Transmission of Quarterly Financial Statements for the Period Ended December 31, 2025

‌AZGARD 9

‌Contents

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‌2 Azgard Nine Limited

COMPANY INFORMATION

BOARD OF DIRECTORS

Mr. Zahid Mahmood Chairman

Mr. Ahmed H. Shaikh Chief Executive

Mr. Abid Hussain Mr. Ihsan Ahmad

Ms. Maliha Sarda Azam Mr. Nasir Ali Khan Bhatti Syed Hasan Akbar Kazmi Mr. Usman Rasheed

COMPANY SECRETARY

Mr. Muhammad Awais

CHIEF FINANCIAL OFFICER

Mr. Muhammad Zahid Rafiq, FCA

AUDIT COMMITTEE

Mr. Ihsan Ahmad Chairman

Mr. Nasir Ali Khan Bhatti Mr. Usman Rasheed

HR & REMUNERATION COMMITTEE

Mr. Ihsan Ahmad Chairman

Mr. Ahmed H. Shaikh Ms. Maliha Sarda Azam

AUDITORS

Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants

SHARES REGISTRAR

M/s. Hameed Majeed Associates (Pvt.) Ltd.

H. M. House, 7-Bank Square, Lahore. Ph: +92(0)42 37235081-82

Fax: +92(0)42 37358817

REGISTERED OFFICE

Ismail Aiwan-i-Science

Off: Shahrah-i-Roomi, Lahore-54600. Ph: +92(0)42 35761794-5

BANKERS

Relationship with conventional side

JS Bank Limited MCB Bank Limited Habib Bank Limited United Bank Limited

National Bank of Pakistan Bank Makramah Limited Bank Al Habib Limited

Relationship with Islamic window operations

Al Baraka Bank Pakistan Limited Faysal Bank Limited

PROJECT LOCATIONS

Textile & Apparel

Unit I

2.5 KM Off: Manga Raiwind Road, District Kasur, Pakistan.

Ph: +92(0)42 35384081

Unit II

Atta Buksh Road, 18-KM, Off: Ferozepur Road, Mouza Atari Saroba, Tehseel Cantt, Lahore, Pakistan.

Ph: +92(0)333 0427020-1

E-MAIL

info@azgard9.com

WEB PRESENCE

https://www.azgard9.com

‌Interim Financial Report 3

Directors' Review

The Directors of Azgard Nine Limited ("the Company") hereby present the Company's Condensed Interim Financial Report for the six months ended December 31, 2025.

Principal Activities

The main business of your Company is the production and marketing of denim-focused textile and apparel products, ranging from yarn to retail-ready goods.

Following are the operating financial results of Azgard Nine Limited:

Review of business during this period and the future outlook

According to Pakistan Bureau of Statistics (PBS) data, textile exports during FY 2025-26 recorded a generally declining trend in recent months, with contractions of 7.3% in August, 2.0% in September, 0.6% in October, 9.0% in November, and 8.6% in December. However, when viewed in totality, the sharp increase of 32% in July helped offset subsequent declines, resulting in an overall broadly flat performance during the period.

During the first quarter, sales of the Company showed decline of 6.7% while for 2nd quarter sales increased by 2.8% as compared same period of last year. The profit from operations of this half year is Rs. 1,243.13 million as compared with Rs. 1,269.42 million for the same period of last year. With reduction in finance cost, the Company has been able to achieve a net profit before tax of Rs. 661.36 million as compared to a profit of Rs. 492.73 million during the same quarter of last year. This shows a growth of 34%.

The Company's performance during the six-month period remained under pressure amid a challenging operating environment. Elevated input costs, tariff burdens and increasingly stringent compliance requirements adversely impacted operations. Energy tariffs-already significantly higher than those of regional competitors-further weakened cost competitiveness. Additionally, the upward revision in the minimum wage increased operating expenses. Intensifying competition from new market entrants seeking market share has further compressed margins and has eroded the Company's traditional cost advantage while placing additional downward pressure on profitability.

The transition to the Normal Tax Regime in July 2024 has significantly increased the overall tax burden. When combined with the super tax, the effective tax rate exceeds 40%, placing the sector among the highest-taxed in the region. Meanwhile, sales tax refunds continue to accumulate, with older claims still pending and locking up critical working capital. These delays are straining liquidity, elevating financing costs, and disrupting procurement and production planning. Rationalization of the tax burden, along with timely processing of refunds, remains essential to sustain export momentum and restore the sector's competitiveness.

