Interim report
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Emirates Central Cooling Systems Corporation P.J.S.C Interim condensed consolidated financial statements For the three - month and six - month periods ended 30 June 2026 ( unaudited )
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Emirates Central Cooling Systems Corporation P.J.S.C Interim condensed consolidated financial statements For the three-month and six-month periods ended 30 June 2026 (unaudited) Pages Directors’ report 1 - 2 Review report on interim condensed consolidated financial statements 3 Interim condensed consolidated statement of financial position 4 Interim condensed consolidated statement of comprehensive income 5 Interim condensed consolidated statement of changes in equity 6 Interim condensed consolidated statement of cash flows 7 Notes to the interim condensed consolidated financial statements 8 - 31
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Emirates Central Cooling Systems Corporation P.J.S.C 1 Directors’ report for the three-month and six-month periods ended 30 June 2026 Directors’ report The Board of Directors present their report and interim condensed consolidated financial statements of Emirates Central Cooling Systems Corporation P.J.S.C (the “Company”) and its subsidiaries (together referred to as the “Group”) for the three-month and six-month periods ended 30 June 2026. Principal activities The principal activities of the Group are the provision of district cooling services, operations and maintenance of central cooling plants and related distribution networks and manufacturing of pre-insulated pipes for district cooling services. Financial performance The Group achieved a turnover of AED 1,519,415 thousand during the six -month period ended 30 June 2026, which represented a growth of 4.5% compared to the same period last year. The group achieved an operating profit of AED 580,849 thousand, which represented a growth of 9.4% compared to the same period last year. The net profit attributable to the equity holders of the Company amounted to AED 463,557 thousand for the six-month period ended 30 June 2026. Share capital The paid -up capital of the Company is AED 1,000,000 thousand consisting of 10,000,000 thousand shares of AED 0.10 each. There has been no change in the capital structure of the Company during the six-month period ended 30 June 2026. Transfer to statutory reserve The transfer of profit to the statutory reserve has been suspended as the reserve has reached 50% of the paid-up share capital in prior years. Dividend A final dividend of AED 437,500 thousand (AED 0.04375 per share) in respect of the year ended 31 December 2025 was declared and approved in the Annual General Assembly Meeting held on 26 March 2026 which was paid on 23 April 2026. No interim dividend has been declared for the six-month period ended 30 June 2026.
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I I I 1 l l ) : t I 11 ! l l j Emirates Central Cooling Systems Corporation P.J.S.C Directors' report for the three-month and six-month periods ended 30 June 2026 (continued) Change in shareholding of the Company During the six-month period ended 30 June 2026, Emirates Power Investment LLC ("EPI") transferred its ownership in the Company to Dubai Electricity and Water Authority PJSC ("DEW A"). As a result, there has been a change in the Board of Directors of the Company and Mr. Rashed Bin Humaidan has been appointed as a Director in place of Mr. Amit Kaushal, effective IO March 2026. Key agreements signed During the six-month period ended 30 June 2026, Empower has signed 61 new agreements within its existing concession agreements with a total demand capacity of approximately 73,415 RT, with the Group's total contracted capacity reaching 2.02 million RT. In addition to the above customer service agreements, Empower has signed an agreement with Meraas, a leading real estate developer, to supply 15,200 RT for City Walk phase 3 development. The City Walk project represents a qualitative addition to Dubai's dynamic urban landscape, embodying an integrated concept of modern living that combines innovative architectural design with the highest standards of comfort and luxury. Auditors The interim condensed consolidated financial statements of the Group were reviewed by PricewaterhouseCoopers Limited Partnership Dubai Branch, who were re-appointed as external auditors of the Group for the year 2026 in the Annual General Assembly meeting held on 26 March 2026. On behalf of the Board H.E Sae d Mohammed Ahmad Al Tayer Chairm n 5 Auguf t 2026 2
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www.pwc.com PricewaterhouseCoopers Limited Partnership Dubai Branch Emaar Square, Building 5, PO Box 11987 Dubai - United Arab Emirates T: +971 4 304 3100 Licence no. 102451, Auditors’ Registry no. FC0006-01, a branch of a DIFC entity 3 Review report on interim condensed consolidated financial statements to the board of directors of Emirates Central Cooling Systems Corporation P.J.S.C Introduction We have reviewed the accompanying interim condensed consolidated statement of financial position of Emirates Central Cooling Systems Corporation P.J.S.C (the “Company”) and its subsidiaries (the “Group”) as at 30 June 2026 and the related interim condensed consolidated statement of comprehensive income for the three-month and six-month periods then ended, and interim condensed consolidated statements of changes in equity and cash flows for the six-month period then ended, and other explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard 34, “Interim Financial Reporting”. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, ‘Review of interim financial information performed by the independent auditor of the entity’. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 “Interim Financial Reporting.” PricewaterhouseCoopers Limited Partnership Dubai Branch 5 August 2026 Murad Alnsour Registered Auditor Number 1301 Dubai, United Arab Emirates
