Transmission of Quarterly Report for the Period Ended 2025-12-31

SAPPHIRE TEXTILE MILLS LIMITED

CONTENTS

02

Company Information

04

Directors' Report

06

Directors' Report (Urdu)

07

Auditors' Review Report

08

Unconsolidated Condensed Interim Statement of Financial Position

09 10 11 12

Unconsolidated Condensed Interim Statement of Proft or Loss

Unconsolidated Condensed Interim Statement of Comprehensive Income

Unconsolidated Condensed Interim Statement of Changes in Equity

Unconsolidated Condensed Interim Statement of Cash Flows

13

Notes to the Unconsolidated Condensed Interim Financial Statements

25

Directors' Report

28

Director Report Consolidated in Urdu

29

Consolidated Condensed Interim Statement of Financial Position

30

Consolidated Condensed Interim Statement of Proft or Loss

31

Consolidated Condensed Interim Statement of Comprehensive Income

32

Consolidated Condensed Interim Statement of Changes in Equity

33

Consolidated Condensed Interim Statement of Cash Flows

34

Notes to the Consolidated Condensed Interim Financial Statements

HALF YEARLY REPORT DECEMBER 2025 01

COMPANY INFORMATION

Board Of Directors

Mr. Mohammad Abdullah

Chairman / Non - Executive Director

Mr. Nadeem Abdullah

Chief Executive / Executive Director

Mr. Shahid Abdullah

Non - Executive Director

Mr. Amer Abdullah

Non - Executive Director

Mr. Yousuf Abdullah

Non - Executive Director

Mr. Nabeel Abdullah

Executive Director

Mr. Umer Abdullah

Executive Director

Mr. Mirza Saleem Baig

Independent Director

Mr. Shahid Shafiq

Independent Director

Ms. Mashmooma Zehra Majeed

Independent Director

Audit Committee

Mr. Shahid Shafiq - Chairman Mr. Amer Abdullah - Member Mr. Yousuf Abdullah- Member Mr. Mirza Saleem Baig - Member

Human Resource E Remuneration Committee

Ms. Mashmooma Zehra Majeed - Chairperson Mr. Nadeem Abdullah - Member

Mr. Nabeel Abdullah - Member Mr. Umer Abdullah - Member Mr. Shahid Shafiq - Member

Shares Registrar

Hameed Majeed Associates (Pvt.) Ltd.

Chief Financial Officer

Mr. Abdul Sattar

Tax Consultants

Yousuf Adil,

Chartered Accountants

Company Secretary

Mr. Zeeshan

Auditors

Shinewing Hameed Chaudhri & Company

Chartered Accountants

Legal Advisor

A. K. Brohi & Company

Bankers

Allied Bank Limited Bank Alfalah Limited Bank Al Habib Limited

BankIslami Pakistan Limited Faysal Bank Limited

Habib Bank Limited

Habib metropolitan Bank Limited Industrial and Commercial Bank of China Meezan Bank Limited

MCB Bank Limited National Bank of Pakistan Soneri Bank Limited

Standard Chartered Bank (Pakistan) Ltd. The Bank of Punjab

United Bank Limited

Registered Onjce

212, Cotton Exchange Building,

I. I. Chundrigar Road, Karachi. Tel: +92 21 111 000 100

https://www.sapphire.com.pk/stml

Mills

Spinning Units

A-17,SITE, Kotri

A-84,SITE Area, Nooriabad

63/64-KM, Multan Road, Jumber Khurd, Chunian, District Kasur

1.5-KM, Warburton Road, Feroze Wattoan, Sheikhupura.

Weaving unit, yarn dyeing unit, Printing E processing unit, Home Textile and Stitching unit

2-KM, Warburtan Road, Feroze Wattoan,Sheikhupura.

Stitching unit

1.5-KM Off, Defence Road, Bhubtian Chowk, Raiwind Road, Lahore.

02 SAPPHIRE TEXTILE MILLS LIMITED

HALF YEARLY REPORT DECEMBER 2025 03

DIRECTORS' REPORT TO THE SHAREHOLDERS

The Directors of the Company are pleased to present their Report together with the un-audited financial statements for the half year ended December 31, 2025, which have been reviewed by the External Auditors. The Auditors' Review Report is annexed to these financial statements.

