1. Increase in general and administrative expenses and an increase in selling and marketing expenses.

2. Increase in financing costs.

3. Decreased in share of the results of an associate company.

4. Increase in cost of revenues.

1. Increase in revenues

2. Decrease in general and administrative expenses.

3. Reduced in financing costs.

The group incurred a net loss attributable to shareholders during the three months ended on March 31, 2024, amounting to 55,653,145 Saudi riyals, and its accumulated losses as of March 31, 2024 amounted to 313,678,079 Saudi riyals, which represents 39% of the capital, and the group’s current liabilities exceeded its current assets by 277.6 million Saudi riyals as of March 31, 2024 (December 31, 2023: 215.2 million Saudi riyals). The Group is currently conducting negotiations with a commercial bank to obtain additional facilities to finance working capital requirements. The Group has also submitted a right issue file to the Capital Market Authority to increase capital by 200 million Saudi riyals. The Group’s management believes that it will succeed in obtaining additional facilities in near future. Also, if necessary, the Group will sell one of its investment properties and investments in equity instruments designated at fair value through other comprehensive income to cover this issue. These events and conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt about the Group’s ability to continue to operate as a going concern. Our conclusion has not been modified in this matter

Current period

(55,653,145) / 80,636,328 = (0.69)

The corresponding period of the previous year had a loss per share of:

(46,645,852) / 80,636,328 = (0.58)

2. Coinciding with the announcement of the financial statements on March 31, 2024, the accumulated losses amounted to SR.313,678,079 which represents 39% of the company’s capital. The reason for this is the failure of Al Salam Hospital for Medical Services (a subsidiary) to achieve the revenues that cover the hospital’s operating expenses. It is worth noting that the hospital was opened in October 2022, and on August 28, 2023, the company announced the recommendation of the Board of Directors to increase the capital by SR. 200 million, and also on February 19, 2024, it was announced the signing of a non-binding memorandum of understanding with Dallah Healthcare Company to sell the company’s shares in Al-Ahsa Medical Services Company (a subsidiary) and Al-Salam Medical Services Company (a subsidiary). The procedures and instructions for companies whose shares are listed on the market and whose accumulated losses amount to 20% or more of their capital will be applied.

Any other regulations or instructions will be followed as soon as they are implemented in this regard