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11 [ l i 1 I I l l r I II I l 11 I I ! I u ! J I 1 Emirates Central Cooling Systems Corporation P.J.S.C Interim condensed consolidated statement of financial position As at 30 June 2026 AED'000 ASSETS Unaudited Note __ ___;::...:.:..::..:: Non-current assets Property, plant and equipment 6 Right-of-use assets Investment properties 28 Intangible assets 7 Financial assets at amortised cost 8 Financial assets at fair value through other comprehensive income 9 Deferred tax assets 27 Current assets Inventories Trade and other receivables Due from related parties Financial assets at amortised cost Financial assets at fair value through profit or loss Term deposits Cash and cash equivalents Total assets EQUITY AND LIABILITIES EQUITY Equity attributable to equity holders of the Company Share capital Statutory reserve Other reserves Contributed capital Retained earnings Non-controlling interests Total equity LIABILITIES Non-current liabilities Bank borrowings Government grant Provision for employees' end of service benefits Retention payable Current liabilities Trade and other payables Bank borrowings Current tax liabilities Due to related parties Government grant Lease liabilities Total liabilities Total equity and liabilities 11 13 8 JO 14 15 16 16 15 27 13 7,274,608 864 168,716 309,590 1,273,130 74,564 14,531 9,116,003 57,258 433,972 73,053 21,312 53,411 40,212 2,472,012 3 151 230 12,267,233 1,000,000 500,000 14,800 82,190 1,740,595 3,337,585 190 745 3,528,330 5,500,000 298,472 75,549 13,280 5,887,301 2,458,563 2,845 143,181 242,971 3,170 872 2,851,602 8,738,903 12,267,233 31 December 2025 AED'000 Audited 7,194,990 1,878 170,793 315,668 1,284,009 55,778 15 077 9,038,193 55,718 303,818 39,353 20,830 45,461 57,704 2,255,745 2 778 629 11,816,822 1,000,000 500,000 13,809 82,190 I 714,934 3,310,933 186 378 3,497,311 5,500,000 299,998 70,893 15,835 5,886,726 2,165,056 3,418 97,585 161,670 3,170 1,886 2,432,785 8,319 511 11,816,822 To the best of our knowle �e inte • n �denscd consolidated financial statements are prepared, in all material respects, in accordance 1itl �S 34. 'h nterim condensed consolidated financial statements were approved by the Board of Directors 5 gust 20 cl were signed on their behalf by: The notes on pages 8 to 31 form an integral part of these interim condensed consolidated financial statements 4
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Emirates Central Cooling Systems Corporation P.J.S.C The notes on pages 8 to 31 form an integral part of these interim condensed consolidated financial statements 5 Interim condensed consolidated statement of comprehensive income Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 Note AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Revenue 17 888,842 913,474 1,519,415 1,453,433 Interest income on financial asset at amortised cost 8 14,305 14,524 28,501 28,938 Cost of sales 19 (521,929) (541,358) (844,454) (832,121) Gross profit 381,218 386,640 703,462 650,250 General and administrative expenses 20 (69,593) (64,126) (134,953) (125,017) Other income 6,516 4,450 12,340 5,866 Operating profit 318,141 326,964 580,849 531,099 Finance income 16,126 11,353 31,221 24,451 Finance costs (49,290) (55,027) (98,062) (113,192) Finance costs – net (33,164) (43,674) (66,841) (88,741) Profit before income tax 284,977 283,290 514,008 442,358 Income tax expense 27 (25,538) (25,446) (46,084) (39,695) Profit for the interim period 259,439 257,844 467,924 402,663 Profit attributable to: Equity holders of the Company 256,463 254,973 463,557 397,944 Non-controlling interests 2,976 2,871 4,367 4,719 259,439 257,844 467,924 402,663 Basic and diluted earnings per share for profit attributable to the equity holders of the Company (AED) 24 0.0256 0.0255 0.0464 0.0398 Profit for the interim period 259,439 257,844 467,924 402,663 Other comprehensive income / (loss) Items that will not be reclassified to profit or loss Changes in fair value of financial assets at fair value through other comprehensive income 689 (204) 612 (14) Deferred tax expense on financial asset at FVOCI (55) 17 (55) - Remeasurement of post- employment benefit obligations, net of tax 38 (565) 38 (565) Other comprehensive income / (loss) for the period 672 (752) 595 (579) Total comprehensive income for the period 260,111 257,092 468,519 402,084 Total comprehensive income attributable to: Equity holders of the Company 257,135 254,221 464,152 397,365 Non-controlling interests 2,976 2,871 4,367 4,719 260,111 257,092 468,519 402,084
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Emirates Central Cooling Systems Corporation P.J.S.C The notes on pages 8 to 31 form an integral part of these interim condensed consolidated financial statements 6 Interim condensed consolidated statement of changes in equity Attributable to equity holders of the Company Share capital Statutory reserve Other reserves Retained earnings Contributed capital Total equity Non- controlling interests Total Note AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 At 1 January 2026 1,000,000 500,000 13,809 1,714,934 82,190 3,310,933 186,378 3,497,311 Total comprehensive income for the period Profit for the interim period - - - 463,557 - 463,557 4,367 467,924 Other comprehensive income Other comprehensive income for the period - - 595 - - 595 - 595 Total comprehensive income for the period - - 595 463,557 - 464,152 4,367 468,519 Transfer of loss on disposal of Bonds at FVOCI to retained earnings (net of tax) - - 396 (396) - - - - Transaction with owners in their capacity as owners: Dividends 12 - - - (437,500) - (437,500) - (437,500) At 30 June 2026 (unaudited) 1,000,000 500,000 14,800 1,740,595 82,190 3,337,585 190,745 3,528,330 At 1 January 2025 1,000,000 500,000 18,768 1,596,632 82,190 3,197,590 175,745 3,373,335 Total comprehensive income for the period Profit for the interim period - - - 397,944 - 397,944 4,719 402,663 Other comprehensive loss Other comprehensive loss for the period - - (579) - - (579) - (579) Total comprehensive income for the period - - (579) 397,944 - 397,365 4,719 402,084 Transaction with owners in their capacity as owners: Dividends 12 - - - (437,500) - (437,500) - (437,500) At 30 June 2025 (unaudited) 1,000,000 500,000 18,189 1,557,076 82,190 3,157,455 180,464 3,337,919
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Emirates Central Cooling Systems Corporation P.J.S.C The notes on pages 8 to 31 form an integral part of these interim condensed consolidated financial statements. For reclassification, refer to note 29. 7 Interim condensed consolidated statement of cash flows Six-month period ended 30 June 2026 2025 Note AED’000 Unaudited AED’000 Unaudited Cash flows from operating activities Profit before income tax 514,008 442,358 Adjustments for: Depreciation of property, plant and equipment 6 183,250 176,306 Depreciation of right-of-use assets 1,014 2,681 Depreciation of investment properties 28 2,077 2,898 Remeasurement of financial assets 29 11,231 11,231 Amortisation of intangible assets 7 6,078 6,078 Share of loss from joint venture - 191 Amortisation of borrowings arrangement fee - 3,781 Provision for employees’ end of service benefits 5,109 5,035 Interest on lease liability 31 117 Interest income earned on financial assets at amortised cost 8 (28,501) (28,938) Finance income 14 (31,221) (24,451) Finance costs 98,031 109,294 Government grant income (1,526) (1,390) Operating cash flows before changes in working capital and payment of employees’ end of service benefits 759,581 705,191 Changes in working capital: Inventories (1,540) 1,313 Financial assets 29 27,667 27,667 Trade and other receivables (139,007) (140,180) Due from related parties (33,700) (52,743) Trade and other payables 252,782 244,156 Due to related parties 81,301 64,579 Cash generated from operations 947,084 849,983 Payment of employees’ end of service benefits (411) (877) Net cash generated from operating activities 946,673 849,106 Cash flows from investing activities Capital expenditure, net of project cost accruals 6 (212,363) (163,340) Addition to Investment properties 28 - (25,687) Redemption of financial asset through FVOCI 9 55,080 - Investment in financial assets through FVOCI 9 (73,684) - Investment in financial assets at fair value through profit or loss 10 (7,998) (9,791) Short-term deposits (more than 3 months) invested 17,700 (11,069) Interest received 31,490 24,451 Net cash used in investing activities (189,775) (185,436) Cash flows from financing activities Proceeds from bank borrowings net of arrangement fee 2,000,000 4,749,358 Repayment of bank borrowings (2,000,000) (4,750,000) Lease payments (1,045) (2,778) Interest paid (102,086) (116,726) Dividends paid 12 (437,500) (437,500) Net cash used in financing activities (540,631) (557,646) Net increase in cash and cash equivalents 216,267 106,024 Cash and cash equivalents, beginning of the period 2,255,745 1,936,627 Cash and cash equivalents, end of the period 14 2,472,012 2,042,651