A Summary of key financial figures is presented below:

December 31,

2025 2024

Rupees in thousand

During the period under review, the Company's net turnover declined to Rs. 41.111 billion, compared with Rs. 46.765 billion in the corresponding period last year. This decrease was primarily attributable to lower product prices and the closure of certain spinning capacity that did not align with the Company's strategic focus on value-added segment.

The gross profit margin decreased to 11.42% from 14.75%, mainly due to reduced margins in the spinning segment. Other income, however, increased significantly to Rs. 5.075 billion (2024: Rs. 1.076 billion), driven predominantly by higher dividend income from the energy segment.

Finance costs declined to Rs. 1.801 billion from Rs. 2.528 billion, reflecting a reduction in the policy rate as well as lower borrowings resulting from decreased working capital requirements. As a combined effect of these factors, profit after tax rose to Rs. 4.008 billion, compared with Rs. 1.901 billion in the corresponding period last year.

The earnings per share (EPS) for the half year ended December 31, 2025 stood at Rs. 184.81, compared to Rs. 87.63 in the corresponding period of the previous year.

The Board of directors of the Company is pleased to recommend interim cash dividend of 100% i.e. Rs.10 per share for the year ending June 30, 2026.

Pakistan's textile sector continues to operate in a challenging environment characterized by global trade uncertainties, domestic policy volatility, rising energy and input costs, declining domestic cotton production, and an increasing taxation burden. In addition, risks relating to changes in preferential market access regimes and evolving trade policies in key export markets further heighten the level of uncertainty for the industry. These factors have collectively exerted pressure on margins, planning visibility, and new investment decisions.

Despite these headwinds, the long-term prospects of the sector remain anchored in Pakistan's fundamental strengths, including a large and well-established manufacturing base, a skilled workforce, and diversified product capabilities across the textile value chain. These structural advantages continue to provide a solid foundation for sustainable growth, provided the operating environment becomes more predictable and supportive of industrial competitiveness.

In response to the prevailing challenges, the Company has accelerated its strategic focus on value-added and specialty products, which offer relatively higher margins and greater resilience against external volatility. The Company is also prioritizing the strengthening of long-term relationships with international buyers, enhancing operational efficiencies, and implementing cost-optimization initiatives across all business segments to maintain competitiveness and support sustainable growth.

The Board places on record its sincere appreciation for the support extended by the shareholders, customers, bankers, suppliers, regulatory bodies, and all other stakeholders. The Directors also commend the dedication and hard workof the Company's management, staff, and workers.

CHIEF EXECUTIVE

Lahore. Dated: February 24, 2026

On behalf of the Board

CHAIRMAN / DIRECTOR

INDEPENDENT AUDITORS' REVIEW REPORT

To the Members of Sapphire Textile Mills Limited

Report on Review of Unconsolidated Condensed Interim Financial Statements

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of Sapphire Textile Mills Limited (the Company) as at December 31, 2025 and the related unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of other comprehensive income, unconsolidated condensed interim statement of changes in equity, unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated 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.

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 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.

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 statutory auditors of the Company. Accordingly, the figures of the unconsolidated condensed interim statement of profit or loss and unconsolidated condensed interim statement of other comprehensive income for the three months period ended December 31, 2025 and 2024 have not been reviewed by us.

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

SHINEWING HAMEED CHAUDHRI & CO., CHARTERED ACCOUNTANTS

LAHORE: FEBRUARY 26, 2026 UDIN: RR2025101040dh9k6Ej3

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2025

Note

Un-audited Audited

December 31, June 30,

2025 2025

- - - - - Rupees - - - - -

Liabilities

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE QUARTER AND SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Note

Quarter ended Six months period ended December 31, December 31,

2025 2024 2025 2024

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

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Chairman / Director

Chief Executive Officer Chief Financial Onjcer

UNCONSOLIDATED CONDENSED INTERIM

STATEMENT OF OTHER COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE QUARTER AND SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Quarter ended Six months period ended December 31, December 31,

2025 2024 2025 2024

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

Profit after taxation

Other comprehensive income:

