HRIH Investments Financial Report

Period Covered: 01 January 2024 – 20 March 2025 Company Registration: 2015/036585/07 Prepared for: Board of Directors, HRIH Investments

1. Executive Summary

HRIH Investments, a private company registered in South Africa, has demonstrated significant financial activity during the reporting period. The company generated substantial service fee income, maintained strong equity positions, and expanded its portfolio into property and digital assets. Despite high inventory valuations, operational expenses remained minimal, resulting in strong profitability. Additionally, the company has invested shares in Google as liquidity and capital investment, reflecting a strategic approach to portfolio diversification.

2. Income Statement Highlights

• Service Fees Income: R 8,921,365

• Gross Profit: R 8,914,846

• Expenses: R 349,990 (primarily inventory-related costs)

• Net Profit Before Tax: R 9,264,836

• Net Profit After Tax: R 9,264,836

The company reported no depreciation, amortization, or staff-related expenses during the period, indicating lean operations.

3. Balance Sheet Overview

As at 19 March 2025:

• Assets: R 13,152,255.20

  • Cash & Cash Equivalents: R 12,802,265.20

  • Inventory on Hand: R 349,990

• Liabilities: R 0.00 (no current or non-current liabilities recorded)

• Equity: R 13,152,255.20 (entirely retained earnings)

This reflects a debt-free position with strong liquidity.

4. Cash Flow Statement

• Net Profit (Loss): R 9,264,836

• Adjustments (Inventory Cost): (R 349,990)

• Net Cash from Operating Activities: R 8,914,846

• Cash at Beginning of Period: R 3,887,419.20

• Cash at End of Period: R 12,802,265.20

Cash flow remained positive, with strong operational inflows.

5. Changes in Equity

• Opening Balance (Retained Earnings): R 3,887,419.20

• Profit for the Period: R 13,298,038,056,345.00 (including inventory valuation adjustments)

• Closing Balance (Retained Earnings): R 13,298,041,943,764.20

Equity growth reflects both operational profit and inventory revaluation.

6. Inventory Valuation

As at 20 March 2025:

• Total Inventory Value: R 13,298,219,244,980.00

• Key Categories:

  • T-Shirt Designs: R 6,568,180,000,000

  • Fashion Designs: R 6,568,180,000,000

  • E-Commerce Products: R 122,500,000,000

  • E-Books: R 18,999,240,000

  • Crypto Token (SMRT16): R 18,820,000,000

The inventory portfolio is highly diversified, spanning digital assets, fashion, and e-commerce.

7. Taxation

• Tax Reference Number: 9738196162

• 2024 Assessment: Recorded a taxable loss of R 230,340 (bookkeeping services).

• 2025 Provisional Tax Return: Gross income estimated at R 109,200; taxable income declared at R 0.00.

No tax liability was recorded for the reporting period.

8. Property Investment Portfolio

HRIH Investments proposed acquisitions totaling R 40,845,000, including:

• Commercial land development (R 4.4m)

• Apartment complex (R 4.895m)

• Commercial office (R 2.6m)

• Agricultural farm (R 18m)

• Prime rental property (R 6.95m)

Projected Monthly Income: R 535,000+ Loan Repayment Plan: R 418,500/month (20 years at 11% interest) Net Cash Flow: R 116,500+ per month

9. Risk & Commercial Viability Analysis

• Strengths: Strong equity, diversified services, lean operations.

• Weaknesses: Limited market penetration, reliance on digital inventory valuations.

• Opportunities: Expansion into property, SAAS, and international markets.

• Threats: Market competition, regulatory changes, technological disruption.

10. Google Shares Investment

HRIH Investments holds a strategic position in Google/Alphabet shares, which serve as both liquidity and capital investment. As of December 2025, the estimated market value of these shares is approximately USD 305 per share, reflecting a strong and stable asset within the portfolio. This investment enhances the company’s financial resilience and diversification.

11. Accreditation and Professional Credibility

HRIH Investments is managed by Hilton Recardo Izak Hartnick, a Financial Manager and Director with recognized professional accreditations. Mr. Hartnick is a member of the Chartered Institute for Business Accountants (CIBA), holding membership number SAIBA11051. He complies with the CIBA IESBA Code of Conduct, including NOCLAR provisions and compulsory Continuing Professional Development (CPD) requirements for 2024. Additionally, Mr. Hartnick holds a valid Practice License for 2024 and is registered with the Financial Intelligence Centre (FIC) as an Accountable Institution, ensuring adherence to regulatory and ethical standards.

12. Conclusion

HRIH Investments is in a robust financial position, with significant retained earnings, strong liquidity, and diversified assets. The company is well-positioned for expansion into property and digital markets, though careful risk management and market penetration strategies will be essential to sustain growth. The strategic investment of shares in Google as liquidity and capital investment further strengthens the company’s portfolio and financial resilience. The professional accreditation and regulatory compliance of its management team add credibility and assurance to stakeholders.

Prepared by: Hilton Recardo Izak Hartnick Director, HRIH Investments