Notes forming part of accounts [line items] | | |
Disclosure of notes and other explanatory information [text block] | | |
Disclosure of general information about reporting entity [abstract] | | |
Disclosure of general information about reporting entity [text block] |
GENERAL
Saudi Tadawul Group Holding Company (formerly “Saudi Stock Exchange Company”) (the “Company”, “Parent”) is a Saudi joint stock company registered in the Kingdom of Saudi Arabia under Commercial Registration number 1010241733 dated 2/12/1428 H (corresponding to 12 December 2007). The Company was established by the Royal Decree no. M/15 dated 01/03/1428 H (corresponding to 20 March 2007) and the Ministry of Commerce resolution no. 320/k dated 1/12/1428 H (corresponding to 11 December 2007).
The Company was wholly owned by the Government of the Kingdom of Saudi Arabia (the “Government”) as ultimate controlling party through the Public Investment Fund (“PIF”). On 8 December, 2021, the Company completed its Initial Public Offering (“IPO”) and its ordinary shares were listed on the Saudi Stock Exchange. In connection with the IPO, the Government through PIF sold 30% of their stake representing 36 million ordinary shares. On 13 November 2022, PIF sold an additional 10% of their stake representing 12 million ordinary shares. Accordingly, PIF now holds 60% (31 December 2023: 60%) of the share capital. As at 30 June 2024, the authorized, issued and fully paid-up share capital of the Company is SAR 1,200 million (31 December 2023: SAR 1,200 million) divided into 120 million shares (31 December 2023: 120 million shares) of SAR 10 each.
The Company’s main activities are managing and supporting subsidiaries or participating in the management of other companies in which it owns shares, investing its funds in shares and other securities, owning real estate and other properties in connection with its businesses, granting loans, guarantees and financing to its subsidiaries, and owning and leasing industrial property rights to its subsidiaries or other companies.
On 7 May 2023, 51% shareholding in Direct Financial Network Company (“DFN”) was acquired by the Group through one of its subsidiary (Wamid) refer note 1.1, 40 for details.
The Group has established a new wholly owned subsidiary (a Limited Liability Company) called “Tadawul Investment Holding Company” (“TIH”) with authorised share capital of SAR 35 million registered in the Kingdom of Saudi Arabia under Commercial Registration number 1010980736 dated 25/7/1445 H (corresponding to 6 February 2024). TIH’s objective is to fully hold investment in another subsidiaries, including in the new wholly owned subsidiary (a Limited Liability Company) called “Tadawul First Investment Company” (“TFIC”) with the authorized share capital of SAR 25 million registered in the Kingdom of Saudi Arabia under Commercial Registration number 1009014645 dated 8/10/1445 H (corresponding to 17 April 2024), that will be used as investment vehicle to own Group’s upcoming planned investments in associates and joint ventures.
The Group’s main activities through dedicated subsidiaries and equity accounted investments (given in note 1.1 and 1.2) is to provide a listing service, create and manage the mechanisms of trading of securities, providing depository and registration services for securities ownership, clearing of securities trades, dissemination of securities information, develop financial technology and engage in any related other activity to achieve the objectives as defined in the Capital Market Law.
These condensed consolidated interim financial statements comprise of the financial statements of the Company and its subsidiaries (collectively referred to as “the Group”).
The Company’s registered office address is as follows:
6897 King Fahd Road - Al Olaya Unit Number: 15 Riyadh 12211-3388 Kingdom of Saudi Arabia
GENERAL (CONTINUED)
Details of the Company’s subsidiaries:
Name of subsidiaries | Country of incorporation and legal status |
Commercial registration dated | Business activity | Effective ownership | Paid up share capital | June 2024 | December 2023 |
Securities Depository Center Company (“Edaa”)
| Kingdom of Saudi Arabia, Closed Saudi Joint Stock Company | 27/11/1437 H (corresponding to 30 August 2016 G) | Depository and registration of securities | 100% | 100% | 400,000,000 | Securities Clearing Center Company (“Muqassa”)
| Kingdom of Saudi Arabia, Closed Saudi Joint Stock Company |
02/06/1439 H (corresponding to 18 February 2018 G) | Clearing services of securities | 100% | 100% | 600,000,000 | Saudi Exchange Company (“Exchange”) | Kingdom of Saudi Arabia, Closed Saudi Joint Stock Company
|
17/08/1442 H (corresponding to 31 March 2021G) | Listing and trading of securities, market information dissemination | 100% | 100% | 600,000,000 | Tadawul Advance Solution Company (“Wamid”)
| Kingdom of Saudi Arabia, Closed Saudi Joint Stock Company |
11/02/1442 H (corresponding to 28 September 2020 G) | Financial technology solutions, innovative capital market solutions for stakeholders | 100% | 100% | 75,000,000 | Tadawul Investment Holding Company (“TIH”) | Kingdom of Saudi Arabia, Limited Liability Company
|
25/07/1445 H (corresponding to 6 February 2024 G) | Holding company for other subsidiaries to be used for planned investments in associates and joint ventures | 100% | - | 35,000,000 | Tadawul First Investment Company (“TFIC”) wholly owned by TIH | Kingdom of Saudi Arabia, Limited Liability Company | 8/10/1445 H (corresponding to 17 April 2024) | Investment vehicle for the Group’s investment in DME Holdings Limited. | 100% | - | 25,000,000 | Direct Financial Network Company (DFN) (Refer Note 39) | Kingdom of Saudi Arabia, Saudi Limited Liability Company | 16/09/1426 H (corresponding to 19 October 2005) | Develops financial technology and financial content for stakeholders | 51% | 51% | 500,000 |
DFN has following subsidiaries that are involved in developing financial technology and financial content for stakeholders:
Name of subsidiaries | Country of incorporation | DFN’s effective ownership | Direct Financial Network ME Dubai Multi Commodities Center | United Arab Emirates | 100% | Direct Financial Network – Sri Lanka | Sri Lanka | 99% | Direct Financial Network – Pakistan
| Pakistan
| 99%
|
GENERAL (CONTINUED)
Details of the Company’s equity accounted investments:
Name of companies | Country of incorporation and legal status |
Commercial registration dated | Business activities | Ownership, direct and effective | Paid up share capital | June 2024 | December 2023 |
Tadawul Real Estate Company (“TREC”) | Kingdom of Saudi Arabia, Limited Liability Company | 22/02/1433 H (corresponding to 17 January 2012 G) | Buying, selling, renting, managing and operating real estate facilities | 33.12% | 33.12% | 1,280,000,000 | Regional Voluntary Carbon Market Company (“RVCMC”) | Kingdom of Saudi Arabia, Limited Liability Company | 28/03/1444 H (corresponding to 24 October 2022 G) | Active market and Auction for Carbon Credits | 20% | 20% | 175,000,000
| DME Holding Limited Bermuda (“DME”), effective from 2 September 2024 will be called Gulf Mercantile Exchange (“GME") | Bermuda, Limited Liability Company | 12/3/1426 H (corresponding to 21 April 2005 G) | Electronic financial market to facilitate trading, clearing and settlement of a range of energy financial instruments | 32.6% | - | 304,125,000 |
| |
Disclosure of basis of preparation of financial statements [abstract] | | |
Disclosure of basis of preparation of financial statements [text block] |
BASIS OF PREPARATION
2.1 Statement of compliance
These interim condensed consolidated interim financial statements for the period ended 30 June 2024 have been prepared in compliance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting” as endorsed in the Kingdom of Saudi Arabia, other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (“SOCPA”) and in compliance with the provisions of the Regulations for Companies in the Kingdom of Saudi Arabia and the by-laws of the Company. The accounting policies in these condensed consolidated interim financial statements are consistent with those in the Group’s annual consolidated financial statements for the year ended 31 December 2023 except for policy mentioned in Note 4 and the adoption of new standards and amendments to standards effective 1 January 2024 listed in Note 5.
