The decrease is driven by reduced customer advance payments, which constrained working capital and also to supply chain disruptions linked to geopolitical conditions

Higher administrative and marketing expenses resulting from administrative restructuring in preparation for the operational phase following the capital increase, along with higher Zakat expenses, also contributed to the decrease in net profit.

The company's share of the profits of an associate company, Midal, amounted to 55 million, which has an decrease of 10% of same quarter oflast year's profits.

The company has recorded net profit from continuing operations amounting to SAR 25,942 million resulting from its share of profit from an associate. Also, the company incurred losses mainly from discontinued activities amounting to SAR (2,328) million. Both resulted to a net profit to SAR 23,614 million.

The decrease is driven by reduced customer advance payments, which constrained working capital and also to supply chain disruptions linked to geopolitical conditions

Higher cost due to geopolitical

Higher administrative, selling, and Zakat Expense contributed to reduced the net profit.

The company's share of the profits of an associate company, Midal, amounted to 55 million, which has an decrease of 6% of previous quarter profits.

The company has recorded net profit from continuing operations amounting to SAR 25,942 million resulting from its share of profit from an associate. Also, the company incurred losses mainly from discontinued activities amounting to SAR (2,328) million. Both resulted to a net profit to SAR 23,614 million

We draw attention to note 1 of the condensed consolidated financial statements which indicates that for the period ended March 31, 2026, the Group incurred a net profit of SAR 23,6 million (March 31,2025: net profit of SAR 46,6 million), and the Group’s accumulated losses have reached SAR 251 million (December 31, 2025: SAR 274,8 million), representing 376% (December 31, 2025: 412%) of the Group’s share capital. Further, the Group current liabilities exceeded its current assets by SAR 636 million as at March 31, 2026 (December 31, 2025: SAR 670 million). These conditions, along with other matters, cast 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 regard, management has prepared forecasts for 2026 that indicate net profit and positive cash flows. The plan includes certain assumptions related to cash injections through the issuance of rights issue

instruments, as well as revenue growth based on future orders and tenders, these elements represent future events and therefore involve material uncertainty regarding their outcome. Our opinion has not been modified in respect of this matter