Transmission of Half Yearly Report for the Six Months Period Ended December 31, 2025

‌Half Yearly Accounts December, 31 2025

BIBOJEE GROUP

BANNU

WOOLLEN MILLS LIMITED

‌COMPANY'S PROFILE 1

DIRECTOR'S REPORT (English &

). 2-5

AUDITOR'S REVIEW REPORT 6

CONDENSED INTERIM STATEMENT OF

FINANCIAL POSITION. 7

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME 8

CONDENSED INTERIM STATEMENT OF CASH FLOWS. 9

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY 10

NOTES. 11-17

‌Board of Directors Mr. Ahmad Kuli Khan Khattak Chairman

Mrs. Shahnaz Sajjad Ahmad Chief Executive Lt. Gen. (Retd.) Ali Kuli Khan Khattak

Dr. Shahin Kuli Khan Khattak Syed Zubair Ahmed Shah

Mr. Abdul Rehman Qureshi (Independent) Brig. (R.) Agha Arshad Raza (Independent)

Audit Committee Mr. Abdul Rehman Qureshi Chairman

Syed Zubair Ahmad Shah Member

Brig. (R.) Agha Arshad Raza Member

Human Resource & Mr. Abdul Rehman Qureshi Chairman

Remuneration Committee Lt. Gen. (Retd.) Ali Kuli Khan Khattak Member

Mr. Ahmad Kuli Khan Khattak Member

Mrs. Shahnaz Sajjad Ahmad Member

Syed Zubair Ahmed Shah Member

Brig. (R.) Agha Arshad Raza Member

Chief Operating Officer (COO) Mr. Khalid Kuli Khan Khattak

Assistant Chief Operating Officer / Company Secretary

Mr. Azmat Khan

Chief Financial Officer Mr. Kalim Aslam

Head of Internal Audit Mr. Sajid Nawaz Khan

Auditors M/S. ShineWing Hameed Chaudhri & Co Chartered Accountants

Bankers National Bank of Pakistan Bank Alfalah Ltd.

Legal Adviser M/S Hassan & Hassan, Advocates

Paaf Building, 1-D, Kashmir / Egerton Road, Lahore

T ax Consultant M. Nawaz Khan & Co

1-Ground Floor, Farrah Centre, 2 Mozang Road, Lahore

Registrars & Shares CDC Share Registrar (Services) Limited

Registration Office CDC House, 99-B, Block B, S.M.C.H.S. Main Shahra-e-Faisal, Karachi-74400

Tel: UAN# 021-0800 23275, Fax: 021-34326053

E-Mail: info@cdcsrsl.com

Registered Office Bannu Woollen Mills Ltd D.I.Khan Road, Bannu

Tel. (0928) 612274, 662273, 613250

E-Mail: bannuwoollen@yahoo.com Web Site: https://www.bwm.com.pk

Mills D.I.Khan Road, Bannu

Tel. (0928) 612274, 662273, 613250

E-Mail: bannuwoollen@yahoo.com Web Site: https://www.bwm.com.pk

‌On behalf of the Board of Directors of Bannu Woollen Mills Limited, we are pleased to present the condensed interim Financial Statements of the Company for the half year ended December 31, 2025 duly reviewed by the statutory auditors.

FINANCIAL PERFORMANCE

During the second quarter, the Company's net sales amounted to Rs. 994.322 million, reflecting a significant increase as compared to the same period of the corresponding year, gross profit increased to Rs. 249.014 million from 156.913 million over the corresponding quarter of the last year. Distribution, administrative and other expenses remained largely controlled as compared to the same period of the corresponding year reflecting the Company's ongoing focus on cost optimization and operational efficiency. Net profit before tax stood at Rs. 141.287 million in the second quarter, compared to Rs. 168.321 million in the same period last year. This decrease was primarily driven by a share of loss of Rs. 32.973 million and a lower no impairment loss reversal from the associated company recognized during the period (December 31, 2024: share of loss of Rs. 107.002 million and impairment loss reversal of Rs. 189.704 million). Consequently, net profit after tax was recorded at Rs. 88.775 million, resulting in earnings per share (EPS) of Rs. 9.34, down from Rs. 13.60 in the corresponding quarter of the previous year.

The financial results for the six months period under review are summarized below:

FINANCIAL RESULTS

Six months period ended

Dec. 31,

2025

Dec. 31,

2024

- Rupees in thousand -

During the period under review, the Company's net turnover increased by Rs. 382.945 (45%) million, reflecting a strong growth compared to the corresponding period of the previous year. This increase was primarily driven by the rising demand for the Company's products, which led to higher order volumes from key dealers, contributing significantly to the overall growth in net turnover.