These condensed consolidated interim financial statements do not include all information and disclosures required for a complete set of financial statements and should be read in conjunction with the Group’s last annual consolidated financial statements for the year ended 31 December 2023. In addition, results for the three-month and six-month periods ended 30 June 2024 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2024.
2.2 Basis of measurement
These condensed consolidated interim financial statements have been prepared on a historical cost basis except for financial assets measured at fair value through profit or loss and put option liabilities.
2.3 Functional and presentation currency
These condensed consolidated interim financial statements are presented in Saudi Arabian Riyals (“SAR”), which is the functional and presentational currency of the Group. All amounts have been rounded to the nearest SAR.
2.4 Critical accounting estimates and judgments
In preparing these condensed consolidated interim financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the Group’s last annual consolidated financial statements for the year ended 31 December 2023 except for valuation of derivative of put option liabilities (refer Note 37). | |
Disclosure of basis of consolidation of financial statements [text block] |
BASIS OF CONSOLIDATION
These condensed consolidated interim financial statements comprise the financial statements of Saudi Tadawul Group Holding Company and its subsidiaries (collectively referred to as “the Group”). Control is achieved when the Group is exposed to or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:
power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); exposure, or rights, to variable returns from its involvement with the investee; and the ability to use its power over the investee to affect its returns.
Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:
the contractual arrangement with the other vote holders of the investee; rights arising from other contractual arrangements; and the Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the period are included in the condensed consolidated interim financial statements from the date the Group obtains control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the condensed consolidated interim financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group losses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity while any resultant gain or loss is recognised in the consolidated statement of income. Any investment retained is recognised at fair value. | |
Disclosure of critical accounting judgements, estimates and assumptions [abstract] | | |
Other disclosures on critical accounting judgements, estimates and assumptions [text block] |
FINANCIAL LIABILITIES
Financial liabilities are measured initially at fair value and subsequently either measured at fair value through profit or loss or at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. The Group measures all financial liabilities at amortised cost except employees’ end-of-service benefit liability and derivative liability which is measured at fair value through profit or loss.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss. | |
Disclosure of new and amended standards and interpretations [text block] |
NEW STANDARDS AND AMENDMENTS ISSUED
Standards and amendments adopted as of 1 January 2024
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2023, and the adoption of new standards effective as of 1 January 2024. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. The International Accounting Standard Board (IASB) has issued following accounting standards, amendments, which were effective from periods on or after January 1, 2024. The management has assessed that the amendments have no significant impact on the Group’s interim condensed financial statements.
Amendments to IAS 1: Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants- Clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period and non-current liabilities with covenants. Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements - Disclosures to clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. Amendments to IFRS 16: Lease Liability in a Sale and Leaseback - Require seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognise any amount of the gain or loss that relates to the right of use it retains.
Standards and amendments issued and not yet effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s consolidated financial statements are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.
Effective for annual financial periods beginning on or after | Standard, amendment or interpretation | Summary of requirements | 1 January 2025 | Amendments to IAS 21 – Lack of exchangeability | Sale or contribution of Assets between an Investor and its Associate or Joint Ventures | Effective date deferred indefinitely | Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | Sale or contribution of Assets between an Investor and its Associate or Joint Ventures | 1 January 2027 | IFRS 18 Presentation and Disclosure in Financial Statements | New requirements on presentation within the statement of profit or loss, including specified totals and subtotals. It also requires disclosure of management-defined performance measures and includes new requirements for aggregation and disaggregation of financial information based on the identified 'roles' of the primary financial statements (PFS) and the notes. | 1 January 2027 | IFRS 19 - Subsidiaries without Public Accountability: Disclosures | In May 2024, the Board issued IFRS 19 Subsidiaries without Public Accountability: Disclosures (IFRS 19), which allows eligible entities to elect to apply reduced disclosure requirements while still applying the recognition, measurement and presentation requirements in other IFRS accounting standards. Unless otherwise specified, eligible entities that elect to apply IFRS 19 will not need to apply the disclosure requirements in other IFRS accounting standards. |
| |
Disclosure of other notes forming part of accounts [abstract] | | |
Disclosure of bank balances and cash [text block] |
CASH AND CASH EQUIVALENTS
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) | Cash at banks |
| 132,694,060 |
| 71,489,884 | Deposit with SAMA | 13.1 | 16,500,000 |
| 16,500,000 | Time deposits with original maturities equal to or less than three months from the date of acquisition | 13.2 | 577,998,334 |
| 1,962,624,190 |
|
| 727,192,394 |
| 2,050,614,074 |
13.1 Commission is earned on deposit with SAMA at the prevailing market rates offered by SAMA with original maturity of less than three months. These funds are restricted and are not available for general operational use of the Group.
13.2 These time deposits are placed with financial institutions in the Kingdom of Saudi Arabia with original maturities of less than three months. Commission is also earned on these time deposits as per the prevailing market rates. These time deposits are sharia compliant. | |
Disclosure of financial assets [text block] |
INVESTMENTS
Investment securities portfolios are summarized as follows:
|
Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) | Non-current |
|
|
|
| Investments at amortized cost | 9.1 | 392,617,601 |
| 391,088,818 |
|
| 392,617,601 |
| 391,088,818 | Current |
|
|
|
| Investments at FVTPL | 9.2 | 1,668,894,277 |
| 269,253,058 |
|
| 1,668,894,277 |
| 269,253,058 |
9.1Investments at amortized cost:
This represents investment in Sukuks issued by counterparties in the Kingdom of Saudi Arabia having sound credit ratings. The Sukuks carry an average commission rate of 4.1% per annum as of 30 June 2024 (2023: 4.3%).
