ARDCO Annual Report 2023 English

Cash Flow Statement Summary

Total assets amounted to 2 , 792 million riyals as of December 31 , 2023 , compared to 2 , 598 million riyals as of December 31 , 2022 This change is largely due to an increase in long-term investments and projects under implementation , and this was offset by a decrease in short-term investments and trade receivables The increase in long-term investments and the decrease in short-term investments reflects the optimal exploitation of cash available in long-term Islamic Murabaha to achieve higher returns as a result of the rise in interest rates The increase in projects under implementation also reflects the increase in capital expenditures in the company’s centers and markets , as the projects diversified , some of which are related to the development of new income- generating activities , such as the meat market and the seasonal tent in Otaiqah Central Market , such as the cold storage in the AlAziziyah Fruits & Vegetable Market The company also spent capital on digital transformation in internal transactions and developed all operational systems for centers and markets , automating them and linking them with the ERP system , which contributed to reducing human intervention and raising levels of internal control , as well as the accuracy and ease of obtaining the information necessary to make appropriate decisions at the right time The decrease in trade receivables balances is also due to the high collection rates during the last period , as the company intensified efforts , provided the necessary resources , and developed internal policies and procedures to improve collection levels , in addition to creating allocations commensurate with the age of the debts and their collectability Total equity amounted to 2 , 381 million Saudi riyals as of December 31 , 2023 , compared to 2 , 198 million as of December 31 , 2022 , an increase of 183 million , or 8% This increase is mainly due to the net income collected during the year , partially offset by declared dividend payout of 888 million Total liabilities amounted to 411 million Saudi riyals as of December 31 , 2023 , compared to 400 million as of December 31 , 2022 This change is due to the increase in payables resulting from financial institutions’ receivables for cars sold in December 2023 at car auctions , in addition to the zakat due for the year 2023

Mn SAR Year Ending December 31

Percentage Change

All amounts in millions unless stated otherwise

2023

2022

Total assets

2،792

2،598 2،198

7.5%

Property rights Total liabilities

2،381

8% 3%

411

400

Material changes in assets Projects under implementation

20

2

900% 224%

Long term investments

600

185

Trade receivables

68

98

-31% -41%

Short term investments

270

460

Substantial changes in liabilities Payables - Attameer International Car Auction

22

11

100%

29

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