Earnings release
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QATARI INVESTORS GROUP Q.P.S.C. DOHA – QATAR CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED DECEMBER 31, 2025
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QATARI INVESTORS GROUP Q.P.S.C. CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR’S REPORT For the year ended December 31, 2025 INDEX Page Independent auditor’s report -- Consolidated statement of financial position 1 – 2 Consolidated statement of profit or loss and other comprehensive income 3 Consolidated statement of changes in equity 4 Consolidated statement of cash flows 6 – 5 Notes to the consolidated financial statements 7 – 69
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Deloitte and Touche – Qatar Branch Burj Alfardan Building Al Majdami Street Lusail P.O. Box 431 Qatar Tel: +974 443-41112 Fax:+974 4442 2131 www.deloitte.com QR. 21398 RN: 682/ZZ/FY2026 INDEPENDENT AUDITOR’S REPORT To the Shareholders of Qatari Investors Group Q.P.S.C. Doha - Qatar Report on the Audit of the Consolidated Financial Statements Opinion We have audited the consolidated financial statements of Qatari Investors Group Q.P.S.C. (the “Company”), and its subsidiaries (together the “Group”) which comprise the consolidated statement of financial position as at December 31, 2025, and the consolidated statement of pro fit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Co de), as applicable to au dits of the consolidated financial statements of public interest entities, together with the other ethical requirements that are relevant to audits of the consolidated financial statements of public interest entities in the state of Qatar and we have fulfi lled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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INDEPENDENT AUDITOR’S REPORT (CONTINUED) Key Audit Matters (continued) Key audit matter How our audit addressed the key audit matter Impairment of goodwill As at December 31, 2025, the carrying value of goodwill amounted to QR 230.5 million as disclosed in Note 8. In accordance with IAS 36 Impairment of Assets, an entity is required to test goodwill acquired in a business combination for impairment at least annually irrespective of whether there is any indication of impairment. An impairment is recognized on the consolidated statement of financial position when the recoverable amount is less than the net carrying amount in accordance with IAS 36, as described in Note 8 to the consolidated financial statements. The determination of the recoverable amount is mainly based on discounted future cash flows. We considered the impairment of goodwill to be a key audit matter, given the method for determining the recoverable amount, the significance of the amount in the Group’s consolidated financial statements and the level of audit effort required. We tested the impairment models and the key assumptions used by management with the involvement of our valuation specialists. Our audit procedures included the following: • Understanding the business process for the impairment assessment, identifying the relevant internal controls and assessing these controls to determine if they had been appropriately designed and implemented. • Evaluating whether the cash flows in the models used by management to calculate the recoverable value are in accordance with the requirements of IFRS Accounting Standards. • Obtaining and analyzing the approved business plans for each such asset (or Cash Generating Unit, as applicable) to assess the accuracy of the computations and the overall reasonableness of key assumptions; • Comparing actual historical cash flow results with previous forecasts to assess forecasting accuracy. • Assessing the methodology used by the Group to estimate the Weighted Average Cost of Capital (WACC) and benchmarking that with discount rates used by other similar businesses and external sector related guidelines; • Benchmarking assumptions on long term growth rates of local GDP and long term inflation expectations with external sources of data published by global monetary agencies; and • Benchmarking the values with market multiples where applicable. We also performed sensitivity analyses on the key assumptions used by management to understand the extent to which these assumptions need to be adjusted before resulting in additional impairment loss. We assessed the disclosures in the consolidated financial statements relating to this matter against the requirements of IFRS Accounting Standards.