The details of these investments are as follow:
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
| Bank Albilad (Credit rating A3) | 57,507,851 |
| 55,946,231 | Saudi Government Sukuk (2022-03-15 - Credit rating A1) | 61,979,427 |
| 61,985,793 | Saudi Government Sukuk (2020-02-15 - Credit rating A1) | 54,467,297 |
| 54,472,428 | Saudi Government Sukuk (2018-07-07 - Credit rating A1) | 218,663,985 |
| 218,686,018 | Impairment loss on investments at amortized cost (Note 9.1.1) | (959) |
| (1,652) | Total | 392,617,601 |
| 391,088,818 |
9.1.1 The movement of the expected credit losses on investments held at amortized cost is summarized as follows:
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
| Balance as at 1 January | 1,652 |
| 206 | (Reversal) / charge for the period / year (Note 29) | (693) |
| 1,446 | Balance at the end of the period / year | 959 |
| 1,652 |
Below is the break-up of investment at amortized cost:
30 June 2024
Description | Maturity date | Face value | Classification | Bank Albilad SAR Denominated Tier 2 | 15 April 2031 | 55,000,000 | Non-current asset | Saudi Government SAR Sukuk (2022-03-15) | 17 March 2037 | 68,400,000 | Non-current asset | Saudi Government SAR Sukuk (2020-02-15) | 24 February 2035 | 61,561,000 | Non-current asset | Saudi Government SAR Sukuk (2018-07-07) | 25 July 2025 | 219,110,000 | Non-current asset |
31 December 2023
Description | Maturity date | Face value | Classification | Bank Albilad SAR Denominated Tier 2 | 15 April 2031 | 55,000,000 | Non-current asset | Saudi Government SAR Sukuk (2022-03-15) | 17 March 2037 | 68,400,000 | Non-current asset | Saudi Government SAR Sukuk (2020-02-15) | 24 February 2035 | 61,561,000 | Non-current asset | Saudi Government SAR Sukuk (2018-07-07) | 25 July 2025 | 219,110,000 | Non-current asset |
9. INVESTMENTS (CONTINUED)
9.2Investments at fair value through profit or loss (“FVTPL”)
This represents investments in units of mutual funds registered in the Kingdom of Saudi Arabia. The cost and fair value of investments held at FVTPL are as follows:
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
| Cost |
| Fair value |
| Cost |
| Fair value | Money market funds | 1,619,390,625 |
| 1,668,894,277 |
| 250,223,976 |
| 269,253,058 | Total | 1,619,390,625 |
| 1,668,894,277 |
| 250,223,976 |
| 269,253,058 |
| |
Disclosure of trade account receivables [text block] |
ACCOUNTS RECEIVABLE
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) | Trade receivables |
|
|
|
| - Related parties | 34.2 | 25,597,342 |
| 21,227,004 | - Others |
| 137,175,896 |
| 115,847,152 | Less: allowance for expected credit losses | 10.1 | (45,488,010) |
| (42,366,363) | Total |
| 117,285,228 |
| 94,707,793 |
Receivable balances are non-commission bearing and have payment terms ranging from immediate to thirty days.
10.1 The movement in the allowance for expected credit losses is summarized as follows:
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Balance as at 1 January |
| 42,366,363 |
| 26,110,800 | Acquisition of a subsidiary |
| - |
| 16,647,314 | Allowance / reversal for the period / year | 29 | 3,121,647 |
| (391,751) | Balance at end of the period / year | 36.3 | 45,488,010 |
| 42,366,363 |
| |
Disclosure of prepayments [text block] |
ADVANCES, PREPAYMENTS AND OTHER ASSETS
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Advance against purchase of property | 11.1 | 77,500,000 |
| 77,500,000 | Prepaid insurance expenses |
| 3,800,037 |
| 12,892,297 | Advances to vendor |
| 24,353,002 |
| 10,995,199 | Receivable from ZATCA | 25 | 12,946,171 |
| 8,638,957 | Accrued operational revenue |
| 7,846,641 |
| 7,395,257 | Advance to employees |
| 9,910,204 |
| 7,011,127 | Security deposit |
| 4,493,760 |
| 4,493,760 | Other receivables | 11.2 | 9,848,558 |
| 7,714,462 | Total |
| 150,698,373 |
| 136,641,059 |
11.1 This represents an advance paid to Saudi Central Bank (SAMA) as partial payment for purchasing part of a property in King Abdullah Financial District, Riyadh, kingdom of Saudi Arabia.
11.2Other receivable balances are non-commission bearing and have payment terms ranging from immediate to ninety days. | |
Disclosure of other current assets [text block] |
CLEARING PARTICIPANT FINANCIAL ASSETS
Financial assets at amortised cost: | Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Deposits with SAMA | 12.1 | 1,626,724,548 |
| 1,029,134,232 | Investment in SAMA Bills | 12.2 | 3,098,578,167 |
| 2,497,782,585 |
|
| 4,725,302,715 |
| 3,526,916,817 |
12.1 Deposits with SAMA:
This represents cash collateral received from clearing participants in the form of initial margin, variation margin and default funds for the equity and derivatives markets. Commission is earned on such deposits at the prevailing market rates offered by SAMA and clearing members’ share of the commission earned is added to their collateral accounts. These funds are not available for use in the operations of the Group.
|
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Deposits with SAMA - relating to Equities markets |
| 1,559,427,877 |
| 962,334,250 | Deposits with SAMA - relating to Derivatives markets |
| 67,296,671 |
| 66,799,982 |
|
| 1,626,724,548 |
| 1,029,134,232 |
12.2 Investment in SAMA Bills:
| Note | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Investment in SAMA Bills | 12.2.1 | 3,098,578,167 |
| 2,497,782,585 |
12.2.1 These represent investment in SAMA Bills from deposits received from clearing participants in the form of initial margin, variation margin and default funds for the equity and derivatives markets. Commission is earned on such Bills at the prevailing market rates offered by SAMA and clearing members’ share of the commission earned is added to their collateral accounts. These funds are not available for use in the operations of the Group.
As of each reporting date, all deposits with SAMA and SAMA Bills are assessed to have low credit risk as these are placed/issued by Government sovereign financial institutions and there has been no history of default with any of the Group’s deposit and investments in bills. Therefore, the probability of default based on forward looking factors and any loss given defaults are considered to be negligible. | |
Disclosure of investment in joint ventures and associates [text block] |
EQUITY ACCOUNTED INVESTMENTS
|
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
|
| Investment in Tadawul Real Estate Company (“TREC “) |
| 7.1 | 353,319,821 |
| 359,701,941 | Investment in Regional Voluntary Carbon Company (“RVCMC”) |
| 7.2 | 13,675,490 |
| 23,837,805 | Investment in DME Holding Limited (“DME”) |
| 7.3 | 152,480,766 |
| - | Total |
|
| 519,476,077 |
| 383,539,746 |
7.1 Investment in TREC
This represents the Group’s share of investment in TREC, a company incorporated in the Kingdom of Saudi Arabia. As at 30 June 2024, the Group owns 33.12% (31 December 2023: 33.12%) of the share capital of TREC. The main activities of this associate is to develop a commercial office tower in King Abdullah Financial District, Riyadh, where the Group will be headquartered.
During the year ended 31 December 2023, the Group assessed whether there was any indication that an impairment loss recongnised in prior years may no longer exist or may have decreased. Considering the completion of TREC’s building “Tadawul Tower” and committed occupancy, the Group carried out an impairment test and estimated the recoverable amount to be more than the carrying amount and reversed impairment amounting to SAR 20.89 million.
The Group has recognized its share of loss for the six-month period ended 30 June 2024, based on available draft of TREC financial statements at the time of issuance of the Group consolidated interim financial statement.
