ESHRAQ INVESTMENTS PJSC
Review report and condensed consolidated financial information for the six-month period ended 30 June 2024
ESHRAQ INVESTMENTS PJSC
Review report and condensed consolidated financial information for the six-month period ended 30 June 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 |
Notes to the condensed consolidated financial statements | 8 - 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: +971 (0) 2 408 2424
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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
30 June 2024 and the related condensed consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the six-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
13 August 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), Sundar Nurani (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 30 June 2024
30 June | 31 December | |||||
2024 | 2023 | |||||
AED'000 | AED'000 | |||||
Notes | (unaudited) | (audited) | ||||
ASSETS | ||||||
Non-current assets | ||||||
Property and equipment | 5 | 6,474 | 6,924 | |||
Investment properties | 6 | 687,518 | 687,518 | |||
Financial assets at fair value through other comprehensive | ||||||
income | 7 | 21,249 | 21,450 | |||
Debt investment at amortised cost | 8 | 7,859 | 7,859 | |||
Trade and other receivables - net of current portion | 10 | 99,137 | 99,169 | |||
----------- | ----------- | |||||
Total non-current assets | 822,237 | 822,920 | ||||
----------- | ----------- | |||||
Current assets | ||||||
Inventories | 60 | 50 | ||||
Wakala investment | 12 | 12,312 | 11,400 | |||
Trade and other receivables | 10 | 49,278 | 32,010 | |||
Financial assets at fair value through profit or loss | 9 | 1,049,256 | 1,350,889 | |||
Due from related parties | 20 | 628 | 633 | |||
Cash and bank balances | 11 | 27,217 | 58,772 | |||
----------- | ----------- | |||||
Total current assets | 1,138,751 | 1,453,754 | ||||
----------- | ------------ | |||||
Total assets | 1,960,988 | 2,276,674 | ||||
EQUITY AND LIABILITIES | ||||||
Equity | ||||||
Share capital | 14 | 2,685,286 | 2,820,433 | |||
Share discount | 14 | (623,283) | (623,283) | |||
Treasury shares | 14 | - | (73,000) | |||
Statutory reserve | 15 | 58,979 | 58,979 | |||
Accumulated losses | (263,689) | (23,222) | ||||
Investment revaluation reserve | 16 | (47,095) | (47,126) | |||
----------- | ----------- | |||||
Total equity | 1,810,198 | 2,112,781 | ||||
----------- | ----------- |
The accompanying notes form an integral part of the condensed consolidated financial statements.
ESHRAQ INVESTMENTS PJSC | 3 | |||
Condensed consolidated statement of financial position | ||||
at 30 June 2024 (continued) | ||||
30 June | 31 December | |||
2024 | 2023 | |||
Notes | (unaudited) | (audited) | ||
Liabilities | ||||
Non-current liabilities | 17 | 1,206 | 1,176 | |
Bank borrowings | 18 | 121,278 | 121,972 | |
Total non-current liabilities | ||||
122,484 | 123,148 | |||
Current liabilities | ||||
19 | 23,691 | |||
Trade and other payables | 29,285 | |||
Bank borrowings | 18 | 4,615 | 11,460 | |
Total current liabilities | 28,306 | 40,745 | ||
Total liabilities | ||||
150,790 | 163,893 | |||
Total equity and liabilities | ||||
1,960,988 | 2,276,674 |
To the best of our knowledge, the condensed consolidated financial statements present fairly in all material respects the consolidated financial position, financial performance and cash flows of the Group as of, and for, the periods presented therein.