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 8 1 Establishment and operations Emirates Central Cooling Systems Corporation P.J.S.C (“EMPOWER” or “the Company”) was established on 23 November 2003 in accordance with Article 3 of Law No. 10 “Emirates Central Cooling Systems Corporation Incorporation Law for the year 2003” (“the Decree”). The Company was established as a joint venture between Dubai Electricity and Water Authority (“DEWA”), which is ultimately owned by the Government of Dubai (Ultimate Parent), and the Dubai Development Authority (later transferred to TECOM Investments FZ -LLC (“TECOM”)). EMPOWER began commercial operations on 15 February 2004, and its principal activities are the provision of district cooling services and management, operation and maintenance of central cooling plants and related distribution networks. In 2009, DEWA increased its shareholding in the Company to 70% and reduced TECOM’s interest to 30%, as formalised through Decree No.3 of 2010 issued by the Ruler of Dubai. On 9 May 2022, TECOM transferred its interest of 30% to Emirates Power Investment LLC (“EPI”), an entity under common control through the Decree No. 19 of 2022 issued by the Ruler of Dubai. On 14 October 2022, the legal status of the Company was amended to a Public Joint Stock Company through Decree No. 22 of 2022 issued by the Ruler of Dubai. EMPOWER was listed on the Dubai Financial Market, on 15 November 2022, by listing 20% of its share capital. As a result, DEWA and EPI interest was diluted to 56.0% and 24.0% respectively. On 10 February 2026, EPI transferred its ownership in the Company to DEWA and as a result, DEWA’s shareholding in the Company increased from 56% to 80%. These interim condensed consolidated financial statements relate to the Company and its subsidiaries (collectively referred to as “the Group”). The Company has the following principal subsidiaries: Subsidiary Principal activity Beneficial and legal holding 2026 2025 Empower Insulated Pipe Systems LLC (formerly Empower Logstor LLC) Manufacturing of pre-insulated pipes, mainly for district cooling. 100% 100% Palm District Cooling LLC Establishing and operating district cooling projects and provide air -conditioning, ventilator and refrigeration services. 100% 100% Palm Utilities LLC Establishing and operating district cooling projects and provide air -conditioning, ventilator and refrigeration services. 100% 100% Empower FM LLC Installations of equipment, installations and supplies for air conditioning, ventilation and purification systems, as well as their repairs and maintenance. 100% 100% Empower Engineering & Consultancy LLC Consultancy services for Project Development 100% 100% Empower SNOW LLC Establishing and operating district cooling projects and provide air -conditioning, ventilator and refrigeration services. 100% 100% Dxb CoolCo FZCO Establishing and operating district cooling projects and provide air -conditioning, ventilator and refrigeration services. 85% 85%
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 9 1 Establishment and operations (continued) During the period, the Company’s primary office has been moved to Ibn Al Zahrawy Street, Opposite: Dubai Police Officers’ Club, off - Sheikh Rashid Road, P.O. Box 8081, Al Jadaf, Dubai, United Arab Emirates. These interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 were authorised for issue in accordance with a resolution of the Board of Directors on 5 August 2026. These interim condensed consolidated financial statements have been reviewed, not audited. The comparative information for the interim condensed consolidated statement of financial position is based on the audited consolidated financial statements as at 31 December 2025. The comparative information for interim condensed consolidated statement of comprehensive income for the three -month and six -month periods ended 30 June 202 6, and interim condensed consolidated statements of changes in equity and cash flows for the six -month period then ended and other explanatory notes is based on the unaudited interim condensed consolidated financial statements for the three-month and six -month periods ended 30 June 2025. 2 Basis of preparation These interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”, (“IAS 34”). The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 December 2025. 3 Material accounting policies The accounting policies applied in the preparation of these interim condensed consolidated financial statements are consistent with those applied by the Group in its recent annual audited consolidated financial statements for the year ended 31 December 2025 except for the adoption of new and amended standards as set out below: (a) New and amended standards adopted by the Group The Group has applied the following amendments for the first time from 1 January 2026: • Annual improvements to IFRS Accounting Standards – Volume 11 • Amendment to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments • Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature -dependent Electricity The Group did not have to change its material accounting policies or make retrospective adjustments as a result of adopting the amended standard.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 10 3 Material accounting policies (continued) (b) Impact of standards issued but not yet applied by the Group The new and amended standards that are issued, but not yet effective, up to the date of issuance of the Group’s interim condensed consolidated financial statements are disclosed below: Effective date Amendments to IAS 2 8 - Amendments to the Fair Value Option for Investments in Associates and Joint Venture 1 January 2027 Amendments to IAS 21 - Translation to a Hyperinflationary Presentation Currency 1 January 2027 IFRS 18 Presentation and Disclosures in Financial Statements 1 January 2027 IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 Amendments to IFRS 19 - Reducing disclosure requirements for eligible subsidiaries 1 January 2027 IFRS 20 - Regulatory Assets and Regulatory Liabilities 1 January 2029 Management is currently assessing the impact of aforementioned new accounting standards, amendments and interpretations. 