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INDEPENDENT AUDITOR’S REPORT (CONTINUED) Key Audit Matters (continued) Key audit matter How our audit addressed the key audit matter Valuation of investment properties The Group’s investment property portfolio amounted to QR 864.4 million as at December 31, 2025 and the net fair value gain recorded in the consolidated statement of profit or loss amounted to QR 0.7 million as disclosed in Note 7. The Group measures it investment prop erties at fair value. The determination of fair value of these investment properties is based on external valuations using market approach for the land and the income approach for the building. The valuation of the portfolio is a significant judgement area and is based on a number of assumptions. The existence of significant estimation uncertainty warrants specific audit focus in this area as any bias or error in determining the fair value could lead to a material misstatement in the consolida ted financial statements. In addition, the amount is quantitatively significant to the consolidated financial statements and requires a significant level of audit effort. Consequently, we have identified this as a key audit matter. Our audit procedures included the following: We obtained an understanding of the process adopted by management to determine the valuation of investment properties and identified the key controls in this process. We evaluated the abovementioned controls to determine if they had been designed and implemented appropriately. We assessed the valuer’s competence, capabilities, independence and objectivity and read their terms of engagement with the Group to determine that the scope of their work was sufficient for audit purposes. We agreed the total valuation in the valuers report to the amount reported in the consolidated statement of financial position. We tested the data provided to the valuer by the Group, on a sample basis. We involved our internal real estate valuation specialist to review selected properties valued by external valuers and internally by management and assessed whether the valuation of the properties was performed in accordance with the requirements of IFRS Accounting Standards. Where we identified estimates that were outside acceptable parameters, we discussed these with the valuers and management to understand the rationale behind the estimates made. We performed sensitivity analyses on the significant assumptions to evaluate the extent of their impact on the determination of fair values. We assessed the disclosures in the consolidated financial statements relating to this matter to determine if they were in accordance with the requirements of IFRS Accounting Standards.
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INDEPENDENT AUDITOR’S REPORT (CONTINUED) Other Information Management is responsible for the other information. The other information comprises the Board of Directors’ Report, but does not include the consolidated financial statements and our auditor’s report thereon, which we obtained prior to the date of this auditor’s report, and the Annual Report, which is expected to be made available to us after that date. Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the complete Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the IASB and their preparation in compliance with the applicable provisions of Qatar Commercial Com panies’ Law and the Company’s Articles of Association, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s financial reporting process. Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
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INDEPENDENT AUDITOR’S REPORT (CONTINUED) Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements (continued) As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also ➢ Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risk, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentations, or the override of interna l control. ➢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. ➢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. ➢ Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. ➢ Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represents the underlying transactions and events in a manner that achieves fair presentation. ➢ Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the Group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the Group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law and regulations preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
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INDEPENDENT AUDITOR’S REPORT (CONTINUED) Report on Other Legal and Regulatory Requirements Further, as required by the Qatar Commercial Companies’ Law, we report the following: ➢ We are of the opinion that proper books of account were maintained by the Group, physical inventory verification has been duly carried out and the contents of the director’s report are in agreement with the Group’s accompanying consolidated financial statements. ➢ We obtained all the information and explanations which we considered necessary for the purpose of our audit. ➢ To the best of our knowledge and belief and according to the information given to us, no contraventions of the applicable provisions of Qatar Commercial Companies ’ Law and the Company’s Articles of Association were committed during the year which would materially affect the Group’s consolidated financial position or its consolidated financial performance. Doha – Qatar For Deloitte & Touche February 3, 2026 Qatar Branch Joseph Khalife Partner License No. 433 QFMA Auditor License No. 120156
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QATARI INVESTORS GROUP Q.S.C. CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended December 31, 2025 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS - 3 - Notes 2025 2024 QR. QR. Revenue 28 552,479,211 501,358,928 Cost of revenue 29 (338,973,279) (253,040,722) Gross profit 213,505,932 248,318,206 Income from short-term deposits and saving accounts 18,796,220 23,123,509 Other income 30 26,602,986 20,573,944 Investment income 1,546,428 1,269,400 Net change in fair value of investment properties 7 712,862 13,017,335 Share of profit / (loss) from investments in associates 9 16,642,205 (4,121,903) Selling and distribution expenses 31 (3,739,662) (6,319,901) General and administrative expenses 32 (91,867,661) (87,659,351) Finance costs (34,329,302) (38,130,777) Net profit for the year before income tax 147,870,008 170,070,462 Income tax expenses 33 (3,422,165) (5,128,361) Net profit for the year after income tax 144,447,843 164,942,101 Attributable to: Owners of the Parent 144,426,880 165,280,565 Non-controlling interest 20,963 (338,464) Net profit for the year after income tax 144,447,843 164,942,101 Other comprehensive income Items that will not be reclassified to profit or loss in subsequent periods Net change in fair value of financial assets at FVTOCI 10 705,927 (533,718) Revaluation surplus 5 8,660,631 -- Items that may be reclassified to profit or loss in subsequent periods Change in fair value of cash flow hedging derivative 21 (31,676,393) (21,395,288) Total comprehensive income for the year after income tax 122,138,008 143,013,095 Attributable to: Owners of the Parent 122,117,045 143,351,559 Non-controlling interest 20,963 (338,464) Total comprehensive income for the year after income tax 122,138,008 143,013,095 Basic and diluted earnings per share 35 0.12 0.13 This statement has been prepared by the Group and stamped by the Auditors for identification purposes only.
