H1 2026 report (ARTE 20260827091029 RAPORT 30 06 2026 ENGLEZA)

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ECONOMIC AND FINANCIAL SITUATION

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1.a. ANALYSIS BASED ON BALANCE SHEET ELEMENTS

102.646.463

TOTAL PASSIVE

The decrease in the net value of tangible fixed assets is due to the depreciation of existing fixed assets.

A detailed comparative situation of the company's debts is presented as follows:

1. .b. PROFIT AND LOSS ACCOUNT

   at 30 june 2026

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   - lei-

   Nr. Crt.	NAME OF INDICATORS	30.06.2025	30.06.2026
   1.	Net turnover of which	67.469.779	59.439.450
   	Revenues from the sold production	66.788.402	59.036.694
   	Revenues from the sale of goods	761.674	468.044
   	Commercial discounts granted	(80.297)	(65.288)
   2.	Revenues from stored production	2.266.425	3.630.008
   3.	Revenues from the production of fixed assets	218.979	-
   4.	Revenues from fixed assets intended for sale	-	-
   5.	Revenues from operating grants	-	-
   6.	Other revenues from exploitation	380.275	265.292
   I.	REVENUES FROM EXPLOITATION	70.335.458	63.334.750
   7.	Expenditures on goods	657.713	387.346
   8.	Material expenditures	44.027.002	36.905.070
   9.	Expenditures on works and services performed by third parties	3.033.678	2.503.873
   10.	Expenses with taxes and fees	684.592	659.422
   11.	Staff costs	21.440.364	19.727.934
   12.	Other expenses with exploitation	222.986	65.156
   13.	Expenses with depreciation and provisions	1.815.391	1.748.564
   II.	EXPENSES FOR EXPLOITATION	71.881.726	61.997.365
   A.	RESULT FROM EXPLOITATION
   	- PROFIT	-	1.337.385

   	- LOSS	1.546.268	-
   III.	FINANCIAL REVENUES	703.292	724.430
   IV.	FINANCIAL EXPENSES	244.486	371.444
   B.	FINANCIAL RESULT	458.806	352.986
   V.	EXCEPTIONALREVENUES	-	-
   VI.	EXCEPTIONAL EXPENSES	-	-
   C.	EXCEPTIONAL RESULT (LOSS)	-	-
   VII.	TOTAL REVENUES	71.038.750	64.059.180
   VIII	TOTAL EXPENSES	72.126.212	62.368.809
   D.	GROSS RESULT
   	- PROFIT	-	1.690.371
   	- LOSS	1.087.462	-
   	TAX	-	271.596
   E	REVENUES FROM BENEFIT FROM PROFIT	21.643	19.545
   F.	NET RESULT
   	- PROFIT	-	1.438.320
   	- LOSS	1.065.819	-
   G.	Number of shares	8.114.746	8.114.746
   H.	Output per share	-	0,177

   Economic, financial and market activity of SC ARTEGO SA

   The situation generated by the armed conflict in Ukraine led to the establishment by the international community of economic sanctions and financial restrictions on economic relations with the Russian Federation and Belarus. As such, effects were produced regarding the import and export of products from and to Ukraine, the Russian Federation and Belarus, our company being affected both directly and indirectly by this situation.

   An important consequence in addition to the delay and/or impossibility of supplying raw materials from the above-mentioned countries is the uncontrolled increase in prices for natural gas and electricity, which leads to major difficulties in the production and sale of manufactured products.

   For our Company, the effects of the economic crisis can be felt most easily through a depreciation of the national currency in relation to the currencies we work with, through delays in the supply of raw materials, in the production, delivery and transport of products.

   The lack of the possibility of making coherent and correct predictions led to the maintenance of the volatility of the Romanian business climate, the main commercial organizations in the steel, oil and energy sectors continuing to emphasize cost reduction and implicitly the development of procurement activities characterized by the pursuit of obtaining the lowest procurement prices.

   Under these conditions, the stages involved in the renegotiation of commercial contracts with some companies in the aforementioned sectors were difficult and lasted much longer than the initially estimated time, which left its mark on the decrease in the volume of orders for specific products and implicitly on the level of sales.

