Transmission of Quarterly Financial Statements for the period Ended 2026-03-31

QUARTERLY REPORT JAN - MAR 2026

Contents

Company Information 03

Directors' Review 04

Condensed Interim Statement of Financial Position 06

Condensed Interim Statement of Profit or Loss 07

Condensed Interim Statement of Comprehensive Income 08

Condensed Interim Statement of Changes in Equity 09

Condensed Interim Statement of Cash Flows 10

Notes to the Condensed Interim Financial Statements 11

Company Information

As at 20 April 2026

Imtiaz Ahmed Chairman

Adnan Afridi Chief Executive

Muhammad Zahoor Ilahee Cheema Non-Executive Fehmina Khan Non-Executive

Faisal Ahmed Siddiqui Non-Executive

Shabbir Diwan Non-Executive

Osman Asghar Khan Independent

Shahid Ul Hassan Chattha Independent

Osman Asghar Khan Chairman Muhammad Zahoor Ilahee Cheema Member Faisal Ahmed Siddiqui Member

Shahid Ul Hassan Chattha Member

Faisal Abid Secretary

Shahid Ul Hassan Chattha Chairman

Faisal Ahmed Siddiqui Member Muhammad Zahoor Ilahee Cheema Member Adnan Afridi Member

Waheed U Khan Secretary

Adnan Afridi Chief Executive

Muhammad Adnan Ali Rizvi Director, Strategy and Business Development Tariq Nazir Virk Director, Manufacturing

Waheed U Khan Director Admin, HR & IT

Ashiq Ali Chief Financial Officer

Muhammed Talha Khan General Manager Commercial

Chief Financial Officer

Ashiq Ali

Faisal Abid

Allied Bank Limited Askari Bank Limited Bank Alfalah Limited Citibank NA

Dubai Islamic Bank Pakistan Limited Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Ltd

KPMG Taseer Hadi & Co., Chartered Accountants

Naz Toosy

148, 18th East Street, Phase 1, DHA, Karachi

Industrial and Commercial Bank of China MCB Bank Limited

MCB Islamic Bank Limited Meezan Bank Limited National Bank of Pakistan Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited United Bank Limited

A.F. Ferguson & Co., Chartered Accountants

EZ/I/P-4, Eastern Industrial Zone, Port Qasim, Karachi

FAMCO Share Registration Services (Pvt) LTD.

8-F, Near Hotel Faran, Nursery, Block 6, P.E.C.H.S., Shahrah-e-Faisal, Karachi

Quarterly Report Jan - Mar 2026 03

Directors' Review

For the first quarter ended 31 March 2026

The Directors are pleased to present their review report for the first quarter ended 31 March 2026 together with the un-audited condensed interim financial information of the Company as at and for the first quarter ended 31 March 2026.

BUSINESS OVERVIEW

Crude oil (WTI) prices followed an upward trajectory during Q1 2026, with a gradual increase in the early part of the quarter followed by a sharp rise in March. Despite the decision by OPEC+ to maintain production levels and record high production by the United States, geopolitical tensions surrounding the Russia-Ukraine war and the Middle East resulted in a steady push in prices. In March, at the start of the conflict between the US, Israel and Iran, Crude Oil prices became increasingly volatile as supply disruptions around the Persian Gulf resulted in potential disruption of 20% of global demand. With the persistent increase in hostility, major economies were prompted to release additional barrels from their strategic reserves. However, with the complete blockade of the Strait of Hormuz, prices reached record levels above US$ 115 per barrel in daily trade, levels last observed in June 2022. The average price for the quarter was US$ 71.22 per barrel, an increase of 20.4% compared to the previous quarter.

