1- Revenue increased due to an increase in operations, including the resumption of the Hajj and Ramadan season, which added significantly to the revenue. An increase in operations and revenue is directly proportionate to the cost of revenues, selling and distribution expenses, general and administrative expenses, and the cost of finance.

2- Incremental other income.

3-Lower loss recognized on investments in joint venture.

4- Decrease in the Zakat and Tax expenses.

5- Recognition of reversal for impairment in assets held for sale in the current year.

6- Decrease in financing income.

7- Recognition of losses in associate company during 2022.

8- Recording of a higher amount of impairment on receivables and provision for impairment of non-current assets during 2022.

-The Group’s management conducted an impairment test for its operating and intangible assets at the end of the year 2022, which resulted in recording a provision for impairment by (56) million riyals, which is illustrated in Note No. (7&9) of the consolidated financial statements.

- The accumulated losses are (304.9) million riyals, which is equivalent to 24.39% of the company’s share capital of (1,250) million riyals. The accumulated losses are reported as on 31/12/2022 AD.

• The main reasons for the accumulated losses reaching 20% or more of the capital are:

- The business and activities of the company, its subsidiaries, and the joint venture were affected by the Corona virus pandemic during the year 2020 AD and the year 2021 AD, which is resulted in accumulated losses.

- Recording an impairment in the Company assets during 2021 and 2022 AD.

• The company will apply the procedures and instructions for companies whose shares are listed in the market and whose accumulated losses amounted to 20% or more of its capital.