‌4 Azgard Nine Limited

Despite these headwinds, the Company delivered improved earnings, reflecting disciplined cost management and sustained focus on operational efficiency.

Following the finalization of the India-EU Free Trade Agreement on January 27, 2026, Pakistan's textile sector is expected to face heightened competitive pressure as the tariff advantage previously enjoyed under GSP+ diminishes, effectively leveling the playing field for regional exporters. In addition, concessions being extended by the USA to regional competitors, particularly Bangladesh and India, are further intensifying the competitive landscape for Pakistani textile exports.

Furthermore, global trade conditions remain subject to ongoing policy changes in key export markets. Recent announcements regarding potential tariff adjustments in the United States, along with related legal and regulatory developments, may contribute to some uncertainty in international trade flows and sourcing decisions in the near term. At this stage, the precise implications for the Company and the broader textile sector remain uncertain. Management continues to monitor developments closely and is maintaining focus on operational efficiency, market diversification, and prudent working capital management to mitigate potential risks.

Against this broader backdrop of industry challenges and margin pressures, the Company is undertaking strategic initiatives to strengthen competitiveness, including enhanced production planning, improved capacity utilization, and greater process automation. Management is also prioritizing cost optimization through supply chain rationalization, waste reduction, and tighter working capital management.

The Board extends its sincere appreciation to all stakeholders for their continued trust and cooperation. Their support remains critical as the Company navigates current challenges and pursues sustainable growth. With collective commitment, the Company remains confident of delivering stronger and progressively improved performance going forward.

On behalf of the Board of Directors

Chief Executive Officer Director

Date: February 27, 2026

‌Interim Financial Report 5

Azgard Nine Limited

‌6

‌Russell Bedford

taking you further

Interim Financial Report 7

Rahman Sarfaraz Rahim Iqbal Rafiq

Chartered Accountants

72-A, Faisal Town, Lahore - 54770, Pakistan.

T: +92 42 35160430 - 33

E: lahore@rsrir.com

W: https://www.rsrir.com

INDEPENDENT AUDITORS' REVIEW REPORT

To the members of AZGARD NINE LIMITED

Report on the Review of Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of AZGARD NINE LIMITED [the 'Company'] as at 31 December 2025 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows and notes to the condensed interim financial statements for the six-month period then ended (here-in-after referred to as the 'interim financial statements'). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information performed by the Independent Auditor of the Entity." A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matters

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the six-month period, presented in the second quarter financial statements are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-month period ended 31 December 2025 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditor's review report is ALI RAZA JAFFERY.

RAHMAN SARFARAZ RAHIM IQBAL RAFIQ

Chartered Accountants Lahore | 27 February 2026 UDIN: RR202510704pJ9hlcH2z

Member of Russell Bedford International - a global network of independent professional services firms

‌8 Azgard Nine Limited

Condensed Interim Statement of Financial Position (Un-audited) AS AT 31 DECEMBER 2025

The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements

Lahore Chief Executive Officer

Director

Chief Financial Officer

Lahore Chief Executive Officer

Director

Chief Financial Officer

‌10 Azgard Nine Limited

Condensed Interim Statement of Comprehensive Income (Un-audited) For the six months period ended 31 December 2025

Six-month period ended Three-month period ended

31-Dec-25 31-Dec-24 31-Dec-25 31-Dec-24 Rupees Rupees Rupees Rupees [restated] [restated]

Profit after income taxes 322,110,260 201,815,757 207,493,103 134,022,456.00

Other comprehensive income:

Items that will not be reclassified subsequently to profit or loss

Revaluation surplus - - - -Remeasurements of defined benefit obligation - - - -Income tax relating to items that will not be reclassified 275,291 - 275,291 -

275,291 - 275,2-91 -

Items that may be reclassified

subsequently to profit or loss - - - -

Other comprehensive income after income taxes 275,291 - 275,291 -Total comprehensive income 322,385,551 201,815,757 207,768,394 134,022,456 The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements

Lahore Chief Executive Officer

Director

Chief Financial Officer

‌Interim Financial Report 11

For the six months period ended 31 December 2025

Lahore Chief Executive Officer

Director

Chief Financial Officer

‌Condensed Interim Statement of Changes in Equity (Un-audited)

Share Capital

Capital reserves

Preference New zero shares coupon PPTFCs

surplus on

Issued Share Reserve redemption redemption Revaluation of Retained Total

share capital premium on merger reserve reserve

Total

fixed asset

earnings equity

Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees

[restated]

As at 01 July 2024 - [Audited] - [restated] 4,913,753,370 2,358,246,761 105,152,005 148,367,255 710,174,286 3,321,940,307 2,685,789,742 2,882,665,721 13,804,149,140

201,815,757

-201,815,757

12 Azgard Nine Limited

-

-

-

-

As at 31 December 2024 - [Un-audited] -[restated] 4,913,753,370 2,358,246,761 105,152,005 148,367,255 1,065,261,429

As at 01 January 2025 - [Un-audited] - [restated] 4,913,753,370 2,358,246,761 105,152,005 148,367,255 1,065,261,429

As at 31 December 2025 - [Un-audited] 4,913,753,370 2,358,246,761 105,152,005 148,367,255 1,775,435,715 4,387,201,736 2,842,540,753 2,982,918,408 15,126,414,267

The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements

Lahore Chief Executive Officer

Director

Chief Financial Officer

‌Interim Financial Report 13

Condensed Interim Selected Explanatory Notes to the Financial Statements (Un-audited)

For the six months period ended 31 December 2025

1. LEGAL STATUS AND OPERATIONS

   Azgard Nine Limited [the 'Company'] was incorporated under the repealed Companies Ordinance,1984 on 20 January 1993. The Company is a 'Public Company Limited by Shares' and is listed on Pakistan Stock Exchange Limited. The Company is a composite of spinning, weaving, dyeing and stitching units engaged in the manufacturing of yarn, denim and denim products.

   1. Location of business units

      Registered Office Manufacturing Unit - 1 Manufacturing Unit - 2

2. BASIS OF PREPARATION

   Ismail Aiwan-e-Science, off Shahrah-e-Roomi, Lahore, Pakistan.

   2.5 KM, off Manga, Raiwind Road, District Kasur, Pakistan. 18 KM, Atta Buksh Road, off Ferozepur Road, Mouza Atari Saroba, Tehseel Cantt, Lahore.

   These interim financial statements are un-audited and have been presented in condensed form and do not include all information as is required to be provided in a full set of annual financial statements. These interim financial statements should be read in conjunction with the annual audited financial statements of the Company for the year ended 30 June 2025.

   These interim financial statements have been subjected to limited scope review by auditors of the company, as required under section 237 of the Companies Act, 2017 . The comparative condensed interim statement of financial position as at 30 June 2025 and the related notes to the interim financial statements are based on audited financial statements. The comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows and related notes to the condensed interim financial statements for the six-month period ended 31 December 2025 are based on unaudited, reviewed interim financial statements. The condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-month period ended 31 December 2025 and 31 December 2024 are neither audited nor reviewed.

   1. Statement of compliance

      These interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:

      • International Accounting Standard 34 'Interim Financial Reporting' [IAS 34], issued by International Accounting Standards Board [IASB] as notified under the Companies Act, 2017; and

      • Provisions of and directives issued under the Companies Act, 2017

        Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   2. Basis of measurement

      These interim financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis as at the reporting date.

      ‌14 Azgard Nine Limited

      Items Measurement basis

      Financial liabilities Amortized cost

      Employee retirement benefits Present value Freehold land, buildings on freehold land, plant and machinery Revalued amounts Investments Fair value

      Other financial assets Amortized cost

Judgments, estimates and assumptions

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions and judgements are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which forms the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

There were no changes in key judgements applied and, estimates and assumptions made by the Company during the period.

Functional currency

These interim financial statements have been prepared in Pak Rupees which is the Company's functional currency. The amounts reported in these interim financial statements have been rounded to the nearest Rupees unless specified otherwise.

Date of authorization for issue

These interim financial statements have been approved by the Board of Directors of the Company and authorized for issue on 27 February 2026.

