Tadawul-
Element List Current Year Previous Year %Change
Sales/Revenue -46,944,227 42,996,381 -
Gross Profit (Loss) -96,792,099 19,853,394 -
Operational Profit (Loss) -92,884,053 23,729,631 -
Net Profit (Loss) Attributable to Shareholders of the Issuer -95,067,609 19,853,525 -
Total Comprehensive Income Attributable to Shareholders of the Issuer -95,068,403 20,074,282 -
Total Shareholders Equity (after Deducting Minority Equity) 137,584,778 220,180,001 -37.51
Profit (Loss) per Share -12.53 2.65
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 - -
Accumulated Losses -12,641,075 15.6
All figures are in (Actual) Saudi Arabia, Riyals
Element List Explanation
The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year "Revenue for the financial year 2025 declined significantly, recording a net loss of SAR (46.94) million, compared to profits of SAR 42.99 million in the corresponding period of the previous year, representing a change of (209%).
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."
The reason of the increase (decrease) in the net profit during the current year compared to the last year is "The Group reported a net loss of SAR (95.06) million for the financial year 2025, compared to a net profit of SAR 19.85 million in the corresponding period of the previous year, representing a change of (579%).
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."
Statement of the type of external auditor's report Conservation
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) "As disclosed in Note (8) to the consolidated financial statements, financial assets measured at fair value through profit or loss as at 31 December 2025 include an investment in Creative Future for Digital Brokerage amounting to SAR 10.9 million, which has been measured at fair value based on management’s estimates, supported by an external valuation expert.
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."
Reclassification of Comparison Items Certain comparative figures have been reclassified to conform with the presentation of the current year’s financial statements.
Additional Information "During 2025, the Company strengthened its governance framework over the fair value measurement of its investment in Creative Future for Digital Brokerage by engaging an independent external advisor from a globally recognized advisory firm with extensive experience in this field, to perform an independent technical review of the financial model and to assess the reasonableness and observability of key assumptions and inputs, thereby enhancing the reliability of the accounting measurement in accordance with IFRS requirements.
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."