Items that will be reclassified to statement of profit or loss subsequently

Forward foreign currency contracts

Net change on remeasurement

of forward foreign exchange contracts

867,167,399

1,900,722,321

Items that will not be reclassified to statement of profit or loss subsequently

Exchange loss on translation

of investment in foreign currency

Unrealised gain on remeasurement of investment at fair value through

other comprehensive income - net of tax

Realised gain / (loss) on sale of investment at fair value through other comprehensive income

Other comprehensive income for the period

1,804,321,381

1,883,591,615

Total comprehensive income for the period

2,671,488,780

3,784,313,936

4,008,479,746

3,537,699,502

7,546,179,248

3,108,326,886

554,169,156

3,662,496,042

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

HALF YEARLY REPORT DECEMBER 2025

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

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

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Chairman / Director

11

Chief Executive Officer Chief Financial Onjcer

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Six months period ended

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

1. LEGAL STATUS AND OPERATIONS

   Sapphire Textile Mills Limited (the Company) was incorporated in Pakistan on March 11, 1969 as a public limited company under the Companies Act, 1913 (now the Companies Act, 2017). The shares of the Company are listed on Pakistan Stock Exchange.

   The Company is principally engaged in manufacturing and sale of yarn, fabrics, home textile products, finishing, stitching and printing of fabrics. Following are the business units of the Company along with their respective locations:

   Business unit Location

   Registered Onjce

   Karachi 212, Cotton Exchange Building, I. I. Chundrigar Road, Karachi.

   Lahore Onjce Production Plants

   4th Floor Tricon Corporate Center, 73-E Main Jail Road, Gulberg II, Lahore.

   Spinning A-17,SITE, Kotri.

   Spinning A-84,SITE Area, Nooriabad.

   Spinning 63/64-KM, Multan Road, Jumber Khurd,Chunian, District Kasur.

   Spinning 1.5-KM, Warburtan Road, Feroze Wattoan, Sheikhupura.

   Weaving, Yarn Dyeing, Printing, Processing, 2-KM, Warburtan Road, Feroze Wattoan, Sheikhupura. Home Textile and stitching

   Stitching 1.5-KM Off, Defence Road, Bhubtian Chowk, Raiwind Road, Lahore

2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

   1. Statement of compliance

      1. These unconsolidated 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 International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 and

         • Provisions of, directives and notifications issued under the Companies Act, 2017.

           Where the provisions of, directives and notifications issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of, directives and notifications issued under the Companies Act, 2017 have been followed."

           These unconsolidated condensed interim financial statements does not include all the information and disclosures as required in an annual audited financial statements, and these should be read in conjunction with the Company's annual audited financial statements for the year ended June 30, 2025. These unconsolidated condensed interim financial statements are being submitted to the shareholders as required by the section 237 of the Companies Act, 2017.

      2. These are separate financial statements, where the investment in subsidiaries and associates is shown at cost less impairment (if any); consolidated financial statements are separately presented.

   2. Standards, amendments to approved accounting standards effective in current period and are relevant

      Certain standards, amendments and interpretations to IFRSs are effective for accounting periods beginning on July 01, 2025 but are considered not to be relevant or to have any significant effect on the Company's operations (although they may affect the accounting for future transactions and events) and are, therefore, not detailed in these unconsolidated condensed interim financial statements.

   3. Standards, amendments to approved accounting standards and interpretations that are not yet effective and have not been early adopted by the Company

      There are certain standards, amendments to the accounting standards and interpretations that are effective for accounting periods beginning on and after July 01, 2026 but are considered not to be relevant or to have any significant effect on the Company's operations and are, therefore, not detailed in these unconsolidated condensed interim financial statements.

   4. Material Accounting policies

      All the accounting policies and the methods of computation adopted in the preparation of these unconsolidated condensed interim financial statements are consistent with those applied in the preparation of audited annual financial statements for the year ended June 30, 2025.

3. ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of unconsolidated condensed interim financial statements require 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.

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

Note

Un-audited Audited

DECEMBER 31, June 30,

2025 2025

- - - - - Rupees - - - - -

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Un-audited Audited

December 31, June 30,

2025 2025

- - - - - Rupees - - - - -

1. LONG TERM INVESTMENTS

   The Company during the period, has made further investment amounting to Rs.1,000 million (June 30, 2025: Rs. 900 million) in Sapphire Chemicals (Private) Limited (a Subsidiary Company), Rs.40 million (June 30, 2025: Rs.50 million) in Sapphire Green Energy (Private) Limited (a Subsidiary Company) and Rs.28.295 millions in Sapphire Retail USA (a subsidiary Company) by subscribing their ordinary shares.

2. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      There are no contingencies to be reported as at December 31, 2025 and June 30, 2025.

   2. Commitments

      1. Guarantees aggregating Rs.3,247.705 million (June 30, 2025: Rs.3,179.939 million) have been issued by banks of the Company.

         1. Post dated Cheques have been issued to Collector of Customs as an indemnity to adequately discharge the liabilities for taxes and duties leviable on imports. As at December 31, 2025 the value of these cheques amounted to Rs.10,136.370 million (June 30, 2025: Rs. 10,159.126 million).

         1. A commercial bank has issued a guarantee amounting Rs.45 million in favour of excise and taxation department of Government of Sindh on behalf of Sapphire Wind Power Company Limited (a Subsidiary Company) against charge of Rs.60 million on fixed assets of the Company.

         2. A commercial bank has issued a guarantee amounting USD125,000 in favour of Directorate of Alternative Energy, Energy department Government of Sindh on behalf of Sapphire Green Energy (Pvt.) Limited (a Subsidiary Company).

         Un-audited Audited

         December 31, June 30,

         2025 2025

         - - - - - Rupees - - - - -

         6.2.5 Commitments in respect of: - letters of credit for capital expenditure	3,810,153,455	538,278,071
         	1,964,595,580	2,749,598,603
         	431,990,274	220,064,994
         	13,665,582,820	4,190,219,763

         • letters of credit for purchase of raw materials and stores, spare parts E chemicals

         • capital expenditure other than letters of credit

         • forward foreign currency contracts

         NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

         FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

3. NET TURNOVER

   Revenue from contracts with respect to type of goods and services and geographical market is presented below:

   For the six months period ended - Un-audited

   Export Sales		Local Sales		Total
   December 31,		December 31,		December 31,
   2025	2024	2025	2024	2025	2024

   2,239,508,975	3,018,058,007	12,609,976,856	17,748,666,359	14,849,485,831	20,766,724,366
   9,248,182,674	10,550,390,682	4,962,499,716	3,000,696,626	14,210,682,390	13,551,087,308
   9,408,613,478	8,762,759,184	231,010,116	1,028,486,455	9,639,623,594	9,791,245,639
   -	-	59,570,517	43,642,119	59,570,517	43,642,119
   -	-	438,649,229	599,597,916	438,649,229	599,597,916
   -	-	1,868,632,573	1,960,814,299	1,868,632,573	1,960,814,299
   20,896,305,127 44,556,842	22,331,207,873 51,626,224	20,170,339,007 -	24,381,903,774 -	41,066,644,134 44,556,842	46,713,111,647 51,626,224
   20,940,861,969	22,382,834,097	20,170,339,007	24,381,903,774	41,111,200,976	46,764,737,871

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

   Yarn Fabric

   Home textile

   products / Garments

   Raw material

   Waste

   Processing income

   Export rebate

   1. Revenue is recognized at point in time as per the terms and conditions of underlying contracts with customers.

- - - - - - - - - - - - - - - - - - Un-audited - - - - - - - - - - - - - - - - - -

Quarter ended Six months period ended December 31, December 31,

Note

2025 2024

2025

2024

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

- - - - - - - - - - - - - - - - - - Un-audited - - - - - - - - - - - - - - - - - -

Quarter ended Six months period ended December 31, December 31,

2025 2024

2025

2024

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

1. OTHER INCOME

   This mainly includes dividend of Rs.2,520 million (December 31, 2024: Rs.420 million) received from Sapphire Wind power Company Ltd. (a Subsidiary Company) and Rs.1,828 million (December 31, 2024: Nil) received from Tricon Boston Consulting (Pvt.) Ltd. (a Subsidiary Company).

2. PROVISION FOR INCOME TAX & LEVIES

The provision for income tax and levies for the six month period ended and quarter ended December 31, 2025 has been made using the best possible estimate of total annual tax liability of the Company.

Note

(Un-audited)

Six months period ended December 31,

2025 2024

- - - - - Rupees - - - - -

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

(Un-audited)

Six months period ended December 31,

2025 2024

- - - - - Rupees - - - - -

Un-audited Audited

December 31, June 30,

2025 2025

- - - - - Rupees - - - - -

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

The carrying value of all financial assets and liabilities reflected in the financial statements approximate their fair value.

