Bawan Co. announces its Interim Financial results for the Period Ending on 2025-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	966,143	632,567	52.733	910,178	6.148
Gross Profit (Loss)	171,382	68,334	150.8	118,118	45.093
Operational Profit (Loss)	105,692	29,299	260.735	64,347	64.253
Net profit (Loss)	50,373	23,120	117.876	36,505	37.989
Total Comprehensive Income	50,168	23,120	116.989	35,810	40.094
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	1,876,321	1,516,438	23.732
Gross Profit (Loss)	289,500	151,330	91.303
Operational Profit (Loss)	170,039	70,175	142.307
Net profit (Loss)	86,878	52,272	66.203
Total Comprehensive Income	85,978	52,272	64.481
Total Shareholders Equity (after Deducting Minority Equity)	1,014,764	910,285	11.477
Profit (Loss) per Share	1.45	0.87
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The increase in the company's revenue of 53% is mainly due to the recognition of revenue from the oil and gas industries sector during the current quarter, in addition to the increase in revenues from all of the company's other operating sectors.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The reasons for the increase in net profit during the current quarter compared to the same quarter of the previous year are mainly due to the following:

- The group's gross profit margin increased from 11% to 18%, as a result of implementing the group's strategic plan to increase the percentage of the contribution of high-margin products in the group's product portfolio. New products in the electrical and plastics industries sectors, in addition to consolidating the results of products from the oil and gas industries sector, contributed to the increase in the group's gross profit margin.

- Starting the recognition of revenues and net profit from the newly acquired oil and gas industries sector, which achieved a net profit attributable to the company's shareholders of SAR 24.6 million during the current quarter.

- The increase in net profit of the electrical and plastic industries sectors and the metal products, mainly due to the increase in quantities sold.

This increase comes despite the following:

- The increase in the operational expenses due to the start of consolidation of the results of the oil and gas industries sector, in addition to the growth in activities of the electrical and plastic industries sectors.

- The increase in the finance cost due to the increase in the company's total debt related to the acquisition of the oil and gas industries sector and starting the consolidation of the costs of financing the working capital requirements related to the sector.

- The increase in the Zakat expense and the decrease in the other income.The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The increase in the company's revenues of 6% is mainly due to a higher contribution from the revenue of the oil and gas sector, due to the recognition of its revenue for the entire current quarter compared to recognizing approximately one and a half months in the previous quarter.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The reasons for the increase in net profit during the current quarter compared to the previous quarter are mainly due to the following:

- The increase in net profit of the oil and gas industries sectors, mainly due to the recognition of its revenue and net profit for the entire period of the current quarter compared to recognizing revenue and net profit for approximately one and a half months from the period of the previous quarter.

- The increase in net profit of the metal products, mainly due to the increase in quantities sold.

This increase comes despite the following:

- The decrease in net profit of the electrical industries sector and the wood products, mainly due to the decrease in average selling prices, and the decrease in quantities sold in the wood products.

- The increase in operational expenses due to the consolidation of the results of the oil and gas industries sector for the entire period of the current quarter compared to the consolidation of its results for approximately one and a half months from the period of the previous quarter, in addition to the growth in activities of the electrical industries sectors.

- The increase in the finance cost due to the consolidation of the costs of financing working capital requirements related to the oil and gas industries sector for the entire period of the current quarter compared to the consolidation of its financing costs for approximately one and a half months from the period of the previous quarter.

- The increase in the Zakat expense and the decrease in the other income.The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is The increase in the company's revenue of 24% is mainly due to the recognition of revenue from the oil and gas industries sector during the current period, in addition to the increase in revenues in the electrical and plastic industries sectors and the wood products.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The reasons for the increase in net profit during the current period compared to the same period of the previous year are mainly due to the following:

- The group's gross profit margin increased from 10% to 15%, as a result of implementing the group's strategic plan to increase the percentage of the contribution of high-margin products in the group's product portfolio. New products in the electrical and plastics industries, in addition to consolidating the results of products from the oil and gas industries sector, contributed to the increase in the group's gross profit margin.

- The increase in net profit of the electrical and plastic industries sectors, mainly due to the increase in quantities sold.

- The increase in net profit of the metal and wood industries sector, mainly due to the increase in average selling prices of the wood products.

This increase comes despite the following:

- The increase in operational expenses due to the start of consolidation of the results of the oil and gas industries sector, in addition to the growth in activities of the electrical and plastic industries sectors.

- The increase in the Zakat expense and the decrease in the other income.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) N/AReclassification of Comparison Items Certain comparative figures have been reclassified to conform to the current period presentation.Additional Information Non-controlling interests share during the period amounted to a net profit of SAR 12.3 million as compared to a profit of SAR 2.2 million for the same period of the previous year.

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