Tabuk Cement Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months )

As disclosed in note (6) to the condensed interim financial statements, the Company's property, plant and equipment included within the cement manufacturing facility (the "CGU") with a carrying amount of SAR 782 million as at 31 March 2026 (31 December 2025: SAR 790 million).

As reported in our audit report dated 8 April 2026 on the financial statements for the year ended 31 December 2025, management performed an impairment assessment of the CGU as at that date. We concluded that certain significant assumptions used by management in estimating the recoverable amount were not reasonable and supportable as required by IAS 36 Impairment of Assets, resulting in an overstatement of property, plant and equipment by at least SAR 38 million as at 31 December 2025.

Management believes the assessment performed as at 31 December 2025 remains valid as at 31 March 2026. However, based on our review procedures, we identified that certain assumptions and conditions underlying the impairment assessment may have changed since 31 December 2025.

In the absence of an updated impairment assessment by management, it was not practicable for us to quantify the financial effects of this matter as at 31 March 2026. However, based on the evidence obtained, we believe that property, plant and equipment and retained earnings are materially overstated as at 31 March 2026.

Qualified Conclusion

Based on our review, except for the effects of the matter described in the Basis of Qualified Conclusion paragraph above, nothing has come to our attention that causes us to believe that the accompanying 31 March 2026 condensed interim financial statements of Tabuk Cement Company are not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’ that is endorsed in the Kingdom of Saudi Arabia.