Osool and Bakheet Investment Co. announces its Interim Financial results for the period ending on 2025-06-30 ( Six Months )

Unrealized losses from investments at fair value through profit or lossamounting to SAR (31.77) million, compared to unrealized gains of SAR 9.46 million for the corresponding period of the prior year. This item represented the most significant impact on revenues. These losses are non-cash and unrealized in nature, arising from the revaluation of investments, and reflect temporary market fluctuations in investment values.

A decrease in fund management fees, which amounted to SAR 6.73 million, compared to SAR 7.85 million in the corresponding period of the previous year, representing a decrease of SAR (1.12) million.

In contrast, certain revenue streams recorded growth during the period, including:

Custody and operations management fees, which amounted to SAR 1.07 million, compared to SAR 0.84 million for the corresponding period of the previous year, an increase of SAR 0.23 million.

Brokerage income, which amounted to SAR 0.21 million, compared to SAR 0.13 million for the corresponding period of the previous year, an increase of SAR 0.08 million.

New revenues from network and information systems management and monitoring services (through the subsidiary), amounting to SAR 0.79 million during the current period.

Recognition of share-based compensation expenses amounting to SAR (12.60) million, a newly introduced item in the current year related to the long-term employee incentive programs. It is important to note that this item is non-cash in nature and has no impact on shareholders’ equity.

Unrealized losses from investments measured at fair value through profit or loss, amounting to SAR (31.77) million, as previously noted.

Recognition of expected credit loss (ECL) provisions amounting to SAR (4.25) million, in line with the Company’s prudent risk management policies.

Increase in general and administrative expenses by SAR (1.29) million compared to the corresponding period of the previous year.

prior year have been reclassified to

conform to the presentation of the

current period in the financial

statements.

significant portion of the increase

in general and administrative

expenses is attributable to the

recognition of share-based

compensation expenses related to

long-term employee incentive

programs. It should be noted that

this expense is non-cash in nature

and does not affect shareholders’

equity. Furthermore, a substantial

part of the decline in revenues is

attributable to unrealized losses

arising from market fluctuations in

investments measured at fair

value through profit or loss, which

are inherently subject to high

volatility. These losses resulted

from challenges faced by the

investee companies in the

sectors/activities in which they

operate and do not reflect the core

operating performance of those

companies. Such fluctuations may

reverse in the future as conditions

in the respective sectors/activities

stabilize. The Group engaged an

independent external expert,

accredited by the Saudi Authority

for Accredited Valuers, to conduct

the valuation of Creative Future

Digital Brokerage (as noted in the

aforementioned qualified audit

opinion). The Group provided the

expert and external auditor with

all available information and data,

which support the appropriateness

and reasonableness of the

assumptions used in the valuation.

As disclosed in Note 5 to the interim condensed consolidated financial statements, the fair value through profit or loss financial assets as of 30 June 2025 include an investment in Creative Future Digital Brokerage Company, amounting to SAR 46.3 million, measured at fair value. The Group’s management determined the fair value of this investment with the assistance of an external expert and recognized unrealized losses of SAR 19.7 million in the interim condensed consolidated statement of profit or loss and other comprehensive income for the six-month period ended 30 June 2025.

However, we were unable to obtain sufficient appropriate audit evidence to evaluate the accuracy and reasonableness of the assumptions and inputs used by management in determining the fair value. Consequently, we were unable to determine whether any adjustment to the carrying amount of this investment as of 30 June 2025 was necessary, and the resulting impact on unrealized gains or losses from this investment for the six-month period ended 30 June 2025.