•A decline in revenue from the production sector by SAR 29,594 during the current year compared to the previous year.

•A decrease in revenue from the outdoor advertising sector by SAR 760,148 due to exiting this line of business.

•A decline in the retail sector by SAR 866,663 compared to the same period of the previous year.

This decrease in the production, advertising, and retail sectors was partially offset by an increase in the education sector by SAR 458,564.

•Realizing gains from financial assets at fair value through profit or loss in the amount of SAR 1,897,778 , compared to the same quarter of the previous year.

•A decrease in selling and marketing expenses during the current quarter by SAR 1,490,965 million compared to the same quarter of the previous year.

•A decrease in general and administrative expenses during the current quarter by SAR 1,952,718 thousand compared to the same quarter of the previous year.

•A decrease in zakat provision during the current quarter by SAR 1,025,000 compared to the same quarter of the previous year.

•A decrease in loss from discontinued operations by SAR 252,481 compared to the same quarter of the previous year.

The reason for incurring losses during the current quarter compared to the same quarter of the previous year is mainly due to:

•A decrease in gross profit by SAR 914,694 compared to the same quarter of the previous year.

•A decrease in other income by SAR 1,583,958 compared to the same quarter of the previous year.

•A decrease in the share of results from associate companies by SAR 467,161 compared to the same quarter of the previous year.

•A decrease in gross profit in the current quarter by SAR 381,739 compared to the previous quarter.

•A decrease in the share of results from associates by SAR 3,404,550 in the current quarter compared to the previous quarter.

•A decrease in gains from financial assets at fair value through profit or loss by SAR 980,853 compared to the previous quarter.

•An increase in losses from discontinued operations by SAR 190,993 in the current quarter compared to the previous quarter.

•A zakat expense of SAR 1,100,000 during the current year, compared to adjustments and a reduction in zakat expense in favor of the company amounting to SAR 3,139,060 in the previous quarter.

This is offset by:

•A decrease in selling and marketing expenses by SAR 3,417,896 in the current quarter compared to the previous quarter.

•An decrease in general and administrative expenses by SAR 263,345 in the current quarter compared to the previous quarter.

•A decrease in financing costs by SAR 263,345 in the current quarter compared to the previous quarter.

•An increase in gains from financial assets at fair value through profit or loss by SAR 242,893 compared to the previous quarter.

•An increase in other income by SAR 193,277 compared to the previous quarter.

1- As stated in Note (6), investments in associate companies are accounted for using the equity method in the accompanying interim consolidated financial statements amounting to SAR 57,570,026. The Group has investment in associate companies Wunderman Thomson MENA Company and United Advertising Company, amounting to SAR 47,832,633 and SAR 9,737,393 respectively as at 30 June 2025. The Group has recorded its investments in the associates as well as its share in results of profit and share of other comprehensive income amounting to SAR 2,054,659, SAR 44,997 respectively, based on neither reviewed management accounts of the associates for the three-month period ended 30 June 2025, nor audited financial statements for the year ended 31 March 2025. Accordingly, we were unable to verify the accuracy of these balances and we were unable to determine whether any adjustments to these balances and share of results of the associates were necessary as of and for the three-month period ended 30 June 2025. Additionally, the Group has other investments in associate companies with carrying amount of zero balances, these associates have neither audited financial statements nor management accounts. Furthermore, as stated in note (7), the Group has investment in financial assets through other comprehensive income in Vugo Company, which was fully impaired in previous years. We were unable to obtain sufficient appropriate audit evidence to verify the fair value of this investment and determine whether there were any additional liabilities associated to all of the Group’s investments. Accordingly, we were unable to determine whether any impact should be recognized in the interim consolidated statement of financial position as at 30 June 2025 and in the interim consolidated statements of profit or loss, other comprehensive income and cash flows for the three month period then ended.

2- As stated in Note (9), trade receivables and other debit balances include an amount of SAR 39,131,129 as of 30 June 2025 which represents the cash paid under investment in Saudi Film Fund in addition to the related recogonized profits. Management has classified this balance as other debit balances without assessing the proper classification of this investment. In addition, due to the unavailability of the fair value of the partial investment, we were unable to verify its fair value as of 30 June 2025. Accordingly, we were unable to determine whether any impact should be recognized in the interm consolidated statement of financial position as at 30 June 2025 and in the interm consolidated statements of profit or loss, other comprehensive income and cash flows for the period then ended.

QUALIFIED CONCLUSION

Except for the matters and the adjustments to the interim consolidated financial statements that we might have become aware of had it not been for the matters described above, based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard (“IAS 34”), that is endorsed in the Kingdom of Saudi Arabia.

MATERIAL UNCERTAINTIES RELATED TO GOING CONCERN

We draw attention to Note (2/4) to the accompanying consolidated financial statements, which states that the Group has accumulated losses amounting to SAR 170,783,377 as of 30 June 2025, representing 42.70% of the Group ’s capital on the same date (31 March 2025: amounting to SAR 167,327,979 representing 41.83% of the Group ’s capital), the Group also has negative cash flows from operating activities amounted to SAR 5,563,369 for the three month period then ended 30 June 2025, and a total comprehensive loss of SAR 3,500,656 for the three month period then ended 30 June 2025. These circumstances indicate the existence of a material uncertainty which may raise significant doubt about the Group’s ability to remain as a going concern. However the Group has sufficient liquidity to meet its liabilities when it become due, and has plans to liquidate of certain subsidiaries and decrease the share capital, new investments and business expansion to generate positive cash flows. Our opinion has not been qualified with respect to this matter.

EMPHASIS OF MATTER

We draw attention to Note (21) to the interim condensed consolidated financial statements, which describes two legal cases filed against the Group amounting to SAR 15,390,000 and SAR 12,357,125, respectively. During the year ended 31 march 2025, management appointed a legal advisor to assess the matters, and based on the legal advisor’s opinion, the likelihood of a favorable outcome for the Group is considered possible. Subsequent to the reporting date the group announced that the labor court issued a ruling to dismiss one of the lawsuits. However, the Group’s internal legal advisor's opinion as of 30 June 2025 is that the likelihood of a favorable outcome for all the lawsuits is still possible. Accordingly, these have been disclosed as a contingent liability. Our opinion is not modified in respect of this matter.

The company announces that the group's accumulated losses amounted to 170,783,377 Saudi riyals as of 30 June 2025 , representing 42.70% of the company's capital)

The reason for the increase / decrease in losses to this percentage is due to what was mentioned above regarding the reason for incurring losses during the current period in this announcement above

The company clarifies to the shareholders that the company is currently working on procedures to reduce losses and convert them into profits, especially since the company has sufficient liquidity to enable it to meet its obligations when due, in addition to plans to liquidate a number of subsidiaries and new investments and expand its business to generate cash flows to continue its operations.

The company indicates that the procedures and instructions for companies whose shares are listed on the market and whose accumulated losses amount to 20% or more of their capital will be applied.