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

A Ghulam Faruque Group Company

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H A L F Y E A R L Y A C C O U N T S 3 1 D E C E M B E R 2 0 2 5

1. Company Information
2. Directors' Review
3. Independent Auditor's Review Report 05 Condensed Interim Statement of

1. Condensed Interim Statement of Profit or Loss (Unaudited)
2. Condensed Interim Statement of Comprehensive Income (Unaudited)
3. Condensed Interim Statement of Cash Flows (Unaudited)
4. Condensed Interim Statement of Changes in Equity (Unaudited)

Board of Directors

Mr. Akbarali Pesnani Chairman

Mr. Amer Faruque Chief Executive

Mr. Aslam Faruque Director

Mr. Shehryar Faruque Director

Mr. Arif Faruque Director

Mr. Ali H. Shirazi Director

Mr. Abid Vazir Director

Mr. Sher Afzal Khan Mazari Director Ms. Maleeha Humayun Bangash Director

Audit Committee

Mr. Ali H. Shirazi Chairman

Mr. Arif Faruque Member

Mr. Shehryar Faruque Member

Human Resource and Remuneration Committee

Mr. Sher Afzal Khan Mazari Chairman

Mr. Amer Faruque Member

Mr. Aslam Faruque Member

Director and Chief Operating Officer

Mr. Abid Vazir

Chief Financial Officer

Syed Waqar Haider Kazmi

Company Secretary

Mr. Asim H. Akhund

Head of Internal Audit

Mr. Aamir Saleem

Auditors

M/s. Grant Thornton Anjum Rahman Chartered Accountants

Legal Advisor

K.M.S. Law Associates

Bankers

Allied Bank Ltd Bank Al Habib Ltd Habib Bank Ltd

Habib Metropolitan Bank Ltd

Industrial and Commercial Bank of China Ltd MCB Bank Ltd

National Bank of Pakistan Samba Bank Ltd

Soneri Bank Ltd The Bank of Punjab

Non-Banking Financial Institution

Pakistan Kuwait Investment Co. (Pvt) Ltd

Bankers (Islamic) Askari Bank Ltd Bank Alfalah Ltd Bank Al Habib Ltd

Bankislami Pakistan Ltd

Dubai Islamic Bank Pakistan Ltd Faysal Bank Ltd

MCB Islamic Bank Ltd Meezan Bank Ltd

The Bank of Khyber United Bank Ltd

Share Registrar

CDC Share Registrar Services Limited. CDC House, 99-B, Block 'B', S.M.C.H.S., Main Shahrah-e-Faisal, Karachi-74400

Tel: 0800-23275

UAN: 111-111-500

Email: info@cdcsrsl.com

Contact Us:

UAN: 111-000-009

Email: info@gfg.com.pk Web: https://www.gfg.com.pk

Registered Office

1st Floor, Betani Arcade, Jamrud Road, Peshawar

Tel: (+9291) 5842285, 5842272

Fax: (+9291) 5840447

Head Office

Modern Motors House, Beaumont Road, Karachi-75530

Tel: (+9221) 35683566-67, 35688348, 35689538

Fax: (+9221) 35683425

Factory

Plot No. 26, Gadoon Amazai Industrial Estate, District Swabi, Khyber Pakhtunkhwa

Tel: (+92938) 270125, 270221

Fax: (+92938) 270126

Regional Offices Lahore

3, Sundar Das Road

Tel: (+9242) 36286249-50, 36308259

Fax: (+9242) 36286204

Islamabad

1st Floor, Razia Sharif Plaza, Jinnah Avenue, Blue Area Tel: (+9251) 2344531-33

Fax: (+9251) 2344534, 2344550

The Board of Directors is pleased to present the financial results of the Company, duly reviewed by the auditors, for the half year ended December 31, 2025.

Overview

The economic environment remains challenging. However, continuation of prudent fiscal and monetary measures, supported by International Monetary Fund (IMF), easing inflationary pressures, relative stability of the Pak Rupee, and a downward trend in discount rates have provided much-needed relief to the industrial sector. Pakistan's economic outlook has exhibited gradual recovery. On the other hand, elevated energy costs and a high tax regime remain significant challenges for businesses across the country.