The gross profit margin decreased from 30% to 28% as compared to the corresponding period of the previous year, primarily driven by lower finished goods in current period. The decrease in EPS is mainly attributed due to lower reversal of impairment loss from Associated Company.

The reduction in policy rates has positively influenced finance costs, which decreased to Rs.

‌28.420 million from Rs. 46.625 million in the corresponding period of the previous year, supporting the Company's earnings.

The Company produced 523,977 meters of greasy fabric, compared to 393,257 meters during the same period last year. This increase was due to increase in demand from customer and better efficiency with extra shift two months.

FUTURE OUTLOOK

Pakistan's economy is gradually stabilizing with easing inflationary pressures, improved foreign exchange reserves, and a relatively stable policy environment. While challenges such as energy costs, currency volatility, and tight liquidity conditions persist, the overall business sentiment is showing signs of improvement.

Management remains focused on driving sustainable growth through operational efficiency, product diversification, and strengthening its market presence. The Company will continue to prioritize cost discipline, optimize working capital, and explore new avenues to enhance shareholder value for the remainder of the financial year ending June 30, 2026.

ACKNOWLGEMENT

We formally express our sincere appreciation for the dedication and hard work of our executives, officers, staff, and workers, whose contributions have been instrumental in achieving the Company's strong performance. We also recognize the valuable contributions and active involvement of the Board Committee members in guiding and supporting management on key strategic matters. Additionally, the Board extends its gratitude to our banking partners, customers, and suppliers for their unwavering support and commitment to the Company.

On behalf of the Board of Directors

(LT. GEN. ALI KULI KHAN KHATTTAK (RETD.) (SHAHNAZ SAJJAD AHMAD) DIRECTOR CHIEF EXECUTIVE OFFICER

February 24, 2026

‌2026$v› 24

‌Independent Auditors' Review Report to the Members of Bannu woollen Mills Limited

To the Members of Bannu Woollen Mills Limited

Report on Review of Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Bannu Woollen Mills Limited (the Company) as at December 31, 2025 and the related condensed interim statement of profit or loss, condensed interim statement of other 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 months 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.

The figures of the condensed interim statement of profit or loss and condensed interim statement of other comprehensive income for the quarters ended December 31, 2024 and 2025 have not been reviewed, as we are required to review only the cumulative figures for the six months period ended December 31, 2025.

Scope of Review

We conducted our review in accordance with InternationalStandard 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 Auditingand 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.

The engagement partner on the review resulting in this independent auditors' review report is Osman Hameed Chaudhri.

LAHORE; FEBRUARY 26, 2026 UDIN: RR202510104yDfgJIxqM

Audit Engagement Partner: Osman Hameed Chaudhri

‌Condensed Interim Statement of Financial Position as at December 31, 2025

Dec. 31, June 30,

2025 2025

Un-audited Audited

Assets Note - - - Rupees in '000 - - -

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

‌Condensed Interim Statement of Profit or Loss & Other Comprehensive Income (Un-audited)

For the Quarter and Six Months Period Ended December 31, 2025

Quarter ended Six months period ended

Dec. 31, Dec. 31, Dec. 31, Dec. 31,

Note 2025 2024 2025 2024

- - - - - - - Rupees in '000 - - - - - - -

subsequently to statement of profit or loss:

Other comprehensive income

- - - - - - - - - - - Rupees - - - - - - - - - - -

Earnings per share 9.34 13.60 11.83 15.82

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

‌ 2025

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

‌ 2025

------------------------ Rupees in '000 ------------------------

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

‌ 2025

1. Legal status and operations

   Bannu Woollen Mills Ltd. (the Company) was incorporated in Pakistan as a Public Company in the year 1960 under the Companies Act, 1913 (now the Companies Act, 2017) and its shares are quoted on Pakistan Stock Exchange Ltd. The Company is principally engaged in manufacture and sale of woollen yarn, cloth and blankets. The Company's registered office and mills are located at D.I. Khan Road, Bannu whereas the retail outlet is located at Raja Bazar, Rawalpindi.

2. Basis of preparation

   1. Statement of compliance

      These condensed 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 comprise of:

      • International Accounting Standard ( IAS) 34, ''Interim financial reporting'', issued by the 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. These condensed interim financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the annual audited financial statements of the Company as at and for the year ended June 30, 2025. Selected explanatory notes are included to explain events and transactions that are significant to the understanding of the changes in the Company's financial position and performance since the last annual audited financial statements.

   3. These condensed interim financial statements are un-audited and are being submitted to the members as required by section 237 of the Companies Act, 2017. The figures for the six months period ended December 31, 2025 have, however, been subjected to limited scope review by the external Auditors.