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   The late approval of the 2026 budgets for economic operators in the mining and energy sectors, the postponement of the launch of public procurement procedures, the reduction of funds allocated to these procurements, all of these have led to the reduction of the possibility of obtaining a large volume of orders and sales levels that would have been the result of winning tenders. At the same time, the unfair competition encountered in some tenders has led either to an increase in the duration of the award of contracts, with the time needed to resolve complaints, or to the loss of tenders, given that the contracting authorities have continued to

   opt for the award criterion "the lowest price", which has led to the relegation of quality criteria to a secondary level. This aspect of the price level as the sole award criterion produces both the favoring of the presence on the market of products of questionable quality, and the reduction of the company's market share in the related niches. On the other hand, in the field of electricity distribution, for the acquisition of specific products, a series of additional criteria to the legal conditions met may be found in the award documentation, relating to the component of the eligibility and/or qualification documents (environment, occupational health and safety, etc.), the specific and differentiated technical conditions of the products, the required delivery terms, the methods of making the imposed payments, ultimately representing barriers that lead to the impossibility of participation and ultimately to the decrease in the sales potential to these organizations.

   In another vein, the turbulences of the economic environment also adversely affect the possibilities of making payments by customers, with long delays in the terms of collecting money corresponding to the deliveries made, which leads to the negative impact on cash flows and the possibilities of making payments to suppliers on time.

   For the next period, the market evolution will be influenced by the impact that the measures that will be taken starting with July 2026 at the macroeconomic level (increase in natural gas prices, evolution of fuel prices, evolution of the leu/euro exchange rate, the development and/or completion of privatization processes in the fields of rail and air transport, the expected organizational developments in the energy field, the insolvency status of some organizations in the energy and petrochemical fields) will have on the dynamics of acquisitions, investments, modernizations, maintenance. Therefore, taking into account all these aspects, if the general evolution of the Romanian economy will experience relative stability, it is possible to maintain, in the short and medium term, the existing situation, in terms of sales levels and productive activity, while continuing, on the other hand, efforts to ensure cash flows that allow the honoring of debts to employees, the state and suppliers. At the same time, action will be taken to identify all available options for reducing the difference as much as possible.

   We note that the financial statements prepared on 30.06.2026 were not audited/reviewed.

   CASH FLOW STATEMENT

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   as of June 30, 2026 - lei -

   INDICATORS LEI (RON))	ACHIEVED YEAR 2025	ACHIEVED YEAR 30.06.2026
   A. LIQUIDITY AT THE BEGINNING OF THE PERIOD	7.309.228	7.459.755

   In accounts	7.244.640	7.253.726
   Cash	6.317	26.300
   Other Values	6.135	112.164
   Treasury advances	-	-
   Values to receive	52.136	67.505
   REVENUE FROM OPERATING ACTIVITIES	186.655.682	81.594.858
   Customer encashments	137.964.981	61.260.017
   Other encashments	48.690.701	20.334.841
   PAYMENT FOR THE EXPLOITATION ACTIVITY	186.660.135	76.627.067
   Provider payments	96.510.811	40.985.258
   Payments for staff	37.473.324	17.290.701
   Payments on taxes and fees	18.596.485	10.070.432
   Tax / Advantage	102.958	114.168
   Interest payments	60.544	44.785
   Other payments	33.916.013	8.121.723
   CASH FLOW FROM OPERATING ACTIVITY	-4.453	4.967.791
   INCOME FROM THE INVESTMENT ACTIVITY	367.989	68.212
   Proceeds from the sale of land, fixed assets and intangible assets	367.989	68.212
   Proceeds from the sale of equity instruments and receivables of other enterprises	-	-
   Receipts from the repayment of advances and loans to other parties	-	-
   PAYMENTS FROM THE INVESTMENT ACTIVITY	213.009	30.721
   Payments for the acquisition of land, fixed assets and intangible assets	213.009	30.721
   Receipts for the acquisition of equity instruments and receivables of other enterprises	-	-
   Advances and loans made to other parties	-	-
   CASH FLOW FROM INVESTMENT ACTIVITY	154.980	37.491
   RECEIPTS FROM THE FINANCING ACTIVITY	-	6
   PAYMENTS FOR FINANCING ACTIVITY	-

