Correction announcement from Rawasi Albina Investment Co. in regards to Annual Financial results for the period ending on 2025-12-31

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

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.