Middle East Healthcare Co. announces its Interim Financial results for the Period Ending on 2024-06-30 ( Six Months )

Increase in the sales/ revenues during the current quarter compared to the same quarter of the last year is due to Increase in number of inpatients and outpatients and utilization of outpatient clinics and ramping up of new 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- Increase in utilization of outpatient clinics and ramping up of new facilities

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

The increase in the sales/ revenues during the current quarter compared to the previous one is due to case mix and increase in number of surgeries.

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

1- Effective control over cost of sales and over general and selling expenses.

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

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 same period of the last year 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 two 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 has filed appeals against ZATCA’s assessments with the Committee for Resolution of Tax Violation and (CRTVD) and with the Appellate Committee for Tax, and Customs Violations and Disputes (ACTVD) but were 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 management, based on their Zakat consultant opinion and lawyer opinion, is in the view that they have strong ground to contest against items included in the assessments raised by ZATCA and that they have a solid technical argument on the items under dispute. We have not been provided details or solid basis for the reconsideration pleas on the assessments in respect of the years from 2015 to 2020 and any potential exposure relating to open year not yet assessed by ZATCA. We are, therefore, unable to determine whether any adjustments are necessary to the Group’s current period 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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