Rawasi Albina Corrects Auditor Report to Qualified Opinion, Twelve Months 2025

RAWASI

9547.SA

0.00

Element List	Explanation
Date of Publishing the Previous Announcement Sought to be Corrected on Saudi Exchange’s Website	2026-05-07 Corresponding to 1447-11-20
Incorrect statements in the previous announcement	Statement of the type of external auditor's report: Unmodified Opinion Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion): None
Correct Statement	Statement of the type of external auditor's report: Conservation Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion): Qualified Opinion We have audited the consolidated financial statements of Rawasi Albina Investment Company (the "Company") and its subsidiary (collectively, the "Group"), which comprise the consolidated statement of financial position as at 31 December 2025, the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and the related notes, including significant accounting policies. In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion section, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2025, and its consolidated financial performance and cash flows for the year then ended in accordance with IFRSs as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements endorsed by SOCPA. Basis for Qualified Opinion 1- With reference to Note (6), property, plant and equipment include capital work in progress amounting to SAR 20.3 million relating to machinery and equipment of an existing factory in Yanbu purchased from Mega Technology Contracting Establishment through Nomou Al Jazeera Company on 3 December 2025. Based on management's valuation report provided to us by the Group's management, the market value amounted to SAR 18.5 million. The valuation assumed the assets were new, unused, and valued in place, including installation, foundation works, electrical connections, and control systems. Management informed us that it is working on dismantling and relocating the machinery and equipment from Yanbu to Riyadh. During our inspection at the Yanbu site, the machinery and equipment were found in the possession of a third party other than the seller. We were not provided with information regarding the relationship between the third party and the seller. Accordingly, we were unable to determine whether any impairment loss should have been recognized in respect of this machinery and equipment. 2- With reference to Note (7), the Group, through its subsidiary Nomou Al Jazeera Company Limited, entered into a ten-year lease-to-own contract on 1 December 2025 with the former manager of the subsidiary, who is one of the principal shareholders of the parent company (Note 14/1), for SAR 13.8 million. The property was recognized as an investment property and measured using the cost model, with a disclosed fair value of SAR 17.1 million based on an external valuation prepared for internal purposes dated 14 April 2026 using the replacement cost method. We noted that the property had been mortgaged before execution of the contract; the mortgage was released during December 2025 and re-mortgaged during 2026. In addition, the property was closed by the Ministry of Tourism. We were unable to obtain sufficient appropriate audit evidence regarding the impact of these matters on the Group's ability to use the property, generate future economic benefits and recover its carrying amount. Accordingly, we were unable to determine whether any adjustments to the accompanying consolidated financial statements were necessary. Basis for Qualified Opinion (Continued) We conducted our audit in accordance with the International Standards on Auditing (ISAs) as endorsed in the Kingdom of Saudi Arabia. We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) as endorsed in the Kingdom of Saudi Arabia and have fulfilled our ethical responsibilities in accordance with that Code. We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our qualified opinion. Material Uncertainty Related to Going Concern We draw attention to Note (8/3), which indicates that the Group incurred a net loss of SAR 23.8 million during 2025. Revenue decreased from SAR 132.8 million in 2024 to SAR 129.3 million in 2025, and the Group reported negative net cash flows from operating activities of SAR 17 million (2024: SAR 24.6 million). Management assessed the Group's ability to continue as a going concern, including assumptions relating to improving liquidity and enhancing operating activities, and concluded that no material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern in the foreseeable future. Our opinion is not modified in respect of this matter.

Element List

Explanation

Date of Publishing the Previous Announcement Sought to be Corrected on Saudi Exchange’s Website

2026-05-07 Corresponding to 1447-11-20

Incorrect statements in the previous announcement

Statement of the type of external auditor's report:

Unmodified Opinion

Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion):

None

Correct Statement

Statement of the type of external auditor's report:

Conservation

Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion):

Qualified Opinion

We have audited the consolidated financial statements of Rawasi Albina Investment Company (the "Company") and its subsidiary (collectively, the "Group"), which comprise the consolidated statement of financial position as at 31 December 2025, the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and the related notes, including significant accounting policies.

In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion section, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2025, and its consolidated financial performance and cash flows for the year then ended in accordance with IFRSs as endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements endorsed by SOCPA.