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QATARI INVESTORS GROUP Q.P.S.C. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended December 31, 2025 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS - 4 - This statement has been prepared by the Group and stamped by the Auditors for identification purposes only. Share capital Legal reserve Fair value reserve Revaluation Surplus Hedging reserve Retained earnings Proposed dividends Attributable to the owners of the Parent Non- controlling interest Total QR. QR. QR. QR. QR. QR. QR. QR. QR. Balance at January 1, 2024 1,243,267,780 621,633,890 5,882,493 -- 85,864,500 946,225,789 186,490,167 3,089,364,619 (5,116,157) 3,084,248,462 Net profit for the year after income tax -- -- -- -- -- 165,280,565 -- 165,280,565 (338,464) 164,942,101 Other comprehensive income for the year -- -- (533,718) -- (21,395,288) -- -- (21,929,006) -- (21,929,006) Total comprehensive income for the year after income tax -- -- (533,718) -- (21,395,288) 165,280,565 -- 143,351,559 (338,464) 143,013,095 Dividends paid to the shareholders -- -- -- -- -- -- (186,490,167) (186,490,167) -- (186,490,167) Dividend proposed to the shareholders (Note 19) -- -- -- -- -- (161,624,811) 161,624,811 -- -- -- Social and sports fund contribution (Note 34) -- -- -- -- -- (4,132,014) -- (4,132,014) -- (4,132,014) Balance as at December 31, 2024 1,243,267,780 621,633,890 5,348,775 -- 64,469,212 945,749,529 161,624,811 3,042,093,997 (5,454,621) 3,036,639,376 Net profit for the year after income tax -- -- -- -- -- 144,426,880 -- 144,426,880 20,963 144,447,843 Other comprehensive income for the year -- -- 705,927 8,660,631 (31,676,393) -- -- (22,309,835) -- (22,309,835) Total comprehensive income for the year after income tax -- -- 705,927 8,660,631 (31,676,393) 144,426,880 -- 122,117,045 20,963 122,138,008 Dividends paid to the shareholders -- -- -- -- -- -- (161,624,811) (161,624,811) -- (161,624,811) Proposed dividend to the shareholders (Note 19) -- -- -- -- -- (124,326,778) 124,326,778 -- -- -- Social and sports fund contribution (Note 34) -- -- -- -- -- (3,610,672) -- (3,610,672) -- (3,610,672) Balance as at December 31, 2025 1,243,267,780 621,633,890 6,054,702 8,660,631 32,792,819 962,238,959 124,326,778 2,998,975,559 (5,433,658) 2,993,541,901
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QATARI INVESTORS GROUP Q.P.S.C. CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended December 31, 2025 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS - 5 - Notes 2025 2024 QR. QR. OPERATING ACTIVITIES Net profit for the year before income tax 147,870,008 170,070,462 Adjustments for: Depreciation of property, plant and equipment 5 60,199,488 66,349,766 Amortisation of right-of-use assets 6 13,998,578 23,744,834 Net change in fair value of investment properties 7 (712,862) (13,017,335) Accrued finance costs 62,745,145 80,585,045 Gain on cancellation of leases 30 (4,538,326) -- Share of (profit) / loss from investments in associates 9 (16,642,205) 4,121,903 Provision / (reversal) for impairment of contract assets 12 668,199 (72,419) Net movement in provision for inventories 13 (355,096) (1,060,119) Reversal for impairment of advances to contractors and suppliers 15 (375,914) (3,542,741) (Reversal) / provision for impairment of accounts receivables 17 (8,887,513) 5,582,805 Gain on disposal of property, plant and equipment (2,273,355) (2,736,305) Interest expenses on lease liabilities 23 4,541,545 8,301,298 Employees’ end of service benefits 24 1,440,352 1,942,821 257,678,044 340,270,015 Movements in working capital: Inventories 7,035,637 (54,154,449) Prepayments and other debit balances 8,404,967 4,465,171 Advances to contractors and suppliers 780,702 5,422,232 Due from related parties 2,988,334 2,752,615 Accounts receivable 36,301,710 36,373,222 Contracts assets (1,241,443) 5,617,727 Account payable (3,722,955) 3,591,376 Due to related parties (1,170,523) 1,258,541 Retention payables (1,916,993) (2,202,353) Accruals and other liabilities (5,914,275) (43,398,781) Cash generated from operations 299,223,205 299,995,316 Employees’ end of service benefits paid 24 (1,834,171) (2,065,171) Income tax expenses paid (290,493) (535,515) Payment of interest expense of lease liabilities (4,541,545) (8,301,298) Finance costs paid (71,706,062) (84,679,826) Net cash generated from operating activities 220,850,934 204,413,506 INVESTING ACTIVITIES Proceeds from sales of property, plant and equipment 6,929,950 6,955,847 Purchases of property, plant and equipment 5 (21,218,810) (35,556,697) Additions to investment properties (4,902,797) (3,948,932) Net movement in term deposits maturing after three months -- 165,000,000 Dividends from associates 9 7,505,049 3,697,589 Net cash (used in) / generated from investing activities (11,686,608) 136,147,807 This statement has been prepared by the Group and stamped by the Auditors for identification purposes only.
