Interim financial statements as at 30th June 2025

The above figures are subject to audit.

The above figures are subject to audit.

The above figures are subject to audit.

The above figures are subject to audit.

1. Reporting Entity

   Bogala Graphite Lanka PLC is a limited liability Company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange. The registered office and the principal place of business are located at Bogala Mines, 71041 Aruggammana.

2. Basis of Preparation

   The Interim Financial Statements of the company for the period ended 30thJune 2025 have been prepared on the same basis as the most recent audited financial statements and are in compliance with Sri Lanka Accounting Standards - LKAS 34 Interim Financial Reporting and on, going concern basis and are provisional and unaudited.

   The accounting policies have been consistently applied by the Company and, are consistent with those used in the annual report for the year ended 31st December 2024. The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be comparable with the current period.

   Financial Statements are in compliance with the Companies Act No.07 of 2007, the Sri Lanka Accounting and Auditing Standards Act No.15 of 1995 and CSE Guidelines.

3. Approval of Financial Statements

   The interim financial statements of the Company for the period ended 30thJune 2025 were authorized by the Board of Directors on 11thAugust 2025.

4. Fair value measurement and related fair value disclosure

   The fair value and carrying value of all the financial assets and financial liabilities, recognised during the quarter were not materially different from that disclosed in the annual report for the year ended 31stDecember 2024.

   There were no transfers between different levels of fair value hierarchy or changes to assets classes classified on recurring and non-recurring basis. Valuation techniques or significant unobservable inputs used for measuring level 2 and level 3 fair values remains unchanged from 31stDecember 2024.

   During the period under review there were no transfers in and out of level 3 financial instrument measurement and any change in fair values are captured in the statement of other comprehensive income. Fair value of the Land has been determined under the Level 3 valuation.

5. Intangible Assets

   Intangible assets include exploration and evaluation expenditure and software licenses. There has not been a change to recognition and measurement, and their amortization basis compared to that used in the last audited financials.

6. Inventories

   No significant negative impact is expected on the selling price of processed materials or cost to complete deliveries. Further no significant impact on the net realizable value of inventory is expected.

7. Foreign Currency Transactions

   The Company recognizes the foreign currency transactions in line with the LKAS 21 The Effects of Changes in Foreign Exchange Rates. Transactions in foreign currency are translated to the functional currency at exchange rates prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the spot rate prevailing at the reporting date. Foreign exchange differences arising on foreign exchange transactions are recognized in the Statement of Profit or Loss and Other Comprehensive Income. Company uses the Central Bank of Sri Lanka published exchange rates for the above purposes.

   Net Exchange gain shown separately in the Statement of Profit or Loss and Other Comprehensive Income amounts to LKR 52.7Mn for the period ended 30thJune 2025. Net Exchange loss for the comparative period was LKR 67.4Mn.

8. Related Party Transactions

   For the period ended 30th June LKR'000	Name of the Company and its Relationship
   	Parent		Affiliate		Total
   	Graphite Kropfmuhl GmbH		Qingdao Kropfmuehl Graphite (Co.)
   	2025	2024	2025	2024	2025	2024
   Nature of the Recurrent Transactions
   Balance receivable/(payable) as at 01stJanuary	26,611	(8,471)		−	26,611	(8,471)
   Sale of goods/services	93,957	80,614	4,131	12,849	98,088	93,463
   Purchase of goods/services	(108,375)	(74,649)		(488)	(108,375)	(75,137)
   Technical service fee payments	(42,239)	(45,417)		−	(42,239)	(45,417)
   Expenses reimbursable from related companies	2,091	−		−	2,091	−
   Net settlements	(10,963)	44,641	(4,131)	(12,361)	(15,094)	32,280
   Balance Receivable (Payable) for Recurrent Transactions as at 30th June	(38,918)	(3,282)	-	-	(38,918)	(3,282)
   Nature of the Non-Recurrent Transactions
   There are no Non-Recurrent Transactions
   Balance Receivable (Payable) for Non Recurrent Transactions as at 30th June	−	-	−	-	−	-
   Balance Receivable (Payable) for Recurrent & Non Recurrent Transactions as at 30th June	(38,918)	(3,282)	-	-	(38,918)	(3,282)
   Above balance included in
   Trade receivables	12,326	12,827	−	-	12,326	12,827
   Trade payables	(43,272)	(9,301)	−	-	(43,272)	(9,301)
   Other payables	(7,972)	(6,808)	−	-	(7,972)	(6,808)
   	(38,918)	(3,282)	-	-	(38,918)	(3,282)

   All related party transactions have been conducted on agreed commercial terms with the respective parties. The Company has not had any special transactions with Parent or Affiliate company which required specific agreement or arrangement to made, prior to such transactions, other than what is listed above.

   Total aggregated value of the sales made to Parent Company and Affiliates are 11.1%, and 0.5% respectively.

