Al Gassim Holding” profits jump 565% during 2022, to SR7 ‎million

The net profit after zakat and tax of Al-Gassim Investment Holding Company jumped to 7 million riyals during the year 2022 AD, compared to 1.09 million riyals in the year 2021 AD, an increase of 565%. This came after today’s announcement of the annual financial results ending on 12-31-2022.

The operational profit amounted to 15 million riyals during the year ending in 2022, compared to 7 million riyals in the previous year, an increase of 125%.

As for gross profit, it amounted to 9 million riyals in the current year, compared to 10 million riyals in the previous year, a decline of 2%.

Earnings per share in the current year amounted to 0.24 riyals, compared to 0.04 riyals in the previous year.

The main reason for the increase in profits during the current year compared to the previous year is due to the increase in the value of reimbursement of impairment losses in the value of investment properties and the decrease in the value of general and administrative expenses during the current year compared to the previous year, despite the presence of an increase in the value of the provisions made, as well as an increase The value of the zakat provision made during the current year, compared to the previous year.

The company drew attention to clarification No. (32) in the financial statements, which indicated the existence of a lawsuit from the company against the branch of the Ministry of Environment, Water and Agriculture (“the Ministry”) in the Qassim region, which relates to a request to cancel the negative decision represented in the refusal of the branch of the Ministry to Raising the request to the High Commissioner for the company to own the entire area that it has revived from the land handed over to it where an approval was issued by the High Commissioner for the company to own an area of 74 million square meters only from the total area that it revived, and the company demands that the company request ownership of the rest of the area that it revived from that land amounting to 116 million square meters. Noting that when the company is assumed to lose the lawsuit, it will substantially affect the company due to the connection of the disputed land with the lease revenue contracts concluded by the company, which represents the main source of income for the company, and the expected losses can only be determined upon the final settlement of the lawsuit, On March 30, 2021, a preliminary ruling was issued by the Administrative Court in Qassim region in the case filed by Al-Gassim‎ Investment Holding Company against the branch of the Ministry of Environment, Water and Agriculture in Qassim region, not to accept the case, and based on the opinion of the company’s legal advisor that the reason for rejecting the case is due to the lack of The jurisdiction of the Administrative Court is to hear the case, and that the specialist is a committee in the Ministry of Environment, Water and Agriculture. The company received the ruling and objected to it before the Administrative Court of Appeal. The invitation was registered under No. 446/1442 in the Administrative Court of Appeal in Qassim region, and the date for the first session was set on August 31, 2021 AD.

On May 18, 2021 AD, the company received a letter from the Ministry of Environment, Water and Agriculture, dated Ramadan 24, 1442 AH, regarding the land of Shura, in which the Ministry hopes to pay the equal fee for the encroached area, which the company revived from the date of seizure until the date of Ramadan 24, 1442 AH, to the state treasury in favor of the Ministry. And since there is an existing lawsuit filed against the branch of the Ministry of Environment, Water and Agriculture, in which the company is calling for the cancellation of the decision represented by the ministry’s refusal to raise a request for the company to own the entire area that the company has revived from the land handed over to it, and therefore the ministry is not entitled to claim the rent. Before deciding whether or not the company owns the land, the company objected to the decision on July 14, 2021 AD. The Administrative Court of Appeal in Qassim region issued a ruling to annul the ruling issued on 8/17/1442 AH by the First Circuit of the Administrative Court in Buraidah in the case registered under No. (228) for the year 1442 AH, which ruled that the case was not accepted, and canceled the negative decision of the Ministry of Environment, Water and Agriculture represented in its refusal to refer the grievance of Al-Gassim‎ Investment Holding Company for not owning the entire area that it revived from the land allocated to it to the committee stipulated in Article Ten of the system of waste land distribution. The judgment was received on 03/03/1443 AH and it has the company objected to the decision on July 14, 2021 AD. On 02/07/1444 AH, the Supreme Administrative Court asked the defendant to complete the data and documents within 30 days, and a date for the case with the Court of Appeal was set on 14/09/1444 AH. Our opinion has not been modified in respect of this matter

The company said that some comparative figures have been reclassified to conform to the classification of the current period.