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   CASH FLOW FROM FINANCING ACTIVITY	-
   CASH FLOW - TOTAL	150.527	5.005.282
   B. CASH FLOWS AT THE END OF THE PERIOD	7.459.755	12.465.037
   In accounts	7.253.786	12.333.139
   Cash	26.300	15.470
   Other Values	112.164	110.815
   Treasury advances	-	1.000
   Values to receive	67.505	4.613

2. ANALYSIS OF THE ACTIVITY OF THE COMMERCIAL COMPANY

   1. Liquidity indicators

      - % -

      Nr. Crt.	Name of indicators	Calculation formula	30.06.2025	30.06.2026
      1.	Current patrimonial liquidity	[Active circ/DTS]	2,95	4,40
      2.	Active liquidity (fast)	[Active circ.-Stocks]/DTS	121,88	194,20
      3.	Rotational speed of immobilized assets	Turnover/Fixed Assets	1,96	1,90
      4.	Turnover speed of Total assets	Turnover/ Total Assets	0,57	0,55
      5.	Interest Coverage Indicator	Profit before payment of interest and profit tax/Expenses. With Interest	1	39,18
      6.	Return on Capital Employed	Profit before the payment of interest and profit tax/Employed Capital	-	0,02
      7.	Gross Margin from Sales	Gross Profit from Sales/Turnover	-	2,25

      2.2 Capital Expenditures

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      Due to the economic situation, both at the company level and at the macroeconomic level, investments in the analyzed period stagnated, with cash outflows being intended to pay off debts accumulated in the previous period.

      2.3. The structure of income from the basic activity is presented in the following: Operating income

      -lei-

      Elements	30 june 2025	30 june 2026
      Production sold	66.788.402	59.036.694
      Income from sale of goods	761.674	468.044
      Commercial discounts granted	(80.297)	(65.288)
      Revenues related to the costs of product stocks	2.266.425	3.630.008
      Income from the production of fixed assets	218.979	-
      Income from fixed assets intended for sale	-	-
      Income from operating subsidies	-	-
      Other operating revenues	380.275	265.292
      Total operating income	70.335.458	63.334.750

      In the following period, in the short and medium term, taking into account the difficulty of predictability of the evolution of the Romanian economy, but at the same time counting on its possible stability, it can be estimated for S.C. ARTEGO SA. a constant trend of the existing situation, as well as productive activity and sales level

3. CHANGES AFFECTING THE SHARE CAPITAL AND ADMINISTRATION OF THE COMMERCIAL COMPANY

   1. During the analyzed period, there were no cases recorded in which the company was unable to honor its obligations to third parties, even if in some situations payments were made late..

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Transactions denominated in foreign currency are recorded in lei at the official exchange rate on the date of the transaction settlement. Monetary assets and liabilities denominated in foreign currencies on the balance sheet date are converted into the functional currency at the exchange rate on that day. Gains or losses from their settlement and from the conversion using the exchange rate at the end of the month or at the end of the financial year of monetary assets and liabilities denominated in foreign currency are recognized in the profit and loss account.

c) Financial Instruments

The Company is exposed to the following risks arising from financial instruments: market risk (interest rate risk and currency risk), credit risk and liquidity risk. The Company's management focuses on the unpredictability of the financial market and seeks to minimize the potential adverse effects on the Company's financial performance. Market risk is the risk that changes in market prices, as well as currency exchange and interest rates, will affect the Company's income.

The Company has no formal commitments to combat financial risks. Despite the absence of formal commitments, financial risks are monitored by the Company's management, focusing on the Company's needs to effectively deal with opportunities and threats.

The Company's operating cash flows are affected by interest rate fluctuations, mainly due to foreign currency loans obtained from financing banks. The cash risk determined by the interest rate is the risk that interest, and therefore the expense with it, will fluctuate.

