1- Revenues increased by 21.01 million Saudi riyals (2.9%), as the group achieved revenues of 741.9 million Saudi riyals compared to revenues of 720.89 million Saudi riyals, and the performance of its main sectors was as follows:

1.1-Hotel sector revenues increased by 8.14 million Saudi riyals (2.3%), as the sector achieved revenues of 364.94 million Saudi riyals compared to revenues of 356.8 million Saudi riyals, which resulted mainly from the increase in occupancy rates of the group’s hotels in various regions of the Kingdom despite the decrease in the number of hotels in the sector is due to the group’s policy of closing low-performing hotels to improve profitability margins, as well as evacuating some hotels due to the state expropriating their ownership from the lessor (the main shareholder) for the public interest.

1.2- Entertainment sector revenues increased by 9.85 million Saudi riyals (3%), as the sector achieved revenues of 337.57 million Saudi riyals compared to revenues of 327.72 million Saudi riyals, which resulted mainly from recording project implementation revenues worth 54.2 million Saudi riyals during the current year, compared to 30.3 million Saudi riyals during the previous year.

1.3- Other sectors’ revenues increased by 3.02 million Saudi riyals, as these sectors achieved revenues of 39.39 million Saudi riyals, compared to revenues of 36.37 million Saudi riyals.

2-Gross profit increased by 51.64 million Saudi riyals (38%), as the group achieved a gross profit of 187.67 million Saudi riyals (representing 25% of the group’s revenues) compared to a total profit of 136.02 million Saudi riyals (representing 19% of the group’s revenues) which resulted mainly from the increase in the group’s revenues, in addition to the group’s re-estimation of the useful life of some categories of fixed assets, such as buildings, machinery, and equipment, in a manner commensurate with their nature, as well as the group’s continuous efforts to improve the efficiency of its operations and reduce its operating expenses. Accordingly, the performance of the sectors was positive in general and according to the following.

2.1-The gross profit for the hotel sector increased by 42.41 million Saudi riyals (67.2%), as the sector achieved a total profit of 105.49 million Saudi riyals (representing 29% of the sector’s revenues) compared to the gross profit of 63.08 million Saudi riyals (representing 18% of the sector’s revenues) which resulted mainly from the increase in sector revenues.

2.2-The gross profit for the entertainment sector increased by 1.7 million Saudi riyals (2.2%), as the sector achieved a total profit of 77.09 million Saudi riyals (representing 23% of the sector’s revenues) compared to the gross profit of 75.39 million Saudi riyals (representing 23% of the sector’s revenues) which resulted mainly from the increase in sector revenues.

2.3-The gross profit for other sectors increased by 7.54 million Saudi riyals, as the sectors achieved a total profit of 5.09 million Saudi riyals (representing 13% of sector revenues), compared to a total loss of 2.44 million Saudi riyals (representing -7% of sector revenues), which mainly resulting from the increase in revenues of those sectors.

3-Operating profits increased by 77.08 million Saudi riyals, as the group achieved operating profits of 35.91 million Saudi riyals (representing 5% of the group’s revenues), compared to operating losses of 41.17 million Saudi riyals (representing -6% of the group’s revenues), which resulted mainly about the increase in gross profit in addition to the group’s initiatives in utilizing modern technologies and automating its operations, which contributed to significantly reducing general and administrative costs. It is worth noting that the group was able to achieve profits from its operational operations for three consecutive quarters this year, compared to achieving operating profits during only one quarter during the previous year.

4.1-The Group's exit from the cinema sector represented by its investment in the joint venture (Luxury Entertainment Company LLC), on the basis of which a total loss of 32.6 million Saudi riyals was recorded, representing both the Group's share in the losses of the joint venture for the current year of 7.1 million Saudi riyals, in addition to losses related to the decision to start liquidating the said company, and therefore the Group recorded provisions of 14.5 million Saudi riyals and amortized investments worth 9.6 million Saudi riyals. In addition to the formation of a provision for future liabilities that may result from the liquidation of 1.5 million Saudi riyals.