The table below analyse financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1. Quoted market price (unadjusted) in an active market for identical instrument.

Level 2.

Level 3.

Inputs other than quoted price included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The main level of inputs used by the Company for its financial assets are derived and evaluated as follows:

183,996,598

-

11,308,589,461

178,363,903

-

15,491,988,142

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

Level 1 Level 2 Level 3

As at December 31, 2025 Assets carried at fair value Equity instruments at fair value through OCI

As at June 30, 2025 Assets carried at fair value Equity instruments at fair value through OCI

During the period ended December 31, 2025, there were no transfers amongst the levels. Further, there were no changes in the valuation techniques during the period.

1. SHARIAH SCREENING DISCLOSURE

   Un-audited Audited

   December 31, 2025 June 30, 2025

   Conventional		Shariah Compliant	Conventional	Shariah Compliant
   - - - - - - - - - - Rupees - - - - - - - - - -
   Statement of Financial Position - Assets Long term investments	21,401,406,317	8,461,851	18,050,210,274	8,461,851
   Short term investments	4,075,929,577	4,849,951,235	4,222,075,285	2,808,940,584
   Bank balances	140,108,251	825,820	152,949,403	438,085
   Statement of Financial Position - Liability
   Long Term Finances	15,796,283,236	2,808,188,840	16,750,889,142	2,728,896,772
   Short term borrowings	11,635,072,287	2,105,496,460	9,926,411,883	2,163,551,555
   Running finances under
   mark-up arrangements	816,749,427	1,189,825,433	5,036,704,517	2,470,260,953
   Accrued mark-up	402,661,617	51,333,167	628,528,948	145,639,351

   Un-audited Un-audited

   December 31, 2025 December 31, 2024

   Conventional Shariah Compliant

   Conventional Shariah Compliant

   Statement of Profit and Loss

   and other Comprehensive Income

   Revenue earned from shariah compliant

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

   business segments	-	41,111,200,976	-	46,764,737,871
   Un-realised gain on investments
   i) Long term investment	2,332,913,543	-	1,444,576,003	-
   ii) Short term investment	206,602,731	1,376,518,154	46,974,489	605,947,464
   Other income
   i) Profit on bank deposits	2,349,343	-	6,026,595	-
   ii) Dividend Income	4,776,683,176	121,783,637	843,900,841	59,268,888
   iii) Exchange loss on actual currency	(370,386)	-	(2,335,737)	-
   Mark-up on running finances
   under mark-up arrangements	378,236,088	83,166,882	598,472,512	158,408,256
   Mark-up on short term finances	473,917,259	63,930,881	582,760,693	82,548,657
   Mark-up on long term finances	682,801,853	118,480,407	1,013,214,084	92,379,592

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

   1. Meezan Bank Limited

   2. Dubai Islamic Bank Limited

   3. Bank Islami Pakistan Limited

   4. Faysal Bank Limited

   NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

   FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

2. CORRESPONDING FIGURES

   In order to comply with the requirements of International Accounting Standard 34 - 'Interim Financial Reporting', the unconsolidated condensed interim statement of financial position has been compared with the balances of audited unconsolidated annual financial statements of the Company for the year ended June 30, 2025, whereas, the unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of other comprehensive income, unconsolidated condensed interim statement of cash flows and unconsolidated condensed interim statement of changes in equity have been compared with the balances of comparable period of unconsolidated condensed interim financial statements of the Company for the six months period ended December 31, 2024.

   Comparative information has been re-classified, re-arranged or additionally incorporated in these interim financial statements, where necessary, to facilities better comparison and to conform with the changes in presentation.

3. GENERAL

   1. Non adjusting events subsequent to the reporting date

      The Board of Directors of the Company in its meeting held on February 24, 2026 has recommended an interim cash dividend for the year ending June 30, 2026 of Rs.10 per share. These unconsolidated condensed interim financial statements for the six months period ended December 31, 2025 do not include the effect of these appropriations which will be accounted for subsequent to the period end.