The Company may be exposed to currency exchange rate fluctuations through cash and cash equivalents, receivables or trade payables denominated in foreign currency.

The currency used on the domestic market is the Romanian leu. The Company is exposed to currency risk on cash and cash equivalents from purchases and loans made in a currency other than the one used on the domestic market. The currencies that expose the Company to this risk are mainly EUR, USD, and GBP. Foreign currency loans are subsequently expressed in lei, at the exchange rate of the last banking day of each month, communicated by the National Bank of Romania. The resulting differences are included in the profit and loss account.

Credit risk is the risk that the Company will incur a financial loss as a result of a customer or counterparty to a financial instrument failing to meet its contractual obligations, and this risk arises mainly from trade receivables and cash and cash equivalents.

As of June 30, 2026, the Company holds cash and cash equivalents in the amount of 12,465,037 lei. Cash and cash equivalents are held with the following banks: Unicredit, ING Bank, BRD.

Liquidity risk is the risk that the Company will encounter difficulties in meeting its obligations associated with financial liabilities that are settled in cash or by transferring another financial asset.

A prudent liquidity risk management policy involves maintaining sufficient cash and cash equivalents, the availability of financing through adequate credit facilities. The Company's liquidity policy is to maintain sufficient liquid resources to be able to honor obligations as they fall due.

Fair value is the amount at which a financial instrument can be exchanged in an orderly transaction, other than in a liquidation or forced sale. Fair values are obtained from quoted market prices or cash flow models, as appropriate. As of June 30, 2026, cash and cash equivalents, trade payables and other payables approximate their fair value due to their short maturity. Management believes that the estimated value of these instruments approximates their carrying value.

The Company's objectives when managing capital are to preserve the Company's ability to continue as a going concern in order to obtain benefits for shareholders and other stakeholders and to maintain an optimal capital structure in order to reduce the cost of capital.

In accordance with IAS 29 and IAS 21, the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy must be presented in the measuring unit current at the balance sheet date (non-monetary items are restated using a general price index at the date of acquisition or contribution).

According to IAS 29, an economy is considered to be hyperinflationary if, among other factors, the cumulative rate of inflation over a three-year period exceeds 100%.

The continued decline in the inflation rate and other factors related to the characteristics of the economic environment in Romania indicate that the economy whose functional currency was adopted by the Company has ceased to be hyperinflationary, with effect on the financial periods starting with January 1, 2004. Therefore, the provisions of IAS 29 have been adopted in the preparation of the separate financial statements up to December 31, 2003.

Thus, the values expressed in the current measuring unit as of December 31, 2003 are treated as the basis for the accounting values reported in these separate financial statements and do not represent assessed values, replacement cost, or any other measurement of the current value of the assets or the prices at which transactions would take place at this time.

For the purpose of preparing the separate financial statements as of December 31, 2012, the Company adjusted the share capital (non-monetary item) to be expressed in the current measuring unit as of December 31, 2003.

Tangible assets

Tangible fixed assets are assets that: are held by an entity for use in the production of goods or services, for rental to third parties or for administrative purposes, and are used for a period of more than one year.

The acquisition cost includes the purchase price, import duties and other taxes (except for those that the legal entity can recover from the tax authorities), transport, handling and other expenses that can be directly attributed to the acquisition of the respective goods.

The valuation of tangible fixed assets at the balance sheet date is carried out at cost, less accumulated depreciation and impairment adjustments, or at the revalued amount, this being the fair value at the date of the revaluation, less any subsequent accumulated depreciation and any subsequent accumulated impairment losses.

The depreciation periods are as follows:

Buildings and structures 40-60 years

Equipment 15-40 years

Transportation vehicles 5-8 years

Office furniture and equipment 3-5 years

An intangible asset is an identifiable, non-monetary asset without a physical substance that is held for use in the production or supply of goods or services, for rental to third parties or for administrative purposes.

An intangible asset meets the criterion of being identifiable when:

- it is separable, that is, it can be separated or divided from the entity and sold, transferred, licensed, leased or exchanged, either individually or together with a corresponding contract, an identifiable asset or an identifiable liability or arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

Intangible assets acquired by the Company are presented at cost less accumulated amortization and the provision for impairment of intangible assets. Amortization is recognized in the income statement based on the straight-line method over the estimated useful life of the intangible assets.