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QATARI INVESTORS GROUP Q.P.S.C. CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended December 31, 2025 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS - 6 - Notes 2025 2024 QR. QR. FINANCING ACTIVITIES Proceeds from borrowings 3,475,325 1,466,475 Repayment of borrowings (118,656,736) (107,872,610) Payment of lease liabilities (11,213,038) (21,590,660) Payment of social and sports fund contribution 34 (4,132,014) (4,662,665) Notes payable 1,849,990 (4,028,930) Dividends paid to the shareholders (161,624,811) (186,490,167) Net cash used in financing activities (290,301,284) (323,178,557) Net (decrease) / increase in unrestricted cash and cash equivalents (81,136,958) 17,382,756 Unrestricted cash and cash equivalents at the beginning of the year 408,319,260 390,936,504 Unrestricted cash and cash equivalents at the end of the year 18 327,182,302 408,319,260 Non-cash transactions: - Transfers from property, plant and equipment of QR 12,124,883 has been adjusted with investment properties. (Note 5, 7) - Revaluation gain of QR. 8,660,631 has been adjusted with property, plant and equipment (Note 5) - Transfer of property, plant and equipment of QR 394,623 has been adjusted with related party. - Movement in restricted cash of QR 31,961,599 has been adjusted with accruals and other liabilities (Note 18). - Provision for social fund contribution and income tax of QR 3,610,672 and QR 3,422,165 respectively have been adjusted with accruals and other liabilities (Note 27) This statement has been prepared by the Group and stamped by the Auditors for identification purposes only.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 7 - 1. INCORPORATION AND ACTIVITIES Qatari Investors Group Q. P.S.C. (the “Company”) is a Qatari Shareholding Company incorporated in the State of Qatar on May 04, 2006, in accordance with the Qatar Commercial Companies Laws and the terms of its Articles of Association. The Company operates under commercial registration No. 32831. The Company is primarily engaged in managing and providing necessary support to its subsidiaries and affiliates, in addition to owning moveable and real estate properties for operating its business. The address of the Company’s head office is QIG Tower, Lusail, Qatar. The consolidated financial statements comprise the financial statements of the Company and of its wholly owned subsidiaries (collectively “the Group”). Composition of the Group: The Group owns 100% of the beneficial interest and controls the following entities as at December 31, 2025: Name of subsidiary Place of incorporation Ownership interest Principal Activity QIG Property L.L.C. Qatar 100% Real estate The Investors Company L.L.C. Qatar 100% Trading of construction materials, equipment and trucks Qatari Investment Group L.L.C. Qatar 100% Investment and other trading QIG Marine Services Company L.L.C. Qatar 100% Marine services and shipping QIG Technology Company L.L.C.* Qatar 100% Information technology services QIG Trading Company L.L.C. Qatar 100% Various trading activities QIG Financial Services L.L.C. Qatar 100% Financial services QIG Projects Development L.L.C.* Qatar 100% Industry equipment works QIG Industries L.L.C.* Qatar 100% Mechanical and industrial engineering equipment QIG Contracting L.L.C. Qatar 100% Contracting services Qatari Group for Investment L.L.C. Qatar 100% Investment and other trading * These entities hold investments in International Technical and Trading Company L.L.C., Qatar Security Systems L.L.C., Mobility Car Rental L.L.C, Mobility Auto Garage L.L.C. and Al Khalij Cement Company L.L.C respectively. The Group has control of these entities and accordingly , accounts for these as subsidiaries. The result of the subsidiaries have been consolidated in these financial statements.