Paraxylene (PX) prices followed the trend of the upstream energy markets with a steady uptick at the start of the quarter. Regardless of planned outages at major PX assets in the region, sustained weak demand from the downstream resulted in ample prompt availability which indicates a lengthening market. On the resumption of business activity post Lunar New Year holidays, PX prices continued the gradual increase in line with firm Crude Oil and Naphtha markets. As the conflict commenced, PX prices spiked following the upstream markets. This increase was supported by a complete halt in supplies from major Middle East producers which enabled available molecules to command sharp premiums on product prices as well as freight and risk surcharges. However, toward the end of the quarter, prices came under pressure as the market was unable to fully pass on the impact of higher feedstock costs to the downstream PTA sector, resulting in PX-Naphtha margin compression. PX-Naphtha margins averaged at US$ 284 per metric tonne for the quarter, while the average PX price was US$ 1,003.85 per tonne for the quarter as compared to US$ 828.32 per tonne for the previous quarter.

PTA prices moved largely in line with the upstream Paraxylene (PX) market during the quarter, with overall market fundamentals showing limited movement at the start of the period, particularly amid subdued demand around the Lunar New Year, leading to cautious, need-based buying activity resulting in limited price movement. As the quarter progressed, the anticipated post-holiday demand recovery failed to provide the much-needed impetus to the market as increasing run rates and inventory build-up contributed to a lengthening market adding pressure on PX-PTA margins. Later in the quarter, PTA prices increased in line with rising upstream markets driven by the geopolitical supply disruptions. However, producers struggled to pass on the price increase to their downstream customers, which consequently added further pressure on spot margins. With global supply chains in chaos, and the uncertainty around the ability to pass on additional costs and potential demand destruction in sight, producers opted for a cautious approach to sell the product while prioritizing domestic market demand in their respective countries. The average PTA price for the quarter was US$ 729.89 per metric tonne and the average PX-PTA margin was US$ 67/MT.

The Domestic Polyester and PTA Industry operated at lower levels during the first quarter of 2026. Keeping in view lower seasonal demand from the PET sector and high inventories maintained to service demand arising during the religious festival period, market players managed planned maintenance activities during the period. The cash-strapped textile sector operated at lower levels as demand was subdued due to inflationary pressure and high energy costs as well as demand being impacted by limited trade with neighboring countries due to the ongoing political scenario. Further, the textile sector continued to be impacted by the continued influx of cheaper imports in the domestic market. However, from a performance perspective, the entire chain was able to capitalize on inventory gains on cheaper product carried forward in the month of March from earlier months which provided much needed respite to the industry which was operating at narrow profit margins.

Directors' Review

For the first quarter ended 31 March 2026

OPERATIONS

Sales volume, comprising of domestic sales only for Q1 2026 at 83,604 tonnes was 16% lower than the corresponding quarter last year due to high inventories in the entire chain which resulted in lower demand, this is in addition to increased consumption of cheaper imports. Gross profit margin improved by 8% as compared to same period last year.

Production volume during the quarter at 97,462 tonnes was 16% lower than the corresponding period last year to match sales.

FINANCIAL PERFORMANCE

Your Company achieved a gross profit of Rs 2,928 million for the quarter which is 120% higher as compared to gross profit of Rs 1,332 million during the same period last year. The taxation charge for the quarter is based on statutory income tax rate and super tax as adjusted by the movement in the deferred tax account.

Earnings per share (EPS) for the quarter stood at Rs 0.97 per share as compared to Rs 0.44 per share for Q1 2025.

The Management of your Company is confident that persistent diligent efforts with stringent checks in place, the organization will continue to navigate through existing challenges with a sustained focus on cost efficiency, operational excellence and inventory management.

FUTURE OUTLOOK

Crude Oil (WTI) prices are expected to remain volatile on account of heightened tensions in the region as well as the ripple effect on refining activities in major economies. Nevertheless, potential de-escalation, release of barrels from strategic reserves, and expectations of adequate global supply may limit further upside. It is expected that the market may take a longer time to return to normality as major crude producing countries are yet to determine the impact of damages on their energy infrastructure. However, the market remains optimistic on the return to normalcy as various downstream industries look forward to replenish their diminished inventories.

Paraxylene (PX) prices are expected to remain influenced by upstream crude oil and naphtha trends, with near-term price being significantly influenced by tightening supply due to geopolitical disruptions and planned maintenance activities. PTA prices are expected to move in line with upstream markets. However, the market remains wary of supply chain disruptions globally which is impacting logistics costs, which are in addition to the increase in product costs. Keeping in view the significant increase in prices, cautious buying is forecast by the downstream which may eventually impact overall demand.

