ESHRAQ INVESTMENTS PJSC
Review report and condensed consolidated financial information for the nine-month period ended 30 September 2024
ESHRAQ INVESTMENTS PJSC
Review report and condensed consolidated financial information for the nine-month period ended 30 September 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
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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 September 2024 and the related condensed consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the nine-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 November 2024
Abu Dhabi
United Arab Emirates
ESHRAQ INVESTMENTS PJSC | 2 | ||||||
Condensed consolidated statement of financial position | |||||||
at 30 September 2024 | |||||||
30 September | 31 December | ||||||
2024 | 2023 | ||||||
AED'000 | AED'000 | ||||||
Notes | (unaudited) | (audited) | |||||
ASSETS | |||||||
Non-current assets | |||||||
Property and equipment | 5 | 6,253 | 6,924 | ||||
Investment properties | 6 | 687,518 | 687,518 | ||||
Financial assets at fair value through other comprehensive | |||||||
income | 7 | 21,123 | 21,450 | ||||
Wakala investment | 12 | 12,312 | 11,400 | ||||
Trade and other receivables - net of current portion | 10 | 99,137 | 99,169 | ||||
----------- | ----------- | ||||||
Total non-current assets | 826,343 | 826,461 | |||||
----------- | ----------- | ||||||
Current assets | |||||||
Inventories | 65 | 50 | |||||
Trade and other receivables | 10 | 52,752 | 32,010 | ||||
Debt investment at amortised cost | 8 | 7,859 | 7,859 | ||||
Financial assets at fair value through profit or loss | 9 | 1,055,863 | 1,350,889 | ||||
Due from related parties | 20 | 626 | 633 | ||||
Cash and bank balances | 11 | 18,605 | 58,772 | ||||
----------- | ----------- | ||||||
Total current assets | 1,135,770 | 1,450,213 | |||||
----------- | ------------ | ||||||
Total assets | 1,962,113 | 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 | (256,961) | (23,222) | |||||
Investment revaluation reserve | 16 | (47,079) | (47,126) | ||||
----------- | ----------- | ||||||
Total equity | 1,816,942 | 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 September 2024 (continued) | |||||
30 September | 31 December | ||||
2024 | 2023 | ||||
Notes | (unaudited) | (audited) | |||
Liabilities | |||||
Non-current liabilities | 17 | 1,069 | 1,176 | ||
Bank borrowings | 18 | 120,854 | 121,972 | ||
Total non-current liabilities | 121,923 | 123,148 | |||
Current liabilities | 19 | 18,547 | |||
Trade and other payables | 29,285 | ||||
Bank borrowings | 18 | 4,701 | 11,460 | ||
Total current liabilities | 23,248 | 40,745 | |||
Total liabilities | 145,171 | 163,893 | |||
Total equity and liabilities | 1,962,113 | 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 nine-month period ended 30 September 2024 | |||||||||||||||
Three-month ended | Nine-month ended | ||||||||||||||
30 September | 30 September | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Notes | AED '000 | AED '000 | AED '000 | AED '000 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
Revenue from commercial operations | 4,005 | 6,931 | 12,142 | 26,578 | |||||||||||
Direct operating expenses | (1,181) | (3,010) | (3,441) | (9,243) | |||||||||||
Gross profit from commercial operations | 2,824 | 3,921 | 8,701 | 17,335 | |||||||||||
Finance income | 2,439 | 1,487 | 6,500 | 4,272 | |||||||||||
Finance costs | (2,430) | (3,517) | (7,317) | (11,470) | |||||||||||
Net finance income/(loss) | 9 | (2,030) | (817) | (7,198) | |||||||||||
Dividend income | - | - | - | 416 | |||||||||||
Changes in fair value of financial assets | |||||||||||||||
at fair value through profit or loss | 9 | 6,606 | (85,042) | (296,668) | (52,076) | ||||||||||
Net income/(loss) from investments | 6,606 | (85,042) | (296,668) | (51,660) | |||||||||||
Total operating income/(loss) | 9,439 | (83,151) | (288,784) | (41,523) | |||||||||||
General and administrative expenses | (2,718) | (2,592) | (7,043) | (13,868) | |||||||||||
Selling and marketing expenses | - | (163) | - | (571) | |||||||||||
Loss on disposal of assets held for sale | 13 | - | - | - | (28,074) | ||||||||||
Change in fair value of investment properties | 6 | - | 2,558 | - | 2,558 | ||||||||||
Other income | 6 | 4 | 21 | 38 | |||||||||||
Income/(loss) for the period | 6,727 | (83,344) | (295,806) | (81,440) | |||||||||||
Basic and diluted income/(loss) per share | 24 | ||||||||||||||
(AED) | 0.0025 | (0.0306) | (0.1102) | (0.0299) | |||||||||||
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 nine-month period ended 30 September 2024 | |||||||||||
Three-month ended | Nine-month ended | ||||||||||
30 September | 30 September | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
AED '000 | AED '000 | AED '000 | AED '000 | ||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||
Income/(loss) for the period | 6,727 | (83,344) | (295,806) | (81,440) | |||||||
Other comprehensive income: | |||||||||||
Item that will not be reclassified to profit or loss | |||||||||||
Changes in the fair value of equity instruments | |||||||||||
