Further, the feedstock (Natural Gas) prices increased by 23% at the beginning of the year, which has contributed to an increase in production costs during the current quarter as compared to the previous quarter.

Additionally, the losses were compounded by the financial performance of newly acquired subsidiaries, which contributed a combined loss of SR 10.1 million to the overall losses during the current quarter, compared to SR 3.0 million in the same quarter last year, when only one month’s performance of one subsidiary was included following its acquisition during that period.

Further, the feedstock (Natural Gas) prices increased by 23% at the beginning of the current quarter, which has contributed to increase in production costs during the current quarter as compared to the previous quarter.

We draw attention to Note 3 in the consolidated financial statements, which indicates that the Group has incurred a net loss of SR 42.4 million for the period ended 31 March 2025 and, as of that date, the Group’s current liabilities exceeded its current assets by SR 187.2 million. These events or conditions, along with other matters as set forth in Note 3, indicate that material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. The ability of the Group to continue its operations is dependent on the completion of a rights issue that is expected to be completed in 2025 and on the restructuring of certain of the Group’s financing facilities. The Parent Company has assessed that these will be achieved in the current year and has accordingly prepared these interim condensed consolidated financial statements on a going concern basis. Our opinion is not modified in respect of this matter.