Osool and Bakheet Investment Co. announces its Annual Financial results for the period ending on 2025-12-31

This decline is primarily attributable to the following factors:

Recognition of unrealized losses from the revaluation of investments at fair value through profit or loss amounting to SAR (74.12) million, compared to gains of SAR 22.57 million in the corresponding period. This represents the most significant driver of the losses reported for the current year. It is important to note that these losses are non-cash in nature, arising from the remeasurement of investments, and reflect temporary fluctuations in investment values.

Recognition of new revenue streams from network management and monitoring services in the telecommunications and information technology sector, amounting to SAR 6.35 million.

Relative stability in core operating revenues, including portfolio management, fund management, and investment services."

This decline is primarily driven by:

Recognition of unrealized fair value losses on investments, which reflect temporary market movements rather than underlying operational performance.

An increase in non-cash expenses, including:

Share-based payment expenses amounting to SAR 12.6 million

Expected credit loss provision of SAR 7.31 million, compared to a reversal in the prior year

Impairment provision for projects under development amounting to SAR 1.11 million

Continued operating expenses, with general and administrative expenses remaining broadly at similar levels."

The Group recognized unrealized losses arising from the remeasurement of this investment amounting to SAR 64 million in the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2025.

However, we were unable to obtain sufficient appropriate audit evidence regarding the accuracy and reasonableness of the key assumptions and inputs used by management in determining the fair value of this investment. Accordingly, we were unable to determine whether any adjustments may be necessary to the carrying amount of this investment as at 31 December 2025, and the corresponding impact on the unrealized gains or losses recognized during the year then ended."

In addition, the Company appointed an independent licensed external valuer, with relevant expertise in financial valuation, to perform the fair value assessment using appropriate valuation methodologies and tools suitable for this type of investment, based on a financial model that was independently validated for reasonableness and integrity.

It is also noted that Creative Future for Digital Brokerage received a notification from the central bank regarding non-fulfillment of certain license renewal requirements (as previously disclosed), which resulted in a temporary suspension of services until such requirements are fulfilled. The Company has taken this significant event into consideration by performing additional validation procedures and updating the assumptions and inputs used in the valuation process, ensuring that the impact is appropriately reflected in the accounting measurement.

The valuation concluded to a fair value range that represents the best estimate available based on information and circumstances as of the measurement date, taking into account the nature of the business and its operational stage. The valuation also considered a transition from high-growth to stable growth, as well as market multiples of comparable companies in the fintech and digital brokerage sectors as a cross-check for reasonableness.

The Company confirms its ongoing engagement with external advisors and the external auditor to address the auditor’s observations in future periods and to further enhance the quality of financial reporting and disclosures."