Going forward, the domestic polyester industry is expected to face the full brunt of the war in the Middle East as inventories in the pipeline are expected to dry up. Additionally, managing supply chains for all raw materials is expected to be a challenge as producers remain vigilant of the chain reaction set off by rising fuel prices and the eventual impact of inflation on the industry and the population as well.

Imtiaz Ahmed

Chairman

Adnan Afridi

Chief Executive

Date: 20 April 2026 Karachi

Quarterly Report Jan - Mar 2026 05

Condensed Interim Statement of Financial Position

As at 31 March 2026

Amounts in Rs '000

Assets

Non-current assets

Note

31 March

2026

(Un-audited)

31 December

2025

(Audited)

Property, plant and equipment 4 5,664,789 5,758,938

Intangible assets 1,916 2,246

Right-of-use assets 33,272 66,545

Long-term loans 289,004 254,041

Long-term deposits and prepayments 98,465 31,258

Deferred taxation - net 3,026,578 2,955,422

9,114,024 9,068,450

Current assets Stores and spare parts Stock-in-trade

Trade debts 5

Loans and advances

Trade deposits and short-term prepayments Accrued interest

Other receivables

Short-term investments - at amortised cost 6

Sales tax refunds due from government 7

Taxation - net

Cash and bank balances 8

28,422,856 38,734,120

Total assets 37,536,880 47,802,570

Equity and liabilities

Share capital and reserves

Issued, subscribed and paid-up capital 1,514,207,208 (31 December 2025: 1,514,207,208)

ordinary shares of Rs 10 each 15,142,072 15,142,072

Capital reserve 2,345 2,345

Revenue reserve - Unappropriated profit 2,291,030 8,387,696

Total equity 17,435,447 23,532,113

Liabilities

Non-current liabilities

Retirement benefit obligations

Long-term borrowing 9

Current liabilities

Trade and other payables 10

Long-term borrowing - current portion 9

Lease liability

Short-term financing

Accrued interest 11

Unclaimed dividend

Total liabilities 20,101,433 24,270,457

Contingencies and commitments 12

Total equity and liabilities 37,536,880 47,802,570 The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Imtiaz Ahmed

Chairman

Adnan Afridi

Chief Executive

Ashiq Ali

Chief Financial Officer

06

Condensed Interim Statement of Profit or Loss (Un-audited)

For the first quarter ended 31 March 2026

Amounts in Rs '000

Quarter ended

31 March (Un-audited)

Note 2026 2025

...... Amount in Rupees ......

Earnings per share - basic and diluted 0.97 0.44

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Imtiaz Ahmed

Chairman

Adnan Afridi

Chief Executive

Ashiq Ali

Chief Financial Officer

Quarterly Report Jan - Mar 2026 07

Condensed Interim Statement of Comprehensive Income (Un-audited)

For the first quarter ended 31 March 2026

Amounts in Rs '000

Quarter ended

31 March (Un-audited)

2026 2025

Profit after taxation 1,474,370 661,901 Other comprehensive income - -Total comprehensive income for the period 1,474,370 661,901

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Imtiaz Ahmed

Chairman

Adnan Afridi

Chief Executive

Ashiq Ali

Chief Financial Officer

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

For the first quarter ended 31 March 2026

Amounts in Rs '000

Share capital

Issued, subscribed and paid-up capital

Capital reserves

Reserves

Revenue reserve -unappropriated profit

Subtotal

Total equity

Balance as at 1 January 2025 15,142,072 2,345 7,269,198 7,271,543 22,413,615

Total comprehensive income for the first quarter ended

31 March 2025

for the first quarter ended 31 March 2026

• Profit for the first quarter ended 31 March 2026

• Other comprehensive income for the first quarter ended

31 March 2026

- - 1,474,370 1,474,370 1,474,370

Transactions with owners in their capacity as owners

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Imtiaz Ahmed

Chairman

Adnan Afridi

Chief Executive

Ashiq Ali

Chief Financial Officer

Quarterly Report Jan - Mar 2026 09

Condensed Interim Statement of Cash Flows (Un-audited)