Trade receivables are initially recorded at the invoiced value and subsequently those in foreign currency are valued at the exchange rate communicated by the National Bank of Romania on the last banking day of the month. A depreciation provision is established when there is clear evidence that the receivables will not be collected on the established deadline.

Inventories consist of:

- raw materials, supplies, spare parts and other consumables to be used in the Company's core business.

These materials are recorded as inventories at the time of acquisition and are expensed at the time of consumption.

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is determined using the FIFO method and includes the expense incurred in purchasing the inventories.

Cash and cash equivalents include cash, current accounts, bank deposits, meal vouchers, stamps, as well as checks and promissory notes received by the Company.

After recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably is carried at a revalued amount, which is its fair value at the date of the revaluation less any subsequent accumulated depreciation and any accumulated impairment losses. Revaluations must be made with sufficient regularity to ensure that the carrying amount does not differ materially from what would have been determined using fair value at the balance sheet date.

If the carrying amount of an asset is increased as a result of a revaluation, this increase must be recorded directly in equity under the item "Revaluation reserves". However, the increase is recognized in profit or loss to the extent that it offsets a decrease in the revaluation of the same asset previously recognized in profit or loss.

If the carrying amount of an asset is decreased as a result of a revaluation, this decrease is recognized in profit or loss. However, the decrease must be debited directly from equity in the item "Revaluation reserves" to the extent that there is a credit balance in the revaluation surplus for this asset.

The revaluation surplus included in equity related to a tangible fixed asset item is transferred directly to retained earnings as the revalued tangible fixed asset is depreciated and when the asset is recognized.

Starting with May 1, 2009, statutory reserves from the revaluation of fixed assets, including land, made after January 1, 2004, which are deducted in the calculation of taxable profit through tax depreciation or expenses related to assets sold and/or scrapped, are taxed concurrently with the deduction of tax depreciation, respectively, at the time of the disposal of these fixed assets.

The statutory reserves from the revaluation of fixed assets, including land, carried out until December 31, 2003 plus the portion of the revaluation carried out after January 1, 2004 relating to the period up to April 30, 2009, will not be taxed at the time of transfer to reserves representing the surplus realized from the revaluation reserves. The reserves realized are taxed in the future, in the event of a change in the destination of the reserves in any form, in the event of liquidation, merger, including its use to cover accounting losses, with the exception of the transfer after May 1, 2009, of reserves related to evaluations carried out after January 1, 2004, which are taxed simultaneously with the deduction of fiscal depreciation.

The Company recognizes changes to the share capital under the conditions provided by the legislation in force, only after their approval in the General Meeting of Shareholders and their registration with the Trade Register Office.

Dividends are recognized as a liability in the period in which their distribution is approved.

Trade and other payables include the equivalent value of invoices issued by suppliers of finished goods manufactured, works performed and services rendered.

Bonds are initially recognized at fair value, excluding transaction costs. Subsequent to initial recognition, loans are recorded at amortized cost, any difference between cost and reimbursement value being recognized in the income statement over the period of the loan.

Income tax expense includes current and deferred tax. Current and deferred tax are recognized in the income statement except in the case where they are recognized directly in equity or in other comprehensive income.

Current tax represents the tax expected to be paid or received on taxable income or deductible loss realized in previous years, using tax rates adopted or largely adopted at the reporting date, as well as any adjustment regarding the income tax payment obligations related to prior years.

Deferred tax is recognized for temporary differences that arise between the accounting value of assets and liabilities used for financial reporting purposes and the tax base used for tax calculation.

The valuation of deferred tax reflects the tax consequence that would arise from the way in which the Company expects, at the end of the reporting period, to recover or settle the value of its assets and liabilities. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer possible to realize the related tax benefit.