1. NEW AND REVISED STANDARDS, INTERPRETATIONS AND AMENDMENTS EFFECTIVE DURING THE YEAR.

   The following new and revised International Financial Reporting Standards [IFRS] and International Accounting Standards [IAS], interpretations of and amendments to IFRS and IAS are effective in the current period but are either not relevant to the Company or their application does not have any material impact on the financial statements of the Company other than presentation and disclosures, except as stated otherwise.

   3.1

   Lack of Exchangeability (Amendments to IAS 21)

   The amendments contain guidance to specify when a currency is exchangeable and how to determine the exchange rate when it is not.

2. NEW AND REVISED STANDARDS, INTERPRETATIONS AND AMENDMENTS NOT YET EFFECTIVE.

The following standards, interpretations and amendments are in issue which are not effective as at the reporting date and have not been early adopted by the Company.

‌Interim Financial Report 15

Effective date (annual periods beginning on or after)

IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information

IFRS S2 Climate-related Disclosures

Amendments IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments

Amendments IFRS 9 and IFRS 7 regarding the power purchase agreements Annual Improvements to IFRS Accounting Standards - Volume 11 IFRS 17 Insurance Contracts IFRS 18 Presentation and Disclosures in Financial Statements IFRS 19 Subsidiaries without Public Accountability: Disclosures

01 July 2025 01 July 2025

01 January 2026

01 January 2026 01 January 2026 01 January 2027 01 January 2027 01 January 2027

Other than aforementioned standards, interpretations and amendments, IASB has also issued the following standards which have not been notified by the Securities and Exchange Commission of Pakistan for adoption.

IFRS 1 First Time Adoption of International Financial Reporting Standards

The Company intends to adopt these new standards on their effective dates, subject to notification by Securities and Exchange Commission of Pakistan under section 225 of the Companies Act, 2017 regarding their adoption. The management anticipates that the adoption of the above standards, amendments and interpretations in future periods, will not have a material impact on the Company's interim financial statements other than in presentation/disclosures.

1. ACCOUNTING POLICIES

   The accounting policies adopted in the preparation of these interim financial statements are the same as those applied in the preparation of preceding annual financial statements of the Company for the year ended 30 June 2025.

2. LONG TERM BORROWINGS

   As at beginning of the period/year Obtained during the period/year Repayments made during the period/year

   As at end of the period/year Current maturity presented under current liabilities

   Note

   [Un-audited] [Audited]

   31-Dec-25 30-Jun-25

   Rupees Rupees

   1,081,208,932 1,081,208,932

   252,310,537 -

   (625,020,793) -

   708,498,676 1,081,208,932

   (470,806,239) (1,081,208,932)

   237,692,437 -

   ‌16 Azgard Nine Limited

   [Un-audited] [Audited]

   31-Dec-25 30-Jun-25

   6.1

   Note

   Facility wise breakup of long term borrowings

   Rupees

   Rupees

   Settlement finance facility	6.1.1	456,188,139		1,081,208,932
   Long term finance facility	6.1.2	150,000,000		-
   Diminishing Musharakah facility	6.1.3	102,310,537		-
   		708,498,676		1,081,208,932

   1. This represents settlement finance created pursuant to the Lahore High Court Approved Creditors' Scheme of Arrangement ['Approved Scheme']. The finance carries mark-up at 5% per annum. During the period, the agents' bank distributed proceeds held in the escrow account from the sale of building and machinery of the Company's Spinning Unit, resulting in settlement of Rs. 625.02 million. The remaining balance will be settled through proceeds from the sale of land of the Muzaffargarh Unit and 13,805,427 preference shares held in Agritech Limited.. The finance is secured by equitable mortgage over the spinning unit, charge and right over actual proceeds from disposal of spinning unit and preferences shares, first hypothecation charge and equitable mortgage over the Company's assets and personal guarantee of sponsor director, each for Rs. 1.441.61 million, in favour of Bank Makramah Limited, as security agent. In case sales proceeds received by the Company are insufficient making any payment due under the settlement finance facility, the treatment and settlement terms will be mutually settled between the Company and the agents appointed pursuant to the Approved Scheme.

   2. This represents term loan facility of Rs. 250 million sanctioned by Pak Libya Holding Company (Private) Limited to finance capex requirements relating to biomass power project. The facility is secured by charge over all present and future current and fixed assets of the Company, including biomass power plant and personal guarantee of the Company's directors. This facility carries interest at three months KIBOR plus 1.90% per annum, payable quarterly. The principal is repayable in sixteen equal quarterly installments with the first installment due in March 2027.

