Emaar, The Economic City announces its Interim Financial results for the Period Ending on 2025-09-30 (Nine Months)

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	358	91	293.406	118	203.389
Gross Profit (Loss)	195	-82	-	-19	-
Operational Profit (Loss)	24	-269	-	-124	-
Net profit (Loss)	-135	-459	-70.588	-44	206.818
Total Comprehensive Income	-141	-470	-70	-44	220.454
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	681	241	182.572
Gross Profit (Loss)	252	-167	-
Operational Profit (Loss)	-52	-526	-90.114
Net profit (Loss)	-302	-1,153	-73.807
Total Comprehensive Income	-315	-1,162	-72.891
Total Shareholders Equity (after Deducting Minority Equity)	4,952	5,244	-5.568
Profit (Loss) per Share	-0.58	-2.2
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-292	-5.58
All figures are in (Millions) 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 revenue by 293% during the current quarter compared to the same quarter of the previous year is attributable to the following:

- Increase in project revenue, mainly driven by higher sales of residential land and the recognition of additional development revenue resulting from project progression in the percentage of completion for ongoing property development projects.

- Increase in operational revenue, mainly driven by new lease contracts in the Industrial Valley, increased hospitality income, and higher tuitions from student enrollment in one of the subsidiaries operating in the education sector.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 decrease in net loss by 71% during the current quarter compared to the same quarter of the previous year is mainly attributable to the following:

- Increase in revenue by SAR 267 million, driven by higher land sales, project and operational income.

- Decrease in Zakat charges by SAR 6 million, resulting from a lower estimated liability for the year 2025.

- Decrease in operational expenses by SAR 53 million, due to lower restructuring & advisory fees, reduction in legal provision, and decreased spending on marketing and city activation activities.

- Decrease in financial charges by SAR 31 million due to restructuring of long-term commercial debt at lower interest rate.

The decrease in net loss is despite the following:

- Increase in provision for expected credit loss (ECL) by SAR 26 million due to increase in contract assets.

- Increase in the share of loss from equity-accounted investees by SAR 8 million.

- Decrease in other income by SAR 12 million.The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is The increase in revenue by 203% during the current quarter compared to the previous quarter is mainly driven by higher sales of residential land and the recognition of additional development revenue resulting from project progression in the percentage of completion for ongoing property development projects.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The increase in net loss by 207% during the current quarter compared to the previous quarter is mainly attributable to the following:

- Previous quarter included one off fair value adjustments due to the restructuring of commercial loans which resulted in a gain of SAR 243 million due to locking in significantly lower interest rates.

- Slight increase in operational expenses primarily due to higher personnel cost.

- Increase in provision for expected credit loss (ECL) by SAR 35 million due to increase in contract assets.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 revenue by 183% during the current period compared to the same period last year is mainly attributable to the following:

- Increase in project revenue mainly driven by higher sales of residential land and the recognition of additional development revenue resulting from project progression in the percentage of completion for ongoing property development projects.

- Increase in operational revenue mainly driven by lease contracts signed in the Industrial Valley, increased hospitality revenue and higher tuition from student enrollment in one of the subsidiaries operating in the education sector.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 decrease in net loss by 74% during the current period compared to the same period in the previous year is mainly attributable to the following:

- Increase in revenues for the reasons provided above.

- Decrease in operational expenses by SAR 37 million due to lower legal and professional fees and lower spending on city activation activities during the current period.

- Decrease in financial charges by SAR 60 million due to the restructuring of long-term commercial debt at materially lower interest rates.

- Decrease in provision for expected credit loss by SAR 24 million.

- Gain on extinguishment of loan of SAR 243 million due to the successful completion of commercial debt restructuring at lower interest rates.

- Decrease in Zakat charges by SAR 83 million, mainly because the same period of the previous year included a one-off charge of SAR 66 million related to legacy open Zakat assessments.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) We draw attention to Note 1 of the condensed consolidated interim financial statements, which indicates that the Group incurred a net loss of SR 302 million during the nine-months period ended 30 September 2025 and, as of that date, the Group’s current liabilities exceeded its current assets by SR 3,897 million. The Group’s ability to meet its obligations as they fall due and to continue its operations without significant curtailment is therefore highly dependent on the successful execution of management’s plans including debt restructuring, obtaining additional funding from shareholders and the sale of properties to generate sufficient cash flows. These events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.Reclassification of Comparison Items N/AAdditional Information -

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