Interim Financial Statements for the Quarter ended 30th September 2025

2025

Unaudited

2024

Unaudited

Change

%

935,470

756,646

24

(903,806)

(746,209)

21

31,664

10,437

203

43,601

32,476

34

(24,732)

(35,435)

(30)

(9,989)

(5,645)

77

40,543

1,833

2,112

(741)

(2,107)

(65)

1,459

1,557

(6)

718

(550)

231

41,262

1,283

3,116

-

183

(100)

41,262

1,466

2,715

2025

Unaudited

2024

Unaudited

Change

%

1,666,590

1,408,049

18

(1,604,103)

(1,378,897)

16

62,487

29,152

114

83,705

77,074

9

(50,683)

(74,413)

(32)

(19,184)

(10,487)

83

76,324

21,326

258

(4,509)

(4,337)

4

2,712

3,281

(17)

(1,797)

(1,056)

70

74,527

20,270

268

(8,456)

(6,320)

34

66,072

13,950

374

2025

Unaudited

2024

Unaudited

Change

%

41,262

-

1,466

-

2,715

-

-

-

-

41,262

1,466

2,715

2025

Unaudited

2024

Unaudited

Change

%

66,072

-

13,950

-

374

-

-

-

-

66,072

13,950

374

2025

Unaudited

949,616

1,910

813,202

7,303

684

66

1,772,781

402,523

163,763

12,478

6,096

51,500

6,461

642,821

2,415,602

150,000

700,214

928,693

1,778,907

332,670

49,117

377

382,164

224,155

21,991

3,958

4,426

254,530

2,415,602

2024

Unaudited

966,982

1,998

785,472

7,403

8,233

4,423

1,774,511

446,207

106,974

21,866

6,096

-

2,992

584,135

2,358,646

150,000

680,334

856,948

1,687,282

309,835

43,003

397

353,235

211,399

5,875

5,358

95,497

318,129

2,358,646

Net Assets Per Share (Rs.)

59.30

56.24

Note : All values are in Rupees '000s, unless otherwise stated.

I certify that the financial statements comply with the requirements of the Companies Act No.7 of 2007.

sgd.

Sisira Pushpakumara

Head of Finance

The Board of Directors is responsible for these financial statements.

sgd.

P. H. S. Uluwaduge

Chairman

sgd.

Anusha S. Perera

Executive Director

As at

31st March 2025 Audited

976,458

1,954

813,202

7,303

5,553

3,205

1,807,675

410,065

74,138

11,152

6,096

-

4,641

506,091

2,313,766

150,000

700,214

862,622

1,712,836

324,214

38,911

387

363,513

205,883

6,106

4,816

20,612

237,417

2,313,766

2025

2024

Unaudited

Unaudited

74,527

20,270

(2,712)

(3,281)

32,343

34,360

44

44

-

200

7,677

6,095

(10)

(10)

4,509

4,337

-

(9,598)

116,379

52,417

7,541

(107,347)

(90,503)

(30,044)

(1,326)

(14,748)

18,272

47,711

15,885

176

(857)

(1,060)

65,391

(52,895)

2,712

2,323

(3,154)

(4,337)

(1,259)

(6,224)

3,788

-

7,529

-

75,007

(61,133)

(5,500)

(31,395)

-

10,253

(5,500)

(21,142)

69,506

(82,275)

(15,971)

(10,230)

53,536

(92,505)

4,641

14,026

(20,612)

(24,256)

(15,971)

(10,230)

6,461

2,992

51,500

-

(4,426)

(95,497)

53,536

(92,505)

TEA SMALLHOLDER FACTORIES PLC CASH FLOW STATEMENT

For the six months ended 30th September CASH FLOWS FROM OPERATING ACTIVITIES

Profit/ (Loss) Before Tax

ADJUSTMENTS FOR :

Finance Income

Depreciation of Property, Plant and Equipment Amortisation of Right of Use Assets Amortisation of Intangible Assets

Gratuity Charge and Related Cost Amortisation of Grants

Finance Cost

Profit on disposal of Property, Plant and Equipment

Operating Profit before Working Capital changes

(Increase) / Decrease in Inventories

(Increase) / Decrease in Trade and Other Receivables (Increase) / Decrease in Other Current Assets Increase / (Decrease) in Trade and Other Payables