Chairman | Chief Executive Officer | Director, Finance |
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 six-month period ended 30 June 2024
Three-month ended 30 June | Six-month ended 30 June | |||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Notes | AED'000 | AED'000 | AED'000 | AED'000 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
Revenue from commercial operations | 4,087 | 7,973 | 8,137 | 19,647 | ||||||||||
Direct operating expenses | (1,128) | (2,885) | (2,260) | (6,233) | ||||||||||
Gross profit from commercial operations | 2,959 | 5,088 | 5,877 | 13,414 | ||||||||||
Finance income | 2,265 | 1,483 | 4,061 | 2,785 | ||||||||||
Finance costs | (2,414) | (3,674) | (4,887) | (7,953) | ||||||||||
Net finance loss | (149) | (2,191) | (826) | (5,168) | ||||||||||
Net changes in fair value of financial assets | ||||||||||||||
at FVTPL | 9 | 2,120 | 40,992 | (303,275) | 32,966 | |||||||||
Dividend income | - | 416 | - | 416 | ||||||||||
Net (loss)/gain from investments | 2,120 | 41,408 | (303,275) | 33,382 | ||||||||||
Total operating (loss)/income | 4,930 | 44,305 | (298,224) | 41,628 | ||||||||||
General and administrative expenses | (1,416) | (7,855) | (4,325) | (11,276) | ||||||||||
Loss on disposal of assets held for sale | 13 | - | (255) | - | (28,074) | |||||||||
Selling and marketing expenses | - | (213) | - | (408) | ||||||||||
Other income | 3 | 10 | 15 | 34 | ||||||||||
(Loss)/profit before tax | 3,517 | 35,992 | (302,534) | 1,904 | ||||||||||
Tax expense | - | - | - | - | ||||||||||
(Loss)/profit after tax | 3,517 | 35,992 | (302,534) | 1,904 | ||||||||||
Basic and diluted (loss)/ earnings per | ||||||||||||||
share (AED) | 21 | 0.0013 | 0.0131 | (0.1127) | 0.0007 | |||||||||
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 six-month period ended 30 June 2024
Three-month ended 30 June | Six-month ended 30 June | ||||||||||
2024 | 2023 | 2024 | 2022 | ||||||||
AED'000 | AED'000 | AED'000 | AED'000 | ||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||
(Loss)/ profit after tax | 3,517 | 35,992 | (302,534) | 1,904 | |||||||
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") | (10) | 572 | 31 | 1,417 | |||||||
Total other comprehensive income | (10) | 572 | 31 | 1,417 | |||||||
Total comprehensive (loss)/income for the period | 3,507 | 36,564 | (302,503) | 3,321 | |||||||
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 six-month period ended 30 June 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 | ||||||||||||||||
Profit for the period | - | - | - | - | 1,904 | - | 1,904 | ||||||||||||||||
Other comprehensive loss for the period | - | - | - | - | - | 1,417 | 1,417 | ||||||||||||||||
_______________ | _______________ | _______________ | _______________ | _______________ | _______________ | _______________ | |||||||||||||||||
Total comprehensive income for the period | - | - | - | - | 1,904 | 1,417 | 3,321 | ||||||||||||||||
Transfer to retained earnings on disposal | |||||||||||||||||||||||
of financial assets at FVTOCI | - | - | - | - | (3,234) | 3,234 | - | ||||||||||||||||
Treasury shares purchased (Note 14) | - | - | (45,007) | - | - | - | (45,007) | ||||||||||||||||
_______________ | _______________ | _______________ | _______________ | _______________ | _______________ | _______________ | |||||||||||||||||
Balance at 30 June 2023 (unaudited) | 2,820,433 | (623,283) | (71,158) | 58,979 | 523,783 | (46,775) | 2,661,979 | ||||||||||||||||
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 | - | - | - | - | (302,534) | - | (302,534) | ||||||||||||||||
Other comprehensive income for the period | - | - | - | - | - | 31 | 31 | ||||||||||||||||
Total comprehensive (loss)/income for the period | - | - | - | - | (302,534) | 31 | (302,503) | ||||||||||||||||
Treasury shares purchased (Note 14) | - | - | (80) | - | - | - | (80) | ||||||||||||||||
Treasury shares cancelled (Note 14) | (135,147) | - | 73,080 | - | 62,067 | - | - | ||||||||||||||||
Balance at 30 June 2024 (unaudited) | 2,685,286 | (623,283) | - | 58,979 | (263,689) | (47,095) | 1,810,198 | ||||||||||||||||
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 six-month period ended 30 June 2024 | |||||||||||
Six-month ended 30 June | |||||||||||
2024 | 2023 | ||||||||||
Notes | AED'000 | AED'000 | |||||||||
(unaudited) | (unaudited) | ||||||||||
Cash flows from operating activities | |||||||||||
(Loss)/profit for the period | (302,534) | 1,904 | |||||||||
Adjustments for: | |||||||||||
Depreciation of property and equipment | 5 | 453 | 445 | ||||||||
Net change in fair value of financial assets at FVTPL | 9 | 303,275 | (32,966) | ||||||||
Change in fair value of assets held for sale | 13 | - | 28,074 | ||||||||
Amortisation of borrowing cost | 18 | 41 | 108 | ||||||||
Provision for employees' end of service benefits | 17 | 181 | 149 | ||||||||
Dividend income | - | (416) | |||||||||
Finance income | (4,061) | (2,785) | |||||||||
Finance costs | 4,846 | 7,845 | |||||||||
Operating cash flows before changes in working capital | 2,201 | 2,358 | |||||||||
Increase in inventories | (10) | (8) | |||||||||