4.2-The Group increased the provisions for the delay of some of its clients with legal personality in paying trade receivables, which caused an increase in the provision for impairment loss in accordance with International Financial Reporting Standards by an amount of 15.6 million Saudi riyals (339%), as the value of the provisions set aside during the current year amounted to 20.3 million Saudi riyals, compared to the amount of 4.6 million Saudi riyals for the previous year, which comes in parallel with the group’s efforts to follow up and collect these amounts.

4.3-An increase in the cost of financial burdens by 15.5 million riyals (64%), reaching 39.7 million Saudi riyals during the year compared to 25.6 million Saudi riyals for the previous year, which resulted from an increase in the interbank financing rate (SAIBOR) despite the decrease in bank loans by 25.6 million Saudi riyals

5-The total comprehensive loss increased by 4.86 million Saudi riyals (5.9%), as the group recorded a total comprehensive loss of 86.73 million Saudi riyals (representing -12% of the group’s revenues) compared to a total comprehensive loss of 81.88 million Saudi riyals (representing -11%). of the group's revenues) which resulted mainly from the increase in net loss.

Item Two - Loss per share: The loss per share amounted to 0.28 Saudi riyals per share as of the end of the year 2023 compared to a loss of 0.26 Saudi riyals per share as of the end of the previous year 2022.

Item Three - Shareholders' Equity: Total shareholders’ equity amounted to 203.43 million Saudi riyals as at the end of the year 2023, compared to 290.17 million Saudi riyals as at the end of the previous year, a decrease of 86.73 million Saudi riyals (29.9%).

Item Four - Accumulated losses: The accumulated losses amounted to 114.17 million Saudi riyals as at the end of the year 2023, which represents 36.2% of the group’s subscribed capital, amounting to 315 million Saudi riyals.

The main reasons that led to these losses:

Noting the group’s initiatives to increase its revenues, reduce operational costs, improve profitability margins, and close low-performing sites, which contributed to transferring operational results to profitability and achieving operating profits for three continuous quarters during the current year, several factors contributed to recording net losses, namely: in:

1 -4.1-The Group's exit from the cinema sector represented by its investment in the joint venture (Luxury Entertainment Company LLC.), on the basis of which a total loss of 32.6 million Saudi riyals was recorded, representing both the Group's share in the losses of the joint venture for the current year of 7.1 million Saudi riyals, in addition to losses related to the decision to start liquidating the said company, and therefore the Group recorded provisions of 14.5 million Saudi riyals and amortized investments worth 9.6 million Saudi riyals. In addition to the formation of a provision for future liabilities that may result from the liquidation of 1.5 million Saudi riyals

2- The Group increased the provisions for the delay of some of its clients with legal personality in paying commercial receivables, which caused an increase in the provision for impairment loss in accordance with International Financial Reporting Standards by an amount of 15.6 million Saudi riyals (339%), as the value of the provisions set aside during the current year amounted to 20.3 One million Saudi riyals, compared to the amount of 4.6 million Saudi riyals for the previous year, which comes in parallel with the group’s efforts to follow up and collect these amounts.

3- An increase in cost of financial burdens by 15.5 million Saudi riyals (64%) to SAR 39.7 million during the year compared to 25.6 million Saudi riyals for the previous year, which resulted from an increase in the interbank financing ratio (SAIBOR) despite a decrease in bank loans by 25.6 million Saudi riyals.

Measures that the company will take to reduce accumulated losses:

1- Developing a strategic transformation program that will be announced later.

2- Continue to restructure the company’s sectors to improve effectiveness and efficiency in operational and administrative aspects

3- Continuing to evaluate the group’s projects and exit from poorly performing projects that generate operational losses

4-Searching for promising opportunities that raise the financial performance of the group, especially with the positive indicators of the tourism and entertainment system in the region

Application of procedures and instructions:

The procedures and instructions for companies whose shares are listed on the Saudi Stock Exchange and whose accumulated losses amount to 20% or more of their capital will be applied.