Increase / (Decrease) in Amount due to Related Parties Increase / (Decrease) in Other Current Liabilities

Cash Generated from Operations

Finance Income Received Finance Cost Paid Gratuity Paid

Gratuity Transfer Settlement of the staff Loan

Net Cash Flow from Operating Activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant and Equipment

Proceeds from Sale of Property, Plant and Equipment

Net Cash Flow from / (used) in Investing Activities

Net Increase / (Decrease) in Cash and Cash Equivalents

Cash and Cash Equivalents at the beginning Note A

Cash and Cash Equivalents at the end Note B

NOTES

1. Cash and Cash Equivalents at the beginning

   Cash in Hand and at Bank Bank Overdraft

2. Cash and Cash Equivalents at the end

Cash in Hand and at Bank

Short Term Investments (less than three months) Bank Overdraft

STATEMENT OF CHANGES IN EQUITY

Stated Revaluation

Capital Reserve

As at 1stApril 2024 150,000 680,334

Profit/ (Loss) for the period - -

Other comprehensive income - -

Total comprehensive income - -

As at 30th September 2024 150,000 680,334

As at 1st April 2025 150,000 700,214

Profit/ (Loss) for the period - -

Other comprehensive income - -

Total comprehensive income - -

As at 30th September 2025 150,000 700,214 Note : All values are in Rupees '000s, unless otherwise stated.

Figures in brackets indicate deductions.

Retained Earnings

842,998

13,950

-13,950

856,948

862,622

66,072

-66,072

928,693

Total

1,673,332

13,950

-13,950

1,687,282

1,712,836

66,072

-66,072

1,778,907

TEA SMALLHOLDER FACTORIES PLC

OPERATING SEGMENT INFORMATION

Geographical Segment Galle Rathnapura N'Eliya Total

For the six months ended 30th September 2025 2024 2025 2024 2025 2024 2025 2024

Segment Revenue Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Revenue from contracts with customers 1,186,729 925,144 - 533 479,861 482,372 1,666,590 1,408,049

1,666,590 1,408,049

Segment Results

Revenue Expenditure (1,129,325) (898,234) - (233) (437,359) (442,845) (1,566,684) (1,341,312)

Depreciation of Property, Plant and Equipment (23,346) (25,576) - - (7,497) (7,031) (30,843) (32,607) Amortisation of Intangible Assets - (115) - - - (28) - (143) Gratuity Charge and Related Costs (4,656) (3,162) - - (1,921) (1,673) (6,576) (4,835) Segment Gross Profit/ (Loss) 29,402 (1,943) - 300 33,084 30,795 62,486 29,152

Other Operating Income 83,705 77,074

Finance Expense (4,509) (4,337)

Finance Income 2,712 3,281

Unallocated Expenses (50,683) (74,413)

Management Fees (19,184) (10,487)

Profit / (Loss) Before Tax 74,527 20,270

Segment Assets Allocated Assets Non - Current Assets

Property, Plant & Equipment 938,912 923,916 - - 274,209 275,018 1,213,122 1,198,934

Accumulated Depreciation (208,322) (185,233) - - (68,713) (60,993) (277,035) (246,226)

Intangible Assets - 1,000 - - - 250 - 1,250

Accumulated Amortisation - (988) - - - (247) - (1,235) Current Assets 414,131 374,285 - - 148,404 185,430 562,536 559,715

1,144,722 1,112,980 - - 353,900 399,458 1,498,622 1,512,438

Unallocated Assets

Non - Current Assets

Cost 884,570 878,203

Depreciation and Amortisation (35,484) (56,415)

Current Assets 67,893 24,420

Total Assets 2,415,602 2,358,646

Segment Liabilities Allocated Liabilities

Non Current Liabilities 21,235 17,519 - - 14,440 13,637 35,675 31,156

Current Liabilities 133,241 120,292 - - 59,764 57,534 193,005 177,826

154,476 137,811 - - 74,203 71,171 228,679 208,982

Unallocated Liabilities

Non Current Liabilities 346,489 322,079

Current Liabilities 61,524 140,303

408,014 462,382

Total Liabilities 636,694 671,364

Segment Capital Expenditure

Allocated Capital Expenditure 3,876 12,514 - - 1,624 18,626 5,500 31,140 Unallocated Capital Expenditure - 255

5,500 31,395

Note : All values are in Rupees '000s, unless otherwise stated.

