Further to the company's announcement regarding the financial results for the fiscal year ended 31/12/2017 and published on Tadawul website on 29/03/2017, Asharqiyah Development Company would like to refer to another matter mentioned in the report of the External Auditor, which indicates that drawing attention to the current liabilities of the company exceeded As on 31/12/2017, an amount of SR 32.3 million, which shows a condition of uncertainty about the company's continuity. Asharqiyah Development Company wishes to clarify that the difference between the current assets and the current liabilities was due to the weakness of the Company's operating resources as a result of accumulated losses during the past financial periods. However, the company is seeking to acquire the deeds of the agricultural land it has developed and to find solutions to ensure its financial integrity and thus it can continue to implement its investment plans by providing the necessary financial support which enables it to meet all the obligations when due. Accordingly, the attached financial statements have been prepared on the basis of The principle of continuity.