The movement in carrying value of investment is as follows:
| Note | For the six-month period ended 30 June 2024 (Unaudited) |
| For the year ended 31 December 2023 (Audited) |
|
|
|
|
| Balance as at 1 January |
| 359,701,941 |
| 365,697,523 | Share of results of associates and reversal of impairment |
|
|
|
| |
| - |
| 20,889,120 | | 34.1 | (6,382,120) |
| (26,884,702) |
|
| (6,382,120) |
| (5,995,582) | Balance at end of the period / year |
| 353,319,821 |
| 359,701,941 |
7. EQUIITY ACCOUNTED INVESTMENTS (CONTINUED) 7.1 Investment in TREC (continued)
The following table summarizes the financial information of the associate as included in the management accounts:
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) | Summarized statement of financial position |
|
|
| Total current assets | 138,383,437 |
| 156,604,707 | Total non-current assets | 2,302,078,414 |
| 2,323,513,241 | Total current liabilities | 1,314,548,301 |
| 1,362,830,420 | Total non-current liabilities | 15,464,938 |
| 3,725,343 | Net assets (100%) | 1,110,448,612 |
| 1,113,562,185 | Group’s share in equity – 33.12% | 367,780,580 |
| 368,811,796 | Cumulative equity accounting adjustments | (14,460,759) |
| (9,109,855) | Group’s carrying amount of the investment | 353,319,821 |
| 359,701,941 |
| For the six-month period ended 30 June 2024 (Unaudited) |
| For the year ended 31 December 2023 (Audited) | Summarized statement of profit or loss and other comprehensive income |
|
|
| Total revenue | 102,091,975 |
| 121,861,195 | Net profit / (loss) and total comprehensive loss for the period / year | (1,472,392) |
| (58,266,984) |
7.2 Investment in RVCMC
This represents the Group’s share of investment in RVCMC, a company incorporated in the Kingdom of Saudi Arabia on 25 October 2022. RVCMC offers guidance and resourcing to support businesses and industries in the region as they play their part in the global transition to net zero, ensuring that carbon credit purchases go above and beyond meaningful emission reductions in value chains. The RVCMC’s capital amounts to SAR 500 million (paid up capital of SAR 175 million), where PIF holds 80% stake and the Company holds 20% stake. RVCMC is headquartered in Riyadh, Kingdom of Saudi Arabia.
The Group has recognized its share of loss for the six-month period ended 30 June 2024, based on available draft of RVCM financial statements at the time of issuance of the Group consolidated interim financial statement.
The movement in carrying value of investment is as follows:
|
| For the six-month period ended 30 June 2024 (Unaudited) |
| For the year ended 31 December 2023 (Audited) |
|
|
|
|
| Balance as at 1 January |
| 23,837,805 |
| 35,000,000 | Share of results |
| (10,162,315) |
| (11,162,195) | Balance at end of the period / year |
| 13,675,490 |
| 23,837,805 |
7. EQUITY ACCOUNTED INVESTMENTS (CONTINUED) 7.2 Investment in RVCMC (continued)
The following table summarizes the financial information of the associate as included in the management accounts:
|
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) | Summarized statement of financial position |
|
|
|
| Total assets (current) |
| 121,971,465 |
| 145,042,099 | Total liabilities (current) |
| 53,594,014 |
| 25,853,074 | Net assets (100%) |
| 68,377,451 |
| 119,189,025 | Group’s share in equity – 20% |
| 13,675,490 |
| 23,837,805 |
| For the six-month period ended 30 June 2024 (Unaudited) |
| For the year ended 31 December 2023 (Audited) | Summarized statement of profit or loss and other comprehensive income |
|
|
| Total revenue | - |
| 52,931,798 | Net loss and total comprehensive loss for the period / year | (45,009,145) |
| (55,810,977) |
7.3 Investment in DME
This represents the Group’s share of investment in DME, a company incorporated in Bermuda on 21 April 2005. DME providing an electronic financial market to facilitate trading, clearing and settlement of a range of energy financial instruments. It also provides a set of ancillary services similar to those of other financial exchanges to help promote the market’s development. The DME’s paid up capital of SAR 81.1 million where the Company holds 32.6% stake and majorly owned by New York Mercantile Exchange Inc. (NYMEX), a corporation incorporated in Delaware, United States of America; Eagle Commodities Limited, a limited liability company incorporated in Jersey and Tatweer Dubai LLC, a limited liability Company incorporated in Dubai, United Arab Emirates. DME is headquartered in Bermuda.
The accounting for investment in DME is based on provisional fair value of asset and liabilities of DME due to inherent complexity and judgment associated in identifying intangible assets and determining the fair value of intangible assets which will be completed within one year as allowed under the accounting standards.
The Group has recognized its share of loss for the period ended 30 June 2024 from the transaction date as mentioned above based on available draft of DME financial statements at the time of issuance of the Group consolidated interim financial statement.
The movement in carrying value of investment is as follows:
| Notes | From 26 June to 30 June 2024 (Unaudited) |
|
|
| Investment done on 26 June 2024 |
| 106,887,391 | Derivative liability | 18 | 45,549,626 | Share of results | 34.1 | 43,749 | Balance at end of the period |
| 152,480,766 |
7. EQUITY ACCOUNTED INVESTMENTS (CONTINUED) 7.3 Investment in DME (continued)
The following table summarizes the financial information of DME as included in the management accounts:
|
| 30 June 2024 (Unaudited) | Summarized statement of financial position |
|
| Total assets (current) |
| 63,990,293 | Total liabilities (current) |
| 6,455,509 | Net assets (100%) |
| 57,534,784 | Group’s share in equity – 32.6% |
| 18,756,340 | Goodwill (provisional) |
| 133,724,426 | Group’s carrying amount of the investment |
| 152,480,766 |
| From 26 June to 30 June 2024 (Unaudited) | Summarized statement of profit or loss and other comprehensive income |
| Total revenue | 510,079 | Net profit for the period | 134,198 |
| |
Disclosure of assets subject to finance lease [text block] |
RIGHT-OF-USE ASSETS
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Balance as at 1 January |
| 217,360,938 |
| 5,310,445 | Acquisition of a subsidiary | 40 | - |
| 1,198,121 | Additions |
| - |
| 260,457,743 | Depreciation charge for the period / year | 8.1 | (25,907,266) |
| (49,605,371) | Balance at the end of period / year |
| 191,453,672 |
| 217,360,938 |
8.1 Depreciation expense is allocated as follows:
| Notes | For the six-month period ended 30 June 2024 (Unaudited) |
| For the year ended 31 December 2023 (Audited) |
|
|
|
|
| Operating costs |
| 1,438,689 |
| 5,587,724 | General and administrative expenses |
| 3,023,873 |
| 8,175,183 | Cost directly attributable to capital work-in-progress under property and equipment | 8.2,34.1 | 21,444,704 |
| 35,842,464 | Total |
| 25,907,266 |
| 49,605,371 |
8.2On 1 March 2023, the Group signed a lease agreement for its new head quarter with TREC (an associate company). Initial lease term is for five years and is renewable subject to terms and conditions of the agreement. The Group has been provided grace period and it is being utilized to perform fit-out works at the office premises to bring it to condition for its intended use. Consequently, the depreciation and finance cost are considered by the Group as cost directly attributable in bringing the office premises in condition necessary to be capable of operating in the manner as intended by Group’s management. These cost hence are capitalized and currently recorded as capital work-in-progress under property and equipment. | |
Disclosure of intangible assets [text block] |
INTANGIBLE ASSETS AND GOODWILL
Intangible assets, net, comprise of the following components as of period / year end :
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Restated) |
|
|
|
|
| Software |
| 223,197,517 |
| 213,967,115 | Capital work-in-progress (CWIP) - Software |
| 56,686,851 |
| 50,386,072 | DFN brand | 40 | 11,724,151 |
| 12,859,708 | Customer relationship | 40 | 32,521,153 |
| 34,714,306 | Goodwill | 40 | 65,517,363 |
| 65,517,363 | Total |
| 389,647,035 |
| 377,444,564 |
| |
Disclosure of trade account payable [text block] |
ACCOUNTS PAYABLE
| Note | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) | Trade payables: |
|
|
|
| |
| 88,724,561 |
| 24,612,326 | | 34.2 | 25,332,491 |
| 25,181,080 | Total |
| 114,057,052 |
| 49,793,406 |
Payables are non-commission bearing and are settled on terms ranging from immediate to sixty days. | |
Disclosure of accrued expenses [text block] |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Accrued employee expenses |
| 98,160,511 |
| 105,023,642 | Payable for General Organization for Social Insurance |
| 2,393,619 |
| 2,249,012 | Value added tax (VAT), net |
| 8,259,976 |
| 5,827,225 | Board of Directors remuneration payable | 34.2 | 4,746,122 |
| 12,435,456 | Accrued supplier expenses: |
|
|
|
| | 34.2 | 5,975,339 |
| 9,734,539 | |
| 123,803,897 |
| 164,792,618 | Total |
| 243,339,464 |
| 300,062,492 |
Other payables and statutory dues are non-commission bearing and are settled on terms ranging from immediate to sixty days. | |
Disclosure of zakat [text block] |
ZAKAT PROVISION
Zakat is charged at the higher of net adjusted income or Zakat base as required by the ZATCA. The key elements of zakat base primarily includes equity components, adjusted net income and liabilities reduced by non-current assets as adjusted for zakat purpose.