Short-term employee benefits

Short-term benefit obligations are measured without discounting and are recognized as expenses as the services are rendered. A provision is recognized at the estimated amount to be paid for short-term benefits in the form of bonuses or employee profit sharing, only if the Company has a present, legal or constructive obligation to pay this amount in return for past service rendered by the employees, and this obligation can be estimated at fair value. Short-term employee benefits are mainly represented by salaries.

In the normal course of business, the Company makes payments on behalf of its employees to the pension fund. All of the Company's employees are members of the Romanian State pension plan.

The Company does not capitalize borrowing costs because it does not have long-term loans. Interest income and interest expenses are recognized in the income statement when they are paid.

Grants are initially recognized as deferred income at fair value when there is reasonable assurance that they will be received and the Company will comply with the conditions associated with the grants, and are then recognized in the income statement as other income over the life of the asset to which they relate. Grants are related to assets. Grants are recognized as assets when there is reasonable assurance that they will be received and that the conditions associated with them will be met.

A provision is recognized when, and only when, the following conditions are met: The Company has a present obligation (legal and constructive) as a result of a past event, it is probable (i.e., more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

According to SIC33 "Earnings per share", earnings per share are calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period.

The weighted average number of shares outstanding during the period is the number of shares at the beginning of the period, adjusted by the number of shares issued, multiplied by the number of months the shares have been outstanding during the period.

Dilution is a reduction in earnings per share or an increase in losses per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of certain specified conditions. The objective of diluted earnings per share is consistent with that of basic earnings per share, namely, to assess the interest of each ordinary share in the performance of an entity.

Contingent liabilities are not recognized in the accompanying financial statements. They are disclosed when an outflow of resources embodying economic benefits is probable and not probable.

A contingent asset is not recognized in the accompanying financial statements, but is disclosed when an inflow of economic benefits is probable.

A segment is a distinct component of the Company that provides certain products or services (activity segment) or provides products or services in a certain geographical environment (geographic segment) and is subject to risks and rewards that are different from those of other segments.

The Company operates in a single location in Romania. The Company's management considers the operations in their entirety as a "single segment".

The operating segments are examined in a consistent manner by the entity's chief operating decision maker in order to make decisions regarding the allocation of resources by segments and the evaluation of its performance, and for which separate financial information is available.

An entity shall report revenue from external customers for each product and service or for similar products or services, unless the necessary information is not available and the cost of preparing it would be excessive, in which case this fact shall be disclosed. The amounts of revenue reported shall take into account the financial information used to prepare the entity's financial statements.

Implications of the new International Financial Reporting Standards (IFRS EU)

A number of new standards, amendments to standards and interpretations are applicable to annual periods beginning after 1 January 2012 and have not been applied in the preparation of these separate financial statements. None of the new standards are expected to have a significant effect on the Company's financial statements.

International Accounting Standard ( SIC ) 19 (2011 ) Employee Benefits (effective for periods beginning on or after 1 January 2013).

This amendment is not relevant to the Company's financial statements, as the Company's current policy is to immediately recognize gains and losses in the profit and loss account.

FIXED ASSETS as of June 30, 2026 - lei -

Stocks

On June 30, 2026 compared to June 30, 2025, the inventories are as follows:

Customers and similar accounts

As of June 30, 2026, compared to June 30, 2025, customers and similar accounts are as follows:

During the period 01.01.2026-30.06.2026 the Company recorded exports as follows:

EURO

As of June 30, 2026, compared to June 30, 2025, short-term investments are presented as follows:

The balance of short-term investments as of June 30, 2026 in the amount of 14,397 lei represents the shares purchased in previous years from IFB Invest Tg-Jiu, which has since been dissolved.

The share of financial assets held for sale in the company's capital is insignificant.

The company does not hold interests in other companies. In this regard, the company has not received dividends from other companies.

As of June 30, 2026, compared to June 30, 2025, prepaid expenses are as follows:

The balance as of June 30, 2026, in the amount of 188,317 lei, represents expenses incurred in advance for: insurance in favor of banks for loans granted, car vignettes, professional training courses, rent paid in advance for the rental of various equipment, etc.