4 Use of estimates and judgments The preparation of interim condensed consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same except the one dis closed below as those that were applied in the preparation of the consolidated financial statements of the Group as at and for the year ended 31 December 2025. Change in the estimated useful life of investment properties During the period, the estimated useful lives of shell and core (buildings) of investment property was revised from 25 years to 50 years. The revision was based on a reassessment of the expected pattern of economic benefits, taking into consideration expected usage and relevant industry benchmarks. The net impact of the revision in the current period was a reduction in depreciation expense of AED 711 thousand, with an estimated annual reduction of AED 2,133 thousand in depreciation expense for the year ending 31 December 2026 in the consolidated statement of comprehensive income. Assuming that the investment properties are held until the end of their remaining estimated useful lives of 48.5 years, depreciation expense in relation to these properties will be decreased by AED 2,843 thousand per annum.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 11 5 Financial risk management 5.1 Financial risk factors The Group’s activities and borrowings exposes it to a variety of financial risks: market risk (including foreign exchange risk, price risk and cash flow interest rate risk), credit risk and liquidity risk. These interim condensed consolidated financial statements do not include all financial risk management information and disclosures required in the annual consolidated financial statements. As such, they should be read in conjunction with the Group’s consolidated financial statements as at 31 December 2025. There have been no changes in any financial risk management policies since year-end. 5.2 Liquidity risk There has been no material change in the contractual undiscounted cash outflows for financial liabilities during the period. 5.3 Fair value estimation Financial instruments comprise financial assets and financial liabilities. Financial assets consist of cash and bank balances, trade and other receivables (excluding prepayments), due from related parties, financial assets at amortised cost and term deposits. Financial liabilities consist of trade and other payables (excluding deferred revenue), bank borrowings and due to related parties. The fair values of financial instruments approximate their carrying values.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three -month and six -month periods ended 30 June 2026 (continued) 12 6 Property, plant and equipment Land Plant, equipment and machinery Building Furniture and fixtures Leasehold improvements Computer equipment Vehicles Capital work-in- progress Total AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Cost At 1 January 2026 432,364 9,826,387 71,769 24,437 12,625 50,921 14,966 495,858 10,929,327 Additions - 2,036 - 792 367 407 1,382 250,801 255,785 Transfers - 173,775 197,145 11,482 44,084 17,155 - (443,641) - Disposals / Retirements - - - - (5,211) - (104) - (5,315) At 30 June 2026 (unaudited) 432,364 10,002,198 268,914 36,711 51,865 68,483 16,244 303,018 11,179,797 Accumulated depreciation At 1 January 2026 - 3,587,657 40,185 21,978 12,185 44,685 9,634 18,013 3,734,337 Charge for the period - 171,637 3,420 1,499 1,921 3,472 1,301 - 183,250 Impairment written off - - - - - - - (7,083) (7,083) Disposals / Retirements - - - - (5,211) - (104) - (5,315) At 30 June 2026 (unaudited) - 3,759,294 43,605 23,477 8,895 48,157 10,831 10,930 3,905,189 Net book amount at 30 June 2026 (unaudited) 432,364 6,242,904 225,309 13,234 42,970 20,326 5,413 292,088 7,274,608
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three -month and six -month periods ended 30 June 2026 (continued) 13 6 Property, plant and equipment (continued) Land Plant, equipment and machinery Building Furniture and fixtures Leasehold improvements Computer equipment Vehicles Capital work-in- progress Total AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Cost At 1 January 2025 432,364 9,459,653 70,709 22,078 12,625 47,922 12,103 339,040 10,396,494 Additions - 616 - 1,060 - 1,218 337 269,824 273,055 Transfers - 135,043 - - - 379 - (135,422) - Transfer to investment properties - - - - - - - (33,408) (33,408) Disposals / Retirements - (16,721) - (2) - - - - (16,723) At 30 June 2025 (unaudited) 432,364 9,578,591 70,709 23,136 12,625 49,519 12,440 440,034 10,619,418 Accumulated depreciation At 1 January 2025 - 3,265,155 37,330 20,192 12,037 40,748 7,859 18,013 3,401,334 Charge for the period - 171,412 1,384 854 104 1,832 720 - 176,306 Disposals / Retirements - (16,721) - (2) - - - - (16,723) At 30 June 2025 (unaudited) - 3,419,846 38,714 21,044 12,141 42,580 8,579 18,013 3,560,917 Net book amount at 30 June 2025 (unaudited) 432,364 6,158,745 31,995 2,092 484 6,939 3,861 422,021 7,058,501 During 2022, the Group returned 11 plots of land to a related party, which were granted in previous years for the purpose of constructing the district cooling plants. Accordingly, the carrying amount of AED 59,382 thousand was reversed from property, plant and equipment and the corresponding deferred governm ent grant. Management signed a Master Land Agreement and Exclusivity and Framework Agreement with the related party granting the Group unlimited access over 8 plots. Th e Master Land Agreement refers to separate lease agreements which were executed for 6 plots during the period ended 31 December 2025 on reasonable terms and for a nominal val ue. The remaining lease agreements for 2 plots are yet to be executed on similar terms. EMPOWER will continue to have uninterrupted and unencumbered use of the plots until the relevant lease agreements are entered into. District cooling assets with a net book value of AED 68,989 thousand are developed on some of these plots of land. During the six -month periods ended 30 June 2026 , the transfer to plant, equipment and machinery from capital work in progress represents additions mainly to district coolin g projects. The transfers to other categories mainly represent assets capitalised with respect to Empower’s office building which was completed during the period. The useful life of the Headquarter building was determined to be 25 to 50 years. Capital work-in-progress balances as of 30 June 2026 mainly include costs of constructing district cooling plants and networks pertaining to various projects