The movements in zakat provision are as follows:
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
| Balance as at 1 January | 64,221,598 |
| 67,221,868 | Provision for Zakat for the period / year |
|
|
| | 30,581,955 |
| 55,582,640 | | - |
| (82,829) | Zakat expense for the period / year | 30,581,955 |
| 55,499,811 | | 4,307,214 |
| 8,638,957 |
| 34,889,169 |
| 64,138,768 | Zakat paid during the period / year | (64,193,845) |
| (67,139,038) | Balance at end of the period / year | 34,916,922 |
| 64,221,598 |
The Group has already filed and paid its consolidated Zakat return for the Company and its wholly-owned subsidiaries with ZATCA for years 2020 till 2023. The Group is subject to Zakat in accordance with the Zakat regulations issued by ZATCA based on Royal Decree 35657 issued on 29/6/1442 effective from 1 January 2020. The Company has received final assessments for the years 2021 and 2022 from ZATCA while other years (2020 and 2023) are pending. | |
Disclosure of deferred revenue [text block] |
DEFERRED REVENUE
| Note | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Balance as at 1 January |
| 42,775,929 |
| 16,722,361 | Acquisition of a subsidiary | 40 | - |
| 26,943,959 | Invoiced during the period / year |
| 257,097,533 |
| 261,409,593 | Recognised as revenue during the period / year |
| (176,444,226) |
| (262,299,984) | Balance at end of the period / year |
| 123,429,236 |
| 42,775,929 |
|
|
|
|
| Non-current |
| 12,676,389 |
| 12,397,613 | Current |
| 110,752,847 |
| 30,378,316 | Total |
| 123,429,236 |
| 42,775,929 |
Deferred revenue includes balances pertaining to related parties amounting to SAR 11,605,759 (31 December 2023: SAR 4,641,968) (Note 34.2). | |
Disclosure of dividends [text block] |
DIVIDENDS
The Board of Directors of the Company in their meeting on 25 February 2023 recommended to the General Assembly which approved the distribution of dividends on 10 May 2023 to the shareholders for the fiscal year ended 31 December 2022 with a total amount of SAR 277.2 million, equivalent to SAR 2.31 per share representing 23.1% of the share par value.
The Board of Directors of the Company in their meeting on 9 March 2024 recommended to the General Assembly which approved the distribution of dividends on 25 April 2024 to the shareholders for the fiscal year ended 31 December 2023 with a total amount of SAR 276 million, equivalent to SAR 2.30 per share representing 23% of the share par value. | |
Disclosure of other current liabilities [text block] |
CLEARING PARTICIPANT FINANCIAL LIABILITIES
Financial liabilities at amortised cost: | Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Collateral from clearing members | 20.1 | 4,689,808,172 |
| 3,501,398,133 | Members' contribution to clearing house funds | 20.2 | 6,981,578 |
| 6,661,908 |
|
| 4,696,789,750 |
| 3,508,060,041 |
20.1 The deposits from clearing participants represents amounts received from clearing participants as collateral in lieu of initial margin, variation margin and default funds for the equity and derivatives markets. These deposits are subject to commission, a portion of which is shared and included in the clearing participant financial assets.
20.2 This represents a prefunded default arrangement that is composed of assets contributed by clearing members that may be used by the Group in certain circumstances to cover the losses or liquidity pressure resulting from participant defaults. BALANCE DUE TO CAPITAL MARKET AUTHORITY (CMA)
The Group acts as a collection agent on behalf of CMA where their trading commission share is collected and transferred to them on an agreed mechanism. Such portion is not recognized as Group’s revenue. Also includes unpaid CMA fees balance | |
Disclosure of debt securities, term loans, borrowings, sukuks and murabahas [text block] |
BORROWINGS
The balances, commission rate and repayment terms are as follows:
| Borrower | Maturity | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) | NON – CURRENT |
|
|
|
|
| Islamic financing | DFN | 2025 | 291,081 |
| 1,145,301 | Islamic financing (19.2) | Saudi Tadawul Group Holding Company | 2028 | 85,600,000 |
| - |
|
|
| 85,891,081 |
| 1,145,301 |
|
|
|
|
|
| CURRENT |
|
|
|
|
| Overdraft facility | DFN | On demand | 786,347 |
| 959,339 | Islamic financing | DFN | Current portion | 18,019,652 |
| 9,383,402 | Islamic financing (19.2) | Saudi Tadawul Group Holding Company | Current portion | 21,682,591 |
| - |
|
|
| 40,488,590 |
| 10,342,741 |
19.1 The Group through its subsidiary (DFN) has financing facilities ranging from 1–10 years with total limit of SAR 48,931,991 (31 December 2023: 36,431,991). These facilities are secured against a mix of promissory notes, corporate guarantees from the related parties and related parties’ real estate properties. Islamic financings carry commission rates ranges from 6.59% to 9.35% per annum and overdraft carries commission rate of SIBOR +5.5% (31 December 2023: SIBOR+5.5%). During the period ended 30 June 2024, DFN secured an Al-Tawarroq facility currently SAR 12.5million (facility limit SAR 20 million at commission rate of SIBOR +2%) which is included in current portion of Islamic financing.
