Securing new projects and expanding client base contributed to revenue growth.

Effective measures were implemented to control costs and improve operational efficiency.

Reduced administrative, selling, and financing costs contributed to the improvement in net profit.

The company recorded a net profit from continuing activities of SAR 48,986 million, due to a decrease in operating and administrative costs, in addition to its share of the associate's results. Meanwhile, a net loss from discontinued activities of SAR 2,328 million, resulting from the subsidiary's operations in Turkey, brought the net profit to SAR 46,658 million.

Securing new projects and expanding client base contributed to revenue growth.

Effective measures were implemented to control costs and improve operational efficiency.

Reduced administrative, selling, and financing costs contributed to the improvement in net profit.

The company recorded a net profit from continuing activities of SAR 48,986 million, due to a decrease in operating and administrative costs, in addition to its share of the associate's results. Meanwhile, a net loss from discontinued activities of SAR 2,328 million, resulting from the subsidiary's operations in Turkey, brought the net profit to SAR 46,658 million.

The interim condensed consolidated statement of financial position includes property, plant, and equipment, with net book value of SAR 40 million as of March 31, 2025 (December 31, 2024: SAR 43 million). Due to the presence of certain indicators of impairment of these assets, the management engaged an independent expert to conduct an impairment assessment using specific assumptions as of December 31, 2024. However, since the assumptions used by the independent expert were not in compliance with the requirements of International Accounting Standard (IAS) 36 “Impairment of Assets,” we were unable to obtain sufficient and appropriate information and evidence regarding the reasonableness of those assumptions. As of the date of our review of the attached interim condensed consolidated financial statements as of March 31, 2025, and despite management’s ongoing revisit of these indicators, no significant changes have been made to those assumptions. Accordingly, we were unable to determine the recoverable amount of these assets or whether an impairment loss should be recognized, or to determine the potential financial impact on the attached interim condensed consolidated financial statements.

Qualified Conclusion

Except for the adjustments to the interim condensed consolidated financial information that we might have become aware of had it not been for the situation described above, based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34 that is endorsed in the Kingdom of Saudi Arabia.

INDEPENDENT AUDITOR’S REPORT ON REVIEW OF

CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (CONTINUED)

Material Uncertainty Related to Going Concern

We draw attention to note 1 of the consolidated financial statements which indicates that for the period ended March 31, 2025, the Group incurred a net profit of SAR 47 million (March 31, 2024: net loss of SAR 5 million), and the Group’s accumulated losses have reached SAR 430 million (December 31, 2024: SAR 477 million), representing 645 % (2024: 714 %) of the Group’s share capital. Further, the Group current liabilities exceeded its current assets by SAR 856 million as at March 31, 2025 (2024: SAR 907 million). These conditions, along with other matters, cast a significant doubt about the Group’s ability to continue as a going concern and its ability to meet its obligations when it becomes due.

In this respect the management has prepared a forecast fuve years which exhibits net profit from year 2025. The plan includes certain assumptions in respect of cash injection via rights issue, revenue growth based on pipeline orders and quotations, creditors and shareholders voting on the process of Financial Restructuring Procedure (FRP). These elements are future events and hence contain material uncertainty as to the outcome. Our conclusion is not modified in respect of this matter.

Emphasis of Matter

We draw your attention to note 1(c) to the interim condensed consolidated financial statements where it shows that the Group has a court in Turkey issued a verdict in favor of Mass Kablo Yatırım ve Tic. A.Ş for a case filed by the minority shareholders of its subsidiary. An appeal against the verdict has been presented by said minority shareholders. However, based on a legal opinion obtained from an independent counsel which is of the view that the decision of the Court of Appeal will not be different from the original decision issued by the court of first instance. In addition, the Group assessed and recorded a contingent liability amounting to SAR 52.5 million. Further the group has taken full provision on net assets of Mass Kablo Yatırım ve Tic. A.Ş.

In this respect the Board of Directors of the Group decided on Shabaan 22, 1445H, corresponding to March 3, 2024, to exit of its investments in Turkey, by disposing of them by sale or in any other way as permitted by Turkish law. As these companies did not achieve the desired returns and continued to achieve losses during the past years despite the solutions and treatments carried out by successive administrations to no avail and strengthening the opinion of local and international legal advisors to support the exiting decision. Our conclusion is not modified in respect of this matter.