Saudi Cable 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	30,191	10,118	198.389	44,106	-31.548
Gross Profit (Loss)	-14,627	-8,964	63.174	-4,249	244.245
Operational Profit (Loss)	-41,549	-19,328	114.967	-13,840	200.209
Net profit (Loss)	18,228	11,868	53.589	46,658	-60.932
Total Comprehensive Income	18,565	15,323	21.157	40,707	-54.393
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	74,297	22,690	227.443
Gross Profit (Loss)	-18,876	-19,564	-3.516
Operational Profit (Loss)	-55,389	-55,969	-1.036
Net profit (Loss)	64,886	7,023	823.907
Total Comprehensive Income	59,273	18,921	213.265
Total Shareholders Equity (after Deducting Minority Equity)	-360,168	-445,658	-19.182
Profit (Loss) per Share	9.72	1.05
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	-411,871	617
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	Higher sales volume due to increased market demand and improved customer acquisition.

Securing new projects and expanding client base contributed to revenue growth.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 company reported a substantial increase in sales, which contributed to higher overall profitability. Effective cost control measures further supported the improvement in net profit. As a result, the company recorded a net profit from continuing operations of SAR 18,228 million, primarily driven by its share of profit from the associate (Midal).The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The significant decline in revenue was primarily due to a significant order or project delivered in previous quarter, leading to a natural drop-off in this quarter. Additionally, the deferred customer orders and project timelines, which resulted in the postponement of revenue recognition to future periods.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The net profit for the period declined primarily as a result of lower revenue, coupled with an increase in overall costs. The rise in costs was largely attributable to higher raw material prices. Additionally, operating expenses increased during the quarter, further contributing to the reduction in profitability.The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is Higher sales volume due to increased market demand and improved customer acquisition.

Securing new projects and expanding client base contributed to revenue growth.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 company reported a substantial increase in sales, which contributed to higher overall profitability. Effective cost control measures further supported the improvement in net profit. The company reported a net profit from continuing operations of SAR 67,214 million, primarily driven by its share of profit from the associate, Midal. This was partially offset by a loss of SAR 2,328 million from discontinued operations related to its Turkish subsidiary. The company recorded a total net profit of SAR 64,886 million for the period.Statement of the type of external auditor's report ConservationComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) We draw attention to the condensed consolidated financial statements which indicates that for the period ended June 30, 2025, the Group reported a net profit of SAR 65 million (June 30, 2024: net profit of SAR 7 million), and the Group’s accumulated losses have reached SAR 412 million (December 31, 2024: SAR 477 million), representing 617% (2024: 714 %) of the Group’s share capital. Further, the Group current liabilities exceeded its current assets by SAR 881 million as at June 30, 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 matterReclassification of Comparison Items Certain prior period figures have been reclassified to conform to current period presentation, which are not material in nature.Additional Information -

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