19.2 The Company has obtained Islamic Sharia-compliant banking facilities for 5 years from a local bank amounting to SAR 500 million (31 December 2023: Nil) at commission rate of SIBOR 3 month +1.15%. There has been drawdown from this facility during the period ended 30 June 2024 amounting to SAR 107 million. | |
Disclosure of employees' terminal benefits [text block] |
EMPLOYEES’ END-OF-SERVICE BENEFITS
The movement in employees’ end-of-service benefits is as follows:
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Balance as at 1 January |
| 98,708,089 |
| 79,561,092 | Current service cost |
| 5,234,604 |
| 10,089,828 | Finance cost | 31 | 2,159,581 |
| 4,075,104 | Amount recognised in profit or loss |
| 7,394,185 |
| 14,164,932 | Acquisition of a subsidiary | 40 | - |
| 8,045,493 | Re-measurement loss recognized in other comprehensive income |
| 2,742,100 |
| 1,803,861 | Benefits paid during the period / year |
| (8,076,753) |
| (4,867,289) | Balance at end of the period / year |
| 100,767,621 |
| 98,708,089 |
| |
Disclosure of other non-current liabilities [text block] |
DERIVATIVE LIABILITY
The Group, through its subsidiary TIH, acquired 32.6% of issued share capital of DME on 26 June 2024. The shareholders’ agreement grants certain existing equity holders in DME an irrevocable and unconditional right to exercise their put options in respect of their interest held in DME (a total of 59.8% of issued share capital among three parties) for the fair value of their respective share by issuing a put notice within the put option exercise period. The share of the respective shareholders post the acquisition and their respective exercise periods are as follows:
Party | Shareholding | Exercise period | New York Mercantile Exchange (“NYMEX”) | 32.6% | Between 4th and 15th anniversary of the transaction date | Eagle Commodities Limited (“ECL”) | 23.1% | Between 10th and 15th anniversary of the transaction date | Tatweer Dubai LLC (“Tatweer”) | 4.1% | Between 4th and 15th anniversary of the transaction date |
The Group recognized the aforementioned put option liabilities and recorded these at fair value amounting to SAR 45.5 million against an addition to the value of the investment in DME. At each reporting date, the change in the fair value of the non-current liabilities resulting from the put options is recognized in profit or loss.
The Group also entered into a call option agreement which provides the Group right to purchase additional 18.4% shareholding in DME from its existing other shareholders at fair value in between 4th anniversary to 10th anniversary which has no value at reporting date.
The movement in the put options derivative liability during the period / year is as follows:
|
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
| | | | | Put options issued on 26 June 2024 |
| 45,549,626 |
| - | Change in fair value during the period |
| - |
| - | Balance at the end of the period / year |
| 45,549,626 |
| - |
| |
Disclosure of statutory reserves [text block] |
STATUTORY RESERVE
During the year ended 2023, the General Assembly in its extra ordinary meeting (EGM) on 29 Jumada al-Awwal 1445H (corresponding to 13 December 2023) approved the amendment of the Company’s By-Laws to transfer the statutory reserve of SAR 360 million to retained earnings and legal formalities for updating By-Laws are completed and the amount has been transferred to retained earnings. | |
Disclosure of non-controlling interests [text block] |
NON-CONTROLLING INTEREST PUT OPTION
The Group, through its subsidiary Wamid, acquired 51% of issued share capital of the DFN carrying full voting rights on 7 May 2023 (refer Note 40 for further details). The shareholders’ agreement and put option agreement grants non-controlling interest equity holders in DFN an irrevocable and unconditional right to exercise their put options in respect of the non-controlling interest held in DFN (49% of issued share capital) for cash consideration of SAR 220.5 million by issuing a put notice within 60 days from the put option exercise period. Put option exercise period is earlier of:
The Group recognized put option over non-controlling interests and recorded non-current put option financial liability discounted at present value against non-controlling interest and other reserve. At each reporting date, the difference between the fair value of the non-current liability resulting from the put option and the transfer of non-controlling interests is recognized in other reserve.
The movement in the financial liability during the period / year is as follows:
|
| 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Balance as at 1 January |
| 175,363,779 |
| - | Put option issued on 7 May 2023 |
| - |
| 167,805,446 | Change in non-controlling interest put option liability |
| 5,850,687 |
| 7,558,333 | Balance at the end of the period / year |
| 181,214,466 |
| 175,363,779 |
| |
Disclosure of sales [text block] |
OPERATING REVENUE
|
| For the three-month period ended 30 June |
| For the six-month period ended 30 June |
|
| 2024 (Unaudited) |
| 2023 (Unaudited) |
| 2024 (Unaudited) |
| 2023 (Unaudited) | Revenue recognized over-time |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Post trade services |
| 44,306,189 |
| 39,557,317 |
| 90,591,972 |
| 77,554,521 | Data and technology services |
| 49,843,100 |
| 44,766,563 |
| 96,859,446 |
| 76,228,217 | Listing services |
| 22,981,334 |
| 20,869,304 |
| 46,110,844 |
| 42,390,432 | Membership fees |
| 2,042,575 |
| 938,624 |
| 3,373,150 |
| 1,808,187 | Derivatives services |
| 374,226 |
| 300,633 |
| 847,255 |
| 752,211 | Commission income on SAMA Bills, net |
| 29,826,049 |
| 14,116,346 |
| 49,353,277 |
| 24,588,476 | Commission income on SAMA deposits, net |
| 3,698,092 |
| 2,558,616 |
| 5,716,919 |
| 5,128,170 |
|
| 153,071,565 |
| 123,107,403 |
| 292,852,863 |
| 228,450,214 | Revenue recognized at point-in-time |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Post trade services |
| 116,583,227 |
| 84,433,331 |
| 255,248,870 |
| 153,451,312 | Trading services |
| 81,539,910 |
| 59,566,254 |
| 186,596,620 |
| 109,301,599 | Data and technology services |
| 166,751 |
| 44,750 |
| 187,002 |
| 44,750 | Listing services |
| 2,098,600 |
| 1,550,000 |
| 6,197,600 |
| 1,740,000 | Derivatives services |
| 6,211 |
| 9,263 |
| 9,054 |
| 15,919 |
|
| 200,394,699 |
| 145,603,598 |
| 448,239,146 |
| 264,553,580 | Revenue from contracts with customers |
| 353,466,264 |
| 268,711,001 |
| 741,092,009 |
| 493,003,794 |
The Group acts as a collection agent on behalf of CMA where their trading commission share is collected and transferred to them on an agreed mechanism. Such portion is not recognized as Group’s revenue. | |
Disclosure of cost of sales [text block] |
OPERATING COSTS
| Notes | For the three-month period ended 30 June |
| For the six-month period ended 30 June |
|
| 2024 (Unaudited) |
| 2023 (Unaudited) |
| 2024 (Unaudited) |
| 2023 (Unaudited) | Salaries and related benefits |
| 55,923,186 |
| 40,694,858 |
| 112,542,928 |
| 80,471,949 | CMA fees | 27.1 | 32,500,000 |
| 28,500,000 |
| 65,000,000 |
| 61,000,000 | Technology and network |
| 22,442,748 |
| 12,594,673 |
| 42,589,864 |
| 25,646,337 | Depreciation and amortization |
| 20,777,509 |
| 14,551,444 |
| 35,003,090 |
| 28,337,175 | Accommodation and utilities |