Figures in brackets indicate deductions.

TEA SMALLHOLDER FACTORIES PLC

OPERATING SEGMENT INFORMATION

Geographical Segment Galle Rathnapura N'Eliya Total

For the quarter ended 30th September 2025 2024 2025 2024 2025 2024 2025 2024

Segment Revenue Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Revenue from contracts with customers 694,606 515,470 - - 240,865 241,176 935,470 756,646

935,470 756,646

Segment Results

Revenue Expenditure (663,600) (500,762) - - (221,556) (224,927) (885,156) (725,689)

Depreciation of Property, Plant and Equipment (11,614) (13,028) - - (3,748) (3,530) (15,362) (16,558) Amortisation of Intangible Assets - (56) - - - (15) - (71) Gratuity Charge and Related Costs (2,328) (2,526) - - (960) (1,365) (3,288) (3,891) Segment Gross Profit/ (Loss) 17,063 (902) - - 14,601 11,339 31,664 10,437

Other Operating Income 43,601 32,476

Finance Expense (741) (2,107)

Finance Income 1,459 1,557

Unallocated Expenses (24,732) (35,435)

Management Fees (9,989) (5,645)

Profit / (Loss) Before Tax 41,262 1,283

Segment Capital Expenditure

Allocated Capital Expenditure 3,396 6,798 - - 1,348 8,542 4,744 15,340

Unallocated Capital Expenditure - 255

4,744 15,595

Note : All values are in Rupees '000s, unless otherwise stated.

Figures in brackets indicate deductions.

TEA SMALLHOLDER FACTORIES PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1

Corporate Information

Tea Smallholder Factories PLC is a public limited company incorporated and domiciled in Sri Lanka and listed on the Colombo Stock Exchange.

2

Approval of Financial Statements

3

Basis of Preparation

The interim condensed 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 31st March 2025.

The presentation and classification of the financial statements of the previous period have been amended, where relevant, for better presentation and to be comparable with those of the current period.

The interim condensed financial statements are presented in Sri Lankan Rupee and all values are rounded to the nearest thousand except when otherwise indicated.

4

Operating Segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenue and expenses that relate to transactions with any of the Company's other components. The segments are determined based on the Company's geographical spread of operations. All operating segments' operating results are reviewed regularly by the Executive Director to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.

Segment results that are reported to the Executive Director include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company's head office), head office expenses, and income tax liabilities/ recoverable.

5

Net Finance Income / (Expense)

2025

2024

For the six months ended 30th September

Finance income

Interest income

2,712

3,281

Finance Expense

Interest expense on borrowings

TEA SMALLHOLDER FACTORIES PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

6

Tax (Expense) / Reversal

2025

2024

For the six months ended 30th September

Current Income Tax

Current tax charge

-

-

Deferred Income Tax

Relating to origination and reversal of temporary differences

(8,456)

(6,320)

7

Related Party Transactions

For the six months ended 30th September

Parent Company

Receiving of services

2025

Rs.

2024

Rs.

Companies under common control of the parent company

Purchase of goods

Receiving of services

Rent paid

(529)

(1,404)

-

(510)

(28,962)

(1,665)

Transactions with equity accounted investments of the parent

Receiving of services

7.1

Transactions with Key Management Personnel of the Company

The Company has paid Rs. 2.8 Mn to their Directors as fees during period ended 30th September 2025 (30th September 2024 -Rs.3.73 Mn). There are no non cash benefits for Key Management Personnel. Other than that, there are no transactions, arrangements and agreements with close family members of Key Management Personnel or with Companies controlled / jointly controlled / significantly influenced by Key Management Personnel and their close family members.

7.2

Terms and Conditions of Transactions with Related Parties

Transaction with related parties are carried out in the ordinary course of business. Outstanding current account balances at the period end are unsecured, interest free and settlement occurs in cash. The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions.