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 14 6 Property, plant and equipment (continued) Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Depreciation expense has been charged to: Cost of sales (Note 19) 85,782 87,645 171,637 171,412 General and administrative expenses (Note 20) 6,469 2,717 11,613 4,894 92,251 90,362 183,250 176,306 Additions during the period include non-cash transactions of AED 43,422 thousand. 7 Intangible assets 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited At 1 January 315,668 327,825 Amortisation during the period/year (6,078) (12,157) At 30 June / 31 December 309,590 315,668 Intangible assets of the Group represent rights to charge users that have been acquired and recognised at fair value as of the acquisition date. These assets have a useful life of 30 years. 8 Financial assets at amortised cost 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited At 1 January 1,304,839 1,324,787 Interest income during the period/year 28,501 58,307 Remeasurement and settlement during the period/year (38,898) (78,255) At 30 June / 31 December 1,294,442 1,304,839 Less: current portion (21,312) (20,830) Non-current portion 1,273,130 1,284,009 The balance of financial assets at amortised cost as above represents receivable of: (a) AED 289,412 thousand (31 December 2025: AED 291,933 thousand) from Nakheel PJSC, an entity under common control, in relation to acquisition of Empower Snow LLC during 2021, and (b) AED 1,005,030 (31 December 2025: AED 1,012,906 thousand) from Dubai Aviation City Corporation, an entity under common control, in relation to acquisition of DXB CoolCo FZCO during 2023. The financial assets are categorised within level 3 of the fair value hierarchy which approximates its carrying value.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 15 9 Financial assets at fair value through other comprehensive income (FVTOCI) 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited At 1 January 55,778 55,709 Bonds redeemed (55,080) - Addition during the period 73,684 - Interest income 1,222 644 Interest received (1,652) (643) Fair value gain during the period/year 612 68 At 30 June / 31 December 74,564 55,778 During the period, Tier 1 Capital Certificates (“Bonds”) were redeemed at the face value and the Group invested in perpetual Tier 1 Sukuk (“Sukuks”), which were issued at par value and are listed on Nasdaq and Euronext. The Bonds carried a non -cumulative profit rate of 6.0% per annum and Sukuks carries a non -cumulative profit rate of 6.25% per annum. Distributions under both instruments are payable semi-annually at the discretion of the issuer. During the period, the following amounts were recognised in profit or loss and other comprehensive income: 30 June 30 June 2026 2025 AED’000 AED’000 Unaudited Unaudited Fair value gain / (l oss) recognised in other comprehensive income 612 (14) Interest income from Bonds and Sukuk Bonds held at FVTOCI recognised in profit or loss 1,222 2,296 Gain on redemption of Bonds 22 - Subsequent to the reporting date, the Group sold its Sukuks at a value of AED 74,184 thousand and invested AED 73,670 thousand on 15 July 2026 in Tier 1 perpetual capital bond which carries a non -cumulative profit rate of 6.625% per annum, payable semi -annually at the discretion of the issuer. 10 Financial assets at fair value through profit or loss 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited Investment in National Bonds 53,281 45,283 Interest accrued 130 178 At 30 June / 31 December 53,411 45,461 During the period ended 30 June 2026, the Group invested an additional amount of AED 7,998 thousand into the National Bonds Corporation Sole Proprietorship P.S.C. on similar terms as existing investments.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 16 11 Trade and other receivables 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited Trade receivables 285,185 199,213 Accrued revenues 108,970 44,424 394,155 243,637 Less: Provision for expected credit losses (41,078) (41,078) 353,077 202,559 Other financial assets at amortised cost Other receivables 11,153 16,556 Other assets Advance to contractors / suppliers 56,780 65,633 Prepayments 12,962 19,070 69,742 84,703 433,972 303,818 The increase in accrued revenue reflects the seasonal nature of the Group's operations, which are sensitive to weather conditions. Other receivables include a deposit of AED 4,490 thousand (2025: AED 4,490 thousand ) receivable from DEWA (Note 13). 12 Dividends Final dividends A final dividend of AED 437,500 thousand (AED 0.04375 per share) in respect of the year ended 31 December 2025 was declared and approved in Annual General Assembly Meeting held on 26 March 2026 which was paid on 23 April 2026 (2025: A final dividend of AED 437,500 thousand (AED 0.04375 per share) in respect of the year ended 31 December 2024 was declared and approved in Annual General Assembly Meeting held on 19 March 2025 which was paid on 16 April 2025). Interim dividends No interim dividend proposed for the six-month period ended 3 0 June 2026 (2025: Interim dividend of AED 437,500 thousand (AED 0.04375 per share) in respect of the six -month period ended 30 June 2025 was approved in Annual General Assembly Meeting held on 9 October 2025 which was subsequently paid on 30 October 2025). 13 Transactions and balances with related parties Related parties include the shareholders, key management personnel, subsidiaries, joint venture, directors and businesses which are controlled directly or indirectly by the shareholders or directors or over which they exercise significant management influence. The Group has availed the exemption as per para 25 of IAS 24 Related Party Disclosure.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 17 13 Transactions and balances with related parties (continued) (a) Related party transactions During the period, the Group entered into the following significant transactions with related parties: Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Services rendered to entities under common control of Ultimate Parent Dubai Airports Corporation 48,485 68,639 75,378 110,003 Dubai Properties Group LLC 31,140 39,795 56,004 71,564 Nakheel PJSC 31,480 54,775 60,099 80,770 Tecom Investments FZ LLC 17,204 14,503 29,013 28,272 Jumeirah Group LLC 13,913 13,222 25,037 23,320 Meraas Holding LLC 8,450 9,999 14,433 16,317 Meydan Group LLC 4,407 7,769 7,481 7,769 Global Village Dubai LLC 149 167 261 285 155,228 208,869 267,706 338,300 Dividend to shareholders Dubai Electricity and Water Authority PJSC (DEWA)* - - 350,000 245,000 Emirates Power Investment LLC - - - 105,000 - - 350,000 350,000 Services received from shareholder Dubai Electricity and Water Authority PJSC (DEWA) 366,336 414,421 543,036 579,398 Services received from entities under common control of Ultimate Parent Finance cost from Emirates NBD PJSC 50,607 57,355 101,089 113,357 Key Management Remuneration Board of directors’ remuneration (Note 20) 1,500 1,470 3,000 2,940 Compensation of key management personnel Short term benefits 1,246 1,223 2,502 2,442 End of service benefits 130 130 260 260 1,376 1,353 2,762 2,702 *Dividend (Note 12) was announced subsequent to the transaction of transfer ownership by EPI to DEWA (Note 1).