   4. Basis of measurement

      These condensed interim financial statements have been prepared under the historical cost convention except for the Company's liability under defined benefit plan (gratuity), which is determined on the present value of defined benefit obligations determined by an independent actuary and property, plant and equipment at revalued amounts assessed by an independent valuer.

   5. Functional and presentation currency

      These condensed interim financial statements are presented in Pak Rupees, which is also the Company's functional currency. All amounts have been rounded to the nearest thousand, unless otherwise stated.

   6. ‌Material accounting policies

      The accounting policies adopted for the preparation of these condensed interim financial statements are the same as those applied in the preparation of audited financial statements of the Company as at and for the year ended June 30, 2025.

3. Changes In Accounting Standards, Interpretations And Amendments To Published Approved Accounting Standards

   1. Standards, interpretations and amendments to published approved accounting standards that are effective

      There are certain amendments and interpretations to the accounting and reporting standards which are mandatory for the Company's annual accounting periods which began on July 01, 2025. However, these do not have any significant impact on the Company's financial reporting.

   2. Standards, interpretations and amendments to published approved accounting standards that are not yet effective

      There are certain amendments and interpretations to the accounting and reporting standards that will be mandatory for the Company's annual accounting periods beginning after July 01, 2025. However, these will not have any material impact on the Company's financial reporting and, therefore, have not been disclosed in these condensed interim financial statements.

4. Accounting estimates and judgements

   1. The preparation of these condensed interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

   2. In preparing these condensed interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the financial statements for the year ended June 30, 2025.

5. Property, plant and equipment Un-audited Audited

   Dec. 31, June 30,

   2025 2025

   Note - - - Rupees in '000 - - -

   Operating fixed assets 5.1 1,840,312 1,540,931 Capital work-in-progress 2,495 -

   Right of use assets 5.2 5,946 8,973

   1,848,753 1,549,904

   1. Operating fixed assets

      Book value as at June 30, 2025 1,540,931

      Additions during the period:

      • plant and machinery 78,231

        Add: surplus on revaluation on

      • freehold land 165,000

      • buildings on freehold land 24,214

      • plant and machinery 43,872

        233,086

        Depreciation charge for the period (11,936)

        Book value as at December 31, 2025 1,840,312

        ‌Un-audited Dec. 31,

        2025

        5.2 Right of use assets	Note	Rupees in '000
        Book value as at June 30, 2025		8,973
        Additions during the period		-
        Impact of reassessment		427
        Depreciation charge for the period		(3,454)
        Book value as at December 31, 2025		5,946
        6. Investments in an Associated Company - Quoted Janana De Malucho Textile Mills Ltd. (JDM)
        Opening carrying value of investment before recognition of impairment loss		1,634,832
        Shareholding held: 25.24%
        Loss for the period - net of taxation		(32,973)
        Other comprehensive income for the period		4,227

        Less: impairment loss:

      • balance as at June 30, 2025

      • loss reversed during the period 6.2

1,606,086

(595,600)

Carrying value as at December 31, 2025 1,010,486

Un-audited Audited

Dec. 31, June 30,

2025 2025

1. Trade debts - unsecured

   - - - Rupees in '000 - - -

   Considered good	640,723	36,699
   Considered doubtful	36,792	22,050
   	677,515	58,749
   Less: allowance for expected credit loss	(22,370)	(22,038)
   	655,145	36,711
   7.1 Allowance for expected credit loss
   Balance at beginning of the period / year	22,038	21,811
   Charge for the period / year	332	227
   Balance at end of the period / year	22,370	22,038

2. ‌Surplus on revaluation of property, plant and equipment - net Surplus on revaluation of the Company's

   Un-audited Audited

   Dec. 31, June 30,

   2025 2025

   - - - Rupees in '000 - - -

   property, plant and equipment 1,484,671 1,274,524

   Share of surplus on revaluation of property,

   plant and equipment of an Associated Company 1,461,771 1,461,771

   2,946,442 2,736,295

   1. During the period, the management made fresh assessment of fair value of the Company's free hold land, buildings on free hold land and plant & machinery. The fair value was assessed by management based on independent valuation performed by an external property valuation expert M/s. Axis Consultants as at November 30, 2025 to replace the carrying amounts of assets with the market value / depreciated market values. The net appraisal surplus amounting to Rs.233.086 million arisen on latest revaluation exercise has been credited to this account.

