Middle East Healthcare Co. announces its Interim Financial results for the Period Ending on 2024-09-30 ( Nine Months )

the increase in the revenues during the current quarter compared to the same quarter of the last year is due to the increase in patients’ satisfaction and journey which attract more patients and increases the utilization of all facilities.

Increase in net profit for the current quarter compared to the same quarter of the last year is due to:

1- Increase in number of inpatients and outpatients

2- Renovation of facilities increased patient satisfaction and journey. Resultantly increase in utilization of inpatients and outpatient facilities

The reason of the increase in the sales/ revenues during the current quarter compared to the previous one is due to the increase in patients’ satisfaction and journey attract more patients which increases the utilization of all facilities.

Increase in net profit for the current quarter compared to the previous quarter is due to:

1- Due to control over utilization of financial facilities reduces the cost of borrowing

2- The increase in patients’ satisfaction and journey attract more patients which increases the utilization of all facilities

The reason of the increase in the sales/ revenues during the current period compared to the same period of the last year is due to increase in patients flow, increase in number of surgeries and case mix.

Increase in net profit for the current period compared to the previous period is due to:

1- Increase in patients flow and number of performed surgeries and case mix

2- Capital gain of SAR 19.6 million due to sale of land in Riyadh.

Conservation

As stated in note 4, during the prior years the Group received assessments from the Zakat, Tax and Customs Authority (ZATCA), claiming additional Zakat and withholding tax liabilities of SR 111.5 million related to the years from 2015 to 2018 and SR 68 million related to the years from 2019 to 2020. The Group had filed appeals against ZATCA’s assessments through the process including with the Appellate Committee for Tax, and Customs Violations and Disputes (ACTVD) which has been also rejected. As of the date of this report, the Group filed pleas for reconsideration against the decisions taken by ACTVD in respect of both assessments, which are still under study. The Group has not provided sufficient provisions for these amounts on the basis of its assessment that its pleas will be upheld on appeal. We have not been provided sufficient support for management’s assessments in respect of the years from 2015 to 2020 and any potential exposure relating to open years not yet assessed by ZATCA. We are, therefore, unable to determine whether any adjustments are necessary to the Group’s current or prior year’s zakat charges and corresponding liability. Our opinion on the consolidated financial statements for the year ended 31 December 2023 was qualified for this matter.

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