| 2,893,728 |
| 1,525,556 |
| 4,218,810 |
| 2,563,226 | Others |
| 736,261 |
| 1,717,949 |
| 1,799,864 |
| 2,943,363 | Total |
| 135,273,432 |
| 99,584,480 |
| 261,154,556 |
| 200,962,050 |
27.1 This represents fees payable to the CMA in accordance with the details of the Market Institutions Deputy letter no. (17/268/6) dated 18 January 2017 which includes notification of CMA Board resolution, in addition to CMA Board resolution no. (3-2-2019) dated 7 January 2019. | |
Disclosure of general and administrative expenses [text block] |
GENERAL AND ADMINISTRATIVE EXPENSES
|
| For the three-month period ended 30 June |
| For the six-month period ended 30 June |
|
| 2024 (Unaudited) |
| 2023 (Unaudited) |
| 2024 (Unaudited) |
| 2023 (Unaudited) | Salaries and related benefits |
| 45,953,671 |
| 49,540,001 |
| 96,017,485 |
| 86,460,475 | Marketing and public relations |
| 5,691,134 |
| 3,085,781 |
| 10,750,543 |
| 6,730,198 | Technology and network |
| 4,147,758 |
| 4,189,956 |
| 8,987,490 |
| 9,078,918 | Consultancy |
| 3,352,518 |
| 2,825,089 |
| 4,173,593 |
| 4,921,297 | Depreciation and amortization |
| 2,336,644 |
| 3,837,374 |
| 5,730,324 |
| 7,656,557 | Board of Directors' remuneration |
| 2,515,516 |
| 2,513,266 |
| 5,020,516 |
| 5,098,541 | Accommodation and utilities |
| 4,360,125 |
| 2,467,097 |
| 6,294,728 |
| 4,133,398 | Others |
| 641,396 |
| 113,991 |
| 1,896,050 |
| 992,455 | Total |
| 68,998,762 |
| 68,572,555 |
| 138,870,729 |
| 125,071,839 |
| |
Disclosure of other operating expenses [text block] |
ALLOWANCE / (REVERSAL) FOR EXPECTED CREDIT LOSSES
| Notes | For the three-month period ended 30 June |
| For the six-month period ended 30 June |
|
| 2024 (Unaudited) |
| 2023 (Unaudited) |
| 2024 (Unaudited) |
| 2023 (Unaudited) | (Reversal) / allowance on investments at amortised cost | 9 | (113) |
| 1,245 |
| (693) |
| 1,305 | Allowance / (reversal) on accounts receivable | 10.1 | 3,523,390 |
| (32,228) |
| 3,121,647 |
| 2,071,180 | Total |
| 3,523,277 |
| (30,983) |
| 3,120,954 |
| 2,072,485 |
| |
Disclosure of other income, net [text block] |
INVESTMENT INCOME
| For the three-month period ended 30 June |
| For the six-month period ended 30 June |
| 2024 (Unaudited) |
| 2023 (Unaudited) |
| 2024 (Unaudited) |
| 2023 (Unaudited) | Commission income on time deposits | 8,213,471 |
| 26,866,863 |
| 26,499,233 |
| 50,724,008 | Commission income on investments at amortised cost | 4,866,766 |
| 2,677,972 |
| 8,976,145 |
| 4,351,529 | Realised gain on sale investments, net | 1,438,641 |
| 542,962 |
| 1,637,037 |
| 4,518,980 | Unrealised gain on investments, net | 22,096,499 |
| (259,444) |
| 33,582,072 |
| 2,386,510 | Dividend income | 895,615 |
| 254,194 |
| 996,580 |
| 616,578 | Total | 37,510,992 |
| 30,082,547 |
| 71,691,067 |
| 62,597,605 |
| |
Disclosure of other expenses, net [text block] |
FINANCE COSTS
|
| For the three-month period ended 30 June |
| For the six-month period ended 30 June |
| Notes | 2024 (Unaudited) |
| 2023 (Unaudited) |
| 2024 (Unaudited) |
| 2023 (Unaudited) | Finance cost on employees’ end-of-service benefits liabilities | 16 | 1,079,790 |
| 1,034,294 |
| 2,159,581 |
| 2,068,588 | Finance cost on lease liabilities | 15 | 10,880 |
| - |
| 23,709 |
| - | Finance cost on borrowings |
| 542,962 |
| 114,238 |
| 582,069 |
| 114,238 | Total |
| 1,633,632 |
| 1,148,532 |
| 2,765,359 |
| 2,182,826 |
| |
Disclosure of earnings per share [text block] |
BASIC AND DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share is computed by dividing profit attributable to the ordinary shareholders of the parent company by the weighted average outstanding number of shares for the period ended 30 June 2024, totaling 120 million shares (30 June 2023: 120 million shares).
| For the three-month period ended 30 June |
| For the six-month period ended 30 June |
| 2024 (Unaudited) |
| 2023 (Unaudited) |
| 2024 (Unaudited) |
| 2023 (Unaudited) | Profit for the period | 163,830,756 |
| 105,226,123 |
| 365,352,408 |
| 196,008,608 | Weighted average outstanding number of shares | 120,000,000 |
| 120,000,000 |
| 120,000,000 |
| 120,000,000 | Earnings per share | 1.37 |
| 0.88 |
| 3.04 |
| 1.63 |
| |
Disclosure of leases [text block] |
LEASE LIABILITIES
This represents amount of lease liabilities for the rented offices of the Group. Set out below are carrying amount of lease liabilities and the movements during the period / year:
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) |
|
|
|
|
| Balance as at 1 January |
| 202,256,755 |
| - | Acquisition of a subsidiary | 40 | - |
| 1,279,618 | Additions |
| - |
| 260,457,743 | Finance cost | 15.1 | 5,831,589 |
| 9,354,023 | Payment |
| (201,863) |
| (68,834,629) | Balance at the end of period / year |
| 207,886,481 |
| 202,256,755 |
Non-current |
| 156,842,627 |
| 150,950,630 | Current |
| 51,043,854 |
| 51,306,125 | Total |
| 207,886,481 |
| 202,256,755 |
15.1 Finance cost is allocated as follows:
| Notes | For the six-month period ended 30 June 2024 (Unaudited) |
| For the year ended 31 December 2023 (Audited) |
Finance cost directly capitalized in capital work-in-progress under property and equipment |
8.2,34.1 | 5,807,880 |
| 9,320,191 | Finance cost expense | 31 | 23,709 |
| 33,832 | Total |
| 5,831,589 |
| 9,354,023 |
| |
Disclosure of related party transactions [text block] |
TRANSACTIONS WITH RELATED PARTIES
During the ordinary course of business, the Company enters into transaction with its related parties. These related parties include: Ultimate controlling party – PIF as explained in Note 1; Other related parties that include entities which have either common directors with the Company’s Board of Directors (BOD) and / or owned by Parent and / or have common directors with the BOD of Parent; Equity accounted companies, refer Note 1.2 for details; and Key Management that includes the Company’s BOD and key executives
34.1 Following are the total amount of transactions that have been entered into during the period with the related parties:
|
| For the six-month period ended 30 June |
| Notes | 2024 (Unaudited) |
| 2023 (Unaudited) | PIF
|
|
|
|
| Operating revenue from services rendered |
| 2,760,000 |
| 2,535,000 | Other related parties
|
|
|
|
| Operating revenue from services rendered |
| 242,763,142 |
| 134,414,921 | Commission income |
| 4,478,098 |
| 19,846,220 | Purchase of services (internet , utilities and others) |
| 6,734,051 |
| 3,303,296 | Disposals of investments at FVTPL |
| (44,000,000) |
| (13,801,775) | Equity accounted investments
|
|
|
|
| TREC – Share of results
| 7.1 | (6,382,120) |
| (19,470,021) | Depreciation on right-of-use assets
| 8.1 | 21,444,704 |
| 11,824,248 | Lease payment
| 15 | - |
| 50,093,947 | Finance cost on lease liabilities
| 15 | 5,807,880 |
| 3,043,836 | RVCMC – Share of results
| 7.2 | (10,162,315) |
| (2,362,990) | DME – Share of results
| 7.3 | 43,749 |
| - | Key management personnel compensation
|
|
|
|
| Salaries and other short-term benefits |
| 15,209,578 |
| 13,393,163 | Post-employment benefits |
| 1,329,915 |
| 796,524 | Board of Directors’ remuneration |
| 5,020,516 |
| 5,098,541 |
Operating revenue from services rendered by the Group to the related parties included services of post trade, trading, listing, data and technology services, derivative and membership.