For the first quarter ended 31 March 2026

Amounts in Rs '000

Quarter ended

31 March (Un-audited)

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Imtiaz Ahmed

Chairman

Adnan Afridi

Chief Executive

Ashiq Ali

Chief Financial Officer

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

For the first quarter ended 31 March 2026

1. STATUS AND NATURE OF BUSINESS

   1. Lotte Chemical Pakistan Limited ("the Company") was incorporated in Pakistan on 30 May 1998 under Companies Ordinance, 1984 (Repealed with enactment of the Companies Act, 2017) and is listed on Pakistan Stock Exchange Limited. The principal activity of the Company is to manufacture and sale of Purified Terephthalic Acid (PTA).

   2. The geographical location and addresses of business units are as under:

      Location Address

      Registered Office EZ/I/P-4, Eastern Industrial Zone, Port Qasim, Karachi.

      City Office Al-Tijarah Centre, 14th Floor, 32/1-A, Main Shahrah-e-Faisal, Block 6, P.E.C.H.S., Karachi.

2. BASIS OF PREPARATION

   1. Statement of compliance

      These condensed interim financial statements of the Company for the three months period ended 31 March 2026 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;

      • 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.

      1. 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 financial statements of the Company for the year ended 31 December 2025. However, selected explanatory notes are included to explain events and transactions that are significant to understanding of changes in Company's financial position and performance since the last annual financial statements.

   2. Basis of measurement

      These condensed interim financial statements have been prepared under the historical cost convention (except for retirement benefit obligations and lease liability, which have been measured at present value).

   3. Functional and presentation currency

      The condensed interim financial statements are presented in Pak Rupee which is also the functional currency of the Company and rounded off to the nearest thousand, unless otherwise stated.

3. ACCOUNTING POLICIES, ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT

The accounting policies and the methods of computation adopted in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual audited financial statements for the year ended 31 December 2025.

Quarterly Report Jan - Mar 2026 11

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

For the first quarter ended 31 March 2026

Amounts in Rs '000

The preparation of these condensed interim financial statements, in conformity with accounting and reporting standards as applicable in Pakistan requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Actual results may differ from the estimates. During the preparation of these condensed interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation and assumptions are consistent with those that were applied to the annual audited financial statements of the Company for the year ended 31 December 2025.

The Company's financial risk management objectives and policies are consistent with those disclosed in the annual audited financial statements for the year ended 31 December 2025.

4.1 The following property, plant and equipment have been added / disposed off during the three months period ended 31 March:

2026 2025

Additions Disposals Additions Disposals

cost net book cost net book

value value

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

For the first quarter ended 31 March 2026

Amounts in Rs '000

31 March 31 December

2026 2025

Note (Un-audited) (Audited)

1. SHORT-TERM INVESTMENTS - at amortised cost

   Conventional

   - Term deposit receipts 6.1 414,499 1,414,499

   - Mutual Funds 6.2 1,017,380 -

   1,431,879 1,414,499

   1. The interest rate on term deposit receipt is 7% per annum (31 December 2025: 7% to 10.75% per annum) and had original maturities of less than three months.

   2. These have been valued by using published net asset value (NAV). As at 31 March 2026, the number

Quarterly Report Jan - Mar 2026 13

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

For the first quarter ended 31 March 2026

Amounts in Rs '000

1. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      There is no significant change in the status of contingencies as reported in the annual financial statement for the year ended 31 December 2025.

   2. Commitments and Guarantees

      1. Commitments for capital expenditure as at 31 March 2026 amounted to Rs. 144.60 million (31 December 2025: Rs. 163.38 million).