Increase in trade and other receivables | (15,601) | (602) | |||||||||
Decrease/(increase) in due from a related party | 5 | (11,428) | |||||||||
Decrease in restricted cash | - | 3,635 | |||||||||
Decrease in trade and other payables | (5,606) | (22,034) | |||||||||
Cash used in operations | (19,011) | (28,079) | |||||||||
Employees' end of service benefits paid | 17 | (151) | (287) | ||||||||
Net cash used in operating activities | (19,162) | (28,366) | |||||||||
Cash flows from investing activities | |||||||||||
Acquisition of debt investments at amortised cost | 8 | - | (7,859) | ||||||||
Interest received | 1,514 | 228 | |||||||||
Dividend received | - | 416 | |||||||||
Payments for property and equipment | 5 | (3) | (6) | ||||||||
Payments for assets held for sale | 13 | - | (213) | ||||||||
Proceeds from sales of assets held for sale | 13 | - | 160,726 | ||||||||
Payments for investment properties | 6 | - | (250) | ||||||||
Proceeds from sales of investment properties | 6 | - | 48,554 | ||||||||
Proceeds from disposal of financial assets at fair value through | |||||||||||
other comprehensive income | 7 | 232 | 27,411 | ||||||||
Payments for financial assets at fair value through profit or loss | 9 | (1,642) | (65,378) | ||||||||
Proceeds from sales of financial assets at fair value through profit or loss | 9 | - | 5,790 | ||||||||
Net cash generated from investing activities | 101 | 169,419 | |||||||||
Cash flows from financing activities | |||||||||||
Repayment of bank borrowings | 18 | (7,528) | (65,085) | ||||||||
Finance costs paid | (4,886) | (8,133) | |||||||||
Treasury shares acquired | 14 | (80) | (45,007) | ||||||||
Net cash flows used in financing activities | (12,494) | (118,225) | |||||||||
Net (decrease)/increase in cash and cash equivalents | (31,555) | 22,828 | |||||||||
Cash and cash equivalents as at 1 January | 55,542 | 15,500 | |||||||||
Cash and cash equivalents as at 30 June | 11 | 23,987 | 38,328 | ||||||||
Non-cash transactions | |||||||||||
Acquisition of Wakala investment on settlement of related party receivables | 12 | 12,312 | 11,400 | ||||||||
Disposal of Wakala investment | 12 | 11,400 | - | ||||||||
The accompanying notes form an integral part of these condensed consolidated financial information.
ESHRAQ INVESTMENTS PJSC | 8 |
Notes to the condensed consolidated financial statements for the six-month period ended 30 June 2024
1 General information
Eshraq Investments PJSC (the "Company") was initially registered as a private joint stock company in the
Emirate of Abu Dhabi on 24 December 2006. On 7 July 2011, the Company converted to a public joint stock company. The Company is listed on the Abu Dhabi Securities Exchange.
The Company is registered under commercial license No. 1005631 and Abu Dhabi Chamber of Commerce and Industry membership No. 223393. The registered head office of the Company is at P.O. Box 108737, Abu
Dhabi, United Arab Emirates ("UAE").
The Company and its subsidiaries (together referred to as the "Group") are principally engaged in commercial enterprise investment and real estate business which includes development, sale, investment, construction, management and associated services. During the year 2023, the Company sold a hotel apartment building.
The details of principal activities, country of incorporation and operation, and ownership interest of the Company in its subsidiaries are set out below:
Country of | Legal % of holding | Principal | |||||||
Name of the subsidiary | incorporation | activities | Classification | ||||||
2024 | 2023 | ||||||||
Eshraq International Company | Cayman | 100 | 100 | Real estate | Subsidiary | ||||
LLC | Islands | ||||||||
Beans and Pages Café | UAE | 100 | 100 | Library and café | Subsidiary | ||||
Goldilocks Investment Holding- | Investment, | ||||||||
Sole Proprietorship L.L.C* | UAE | 100 | 100 | institution and | Subsidiary | ||||
management | |||||||||
Qanat View Real Estate | Real estate | ||||||||
Development Construction - | UAE | 100 | 100 | development | Subsidiary | ||||
Sole Proprietorship L.L.C. ** | construction | ||||||||
Bayfront Waves View Real Estate | Real estate | ||||||||
Development Construction - | UAE | 100 | 100 | development | Subsidiary | ||||
Sole Proprietorship L.L.C. ** | construction | ||||||||
Garden Meadows View Real Estate | Real estate | ||||||||
Development Construction - | UAE | 100 | 100 | development | Subsidiary | ||||
Sole Proprietorship L.L.C. ** | construction | ||||||||
Heights View Real Estate | Real estate | ||||||||
Development Construction - | UAE | 100 | 100 | development | Subsidiary | ||||
Sole Proprietorship L.L.C. ** | construction | ||||||||
Paradise Empire View Real Estate | Real estate | ||||||||
Development Construction - | UAE | 100 | 100 | development | Subsidiary | ||||
Sole Proprietorship L.L.C. ** | construction | ||||||||
Seascape Oasis View Real Estate | Real estate | ||||||||
Development Construction - | UAE | 100 | 100 | development | Subsidiary | ||||
Sole Proprietorship L.L.C. ** | construction |
*Dormant entity acquired from a related party. **Entities incorporated in 2023.