623,283)	(73,000)	58,979		(23,222)	(47,126)	2,112,781
Loss for the period	-		-		-		-		(306,051)	-		(306,051)
Other comprehensive income for the period	-		-		-		-		-		41	41
	_______________	_______________	_______________	_______________	_______________	_______________		_______________
Total comprehensive (loss)/income for the period	-		-		-		-		(306,051)	41	(306,010)
Treasury shares purchased (Note 14)	-		-		(80)	-		-		-		(80)
	_______________	_______________	_______________	_______________	_______________	_______________	_______________
Balance at 31 March 2024 (unaudited)	2,820,433		(623,283)	(73,080)	58,979	(329,273)	(47,085)	1,806,691

The accompanying notes form an integral part of the condensed consolidated financial statements.

ESHRAQ INVESTMENTS PJSC					7
Condensed consolidated statement of cash flows
for the three-month period ended 31 March 2024
		Three-month ended 31 March
		2024	2023
	Notes		AED'000	AED'000
		(unaudited)	(unaudited)
Cash flows from operating activities
Loss before tax		(306,051)	(34,088)
Adjustments for:
Depreciation of property and equipment	5	227		233
Net change in fair value of financial assets at FVTPL	9	305,394	8,026
Change in fair value of assets held for sale	13	-		26,529
Amortisation of borrowing cost	18	20		54
Provision for employees' end of service benefits	17	67		79
Finance income		(1,796)	(1,302)
Finance costs		2,453	4,225
Operating cash flows before changes in working capital		314		3,756
Increase in trade and other receivables		(907)	(300)
Decrease/(increase) in due from a related party		2		(11,410)
Increase in inventories		(8)	(2)
Increase/(decrease) in trade and other payables		863		(1,152)
Cash generated from/(used in) operations		264		(9,108)
Employees' end of service benefits paid	17	(54)	(243)
Net cash generated/(used in) operating activities		210	(9,351)
Cash flows from investing activities
Acquisition of debt investments at amortised cost	8	-		(7,859)
Interest received		(202)	228
Proceeds from disposal of financial assets at fair value
through other comprehensive income		115		-
Payments for property and equipment	5	-		(6)
Payments for assets held for sale	13	-		(210)
Proceeds from sales of investment properties		-		48,554
Payments for financial assets at fair value through profit
or loss	9	(1,642)	(9,738)
Proceeds from sales of financial assets at fair value through
profit or loss	9	-		324
Net cash (used in)/generated from investing activities		(1,729)	31,293

The accompanying notes form an integral part of these condensed consolidated financial information.

ESHRAQ INVESTMENTS PJSC					8
Condensed consolidated statement of cash flows
for the three-month period ended 31 March 2024 (continued)
		Three-month ended 31 March
		2024		2023
	Notes		AED'000	AED'000
		(unaudited)	(unaudited)
Cash flows from financing activities
Repayment of bank borrowings	18	(3,210)	(5,429)
Finance costs paid		(3,157)	(4,101)
Treasury shares purchased		(80)	(12,881)
Net cash flows used in financing activities		(6,447)	(22,411)
Net decrease in cash and cash equivalents		(7,966)	(469)
Cash and cash equivalents as at 1 January		55,542		15,500
Cash and cash equivalents as at 31 March	11	47,576		15,031
Non-cash transactions:
Acquisition of Wakala investment on settlement of related
party receivables		-		11,400

The accompanying notes form an integral part of these condensed consolidated financial information.