Operating performance

There was an increase in sales revenues of the Company compared to the same period last year on the back of higher volumes especially in Flexible Packaging Division. The Company has maintained its focus on improving operational efficiency, broadening its product portfolio, and strengthening customer relationships. As previously mentioned, demand patterns in the cement industry shifted from paper sacks to polypropylene bags, which led to Company exiting the Papersack business. Intense competition in polypropylene cement bags segment is being witnessed due to entry of new players. To counter these pressures, the Company has proactively diversified into new market segments, including SOS and carrier bags, which is expected to contribute positively to overall sales volumes in the coming days.

There has been a decline in after tax profitability from the corresponding period last year as in the previous year the Company had recorded gain on sale of Papersack lines and recognized tax credit u/s 65B of the Income Tax ordinance in view of the verdict of Supreme Court. During the half year ended December 31, 2025, the Company has recorded an after-tax profit of Rs. 87 million translating to EPS of Rs. 1.77 per share.

Update on projects and initiatives:

As previously communicated, the Company has placed an order for its second Extrusion Plant - a Barrier Film Extrusion Line, along with related auxiliary equipment. The project, with an estimated cost of up to Rs. 1.40 billion, is being sourced from Windmöller & Hölscher, a globally recognized leader in packaging machinery. The project remains on course for completion by April 2026. This additional extrusion line will significantly enhance the production capacity of the Flexible Packaging Division, enabling the Company to better meet customer demand while improving resource utilization.

In parallel, the Company is in the process of installing 2.7 MW solar power panels at its manufacturing facility. This initiative is expected to generate meaningful cost savings while supporting the Company's commitment to environmental sustainability through the use of clean and renewable energy.

Dividend

The Board of Directors in its meeting held on 19th February 2026 has declared an interim cash dividend of Re.1.00 per share i.e.10 %.

Future Prospects

The Company remains committed to sustaining its market leadership by investing in growth opportunities and strategically realigning its operations. By continuing to expand its core businesses and strengthening operational capabilities, the Company aims to further improve its financial results. Despite an increasingly competitive environment, management remains confident of its ability to protect market share, achieve economies of scale, and capitalize on emerging opportunities. The Company will continue to address external challenges through disciplined financial management and enhanced operational efficiencies.

Acknowledgment

The management would like to express its gratitude to all customers, financial institutions, staff members, suppliers and shareholders who have been associated with the Company for their continued support and cooperation.

On behalf of the Board of Directors

Akbarali Pesnani Amer Faruque

Chairman Chief Executive

February 19, 2026

To the members of Cherat Packaging Limited

Report on review of condensed interim financial statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Cherat Packaging Limited 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, and condensed interim statement of cash flows for the half year then ended, and notes to the condensed interim financial statements (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed 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 condensed 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 condensed 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 condensed 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 Matter

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the half year presented in the second quarter accounts 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 months period ended 31 December 2025 and 31 December 2024 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditor's review report is Khurram Jameel.

Chartered Accountants Place: Karachi

Date: 20 February 2026

UDIN: RR202510093sT67v3pyR

As at 31 December 2025

ASSETS

NON-CURRENT ASSETS

Fixed assets

30 June

2025

(Audited) Note -------- (Rupees in '000) --------

Property, plant and equipment 4

Intangible assets

Long-term investments 5

Long-term deposits

CURRENT ASSETS

Stores, spare parts and loose tools Stock-in-trade

Trade debts Advances

Trade deposits and short-term prepayments Other receivables

Taxation - net

Cash and bank balances

TOTAL ASSETS

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Share capital Reserves

NON-CURRENT LIABILITIES

Long-term financing 6

Deferred taxation Government grant

CURRENT LIABILITIES

Trade and other payables Accrued mark-up

Short-term borrowings

Current maturity of long-term financing 6

Current maturity of government grant

Unpaid dividend Unclaimed dividend

TOTAL EQUITY AND LIABILITIES

CONTINGENCIES AND COMMITMENTS 7

7,219,898

8,371 7,228,269

1,551,653

271 8,780,193

731,637

3,045,652

2,370,919

9,280

11,482

1,604

576,161

96,354

6,843,089

15,623,282

490,954

8,465,073 8,956,027

2,070,180

929,068

156,037

3,155,285

2,305,977

83,525

633,809

449,109

28,966

1,403

9,181

3,511,970

15,623,282

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

Amer Faruque

Chief Executive Officer

Abid Vazir

Director

For the half-year ended 31 December 2025

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

Amer Faruque

Chief Executive Officer

Abid Vazir

Director

For the half-year ended 31 December 2025

Half-year ended Quarter ended

31 December

2024

(Rupees in '000)