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 18 13 Transactions and balances with related parties (continued) (b) Balances with related parties 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited Due from related parties Entity under common control of Ultimate Parent Dubai Airports Corporation (DAC) 49,476 16,171 Nakheel PJSC 8,709 16,308 Jumeirah Group LLC 5,374 3,720 Tecom Investments FZ LLC 6,348 2,291 Dubai Aviation City Corporation (DACC) 1,141 764 Meraas Holding LLC 1,960 69 Others 45 30 73,053 39,353 Due to related parties Shareholders Dubai Electricity and Water Authority PJSC (DEWA) 175,654 103,483 Entity under common control of Ultimate Parent Meydan City Corporation 28,000 28,551 Dubai Airports Corporation (DAC) 19,572 8,046 Dubai Properties Group LLC 19,488 21,333 Others 257 257 67,317 58,187 242,971 161,670 The increase in related party balances reflects the seasonal nature of the Group's operations, which are sensitive to weather conditions. Amounts included in bank borrowings, financial assets at amortised cost, cash and cash equivalents and trade and other receivables Shareholder Dubai Electricity and Water Authority PJSC (Note 11) 4,490 4,490 Entities under common control of Ultimate Parent Emirates NBD PJSC 5,930,506 5,921,192 Dubai Aviation City Corporation (DACC) 1,005,030 1,012,906 Dubai Islamic Bank PJSC 341,373 291,838 Nakheel PJSC 289,412 291,933 Emirates Islamic Bank (P.J.S.C.) 322,566 138,725
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 19 14 Cash and cash equivalents 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited Short term bank deposits – less than 3 months 2,244,495 2,050,859 Cash at bank 225,781 204,886 Cash on hand 1,736 - 2,472,012 2,255,745 Bank balances are held with branches of local and international banks. Short-term bank deposits bear an effective interest rate of 3.75% to 4.60% per annum (2025: of 3.9% to 4.8% per annum). Term deposits are presented as cash equivalents only if they have a maturity of three-month or less from the date of original maturity or are readily convertible to known amounts of cash which are subject to insignificant risk of changes in value. The Group earned finance income of AED 31,221 thousand during the six-month period ended 30 June 2026 (2025: AED 24,451 thousand). 15 Bank borrowings 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited Revolving credit facilities 5,500,000 5,500,000 Interest accrued 2,845 3,418 Revolving credit facilities 5,502,845 5,503,418 Total borrowings 5,502,845 5,503,418 Less: current portion (2,845) (3,418) Non-current balance 5,500,000 5,500,000 Interest accrued as of 30 June 2026 amounts to AED 2,845 thousand (2025: AED 3,418 thousand), classified as short -term portion of bank borrowings which is payable within one year.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 20 15 Bank borrowings (continued) The movement in bank borrowings during the period: 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited As at 1 January 5,503,418 5,498,415 Drawdown during the period/year 2,000,000 6,749,358 Interest expense during the period/year 98,031 220,753 Interest capitalised during the period/year 3,482 10,711 Interest paid during the period/year (102,086) (229,600) Principal repayment during the period/year (2,000,000) (6,750,000) Arrangement fee charged to statement of profit and loss - 3,781 At 30 June / 31 December 5,502,845 5,503,418 During the year ended 31 December 2025, the Group exchanged certain borrowing facilities with one of its existing lenders. For further information, please refer to Note 19 in the Group’s annual consolidated financial statements for the year ended 31 December 2025. As of 30 June 2026, the Group has the following outstanding borrowing facilities; Facility Maturity Interest rate Amount (AED’000) RCF – Conventional & Islamic September 2027 EIBOR + margin 2,750,000 RCF – Conventional & Islamic February 2028 EIBOR + margin 2,750,000 Total 5,500,000 Revolving credit facilities (RCF) are classified as non -current liabilities at the end of the reporting period as the Company has a right to defer settlement of these for at least 12 months after the reporting period. The maturity profile of the borrowings is as follows: 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited Within one year 2,845 3,418 After one year but not more than three years 5,500,000 5,500,000 5,502,845 5,503,418 The facilities are guaranteed by the Company and Palm District Cooling LLC. There were no undrawn facilities as of 30 June 2026 and 31 December 2025.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 21 16 Trade and other payables 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited Deferred revenue 905,070 741,871 Refundable customers’ security deposits 577,600 549,132 Project cost accruals 403,362 361,648 Project payables 134,637 143,675 Retention payable 114,008 108,514 Other liabilities 337,166 276,051 2,471,843 2,180,891 Less: Non-current portion of retention payable (13,280) (15,835) Current portion 2,458,563 2,165,056 During the six -month period ended 30 June 2026, the Group collected connection fees in relation to new buildings that are not connected to district cooling network as of 30 June 2026 and recorded as deferred revenue. Project cost accruals increased due to the continued progress of ongoing projects and the related costs incurred during the period. Other liabilities include accrued expenses for water and electricity amounting to AED 105,679 thousand (31 December 2025: AED 50,207 thousand) payable to DEWA. Movement in deferred revenue is as follows: 30 June 30 June 2026 2025 AED’000 AED’000 Unaudited Unaudited At 1 January 741,871 520,094 Billed during the period 876,969 765,764 Less: Income recognised during the period (713,770) (643,903) At 30 June 905,070 641,955 17 Revenue Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited District cooling services 872,883 907,110 1,491,122 1,445,361 Sale of pre-insulated pipes 15,959 6,364 28,293 8,072 888,842 913,474 1,519,415 1,453,433
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 22 18 Operating segments The Group has determined that the Board of Directors, are the chief operating decision - makers (“CODM”) as per the requirements of IFRS 8 Operating Segments. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements. The Board of Directors are also provided with multiple levels of information which comprise of revenue, gross profit and net profit, aggregated for higher level components by stream. The financial accounting system of the Group is currently configured in this manner and this information is readily available. However, for decision making purposes, the Board of Directors relies mainly on the revenue and net profit information that contains lower-level components. Hence, the segment information provided is primarily to the net profit level of the Group. For the Board of Directors, the Group is currently organised into two major operating and reportable segments as follows: • The ‘Chilled water’ segment constructs, owns, assembles, installs, operates and maintains cooling and conditioning systems. In addition, the segment distributes and sells chilled water for use in district cooling technologies. • The ‘Pre-insulated pipe business' segment is involved in manufactur ing, assembling and selling activities relating to the expansion of the Group’s chilled water business.