7.3

Management Fee

The management fee to managing agents, Browns Power Holding (Private) Limited was accrued at contractual price.

8

Share Information

8.1

Float adjusted market capitalization and Public share holdings

Number of public shareholders

Public holding percentage

Compliant under option 5 - Float adjusted market capitalization (Rs.'000s)

1,613

24.73

405,077

1,639

24.73

308,618

TEA SMALLHOLDER FACTORIES PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

8.2

The number of shares held by the Board of Directors are as follows:

Names

MR. P.S.H. ULUWADUGE

MR. D.S.K. AMARASEKARA

MR. A.S. PERERA

MR. T. DHARMARAJAH

MR. U.H.E. SILVA

MR. G.D.V. PERERA

MS. A. GOONETILLEKE

MR. P.P. EDIRISINGHE (Resigned w.e.f 26th Sep 2025*)

* MR. P.P. Edirisinghe has no relevant interest in the company after 26th Sep 2025

As at 30th

September 2025

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

As at 30th

June 2025

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

8.3

Twenty largest shareholders of the Company are as follows:

Seq.No.

Name

As at 30th September 2025

No. of Shares

% Holdings

As at 30th June 2025

No. of Shares

% Holdings

1

UDAPUSSELLAWA PLANTATIONS PLC

22,581,313

75.27

22,581,313

75.27

2

AKBAR BROTHERS PVT LTD A/C NO 1

2,943,955

9.81

3,000,000

10.00

3

MR. C.R. NARANGODA

314,242

1.05

129,002

0.43

4

SENKADAGALA FINANCE PLC/C.R.NARANGODA

264,277

0.88

64,002

0.21

5

MR. M.S.M. ALI MOHAMED SIDDEEK MOHAMED

263,500

0.88

275,500

0.92

6

SENKADAGALA FINANCE PLC/A.K.S.MENDIS&C.R.NARANGODA

170,768

0.57

-

-

7

MR. A.K.S. MENDIS

127,167

0.42

59,716

0.20

8

T R L HOLDINGS (PVT) LIMITED

122,500

0.41

122,500

0.41

9

MR. A.I. ABEYDEERA

83,590

0.28

-

-

10

MR. M.S.F. HAQQUE

83,000

0.28

12,000

0.04

11

SENKADAGALA FINANCE PLC/D.RAMACHANDRAN

73,000

0.24

-

-

12

MR. N.D. KURUKULASURIYA

62,400

0.21

62,400

0.21

13

DR. D.S.A. SAMARAWEERA

53,000

0.18

53,000

0.18

14

MRS. S. VASUDEVAN

52,669

0.18

53,496

0.18

15

COMMERCIAL BANK OF CEYLON PLC/D.RAMACHANDRAN

50,000

0.17

50,000

0.17

16

PEOPLE S LEASING AND FINANCE PLC/N.ANOSHAN

48,000

0.16

44,000

0.15

17

MR. D. RAMACHANDRAN

47,500

0.16

178,000

0.59

18

KALIN HOLDINGS (PVT) LTD

45,691

0.15

30,000

0.10

19

MRS. S.I. HAQQUE

45,000

0.15

-

-

20

HI-LINE TRADING PRIVATE LIMITED

40,000

0.13

-

-

Total

27,471,572

91.58

26,714,929

89.06

8.4

Stated Capital is represented by number of shares in issue as given below:

As at 30th

September 2025

30,000

As at 30th

June 2025

30,000

8.6

Market Price per share

For the quarter ended 30th September

2025

Rs.

60.00

33.50

54.60

2024

Rs.

43.50

36.00

40.00

Highest

Lowest

Last Traded

8.5

Net Assets per share

Net assets per share have been calculated, for all periods, based on the number of shares in issue as at 30th September 2025.

9

Capital Commitments

The value of contractual commitments for acquisition of property, plant and equipment as at 30th September 2025 is Rs. 2.79 Mn.

10

Contingencies

There is no Contingent Liability of the Company as at 30th September 2025.

11

Events After the Reporting Period

There have been no events subsequent to the reporting date, which require disclosure in the interim condensed financial statements.