31 December

2024

230,262

87,117

312,348

181,322

589,029

491,586

901,377

672,908

(186,843)

70,958

Net profit for the period

Other comprehensive income Items that will not be reclassified

subsequently to the statement of profit or loss:

Unrealized gain / (loss) on remeasurement of investment at fair value through other comprehensive income (FVOCI)

Total comprehensive income for the period

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

For the half-year ended 31 December 2025

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

Amer Faruque

8 Chief Executive Officer

Abid Vazir

Director

For the half-year ended 31 December 2025

(Rupees in '000)

Balance as at 01 July 2024 490,954 998,628 180,000 5,820,104 (6,099) 668,559 7,661,192 8,152,146

Final cash dividend for the year ended 30 June 2024 @ Rs. 3.50 per share

Net Profit for the period Other comprehensive income

Total comprehensive income for the period

Balance as at 31 December 2024

Balance as at 01 July 2025

Final cash dividend for the year ended 30 June 2025 @ Rs. 2.00 per share

Net profit for the period Other comprehensive income

Total comprehensive income for the period Balance as at 31 December 2025

The annexed notes from 1 to 15 form an integral part of these condensed interim financial statements.

For the half-year ended 31 December 2025

1. CORPORATE INFORMATION

Cherat Packaging Limited (the Company) was incorporated in Pakistan as a public company limited by shares in the year 1989. The principal business activity is manufacturing, marketing and sale of packing material. The Company is listed on Pakistan Stock Exchange Limited. The registered office of the Company is situated at 1st Floor, Betani Arcade, Jamrud Road, Peshawar, Pakistan.

1. BASIS OF PREPARATION

   1. 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 (the Act); and

      • Provisions of, directives and notifications issued under the Act;

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

   2. These condensed interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements for the year ended 30 June 2025.

2. ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS

The accounting policies, estimates, judgements used in these condensed interim financial statements are the same as those applied in the preparation of annual financial statements for the year ended 30 June 2025.

1. PROPERTY, PLANT AND EQUIPMENT

   30 June

   31 December

   2025

   (Unaudited)

   2025

   (Audited) Note --------- (Rupees in '000) --------

   Opening net book value (NBV)

   Additions during the period / year (cost) 4.1

   Depreciation charged during the period / year Disposals during the period / year (NBV)

   Non-current assets classified as held for sale at book value (NBV) Closing (NBV)

   Capital work-in-progress

   1. Additions during the period / year

Building on leasehold land Plant and machinery

Power and other installations Furniture and fittings Vehicles

Equipment Computers

6,446,036

470,456

6,916,492

(359,985)

(6,445)

(88,525)

6,461,537

758,361

7,219,898

36,636

272,657

11,430

6,648

123,175

11,277

8,633

470,456

1. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      There are no material changes in the status of contingencies as reported in the annual financial statements for the year ended 30 June 2025.

      31 December

      2025

      (Unaudited)

30 June

2025

(Audited)

1. FINANCIAL RISK MANAGEMENT AND FAIR VALUE DISCLOSURES

   These condensed interim financial statements do not include all financial risk management information and disclosures which are required in the annual financial statements and should be read in conjunction with the Company's annual financial statements for the year ended 30 June 2025. There have been no changes in any risk management policies since the year end.

   Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying values of financial assets and liabilities reflected in these condensed interim financial statements approximate their fair values. As of the reporting date, all financial instruments are carried at amortized cost except for long term investments as disclosed in note 5 which are carried at fair value. During the period, there were no transfers between level 1 and level 2 fair value measurements and no transfers into and out of level 3 fair value measurement.

2. SEGMENT REPORTING

   For management purposes, the activities of the Company are organized into following operating segments based on the nature of the products, risks and returns, organizational and management structure, and internal financial reporting systems.