   3. These loans has been obtained from a financial institution against diminishing musharakah facility to finance acquisition of vehicles and is secured by specific charge over vehicles acquired in the form of lien marking. This finance carries profit at three months KIBOR plus 2% per annum, payable monthly. This finance is repayable in sixty unequal monthly installments with the final maturity due in November 2030.

   [Un-audited] [Audited]

   31-Dec-25 30-Jun-25

3. SHORT TERM BORROWINGS

Secured

Rupees

Rupees

Export refinances 2,370,094,441 2,250,245,565

Bills payable 4,216,023 69,871,462

2,374,310,464 2,320,117,027

Unsecured

Book overdraft 649,677,183 366,271,633

3,023,987,647 2,686,388,660

‌Interim Financial Report 17

1. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      1. Counter Guarantees given by the Company to its bankers as at the reporting date amount to Rs. 285.79 million (30-Jun-25: Rs. 285.79 million).

      2. Bills discounted as at reporting date aggregate to Rs. 2,169.19 million (30-Jun-25: Rs. 1,951.11 million).

      3. There is no material change in the status of other contingencies as disclosed in the financial statements for the year ended 30 June 2025.

[Un-audited] [Audited]

31-Dec-25 30-Jun-25

The Company has various rented premises under short term lease arrangements. Lease agreement covers a period of upto one year and is renewable/extendable on mutual consent. Lease rentals are payable monthly/quarterly in advance. Commitments for payments in future periods under the lease agreement are as follows:

Note

[Un-audited] [Audited]

31-Dec-25 30-Jun-25

Rupees Rupees

Payments not later than one year Payments later than one year

85,280,400 44,281,403

- -

85,280,400 44,281,403

‌18 Azgard Nine Limited

[Un-audited] [Audited]

31-Dec-25 30-Jun-25

9.3 Right of use assets

Note

Rupees

Rupees

Net book value at beginning of the period/year Additions during the period/year Depreciation for the period/year

Net book value of assets transferred to operating fixed assets during the period/year

As at end of the period/year

10 CASH AND CASH EQUIVALENTS

- 968,929

- -

- (48,446)

- (920,483)

- -

‌Interim Financial Report 19

1. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

   The details of the Company's related parties, with whom the Company had transactions during the period or has balances outstanding as at the reporting date, are as follows:

   Name of related party Nature and basis of relationship

   Jahangir Siddiqui and Company Limited ['JSCL']

   Significant shareholder [Beneficial shareholding of 20% or more]

   (JSCL holds and controls 121,158,363 ordinary shares in the Company)

   JSCL's associated entities Other related parties [Associated companies of significcant shareholder] Mr. Zahid Mahmood Key Management Personnel [Chairman] Mr. Ahmed Humayun Shiekh Key Management Personnel [Chief Executive]

   Mr. Abid Hussain Key Management Personnel [Director]

   Mr. Ihsan Ahmad Key Management Personnel [Director] Ms. Maliha Sarda Azam Key Management Personnel [Director] Mr. Nasir Ali Khan Bhatti Key Management Personnel [Director] Mr. Syed Hassan Akbar Kazmi Key Management Personnel [Director] Mr. Usman Rasheed Key Management Personnel [Director]

   The Company continues to have a policy whereby all transactions with related parties entered into in the ordinary course of business are carried out on commercial terms and conditions which are equivalent to those prevailing in an arm's length transaction with the exceptions as approved by the Board of Directors. Detail of transactions with related parties during the reporting period and balances with them as at the reporting date are as follows:

   ‌20 Azgard Nine Limited

   [Un-audited]

   31-Dec-25

   [Un-audited]