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three -month and six -month periods ended 30 June 2026 (continued) 23 18 Operating segments (continued) Six-month period ended 30 June 2026 (unaudited) Six-month period ended 30 June 2025 (unaudited) Chilled water Pre- insulated pipe Elimination Total Chilled water Pre- insulated pipe Elimination Total AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Revenues External revenue 1,491,122 28,293 - 1,519,415 1,445,361 8,072 - 1,453,433 Interest earned on financial asset at amortised cost 28,501 - - 28,501 28,938 - - 28,938 Inter-segment revenue - 19,801 (19,801) - - 12,410 (12,410) - Total revenues 1,519,623 48,094 (19,801) 1,547,916 1,474,299 20,482 (12,410) 1,482,371 Cost of sales (823,209) (32,888) 11,643 (844,454) (825,935) (12,974) 6,788 (832,121) Gross profit 696,414 15,206 (8,158) 703,462 648,364 7,508 (5,622) 650,250 General and administrative expenses (132,246) (2,707) - (134,953) (122,527) (2,490) - (125,017) Other income 12,291 49 - 12,340 5,862 4 - 5,866 Operating profit 576,459 12,548 (8,158) 580,849 531,699 5,022 (5,622) 531,099 Finance income 30,075 1,146 - 31,221 23,552 899 - 24,451 Finance costs (98,062) - - (98,062) (113,192) - - (113,192) Finance costs – net (67,987) 1,146 - (66,841) (89,640) 899 - (88,741) Profit before income tax 508,472 13,694 (8,158) 514,008 442,059 5,921 (5,622) 442,358 Income tax (45,586) (1,021) 523 (46,084) (39,667) (28) - (39,695) Profit for the interim period 462,886 12,673 (7,635) 467,924 402,392 5,893 (5,622) 402,663 Inter-segment transactions are eliminated on consolidation.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three -month and six -month periods ended 30 June 2026 (continued) 24 18 Operating segments (continued) Segment results include an amount of depreciation and amortisation allocated to the operating segments as follows: Six-month period ended 30 June 2026 (unaudited) Six-month period ended 30 June 2025 (unaudited) Chilled water Pre- insulated pipe Total Chilled water Pre- insulated pipe Total AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Depreciation on property, plant and equipment (Note 6) 182,194 1,056 183,250 175,202 1,104 176,306 Depreciation on right-of-use assets 1,014 - 1,014 2,681 - 2,681 Depreciation on investment properties (Note 28) 2,077 - 2,077 2,898 - 2,898 Amortisation of intangible asset (Note 7) 6,078 - 6,078 6,078 - 6,078 Total depreciation and amortisation 191,363 1,056 192,419 186,859 1,104 187,963 Segment assets and liabilities are as follows: Six-month period ended 30 June 2026 (unaudited) Six-month period ended 30 June 2025 (unaudited) Chilled water Pre- insulated pipe Total Chilled water Pre- insulated pipe Total AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Segment assets 12,122,372 144,861 12,267,233 11,485,262 94,884 11,580,146 Total assets 12,122,372 144,861 12,267,233 11,485,262 94,884 11,580,146 Segment liabilities 8,711,788 27,115 8,738,903 8,228,054 14,173 8,242,227 Total liabilities 8,711,788 27,115 8,738,903 8,228,054 14,173 8,242,227
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three -month and six -month periods ended 30 June 2026 (continued) 25 18 Operating segments (continued) The table below illustrates the capital expenditures added during the period: Six-month period ended 30 June 2026 (unaudited) Six-month period ended 30 June 2025 (unaudited) Chilled water Pre- insulated pipe Total Chilled water Pre- insulated pipe Total AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Property, plant and equipment 255,607 178 255,785 273,055 - 273,055 Geographic information The Group's revenues, profits and assets completely relate to its operations in Dubai, UAE only. The following table presents certain revenue and non-current assets information relating to the Group based on geographical location of the operating units: Revenue Non-current assets 30 June 2026 (unaudited) 30 June 2025 (unaudited) 30 June 2026 (unaudited) 31 December 2025 (audited) AED’000 AED’000 AED’000 AED’000 United Arab Emirates 1,519,415 1,453,433 9,116,003 9,038,193
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 26 19 Cost of sales Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Utilities cost 368,440 414,849 546,066 580,951 Depreciation on property, plant and equipment (Note 6) 85,782 87,645 171,637 171,412 Repairs and maintenance 21,860 9,634 44,128 23,201 Staff costs (Note 21) 14,905 11,606 29,679 23,650 Materials 11,113 3,854 17,556 4,641 Amortisation of intangible asset (Note 7) 3,039 2,965 6,078 6,078 Depreciation on right-of-use assets - 332 151 663 Others 16,790 10,473 29,159 21,525 521,929 541,358 844,454 832,121 20 General and administrative expenses Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Staff costs (Note 21) 47,099 43,855 93,740 89,417 Depreciation on property, plant and equipment (Note 6) 6,469 2,717 11,613 4,894 Communication expenses 1,532 1,381 3,079 2,749 Board of directors’ remuneration 1,500 1,470 3,000 2,940 Bank charges 1,680 1,158 3,000 2,401 Consultancy 1,952 2,364 2,848 3,834 Advertising and marketing expenses 1,360 1,998 2,240 2,800 Software maintenance expenses 1,106 1,032 2,109 2,379 Depreciation on investment properties (Note 28) 1,220 1,756 2,077 2,898 HSE equipment 605 393 1,388 767 Water & Electricity 576 623 1,113 1,177 Business travel 743 416 971 619 Depreciation on right-of-use assets 432 1,009 863 2,018 Others 3,319 3,954 6,912 6,124 69,593 64,126 134,953 125,017
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 27 21 Staff costs Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Salaries 39,790 36,826 79,512 74,565 Staff benefits 19,761 16,155 38,799 33,467 End of service benefits 2,453 2,480 5,108 5,035 62,004 55,461 123,419 113,067 Staff costs have been charged to: Cost of sales (Note 19) 14,905 11,606 29,679 23,650 General and administrative expenses (Note 20) 47,099 43,855 93,740 89,417 62,004 55,461 123,419 113,067 22 Guarantees As at 30 June 2026, the Group had AED 3,963 thousand o utstanding bank guarantees and letters of credits (31 December 2025: Nil), which were issued by the Group’s bankers in the normal course of business. 23 Commitments Capital commitments As at 30 June 2026, the Group has project commitments of AED 980,386 thousand (31 December 2025: AED 825,129 thousand) for projects -in-progress. These commitments represent the value of contracts issued as of 30 June 2026, net of invoices recorded, and accruals made as of that date . The increase during the period was primarily attributable to a new plant contract. 24 Earning per share Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Profit attributable to the ordinary equity holders of the Company (AED) 256,463 254,973 463,557 397,944 Weighted average number of ordinary shares used as a denominator in calculating basic earnings per share 10,000,000,000 10,000,000,000 10,000,000,000 10,000,000,000 Basic and diluted earnings per share (AED) 0.0256 0.0255 0.0464 0.0398
