HMG

Consolidated Statement of Financial Position

As at 31 December 2023

	Notes	31 December 2023 SR	31 December 2022 SR
Assets
Current assets
Cash and cash equivalents	7	2,620,380,482	2,746,989,005
Accounts receivable	8	703,123,099	741,713,503
Prepayments and other assets	9	271,273,583	181,380,520
Inventories	10	543,059,382	490,392,915
Total current assets		4,137,836,546	4,160,475,943
Non-current assets
Investments in associates	11	197,589,504	186,999,110
Investments in equity instruments – Sukuk		300,000,000	300,000,000
Property and equipment	12	11,162,615,517	7,936,642,673
Total non-current assets		11,660,205,021	8,423,641,783
Total assets		15,798,041,567	12,584,117,726

Liabilities and equity
Liabilities
Current liabilities
Current portion of long-term loans	28.1	96,039,119	167,651,299
Accounts payable	13	1,280,445,284	961,319,436
Accruals and other liabilities	15	1,703,369,813	1,247,476,180
Zakat payable	16	177,462,010	169,722,113
Current portion of lease liabilities	28.2	41,844,787	44,142,088
Total current liabilities		3,299,161,013	2,590,311,116
Non-current liabilities
Long-term loans	28.1	4,810,264,140	3,032,584,836
Government grant	17	54,601,524	60,337,851
Lease liabilities	28.2	235,270,089	277,078,057
Employees’ end-of-service benefits	18	632,502,982	518,141,099
Total non-current liabilities		5,732,638,735	3,888,141,843
Total liabilities		9,031,799,748	6,478,452,959

Equity
Issued and paid-up share capital	19	3,500,000,000	3,500,000,000
Statutory reserve	20	1,050,000,000	876,157,331
Retained earnings		1,935,484,939	1,502,535,470
Equity attributable to equity holders of the parent		6,485,484,939	5,878,692,801
Non-controlling interests		280,756,880	226,971,966
Total equity		6,766,241,819	6,105,664,767
Total liabilities and equity		15,798,041,567	12,584,117,726

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated Statement of Income

For the year ended 31 December 2023

	Notes	2023 SR	2022 SR
Revenue		9,508,438,768	8,310,738,514
Cost of revenue		(6,238,390,700)	(5,562,603,296)
Gross profit		3,270,048,068	2,748,135,218
Selling and marketing expenses	22	(402,700,290)	(324,779,475)
General and administrative expenses	23	(771,698,862)	(722,868,413)
Operating income		2,095,648,916	1,700,487,330
Share of income of associates	11	22,177,099	19,605,347
Finance costs	24	(70,106,623)	(49,356,745)
Other income	25	122,267,519	125,921,171
Income before zakat		2,169,986,911	1,796,657,103
Zakat	16	(68,516,333)	(107,707,925)
Income for the year		2,101,470,578	1,688,949,178
Attributable to:
Equity holders of the parent		2,046,013,922	1,650,750,047
Non-controlling interests		55,456,656	38,199,131
		2,101,470,578	1,688,949,178
Earnings per share:
Basic and diluted earnings per share from income for the year attributable to equity holders of the parent	26	5.85	4.72

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2023

	Notes	2023 SR	2022 SR
Income for the year		2,101,470,578	1,688,949,178
Other comprehensive income
Items that will not be reclassified to profit or loss in subsequent periods:
Remeasurement (loss) income on employees’ end-of-service benefits	18	(5,893,526)	27,139,586
Other comprehensive (loss) income for the year		(5,893,526)	27,139,586
Total comprehensive income for the year		2,095,577,052	1,716,088,764
Attributable to:
Equity holders of the parent company		2,041,792,138	1,677,021,363
Non-controlling interests		53,784,914	39,067,401
		2,095,577,052	1,716,088,764

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated Statement of Changes in Equity