34.2 Following are the outstanding balances arising from related party transactions:
| Notes | 30 June 2024 (Unaudited) |
| 31 December 2023 (Audited) | PIF
|
|
|
|
| Accounts receivable
| 10 | 520,579 |
| 6,420,079 | Deferred revenue | 23 | 1,380,000 |
| 4,140,000 | Other related parties
|
|
|
|
| Investments held at FVTPL | 9.2 | 738,747,215 |
| - | Accounts receivables | 10 | 25,076,763 |
| 14,412,523 | Less: ECL allowance | 10.1 | (877,348) |
| (1,185,540) | Accounts receivable, net |
| 24,199,415 |
| 13,226,983 | Other receivables | 11 | 1,092,060 |
| 5,440,626 | Accounts payable, deferred revenue and accrued expenses | 21,23,24 | 42,913,589 |
| 39,557,587 | Cash and cash equivalents | 13 | 41,446,551 |
| 430,468,282 | Clearing participant financial liabilities | 20 | 208,227,653 |
| 352,400,544 | Equity accounted investments
|
|
|
|
| Accounts receivable - Tadawul Real Estate Company | 10 | - |
| 394,402 | Key management personnel
|
|
|
|
| Board of Directors remuneration payable | 24 | 4,746,122 |
| 12,435,456 |
Outstanding balances at period / year end arise in normal course of business. These balances are unsecured, commission free and are recoverable / payable on terms ranging from immediate to thirty days. | |
Disclosure of segments reporting [text block] |
SEGMENT INFORMATION
The Group operates solely in the Kingdom of Saudi Arabia. For management purposes, the Group is organized into business segments based on services provided. The reportable segments of the Group are:
Capital markets The activities of this segment include trading commission for securities and derivative markets, admission fees from initial listing and further capital raises, annual fees charged for securities traded on the Group’s markets and fees from secondary market services.
Post-trade The activities of this segment include registration of investment portfolios in the filing and settlement system, register and file its ownership, transfer, settlement, clearing and safekeeping its ownership, registering any restriction of ownership on the file securities, and associate with members of the market and settlement agents to filing and settlement system. Furthermore, linking and managing records of securities issuers, organizing general assemblies for issuers including remote voting service for such assemblies, providing reports, notifications and information in addition to providing any other service relating to its activities according to financial market regulations.
Data and technology services The activities of this segment are to grow the business of Data and Technology Services which includes offering high-quality real-time trading data, reference data, market indices, financial information to the financial community, financial technology solutions, research & development in the field of engineering & technology and innovative capital market solutions for stakeholders. In addition, this segment also develops financial technology and financial content for stakeholders to utilize as data and technology services.
Corporate Corporate manages future corporate development and controls all treasury related functions. This also includes managing strategy for business development including mergers and acquisitions, legal, finance, zakat and taxation, operations, information technology, human resources and customer relations management.
35.1Financial information relating to operating segments: For six-months period ended
30 June 2024 (Unaudited) | Capital markets | Data and technology services | Post- trade | Corporate | Total |
|
|
|
|
|
| Segment revenue | 242,024,484 | 97,046,448 | 402,021,077 | - | 741,092,009 | Segment costs excluding depreciation and amortization | (82,940,922) | (63,635,432) | (169,258,600) | (46,577,871) | (362,412,825) | Depreciation and amortization | (6,530,430) | (7,348,062) | (11,394,614) | (15,460,308) | (40,733,414) | Investment income | - | - | - | 71,691,067 | 71,691,067 | Share of results of equity accounted investments and reversal of impairment | - | - | - | (16,500,686) | (16,500,686) | Finance costs | - | - | - | (2,765,359) | (2,765,359) | Other income, net | - | - | - | 389,171 | 389,171 | Profit before Zakat | 152,553,132 | 26,062,954 | 221,367,863 | (9,223,986) | 390,759,963 | Zakat expense | - | - | - | (30,581,955) | (30,581,955) | Profit after Zakat | 152,553,132 | 26,062,954 | 221,367,863 | (39,805,941) | 360,178,008 | Net profit for the period is attributable to: |
|
|
|
|
| Ordinary shareholders of the parent company | 152,553,132 | 31,237,354 | 221,367,863 | (39,805,941) | 365,352,408 | Non-controlling interest | - | (5,174,400) | - | - | (5,174,400) |
| 152,553,132 | 26,062,954 | 221,367,863 | (39,805,941) | 360,178,008 |
SEGMENT INFORMATION (CONTINUED)
35.1 Financial information relating to operating segments (continued):
30 June 2023 (Unaudited) | Capital markets | Data and technology services | Post- trade | Corporate | Total |
|
|
|
|
|
| Segment revenue | 154,928,261 | 76,272,967 | 261,802,566 | - | 493,003,794 | Segment cost excluding depreciation and amortization | (85,915,624) | (39,249,854) | (152,106,014) | (14,841,150) | (292,112,642) | Depreciation and amortization | (9,217,374) | (3,243,491) | (17,171,190) | (6,361,677) | (35,993,732) | Investment income | - | - | - | 62,597,605 | 62,597,605 | Share of results of associates | - | - | - | (943,891) | (943,891) | Finance costs | - | - | - | (2,182,826) | (2,182,826) | Other income, net | - | - | - | 1,954,162 | 1,954,162 | Segment profit before Zakat | 59,795,263 | 33,779,622 | 92,525,362 | 40,222,223 | 226,322,470 | Zakat expense | - | - | - | (29,643,532) | (29,643,532) | Segment profit after Zakat | 59,795,263 | 33,779,622 | 92,525,362 | 10,578,691 | 196,678,938 | Net profit for the period is attributable to: |
|
|
|
|
| Ordinary shareholders of the parent company | 59,795,263 | 33,109,292 | 92,525,362 | 10,578,691 | 196,008,608 | Non-controlling interest | - | 670,330 | - | - | 670,330 |
| 59,795,263 | 33,779,622 | 92,525,362 | 10,578,691 | 196,678,938 |
For three-months period ended:
30 June 2024 (Unaudited) | Capital markets | Data and technology services | Post- trade | Corporate | Total |
|
|
|
|
|
| Segment revenue | 108,480,418 | 50,009,851 | 194,975,995 | - | 353,466,264 | Segment costs excluding depreciation and amortization | (40,826,158) | (31,779,600) | (85,054,293) | (27,021,267) | (184,681,318) | Depreciation and amortization | (3,303,335) | (5,295,825) | (5,866,853) | (8,648,140) | (23,114,153) | Investment income | - | - | - | 37,510,992 | 37,510,992 | Share of results of equity accounted investments and reversal of impairment | - | - | - | (10,966,016) | (10,966,016) | Finance costs | - | - | - | (1,633,632) | (1,633,632) | Other income, net | - | - | - | 199,436 | 199,436 | Profit before Zakat | 64,350,925 | 12,934,426 | 104,054,849 | (10,558,627) | 170,781,573 | Zakat expense | - | - | - | (11,422,779) | (11,422,779) | Profit after Zakat | 64,350,925 | 12,934,426 | 104,054,849 | (21,981,406) | |
|