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 28 25 Fair value measurement The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: Level 1: inputs that are quoted market price (unadjusted) in an active market for identical instruments. Level 2: inputs other than quoted prices included within Level 1 that are observable either directly (i.e., as prices) or indirectly (i.e., derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted market prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data. Level 3: inputs that are unobservable. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments. The table below analyses financial instruments, measured at fair value at the end of the reporting period, by the level in the fair value hierarchy into which the fair value measurement is categorised: 30 June 2026 Level 1 Level 2 Level 3 Total AED’000 Unaudited AED’000 Unaudited AED’000 Unaudited AED’000 Unaudited Financial assets at fair value through other comprehensive income 74,564 - - 74,564 Financial assets at fair value through profit or loss - 53,411 - 53,411 74,564 53,411 - 127,975 31 December 2025 Level 1 Level 2 Level 3 Total AED’000 Audited AED’000 Audited AED’000 Audited AED’000 Audited Financial assets at fair value through other comprehensive income 55,778 - - 55,778 Financial assets at fair value through profit or loss - 45,461 - 45,461 55,778 45,461 - 101,239 There were no transfers between Level 1, Level 2 and Level 3 fair value measurements. Specific valuation techniques used to value financial instruments include: • the use of quoted market prices or dealer quotes for similar instruments; and • for other financial instruments - discounted cash flow analysis. All of the resulting fair value estimates are included in level 2.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 29 26 Seasonality of operations The Group’s financial results for any period are not necessarily indicative of results to be expected for the full year. Interim period revenues and earnings are typically sensitive to the weather conditions. 27 Income tax expense (a) Components of income tax expense Income tax expenses recorded in statement of comprehensive income comprises the following: Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Current tax 25,334 25,160 45,594 39,123 Deferred tax asset 286 286 572 572 Deferred tax liability (82) - (82) - Income tax expense 25,538 25,446 46,084 39,695 Income tax expense is recognised during the three- month and six-month periods ended 30 June 2026 on the weighted average annual income tax rate for the full financial year. Amounts accrued for income tax expense may have to be adjusted if the annual income tax rate changes. As of 30 June 2026, the Group has current tax liabilities of AED 143,181 thousand (31 December 2025: AED 97,585 thousand) and deferred tax assets of AED 14,531 thousand (31 December 2025: AED 15,077 thousand). (b) Reconciliation between the tax expense and profit or loss multiplied by applicable tax rate. The income tax rate applicable to the Group’s income is 9% (2025: 9%). A reconciliation between the expected and the actual tax charge is provided overleaf:
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 30 27 Income tax expense (continued) Three-month period ended 30 June Six-month period ended 30 June 2026 2025 2026 2025 AED’000 AED’000 AED’000 AED’000 Unaudited Unaudited Unaudited Unaudited Profit before income tax 284,977 283,290 514,008 442,358 Profit before tax at statutory rate of 9% 25,648 25,496 46,261 39,812 Tax effect of amounts which are not deductible / (taxable) in calculating taxable income: Income which is exempt from taxation (68) (68) (68) (68) Other adjustments (42) 18 (109) (49) Income tax expense 25,538 25,446 46,084 39,695 The effective tax rate for the three-month and six-months periods ended 30 June 2026 is 9% (2025: 9%). (c) Deferred taxes analysed by type of temporary difference Differences between IFRS Accounting Standards and statutory taxation regulations in the United Arab Emirates give rise to temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their tax bases. The tax effect of the movements in these temporary differences was not material to the interim condensed consolidated financial statements. Further, AED 55 thousand (2025: AED 6 thousand) deferred tax relates to changes in fair value of financial assets at fair value through other comprehensive income which has been recognised in other comprehensive income in interim condensed consolidated statement of comprehensive income. (d) OECD Pillar Two The Group has assessed the applicability of the OECD Pillar Two model rules and concluded that it is not within the scope of the legislation.
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Emirates Central Cooling Systems Corporation P.J.S.C Notes to the interim condensed consolidated financial statements for the three-month and six-month periods ended 30 June 2026 (continued) 31 28 Investment properties 30 June 31 December 2026 2025 AED’000 AED’000 Unaudited Audited At 1 January 170,793 118,015 Additions - 25,687 Transfers from property, plant and equipment (Note 6) - 33,408 Depreciation during the period (Note 20) (2,077) (6,317) At 30 June / 31 December 168,716 170,793 Investment properties include residential buildings and certain floors of office buildings which are held for long-term rental yields and are not occupied by the group. They are carried at cost and depreciated over a useful life of 25 to 50 years. During the three-month and six-month periods ended 30 June 2026 , the Group earned rental income of AED 4,840 thousand (2025: AED 2,375 thousand ) and AED 9,650 thousand (2025: AED 2,375 thousand) respectively. Additions and transfers mainly represent construction cost of the leased floors of the office building. Transfer from property, plant and equipment is a non-cash transaction. 29 Corresponding figures The Group had previously presented receipts of AED 27,667 thousand as a non -cash adjustment to “Operating cash flows before changes in working capital and payment of employees’ end of service benefits,” under “Remeasurement of financial assets (settlement of financial assets)” in the statement of cash flows which has been presented as changes in Financial assets within the “Changes in working capital” in the interim condensed consolidated statement of cash flows. This reclassification has no impact on the net cash generated from operating activities. 30 Regional Conflict Ongoing developments in parts of the Middle East during the period have resulted in a degree of uncertainty across the region, including the United Arab Emirates where the Group operates. These developments have had a limited impact on the Group's consumption revenue, primarily due to lower customer activity levels in certain sectors, including hospitality. Management continues to monitor the situation and will assess any implications in the ordinary course of business.