For the year ended 31 December 2023

	Attributable to equity holders of the parent				Non-controlling interests SR	Total equity SR
	Issued and paid-up share capital SR	Statutory reserve SR	Retained earnings SR	Total SR	Non-controlling interests SR	Total equity SR
As at 1 January 2022	3,500,000,000	711,082,326	1,128,089,112	5,339,171,438	187,904,565	5,527,076,003
Income for the year	-	-	1,650,750,047	1,650,750,047	38,199,131	1,688,949,178
Other comprehensive income	-	-	26,271,316	26,271,316	868,270	27,139,586
Total comprehensive income	-	-	1,677,021,363	1,677,021,363	39,067,401	1,716,088,764
Transfer to statutory reserve	-	165,075,005	(165,075,005)	-	-	-
Dividends (note 21)	-	-	(1,137,500,000)	(1,137,500,000)	-	(1,137,500,000)
As at 31 December 2022	3,500,000,000	876,157,331	1,502,535,470	5,878,692,801	226,971,966	6,105,664,767
Income for the year	-	-	2,046,013,922	2,046,013,922	55,456,656	2,101,470,578
Other comprehensive loss	-	-	(4,221,784)	(4,221,784)	(1,671,742)	(5,893,526)
Total comprehensive income	-	-	2,041,792,138	2,041,792,138	53,784,914	2,095,577,052
Transfer to statutory reserve	-	173,842,669	(173,842,669)	-	-	-
Dividends (note 21)	-	-	(1,435,000,000)	(1,435,000,000)	-	(1,435,000,000)
As at 31 December 2023	3,500,000,000	1,050,000,000	1,935,484,939	6,485,484,939	280,756,880	6,766,241,819

The accompanying notes form an integral part of these consolidated financial statements.

Consolidated Statement of Cash Flows

For the year ended 31 December 2023

	Notes	2023 SR	2022 SR
Operating activities
Income before zakat		2,169,986,911	1,796,657,103
Non-cash adjustments to reconcile income before zakat to net cash flows:
Depreciation	12	312,678,500	309,222,808
Share of income of associates	11	(22,177,099)	(19,605,347)
Provisions		246,539,534	206,909,725
Finance costs	24	70,106,623	49,356,745
Employees’ end-of-service benefits	18	145,716,580	126,598,525
		2,922,851,049	2,469,139,559
Working capital changes:
Accounts receivable		(202,433,447)	(40,290,156)
Inventories		(58,182,150)	(92,566,741)
Prepayments and other assets		(86,518,459)	4,209,176
Accounts payable		326,076,696	156,188,070
Accruals and other liabilities		445,681,362	486,823,535
Cash generated from operations		3,347,475,051	2,983,503,443
Zakat paid	16	(60,886,595)	(69,368,923)
Employees’ end-of-service benefits paid	18	(42,435,827)	(70,453,285)
Net cash from operating activities		3,244,152,629	2,843,681,235
Investing activities
Purchase of property and equipment		(3,496,893,243)	(1,513,364,980)
Investment in associates		(2,550,000)	(126,035,354)
Dividends from associates	11	12,815,094	-
Investments in equity instruments – Sukuk		-	(300,000,000)
Net cash used in investing activities		(3,486,628,149)	(1,939,400,334)

Financing activities
Proceeds from long-term loans, net		1,700,512,995	432,333,493
Finance costs paid		(63,988,656)	(43,274,148)
Lease liabilities paid		(85,657,342)	(52,680,905)
Dividends paid	21	(1,435,000,000)	(1,137,500,000)
Net cash from (used) in financing activities		115,866,997	(801,121,560)
Net (decrease) increase in cash and cash equivalents		(126,608,523)	103,159,341
Cash and cash equivalents at the beginning of the year	7	2,746,989,005	2,643,829,664
Cash and cash equivalents at the end of the year	7	2,620,380,482	2,746,989,005
Non-cash transactions:
Recognition of right-of-use assets	12	46,645,200	100,761,318
Recognition of lease liabilities	28.2	46,645,200	100,761,318

The accompanying notes form an integral part of these consolidated financial statements.