   31-Dec-24

   	Rupees		Rupees
   Short term employe benefits	21,000,000		21,000,000
   Meeting fee	1,580,000		1,580,000
   Post employements benefits	2,692,307		2,692,307
   12.1.2 Other related parties
   JS Bank Limited Mark-up expense	4,649,644		349,608
   Mark-up paid/settled	4,904,328		-
   Fee paid to trustee	1,500,000		1,500,000
   Return on bank deposits Unit Trust of Pakistan Mark-up expense	9,806,521 459,438		12,873,417 615,070
   Mark-up paid/settled JS Large Cap Fund Mark-up expense	893,305 1,223,003		- 1,638,181
   Mark-up paid/settled JS Global Capital Limited Mark-up expense	3,242,829 4,801,069		1,240,019 6,430,908
   Mark-up paid/settled JS Principal Secure Fund Mark-up expense	12,730,178 492,378		4,867,867 659,527
   Mark-up paid/settled JS Income Fund Mark-up expense	1,305,555 565,272		499,228 756,753
   Mark-up paid/settled JS Growth Fund Mark-up expense	1,099,166 1,458,284		- 1,952,956
   Mark-up paid/settled	3,503,251		957,302
   12.2 Balances with related parties	[Un-audited] 31-Dec-25		[Audited] 30-June-25
   12.2.1 Key Management Personnel	Rupees		Rupees
   Short term employe benefits payable	3,500,000		3,500,000
   Bonus payable	-		28,354,655
   Post employements benefits payable	29,615,383		26,923,076

   1. Transactions with related parties

      1. Key Management Personnel

   ‌Interim Financial Report 21

   12.2.2 Other related parties

   [Un-audited]

   31-Dec-25

   Rupees

   [Un-audited]

   31-Dec-24

   Rupees

   JS Bank Limited
   Settlement finance	5,795,748		13,870,315
   Short term borrowings	112,000,000		112,000,000
   Mark-up payable	2,258,411		5,408,758
   Bank balances Unit Trust of Pakistan	490,748,760		458,750,036
   Settlement finance	2,850,621		6,822,073
   Redeemable capital	61,360,000		63,735,000
   Mark-up payable	1,113,337		1,547,204
   JS Large Cap Fund
   Settlement finance	7,412,507		17,739,525
   Redeemable capital	91,663,679		98,047,415
   Mark-up payable	2,014,159		4,033,985
   JS Global Capital Limited
   Settlement finance	29,098,831		69,638,980
   Redeemable capital	359,846,229		384,906,474
   Mark-up payable	7,906,861		15,835,970
   JS Principal Secure Fund
   Settlement finance	2,984,256		7,141,887
   Redeemable capital	36,900,378		39,470,453
   Mark-up payable	810,895		1,624,072
   JS Pension Savings Fund
   Redeemable capital	3,850,000		3,850,000
   JS Income Fund
   Settlement finance	3,507,544		8,394,214
   Redeemable capital	76,650,000		79,572,000
   Mark-up payable	1,369,845		1,903,739
   JS Growth Fund
   Settlement finance	8,912,854		21,330,137
   Redeemable capital	145,008,905		152,594,685
   Mark-up payable	2,800,862		4,845,829

   ‌22 Azgard Nine Limited

2. FINANCIAL RISK MANAGEMENT

   The Company's financial risk management objectives and policies are consistent with those disclosed in the audited annual published financial statements of the Company for the year ended 30 June 2025.

3. FINANCIAL INSTRUMENTS

The carrying amounts of the Company's financial instruments by class and category are as follows:

1. ‌SEGMENT INFORMATION

   1. Segment revenues and results Revenue

      External Inter-segment

      Cost of sales External Inter-segment

      Spinning segment Weaving segment Garment segment Elimination Total

      31-Dec-25 31-Dec-24 31-Dec-25 31-Dec-24 31-Dec-25 31-Dec-24 31-Dec-25 31-Dec-24 31-Dec-25 31-Dec-24

      Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees

      [restated] [restated] [restated]

      957,018,274

      476,341,699

1,433,359,973 1,839,715,820 10,211,794,867 10,936,498,370 15,745,014,549 13,702,361,018 (5,910,739,423) (4,659,215,113) 21,479,429,966 21,819,360,095

(1,373,599,710) (1,788,890,463) (8,981,684,340) (9,467,482,798) (14,703,400,248) (12,724,485,869) 5,910,739,423 4,659,215,113 (19,147,944,875) (19,321,644,017)

Gross profit 59,760,263 50,825,357 1,230,110,527 1,469,015,572 1,041,614,301 977,875,149 - - 2,331,485,091 2,497,716,078

Selling and distribution expenses Administrative expenses

(105,324,288) (91,449,936) (428,651,328) (484,168,166) (835,039,311) (1,027,304,917) - - (1,369,014,927) (1,602,923,019)

