Zahrat Al Waha for Trading Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	180,962,810	131,562,475	37.548	128,832,248	40.463
Gross Profit (Loss)	35,899,600	13,498,464	165.953	15,050,852	138.522
Operational Profit (Loss)	27,095,060	6,301,983	329.944	12,092,159	124.071
Net Profit (Loss) Attributable to Shareholders of the Issuer	21,864,828	399,998	5,366.234	8,691,547	151.564
Total Comprehensive Income Attributable to Shareholders of the Issuer	21,564,270	417,615	5,063.672	8,643,143	149.495
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	309,795,058	257,498,299	20.309
Gross Profit (Loss)	50,950,452	17,558,638	190.173
Operational Profit (Loss)	39,187,219	865,483	4,427.786
Net Profit (Loss) Attributable to Shareholders of the Issuer	30,556,375	-7,883,208	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	30,207,413	-7,796,169	-
Total Shareholders Equity (after Deducting Minority Equity)	321,233,089	279,943,839	14.749
Profit (Loss) per Share	0.136	-0.035
All figures are in (Actual) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Actual) 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 reason for the increase in the company's sales for the current quarter compared to the same quarter of the previous year is due to: - Higher selling prices. - Increased sales in the packaging segment (shrink and stretch film).
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 reason for the increase in the net profit of the current quarter compared to the same quarter of the previous year is due to: - Sales increased by 37.55%, while the cost of sales increase by 22.87%, resulting in a 165.95% increase in gross profit. - Selling and distribution expenses decreased by 12.35%. - Net losses from changes in fair value investments through profit or loss decreased by 95.28%. - Finance costs decreased by 6.53%.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The reason for the increase in the company's sales for the current quarter compared to the previous quarter is due to: - High sales volume and high selling prices.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The reason for the increase in the net profit of the current quarter compared to the previous quarter is due to: - Sales increased by 40.46% while the cost of sales increased by 27.49%, resulting in a gross profit increase of 138.52%.
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 reason for the increase in the company's sales during the current period compared to the same period of the previous year is due to: - Increased sales volume, particularly in the printing and packaging segments (shrink and stretch film). - Higher selling prices in the plastic bottle preform and plastic cap segments.
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 reason for the increase in the net profit during the current period compared to the same period of the previous year is due to: - Sales increased by 20.31%, while the cost of sales rose by 7.88%, resulting in a 190.17% increase in gross profit. - Selling and distribution expenses decreased by 13.64%. - Other income increased. - Net losses from changes in fair value investments through profit or loss were converted into profits during the current period of 2026. - Finance costs decreased by 11.06%.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	No
Reclassification of Comparison Items	During the period ending 30 June 2026, the company has reclassified some comparative figures to align with the presentation of the current period. The reclassification had no impact on the profit or loss or equity. Finance costs paid were reclassified from financing activities to operating activities. The table below illustrates the impact on the cash flow statement for the period ended 30 June 2025: Net cash flow generated from operating activities: Before Reclassification 63,191,828 – Reclassification (3,946,261) - After Reclassification 59,245,567 Net cash flow used in financing activities: Before Reclassification (60,018,463) – Reclassification 3,946,261 - After Reclassification (56,072,202).
Additional Information	1- Despite an increase in sales for the current period (six months) of 2026 compared to the same period of the previous year (2025), and a smaller increase in the cost of sales compared to the sales increase, resulting in a 190.17% increase in gross profit, and a 13.64% decrease in selling and distribution expenses for the current period of 2026 compared to the same period of the previous year (2025), and an increase in other income due to the recovery of zakat for 2019 and 2020 following a final judgment in favor of the company amounting to SAR 3.36 million, as well as the recovery of customs duties for 2025 amounting to SAR 1.52 million, operating profit increased from SAR 0.87 million during the same period of the previous year to SAR 39.19 million during the current period. 2- Financing costs decreased for the current period (six months) of 2026 compared to the same period of 2025. Additionally, losses from the net change in investments at fair value through profit or loss realized during the same period of the previous year were converted into profits during the current period. This, coupled with an increase in operating profit, resulted in a profit of SAR 30.56 million for the current period of 2026, compared to a loss of SAR 7.88 million for the same period of the previous year. 3- Inventory balance decreased from SAR 96.29 million on December 31, 2025, to SAR 75.85 million on June 30, 2026, due to an increase in sales volume. 4- International Financial Reporting Standard 18 (IFRS 18), "Presentation and Disclosure in Financial Statements," will replace International Accounting Standard 1 (IAS 1), "Presentation of Financial Statements." This new standard will apply to annual reporting periods commencing on or after January 1, 2027. The company did not apply the new standard early in preparing these condensed interim financial statements. The company is currently assessing the expected impact of the initial application of IFRS 18, "Presentation and Disclosure in Financial Statements," and this assessment is disclosed in the notes to the condensed interim financial statements dated June 30, 2026. 5- Despite the current geopolitical and security developments and the increased instability in regional markets, no adjustments have been made to the balances or disclosures supplementing the financial statements for the first six months ending June 30, 2026. There are no negative indicators affecting the company's ability to continue its business operations in accordance with the going concern principle. The company's management is monitoring relevant developments and will take appropriate action when needed. 6- Basic earnings per share were calculated by dividing the loss/profit for the period attributable to the company's common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss/earnings per share is the same as basic loss/earnings per share, as the company does not have any dilutive instruments. 7- We would like to give the attention of our valued shareholders to the condensed interim Financial Statements for the six-month period ended June 30, 2026, which will be available on the investor relations app for Zahrat Al Waha for Trading Co. smartphones and tablets, and through the company's website at the following link https://zaoasis.com/investors/financial-information after sending it to the competent authorities.