3. Trade and other payables

   Un-audited Audited

   Dec. 31, June 30,

   2025 2025

   - - - Rupees in '000 - - -

   Creditors 3,020 15,237

   Security deposits - interest free, repayable on demand 11,700 11,200 Accrued expenses 117,333 114,308

   Bills payable - 31,869

   Staff retirement benefits (gratuity) due but unpaid 1,272 1,272

   Workers' (profit) participation fund 11,339 1,574

   Workers' welfare fund 8,655 4,650

   Sales tax payable 16,573 -

   Others 501 327

   170,393 180,437

4. Provision for Income tax and levies - net

   Balance as at June 30, 2025 12,845

   Add: provision made during the current period 37,906

   Less: payments / adjustments made during the period

   against completed assessment 12,116

   Balance as at December 31, 2025 38,635

   1. Income tax assessments of the Company have been completed upto the tax year 2025 i.e. accounting year ended June 30, 2025.

   2. There has been no significant change in status of taxation matters during the current period as detailed in notes 21.2 to 21.8 to the audited financial statements of the Company for the year ended June 30, 2025.

   3. Income tax expense is recognised in each interim period based on best estimate. Amounts accrued for income tax expense in one interim period may have to be adjusted in a subsequent interim period of that financial year if the estimate changes.

      ‌Income tax expense is recognised in each interim period based on best estimate. Amounts accrued for income tax expense in one interim period may have to be adjusted in a subsequent interim period of that financial year if the estimate changes.

5. Contingencies and commitments

   1. There has been no significant change in the status of contingencies during the current period as reported in the audited financial statements of the Company for the year ended June 30, 2025.

   2. Commitments against letter of credit outstanding as at December 31, 2025 amounted to Rs.15.676 million (June 30, 2025: Rs.23.108 million).

Quarter ended Six months period ended

1. ‌Income taxation

   Six months period ended

   Dec. 31, Dec. 31,

   2025 2024

   - - - Rupees in '000 - - -

   - current (note 10)	37,906	20,076
   - deferred	28,113	28,735
   	66,019	48,811

2. Transactions with related parties

   1. Significant transactions with related parties during the period were as follows:

      i) Associated Companies

      Expenses shared	4,631	1,887
      Rent of marketing office	3,685	3,350
      Insurance	1,525	-
      Rent of textile division	1,575	-
      ii) Key management personnel
      Salary and other employment benefits	64,928	50,581
      15.2 Period-end balance was as follows:	Un-audited Dec. 31,	Audited June 30,
      	2025	2025

      - - - Rupees in '000 - - -

      Ghandhara Tyre & Rubber Company Ltd.

      - other receivables 584 -

3. Financial risk management

   1. Financial risk factors

      The Company's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

      The condensed interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's financial statements as at and for the year ended June 30, 2025.

      There have been no changes in the risk management department or in any risk management policies since the year ended June 30, 2025.

   2. Fair value estimation

      During the period, there were no significant changes in the business or economic circumstances that affect the fair value of the Company's financial assets and financial liabilities. Further, there were no reclassifications of financial assets.

4. ‌SHAHRIAH SCREENING DISCLOSURE

   Dec. 31, 2025 June 30, 2025

   Convent

   -ional

   Shariah Compliant

   Convent

   -ional

   Shariah Compliant

   --------------- Rupees in 000 ---------------

   Short term borrowings	334,900	-	367,543	-
   Accrued mark-up	13,589	-	11,384	-
   Investment in an associated company	- 1,010,486		-	1,039,232
   Bank balances	944 986		2,653	589

   Dec. 31, 2025 Dec. 31, 2024

   Convent Shariah Convent Shariah

   -ional Compliant -ional Compliant

   --------------- Rupees in 000 ---------------

   Revenue	- 1,229,782		-	846,837
   Share of loss of Associated Company Other income	- (32,973)		-	(107,002)
   a) Profit on bank deposits	84	-	-	-
   b) Sale of scrap	50	-	-	-
   c) Exchange gain on actual currency	107	-	-	-
   Mark-up on short term finances	38,985	-	-	-

   The Company have banking relation with the following shariah-compliant financial institutions:

   1. The Bank of khyber

   2. Samba Bank Ltd.

   3. Habib metropolitan Bank Ltd.

   4. Askari Bank Ltd.

5. Corresponding figures

   The comparative condensed interim statement of financial position presented in these condensed interim financial statements has been extracted from the audited financial statements of the Company for the year ended June 30, 2025, whereas the comparative condensed interim statement of profit or loss & other comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows have been extracted from the un-audited condensed interim financial statements for the period ended December 31, 2024.

6. Date of authorisation for issue

These condensed interim financial statements were approved and authorised for issue by the Board of Directors of the Company on February 24, 2026.

Shahnaz Sajjad Ahmad Chief Executive

Dr. Shahin Kuli Khan Khattak Director

Kalim Aslam Chief Financial Officer

‌If undelivered please return to

Share Department

BANNU WOOLLEN MILLS LIMITED

D.I. Khan Road, BANNU

Phone # 0928-612274

Email: bannuwollen@yahoo.com