As of June 30, 2026, compared to June 30, 2025, cash and cash equivalents are as follows:

Share Capital

As of June 30, 2026, the share capital includes the effects of restatements recorded in previous years in accordance with the application of "SIC" 29 "Financial Reporting in Hyperinflationary Economies. . The reconciliation of the share capital is presented as follows:

Share capital (nominal value) 20,286,865

Differences related to restatement according to SIC 29 89,052,449 Balance of the share capital (restated) 109,339,314

At the end of the reporting period, the subscribed and fully paid share capital of the Company in the amount of 20,286,865 lei is divided into 8,114,746 ordinary shares with a nominal value of 2.5 lei per share and corresponds to that registered with the Trade Register Office.

The shareholding structure as of June 30, 2026 is as follows:

Legal reserves

Legal reserves amount to 4,057,373 lei as of June 30, 2026.

Revaluation reserves

The revaluation reserve amount to 26,834,874 lei as of June 30, 2026.

Other reserves

As of June 30, 2026, compared to June 30, 2025, other reserves record the following levels:

As of June 30, 2026, the amount of 492,474 lei represents the deferred tax related to the balance revaluations made after January 1, 2004, reduced by the deferred tax related to the amortization of the revaluation recorded on costs in the first semester of 2026.

The income recorded in advance is represented by the subsidies received for investments as non-refundable for a project carried out with the Ministry of Energy and records the following levels:

Long-term loansThe company has no long-term loans with banks or other financial institutions. Earnings per share

As of June 30, 2026 compared to June 30, 2025, the earnings per share are:

30 june 2026 30 june 2025

Profit for the period -1.065.819 1.438.320

Number of ordinary shares at the

beginning and end of the period 8.114.746 8.114.746

Basic and diluted earnings per share

(lei/share) - 0,177

The Romanian fiscal legislative framework and its implementation in practice are subject to frequent changes and different interpretations by various regulatory bodies.

Income tax returns are subject to review and correction by the tax authorities, generally for a period of five years after their completion. Management believes that it has adequately recorded the tax obligations in the accompanying financial statements; however, there remains a risk that the tax authorities may adopt different positions on the interpretation of these issues. Their impact could not be determined at this date.

As of June 30, 2026, the Company has mortgaged the following assets in favor of the financing banks to which it has committed credit lines as follows

Status of ongoing litigation

ARTEGO S.A. - complainant

The Company has no affiliated parties.

After the preparation of the reports concluded on June 30, 2026, no events occurred whose effects were significant and influenced the data contained in the current financial statements.

S.C. ARTEGO S.A. operates, is managed and organized in accordance with the provisions of Law 31/1990 republished - on commercial companies.

Being a joint stock company, it is managed by the General Meeting of Shareholders and administered by a Board of Directors consisting of 3 members, of which 1 executive member and 2 non-executive members who are not part of the management of other companies.

S.C. ARTEGO S.A. was established according to Law 31/1990, based on Government Decision no. 1224/1990 and was registered at the Trade Register Office under no. J18/1120/1991, with fiscal code RO2157428.

S.C. ARTEGO S.A. is a joint-stock company with entirely private capital, the majority shareholder being the Employees Association "PAS ARTEGO" which holds 85.8784% of the share capital.

When determining the profit tax, the provisions of Law 227/2015 with subsequent amendments and Government Decision 1/2016 for the approval of the Methodological Norms for the application of Law 225/2015 regarding the fiscal code were taken into account, from which:

• late payment charges due for non-payment of debts on time;

• protocol expenses, which exceed the limits provided by the Fiscal Code;

• amounts exceeding the limits of expenses considered deductible;

• sponsorship expenses, according to Law 32/1994;

• amounts used to establish reserves according to Law 31/1990 republished.

In accordance with the provisions of art.223, point B, paragraph (1), letter c) of Regulation no.5/2018 on issuers and transactions in securities, we declare that, to the best of our knowledge, the financial statements as of June 30, 2026 provide a true and fair view of the assets, liabilities, financial position and profit and loss account. Also, the Board of Directors' Report prepared in accordance with the provisions of annex no.14 presents the information about the company in a correct and complete manner.

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President, David Viorel