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 8 - 1. INCORPORATION AND ACTIVITIES (CONTINUED) During the year, as part of internal restructuring, the management resolved to temporarily cease operations of following subsidiaries. The management is in the process of formulating a strategy for these subsidiaries: Name of Subsidiary Ownership structure Date of Resolution Current Status United Marine Services W.L.L. Qatari Investors Group Marine Services L.L.C March 23, 2025 Temporary ceased operations United Shipping QFC Qatari Investors Group Marine Services L.L.C November 9, 2025 Temporary ceased operations Smart Logistics L.L.C. Qatari Investors Group Project Development L.L.C. March 23, 2025 Temporary ceased operations EuroCar Rent A Car W.L.L. Qatari Investors Group Project Development L.L.C. March 23, 2025 Temporary ceased operations Desert and Desert Restaurant Management Company L.L.C. Qatari Investors Group Project Development L.L.C. – 51% Elemegi Holding L.L.C – 49% March 23, 2025 Temporary ceased operations Resa Prime Service L.L.C. QIG Industries L.L.C.- 60% RESA Financial Group – Spain – 40% September 18, 2025 Temporary ceased operations 2. APPLICATION OF NEW AND REVISED IFRS ACCOUNTING STANDARDS The accounting policies adopted are consistent with those of the previous financial year, except for the following new and amended IFRS Accounting Standards recently issued by the International Accounting Standards Board (“IASB”) and International Financial Reporting Interpretations Committee (“IFRIC”) interpretations effective as of January 1, 2025: 2.1 New and amended IFRS Accounting Standards that are effective for the current year In the current year, the Group has applied the following amendment to IFRS Accounting Standards issued by the IASB, which is mandatorily effective for an accounting period that begins on or after January 1, 2025. Its adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. New and amended IFRS Accounting Standard Effective for annual periods beginning on or after Amendments to IAS 21 -The Effects of Changes in Foreign Exchange Rates titled Lack of Exchangeability January 1, 2025 The amendments specify how to assess whether a currency is exchangeable, and how to determine the exchange rate when it is not. The amendments state that a currency is exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 9 - 2. APPLICATION OF NEW AND REVISED IFRS ACCOUNTING STANDARDS (CONTINUED) 2.1 New and amended IFRS Accounting Standards that are effective for the current year (continued) New and amended IFRS Accounting Standard Effective for annual periods beginning on or after Amendments to IAS 21 -The Effects of Changes in Foreign Exchange Rates titled Lack of Exchangeability (continued) January 1, 2025 When a currency is not exchangeable into another currency at a measurement date, an entity is required to estimate the spot exchange rate at that date. An entity’s objective in estimating the spot exchange rate is to reflect the rate at which an orderly ex change transaction would take place at the measurement date between market participants under prevailing economic conditions. The amendments do not specify how an entity estimates the spot exchange rate to meet that objective. An entity can use an observab le exchange rate without adjustment or another estimation technique. 2.2 New and amended IFRS Accounting Standards in issue but not yet effective and not early adopted The Group has not early adopted the following new and amended standards and interpretations that have been issued but are not yet effective. New and amended IFRS Accounting Standards Effective for annual periods beginning on or after Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments January 1, 2026. Earlier application is permitted These amendments: • permit an entity to deem a financial liability (or part of a financial liability) that is settled using an electronic payment system to be discharged (and derecognised) before the settlement date if specified criteria are met; • provide additional guidance on how the contractual cash flows for financial assets with environmental, social and corporate governance (ESG) and similar features should be assessed; • enhance the description of the term ‘non -recourse’, in particular to specify that a financial asset has non -recourse features if an entity’s ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets; • clarify the characteristics of contractually linked instruments that distinguish them from other transactions; and • make updates to the disclosures for financial instruments with contingent features and additional disclosure requirements for equity instruments classified at fair value through other comprehensive income (FVTOCI).