9. Contingencies, capital, and other commitments

   There has been no significant change in the nature of the contingencies and other commitments, as disclosed in the annual report for the year ended 31stDecember 2024.

10. Provision for restoration cost

    The provision reflects the present value of the future estimated cost of restoration of the land once the Company extracts graphite through its activities over 51 years. The number of years is estimated based on the period over which the estimated resources are expected to be extracted. The cost is estimated periodically to reflect the best estimate at each reporting date.

    There were no significant differences in the basic assumptions used in estimating the provision for the period under review in comparison to those used in the last audited accounts of 31stDecember 2024.

11. Events after the reporting period

    There were no material events that have taken place after the reporting date that require disclosure in these Financial Statements.

12. Non-Financial Information

    1. Public Share Holding

       Percentage of shares held by the public and the number of public shareholders is as given below:

       Number of Shares represented by the Stated Capital (30-06-2025)	94,632,904
       Total No of Shareholders	10,452
       Number of Shares held by Public	12,812,099
       Number of Public shareholders	10,451
       Percentage of shares held by the Public	13.54%
       Market capitalisation of LKR	5,204,809,720
       Float adjusted market capitalisation of LKR	704,731,236
       In terms of the rule 7.14.1(b) of the Listing Rules if the Colombo Stock Exchange, the Company Qualifies under option Two of the minimum public holding requirment.

    2. Net assets per share

       For the Quarter ended 30th June	2025	2024
       Net Assets Value per share (LKR)	20.97	18.66
       Quick Asset Ratio	6.64:1	6.43:1

    3. Market price per share

       The Company's highest, lowest, and last traded market price is as given below.

       For the Quarter ended 30th June	2025	2024
       Highest price per share (LKR)	60.00 (04/06/ 2025)	58.90 (26/04/ 2024)
       Lowest price per share (LKR)	50.00 (08/04/ 2025)	50.00 (15/04/ 2024)
       Last Traded Price (Closing Price) (LKR)	55.00	52.00

    4. Shareholding of Directors

       Name	30-06-2025	30-06-2024
       Ms. M. C. Pietersz - Chairperson	Nil	Nil
       Mr. T. A. Junker - Deputy Chairperson	Nil	Nil
       Mr. A. P. Jayasinghe - CEO/Managing Director	Nil	Nil
       Ms. U. Neunzert - Director	Nil	Nil
       Mr. A. S. R. Amarasinghe - CFO/Finance Director	Nil	Nil
       Ms. A. A. Ludowyke	Nil	NA
       Mr. M. S. J. D. Coorey	Nil	NA

    5. Top 20 shareholders

       Twenty largest shareholdings as at 30thJune is as follows.

       No	Name of Shareholders	No of Shares	%
       01	GRAPHIT KROPFMUHL GMBH	81,820,805	86.46
       02	SECRETARY TO THE TREASURY	509,000	0.54
       03	SANASA LIFE INSURANCE COMPANY PLC	370,300	0.39
       04	DR. SAMARAKOON MUDIYANSELAGE THIWANKA BANDARA SAMARAKOON	342,311	0.36
       05	MRS. REJINOLD MELWILLAGE NIMALKA WIJESEKARA	294,307	0.31
       06	HATTON NATIONAL BANK PLC/RAMARAJ KUHAN	200,121	0.21
       07	MR. SENAWIRATHNA EPARALALAGE CHATHURANGA PRABHATH SENAWIRATHNA	182,990	0.19
       08	MR. TOSHIYA UEDA	120,000	0.13
       09	MR. ALLAN JAGATH MONESH JINADASA	115,000	0.12
       10	DR. ABEYSINGHE MUDIYANSELAGE ARUNA DHARMA SRI ABEYSINGHE	107,814	0.11
       11	MR. MUTHUKRISHNAN SUNDARESAN	104,548	0.11
       12	DIALOG FINANCE PLC/S. A DE SILVA AND D. R. DE SILVA	103,261	0.11
       13	MR. INTHIKAHB MOHAMMED WAZEER	95,000	0.10
       14	MR. GAYAN DINESH GUNARATNE	95,000	0.10
       15	MRS. RAHEL JASMIN DE SILVA	90,900	0.10
       16	MR. MOHAMED HISHAM HANIFFA	89,108	0.09
       17	HATTON NATIONAL BANK PLC/SENDANAYAKE ARACHCHIGE SURANGA PRASATH PERERA	87,750	0.09
       18	SENKADAGALA FINANCE PLC/A. V. R. DE SILVA JAYATILLEKE	81,000	0.09
       19	MR. SEMASINGHE NAWARATNA CHANDRASEKARA WANNINAYAKA MUDIYANSELAGE BANDARA CHANDRASEKARA KANDEGEDARA	77,557	0.08
       20	MR. DILIP MOHANLAL KODIKARA	75,892	0.08

13. Corporate Information