(Loss)/profit from operations (45,564,025) (40,624,579) 801,459,199 984,847,406 206,574,990 (49,429,768) - - 962,470,164 894,793,059

Adjustments for common items

Other income 380,210,065 435,334,834

Interim Financial Report 23

Other expenses (87,005,631) (26,700,314)

Impairment allowance for expected credit losses (12,540,764) (34,007,191)

Finance cost (416,449,941) (618,891,399)

Notional interest expense (165,325,446) (157,799,203)

Provision for levies (268,500,467) (275,185,015)

Provision for income taxes (70,747,720) (15,729,014)

Profit after income taxes 322,110,260 201,815,757

The segments of the Company are managed on a worldwide basis, but manufacturing facilities and sales offices are operated in Pakistan. In presenting information on the basis of geography, segment revenue is based on the geographical location of customers and segment assets are based on the

geographical location of the assets.

24 Azgard Nine Limited

‌Interim Financial Report 25

1. FAIR VALUE MEASUREMENTS

   1. Financial instruments

      1. Recurring fair value measurements

         For recurring fair value measurements, the fair value hierarchy and information about how the fair values are determined is as follows:

         Assets

         Hierarchy

         Valuation technique and key inputs

         [Un-audited]

         [Un-audited]

         Investment in

         31-Dec-25

         Rupees

         31-Dec-24

         Rupees

         mutual funds

         Level 1

         Quoted prices in an active market

         627,609 549,287

      2. Non-recurring fair value measurements

         There are no non-recurring fair value measurements of financial instruments as at the reporting date.

      3. Financial instruments not measured at fair value

         The management considers the carrying amount of all financial instruments not measured at fair value at the end of each reporting period to approximate their fair values as at the reporting date.

   2. Assets other than financial instruments

      1. Recurring fair value measurements

         For recurring fair value measurements, the fair value hierarchy and information about how the fair values are determined is as follows:

         Assets

         Hierarchy

         Valuation technique and key inputs

         [Un-audited]

         [Un-audited]

         31-Dec-25

         Rupees

         31-Dec-24

         Rupees

         Freehold land

         Buildings on freehold land

         Level 2

         Level 2

         Land is valued using market comparable approach that reflects recent transaction prices for similar properties. Significant inputs include estimated purchase price, including non-refundable purchase taxes and other costs directly attributable to the acquisition.

         Building is valued using cost approach that reflects the cost to the market participants to construct assets of comparable utility and age, adjusted for obsolescence and depreciation. Significant inputs include estimated construction costs and other ancillary expenditure.

         1,573,950,000 1,573,950,000

         2,395,557,729 2,433,540,301

         ‌26 Azgard Nine Limited

         Assets Hierarchy

         Valuation technique and key inputs

         [Un-audited]

         [Un-audited]

         31-Dec-25

         Rupees

         31-Dec-24

         Rupees

         Plant and machinery

         Level 2

         Plant and machinery is valued using cost approach that reflects the cost to the market participants to construct or acquire machinery of comparable utility and age, adjusted for obsolescence and depreciation. Significant inputs include estimated construction/acquisition costs and other ancillary expenditure.

         6,636,533,188 6,091,455,025

      2. Non-recurring fair value measurements

There are no non-recurring fair value measurements of assets other than financial instruments.

Name of Bank Relationship with Bank

Faysal Bank Limited Sukuk certificates holder and bank balances Al Baraka Bank (Pakistan) Limited Bank Balances

Meezan Bank Limited Bank balances

1. RECOVERABLE AMOUNTS AND IMPAIRMENT

   As at the reporting date, recoverable amounts of all assets/cash generating units are equal to or exceed their carrying amounts, unless stated otherwise in these interim financial statements.

2. GENERAL

Corresponding figures have been re-arranged where necessary to facilitate comparison. However, there are no significant reclassifications during the period.

Lahore Chief Executive Officer

Director

Chief Financial Officer

https://www.azgard9.com

AZGARD 9

AZGARD NINE LIMITED

Address

Ismail Aiwan-e-Science, Off Shahrah-e-Roomi, Lahore-54600, Pakistan.

Contact

Phone:

+92(0)4235761794-5

Email

info@azgard9.com

/AZGARD9 LTD