Basis for Qualified Opinion

1- With reference to Note (6), property, plant and equipment include capital work in progress amounting to SAR 20.3 million relating to machinery and equipment of an existing factory in Yanbu purchased from Mega Technology Contracting Establishment through Nomou Al Jazeera Company on 3 December 2025. Based on management's valuation report provided to us by the Group's management, the market value amounted to SAR 18.5 million. The valuation assumed the assets were new, unused, and valued in place, including installation, foundation works, electrical connections, and control systems. Management informed us that it is working on dismantling and relocating the machinery and equipment from Yanbu to Riyadh. During our inspection at the Yanbu site, the machinery and equipment were found in the possession of a third party other than the seller. We were not provided with information regarding the relationship between the third party and the seller. Accordingly, we were unable to determine whether any impairment loss should have been recognized in respect of this machinery and equipment.

2- With reference to Note (7), the Group, through its subsidiary Nomou Al Jazeera Company Limited, entered into a ten-year lease-to-own contract on 1 December 2025 with the former manager of the subsidiary, who is one of the principal shareholders of the parent company (Note 14/1), for SAR 13.8 million. The property was recognized as an investment property and measured using the cost model, with a disclosed fair value of SAR 17.1 million based on an external valuation prepared for internal purposes dated 14 April 2026 using the replacement cost method. We noted that the property had been mortgaged before execution of the contract; the mortgage was released during December 2025 and re-mortgaged during 2026. In addition, the property was closed by the Ministry of Tourism. We were unable to obtain sufficient appropriate audit evidence regarding the impact of these matters on the Group's ability to use the property, generate future economic benefits and recover its carrying amount. Accordingly, we were unable to determine whether any adjustments to the accompanying consolidated financial statements were necessary.

Basis for Qualified Opinion (Continued)

We conducted our audit in accordance with the International Standards on Auditing (ISAs) as endorsed in the Kingdom of Saudi Arabia. We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) as endorsed in the Kingdom of Saudi Arabia and have fulfilled our ethical responsibilities in accordance with that Code. We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note (8/3), which indicates that the Group incurred a net loss of SAR 23.8 million during 2025. Revenue decreased from SAR 132.8 million in 2024 to SAR 129.3 million in 2025, and the Group reported negative net cash flows from operating activities of SAR 17 million (2024: SAR 24.6 million). Management assessed the Group's ability to continue as a going concern, including assumptions relating to improving liquidity and enhancing operating activities, and concluded that no material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern in the foreseeable future. Our opinion is not modified in respect of this matter.

Year-on-Year Performance Drivers

Revenue decreased from SAR 132.8 million in 2024 to SAR 129.3 million in 2025, primarily driven by a decline in operating performance, with the Group reporting negative net cash flows from operating activities of SAR 17 million (compared to SAR 24.6 million in 2024). The Group incurred a net loss of SAR 23.8 million during 2025, compounded by significant asset-related uncertainties, including capital work in progress of SAR 20.3 million related to machinery and equipment whose condition and ownership could not be fully verified, and an investment property valued at SAR 13.8 million subject to legal and regulatory complications, including a prior mortgage and closure by the Ministry of Tourism. These factors collectively undermined the Group's ability to generate future economic benefits and raised concerns regarding asset recoverability, further pressuring overall financial performance.

Other Items

Rawasi Albina Investment Co. issued a correction announcement on 14 July 2026 to amend its previously published annual financial results for the period ending 31 December 2025. The correction revises the auditor's report type from an Unmodified Opinion (with no comments) to a Qualified Opinion under the "Conservation" category. The auditors issued a Qualified Opinion citing two basis items: (1) capital work in progress of SAR 20.3 million relating to machinery and equipment purchased from Mega Technology Contracting Establishment through Nomou Al Jazeera Company, for which the management-provided valuation report indicated a market value of SAR 18.5 million, but during inspection the assets were found in the possession of a third party unrelated to the seller, leaving auditors unable to determine whether any impairment loss should have been recognized; (2) a ten-year lease-to-own contract entered into on 1 December 2025 through subsidiary Nomou Al Jazeera Company Limited with the former manager of the subsidiary (who is also a principal shareholder of the parent company) for SAR 13.8 million, recognized as investment property with a disclosed fair value of SAR 17.1 million based on an external valuation using the replacement cost method, but the property had been mortgaged prior to contract execution, was re-mortgaged during 2026, and was closed by the Ministry of Tourism, leaving auditors unable to obtain sufficient appropriate audit evidence to determine whether adjustments to the financial statements were necessary. Regarding going concern, the auditors drew attention to a material uncertainty disclosure noting the Group's net loss of SAR 23.8 million in 2025 and negative net cash flows from operating activities of SAR 17 million; however, management concluded that no material uncertainty exists regarding the Group's ability to continue as a going concern, and the auditors' opinion was not modified in respect of this matter.

Original announcement:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=96763&anCat=1&cs=9547&locale=ar

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.

More This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.