         
         
         
         
         
         
         14

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

         For the first quarter ended 31 March 2026

         Amounts in Rs '000

      2. Commitments for rentals under Ijarah contracts for vehicles are as follows:

         31 March 31 December

         2026 2025

         (Un-audited) (Audited)

         Not later than 1 year	64,751		85,021
         Later than 1 year and not later than 5 years	167,757		155,300
         	232,508		240,321

      3. Commitments for rentals for office premises leased from Al Tijarah are as follows:

         31 March 31 December

         2026 2025

         (Un-audited) (Audited)

         Not later than 1 year - 10,012

      4. Commitments for rentals under agreement in respect of services are priced in foreign currency and converted at the exchange rate are as follows:

         31 March 31 December

         2026 2025

         (Un-audited) (Audited)

         Not later than 1 year	221,972		445,131
         Later than 1 year and not later than 5 years	-		-
         	221,972		445,131

      5. The facilities for guarantees from banks as at 31 March 2026 amounted to Rs. 13,100 million (31 December 2025: Rs 12,700 million). Outstanding guarantees of the Company as at 31 March 2026 were Rs. 8,897.35 million (31 December 2025: Rs. 8,597.35 million).

      6. The facilities for opening letters of credit from banks as at 31 March 2026 amounted to Rs. 50,500 million (31 December 2025: Rs. 45,800 million). Letters of credit issued on behalf of the Company as at 31 March 2026 were Rs. 9,533.36 million (31 December 2025: Rs. 3,298.86 million).

         Quarter ended

         31 March (Un-audited)

         2026 2025

2. REVENUE FROM CONTRACTS WITH CUSTOMERS - NET

Manufactured goods

Local sales 23,572,762 25,216,094

Less: Sales tax (3,595,845) (3,846,523)

Price settlements and discounts 343,416 (486,277)

Quarterly Report Jan - Mar 2026 15

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

For the first quarter ended 31 March 2026

Amounts in Rs '000

Quarter ended

31 March (Un-audited)

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

For the first quarter ended 31 March 2026

Amounts in Rs '000

Quarter ended

31 March (Un-audited)

19.1 This includes a provision for super tax for tax year 2026 amounting to Rs.266.63 million (31 March 2025: Rs. 111.91 million) at 10% (31 March 2025: 10%).

Quarter ended

31 March (Un-audited)

Quarterly Report Jan - Mar 2026 17

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

For the first quarter ended 31 March 2026

1. TRANSACTIONS WITH RELATED PARTIES

   The related parties comprise of parent company, related group companies, directors of the Company, companies where directors also hold directorships, key management personnel and staff retirement funds. All transactions with related parties are entered into at agreed terms. Details of transactions with related parties, other than those which have been specifically disclosed elsewhere in these condensed interim financial statements are as follows:

   Relationship Nature of transactions Quarter ended

   31 March (Un-audited)

   2026 2025

   Associates Purchase of goods

   - DW Pakistan (Pvt.) Limited		29,521	-
   Sale of goods to Pachem Global (Private) Limited - gross sales		22,088	-
   Sale of goods to Novatex Limited - gross sales		1,842,113	5,958,527
   Sale of goods to Gatron
   Industries Limited - gross sales 3,602,500			893,888
   Key management personnel	Salaries and other short-term benefits	45,962	16,307
   	Retirement benefits	5,867	556
   Others	Payments to retirement benefit funds	39,240	32,113

   - Nova Care (Pvt.) Ltd. 85 -Purchase of services

2. DATE OF AUTHORISATION

These condensed interim financial statements were authorised for issue in the Board of Directors meeting held on 20 April 2026.

Imtiaz Ahmed

Chairman

Adnan Afridi

Chief Executive

Ashiq Ali

Chief Financial Officer

Registered Office

EZ/I/P-4, Eastern Industrial Zone, Port Qasim Authority, Bin Qasim, Karachi - 75020, Pakistan

UAN: +92 (0) 21 111 782 111

Fax: +92 (0) 21 3472 6004

URL: https://www.lottechem.pk

City Office

Al-Tijarah Centre, 14th Floor, 32/1-A, Main Shahrah-e-Faisal,

Block 6, P.E.C.H.S.,

Karachi-75400, Pakistan UAN: +92 (0) 21 111 568 782