   Type of segments Nature of business

   Bags manufacturing division Polypropylene and SOS / Carrier bags manufacturing Flexible packaging division Extrusion, Flexo Graphic and Rotogravure printing

   1. Segment analysis and reconciliation

      Bags Manufacturing Division Flexible packaging division Half-year ended Half-year ended

      Total

      Half-year ended

      31 December

      2025

      (Unaudited)

31 December

2024

(Unaudited)

31 December

2024

(Unaudited) (Rupees in '000)

31 December

2024

(Unaudited)

Bags manufacturing division Flexible packaging division Total

Segment assets Unallocated assets Total assets

Segment liabilities Unallocated liabilities Total liabilities

30 June

2025

(Audited)

4,845,841

-

4,845,841

1,042,019

-

1,042,019

4,568,104

-

4,568,104

807,879

-

807,879

30 June

2025

(Audited) (Rupees in '000)

30 June

2025

(Audited)

14,716,077 13,300,730

2,600,936 2,322,552

15,623,282

2,900,371 2,766,402

5,241,427 3,900,853

8,141,798 6,667,255

1. SHARIAH COMPLIANCE DISCLOSURES

   1. Condensed interim statement of financial position

      Long-term investments Bank balances

      Long-term financing Short-term borrowings Accrued mark-up

   2. Condensed interim statement of profit or loss

      Turnover

      Gain on short term investments:

      • Shariah compliant

      • Conventional

        Profit on bank balances - Shariah compliant

        Mark-up on long-term financing and short-term borrowings

      • Shariah compliant

      • Conventional

        Dividend income on long term investments - Shariah compliant Other Shariah compliant income

        30 June

        31 December

        2025

        (Unaudited)

        2025

        (Audited)

        --------- (Rupees in '000) --------

        1,779,160

        19,359

        838,439

        1,115,867

        39,802

        1,551,653

        13,397

        941,551

        527,967

        29,808

        Half-year ended

        31 December 31 December

        2025 2024

        (Unaudited) (Unaudited)

        --------- (Rupees in '000) --------

        7,378,842

        -

        -1,082

        85,053

        89,967

        21,311

        28,449

        6,516,015

        9,263

        64,384

        2,669

        141,804

        127,213

        21,311

        249,565

        The Company has Shariah compliant relationship with Meezan Bank Limited, Bank Alfalah Limited, Faysal Bank Limited, MCB Islamic Bank Limited, Dubai Islamic Bank Pakistan Limited, Askari Bank Limited, Bank Islami Pakistan Limited, Bank Al Habib Limited, United Bank Limited, and Bank of Khyber Limited.

2. TRANSACTIONS WITH RELATED PARTIES

   Related parties comprise of associated companies, directors, retirement funds and key management personnel of the Company. Transactions with related parties other than those disclosed elsewhere in these condensed interim financial statements are as follows:

   Half-year ended

   		31 December	31 December
   		2025	2024
   		(Unaudited)	(Unaudited)
   Relationship	Nature of transactions	- (Rupees in	'000) --------
   Associates (common directorship)	Sales	1,741,357	1,614,609
   	Purchases	8,495	4,798
   	Purchase of fixed assets	34,729	41,154
   	Services received	9,673	12,827
   	IT support charges	15,791	14,761
   	Dividends received	21,311	21,311
   	Insurance premium	34,658	24,119
   	Dividends paid	36,121	64,768
   Key management personnel	Remuneration	306,715	254,193
   Directors and their spouse(s)	Dividends paid	4,600	8,084
   	Meeting fee	2,100	2,000
   Retirement benefit fund Contribution to staff provident and gratuity funds		32,441 26,841

   1. In addition, certain actual administrative expenses are being shared amongst the group companies.

3. DATE OF AUTHORISATION AND INTERIM DIVIDEND

   1. Date of authorisation

      These condensed interim financial statements were authorised for issue on 19 February 2026 by the Board of Directors of the Company.

   2. Interim dividend

The Board of Directors in its meeting held on 19 February 2026 has proposed an interim cash dividend of Re. 1.00 per share (December 2024: Re. 1.00 per share) amounting to Rs. 49.10 million (December 2024: Rs. 49.10 million) for the half-year ended 31 December 2025.

15 GENERAL

Figures have been rounded off to the nearest thousand Rupees, unless otherwise stated.

Amer Faruque

Chief Executive Officer

Abid Vazir

Director

G'ROUP

Cherat Packaging Limited

Head Office: Modern Motors, House Beaumont Road, Karachi 75530, Pakistan UAN: (9221) 111-000-009 Email: info@gfg.com.pk I Web: www.gfg.com.pk