designated at fair value through other | |||||||||||
comprehensive income | 16 | (186) | 47 | 1,231 | |||||||
Total other comprehensive income/(loss) | 16 | (186) | 47 | 1,231 | |||||||
Total comprehensive income/(loss) for the period | 6,743 | (83,530) | (295,759) | (80,209) | |||||||
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 nine-month period ended 30 September 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 | - | - | - | - | (81,440) | - | (81,440) | ||||||||||||||||
Other comprehensive gain for the period | - | - | - | - | - | 1,231 | 1,231 | ||||||||||||||||
_______________ | _______________ | _______________ | _______________ | _______________ | _______________ | _______________ | |||||||||||||||||
Total comprehensive (loss)/income for the period | - | - | - | - | (81,440) | 1,231 | (80,209) | ||||||||||||||||
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 September 2023 (unaudited) | 2,820,433 | (623,283) | (71,158) | 58,979 | 440,439 | (46,961) | 2,578,449 | ||||||||||||||||
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 | - | - | - | - | (295,806) | - | (295,806) | ||||||||||||||||
Other comprehensive income for the period | - | - | - | - | - | 47 | 47 | ||||||||||||||||
Total comprehensive (loss)/income for the period | - | - | - | - | (295,806) | 47 | (295,759) | ||||||||||||||||
Treasury shares purchased (Note 14) | - | - | (80) | - | - | - | (80) | ||||||||||||||||
Treasury shares cancelled (Note 14) | (135,147) | - | 73,080 | - | 62,067 | - | - | ||||||||||||||||
Balance at 30 September 2024 (unaudited) | 2,685,286 | (623,283) | - | 58,979 | (256,961) | (47,079) | 1,816,942 | ||||||||||||||||
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 nine-month period ended 30 September 2024 | ||||||
Nine-month ended 30 September | ||||||
2024 | 2023 | |||||
AED'000 | AED'000 | |||||
Notes | (unaudited) | (unaudited) | ||||
Cash flows from operating activities | ||||||
Loss for the period | (295,806) | (81,440) | ||||
Adjustments for: | ||||||
Change in fair value of financial assets at FVTPL | 9 | 296,668 | 52,076 | |||
Depreciation of property and equipment | 5 | 675 | 666 | |||
Amortisation of borrowing cost | 18 | 61 | 161 | |||
Finance income | (6,500) | (4,272) | ||||
Finance costs | 7,256 | 11,309 | ||||
Dividend income | - | (416) | ||||
Provision for employees' end of service benefits | 17 | 248 | 206 | |||
Change in valuation of investment properties | 6 | - | (2,558) | |||
Change in fair value of assets held for sale | 13 | - | 28,074 | |||
__________ | __________ | |||||
Operating cash flows before changes in working capital | 2,602 | 3,806 | ||||
(Increase)/decrease in trade and other receivables | (17,332) | 2,141 | ||||
(Increase)/decrease in inventories | (15) | 2 | ||||
Decrease in restricted cash | - | 3,635 | ||||
Decrease/(increase) in due from a related party | 7 | (4,090) | ||||
Decrease in trade and other payables | (10,788) | (21,427) | ||||
_______________ | _______________ | |||||
Cash used in operating activities | (25,526) | (15,933) | ||||
Employees' end of service benefits paid | 17 | (355) | (348) | |||
_______________ | _______________ | |||||
Net cash used in operating activities | (25,881) | (16,281) | ||||
_______________ | _______________ | |||||
Cash flows from investing activities | ||||||
Acquisition of debt investments at amortised cost | 8 | - | (7,859) | |||
Interest received | 2,210 | 227 | ||||
Dividends received | - | 416 | ||||
Proceeds from sales of financial assets at fair value through profit or loss | 9 | - | 12,250 | |||
Proceeds from sales of assets held for sale | 13 | - | 160,726 | |||
Proceeds from sale of investment properties | 6 | - | 48,554 | |||
Proceeds from disposal of financial assets at fair value through other comprehensive | ||||||
income | 7 | 374 | 27,607 | |||
Acquisition of financial assets at fair value through profit or loss | 9 | (1,642) | (65,378) | |||
Payments for investment properties | 6 | - | (242) | |||
Payment for assets held for sale | 13 | - | (266) | |||
Payments for purchase of property and equipment | 5 | (4) | (240) | |||
_______________ | _______________ | |||||
Net cash generated from investing activities | 938 | 175,795 | ||||
_______________ | _______________ | |||||
Cash flows from financing activities | ||||||
Repayment of bank borrowings | 18 | (7,886) | (70,866) | |||
Finance costs paid | (7,258) | (16,086) | ||||
Treasury shares acquired | 14 | (80) | (45,007) | |||
__________ | __________ | |||||
Net cash used in financing activities | (15,224) | (131,959) | ||||
__________ | __________ | |||||
Net (decrease)/increase in cash and cash equivalents | (40,167) | 27,555 | ||||
Cash and cash equivalents at 1 January | 55,542 | 15,500 | ||||
_______________ | _______________ | |||||
Cash and cash equivalents at 30 September | 11 | 15,375 | 43,055 | |||
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 nine-month period ended 30 September 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 | 2024 | 2023 | activities | Classification | |||
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.