4. DATE OF AUTHORIZATION FOR ISSUE

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

Chairman / Director

Chief Executive Officer Chief Financial Onjcer

24 SAPPHIRE TEXTILE MILLS LIMITED

DIRECTORS' REPORT TO THE SHAREHOLDERS

On behalf of the Board of Directors of the Holding Company of, Sapphire Wind Power Company Limited, Sapphire Retail Limited, Triconboston Consulting Corporation (Private) Limited, Sapphire International APS, Designtex (SMC-Private) Limited, Sapphire Real Estate (Private) Limited, Sapphire Chemicals (Private) Limited, Sapphire Green Energy (Private) Limited, Creek Properties (Private) Limited, Sapphire Retail International Limited, Sapphire Retail Trading One Person Company L.L.C, and Sapphire Retail US Corporation, we are pleased to present the Directors' Report together with the un-audited Consolidated Financial Statements for the half year ended December 31, 2025.

The performance and key developments of the major subsidiary companies are summarized below.

December 31,

2025 2024

Rupees in thousand

Sapphire Wind Power Company Limited (SWPCL)

SWPCL is 70% owned by Sapphire Textile Mills Limited and 30% by Bank Alfalah Limited. The Company operates a

52.80 MW wind power project located in Jhimpir, Sindh, which commenced commercial operations in November 2015. The project continues to operate efficiently, following industry best practices, and is delivering stable and satisfactory energy output in line with expectations.

Sapphire Retail Limited (SRL)

SRL is a wholly owned subsidiary of Sapphire Textile Mills Limited and is engaged in the retail business under the brand name "Sapphire". The Company operates over 50 retail outlets across Pakistan, supported by a rapidly growing digital commerce business through its online platform. The brand continues to expand its footprint and strengthen market share in both fashion and lifestyle retail segments.

Tricon Boston Consulting Corporation (Private) Limited (TBCC)

TBCC is 57.125% owned by Sapphire Textile Mills Limited. The Company owns and operates three wind power projects of 50 MW each, located in Jhimpir. All three projects successfully achieved commercial operations in September 2018 and continue to perform as per the designed operational benchmarks.

Sapphire International APS (Denmark)

Sapphire International APS is wholly owned subsidiary of Sapphire Textile Mills Limited and a limited liability Company incorporated in Denmarkformed to strengthen exports.

Designtex (SMC-Private) Limited

Designtex is a wholly owned subsidiary of Sapphire Retail Limited, which in turn is wholly owned by Sapphire Textile Mills Limited. The Company is engaged in the manufacture of textile and ancillary products.

Sapphire Real Estate (Private) Limited

Sapphire Real Estate (Private) Limited is a wholly owned subsidiary of Sapphire Textile Mills Limited and formed for the purpose of investment in real estate projects.

Sapphire Chemicals (Private) Limited

Sapphire Chemicals (Private) Limited is a wholly owned subsidiary company and formed for the purpose of manufacture and sale of chemical products. The company is in process of setting up of soda ash manufacturing facility with capacity of 220,000 tons per annum

Sapphire Green Energy (Private) Limited

Sapphire Green Energy (Private) Limited, a wholly owned subsidiary, has been incorporated during the year 2023 with the purpose to make investment in Renewable Energy Projects.

Creek Properties (Private) Limited

Creek Properties (Private) Limited (the company) was incorporated as a private Company limited under Companies Act, 2017. Sapphire Real Estate (Private) Limited holds 65% shareholding of the company which is wholly owned subsidiary of Sapphire Textile Mills Limited. The principal business of the company is marketing and development of real estate projects.

Sapphire Retail International Limited (United Kingdom)

This wholly owned foreign subsidiary has been incorporated to operate Sapphire's retail business in the United Kingdom. The Company has established two retail outlets, located in Bradford and Birmingham, marking the brand's expansion into the UK retail market.

Sapphire Retail Trading One Person Company L.L.C (UAE)

A wholly owned subsidiary established to operate retail outlets in the United Arab Emirates. The Company has commenced operations with its first outlet located in Sharjah, contributing to the Group's growing international retail footprint.

Sapphire Retail US Corporation

This wholly owned subsidiary has been incorporated in the United States of America to undertake Sapphire's retail operations in the U.S. market.

On behalf of the Board

CHIEF EXECUTIVE

Lahore. Dated: February 24, 2026

CHAIRMAN / DIRECTOR