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 10 - 2. APPLICATION OF NEW AND REVISED IFRS ACCOUNTING STANDARDS (CONTINUED) 2.2 New and amended IFRS Accounting Standards in issue but not yet effective and not early adopted (continued) New and amended IFRS Accounting Standards Effective for annual periods beginning on or after Annual Improvements to IFRS Accounting Standards – Volume 11 January 1, 2026. Earlier application is permitted The IASB issued nine narrow scope amendments as part of its periodic maintenance of IFRS accounting standards. The amendments include clarifications, simplifications, corrections or changes to improve consistency in IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 7 Financial instruments: Disclosure and its Group ing Guidance on implementing IFRS 7, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial Statements and IAS 7 Statements of Cash Flows. Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity January 1, 2026. Earlier application is permitted The following requirements of IFRS 9 are affected by the amendments: • the own-use requirements in IFRS 9 are amended to include the factors an entity is required to consider when applying IFRS 9; 2.4 to contracts to buy and take delivery of renewable electricity for which the source of production of the electricity is nature-dependent; and • the hedge accounting requirements in IFRS 9 are amended to permit an entity using a contract for nature -dependent renewable electricity with specified characteristics as a hedging instrument: − to designate a variable volume of forecast electricity transactions as the hedged item if specified criteria are met; and − to measure the hedged item using the same volume assumptions as those used for the hedging instrument. IFRS 7 and IFRS 19 were amended to introduce disclosure requirements about contracts for nature -dependent electricity with specified characteristics. The amendments to the own use exemption are required to be applied retrospectively in accordance with IAS 8 using the facts and circumstances at the date of initial application. The amendments to the hedge accounting requirements are to be applied prospect ively to new hedging relationships designated on or after the date of initial application.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 11 - 2. APPLICATION OF NEW AND REVISED IFRS ACCOUNTING STANDARDS (CONTINUED) 2.2 New and amended IFRS Accounting Standards in issue but not yet effective and not early adopted (continued) New and amended IFRS Accounting Standards Effective for annual periods beginning on or after IFRS 18 –Presentation and Disclosures in Financial Statements January 1, 2027. Earlier application is permitted IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS 1 unchanged and complementing them with new requirements. In addition, some IAS 1 paragraphs have been moved to IAS 8 and IFRS 7. Furthermore, the IASB has made minor amendments to IAS 7 and IAS 33 Earnings per Share. IFRS 18 introduces new requirements to: • present specified categories and defined subtotals in the statement of profit or loss • provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements • improve aggregation and disaggregation. The amendments to IAS 7 and IAS 33, as well as the revised IAS 8 and IFRS 7, become effective when an entity applies IFRS 18. IFRS 18 requires retrospective application with specific transition provisions. The Management of the Group anticipates that the application of this standard will have an impact on the Group’s financial statements in future periods. IFRS 19 - Subsidiaries without Public Accountability: Disclosures January 1, 2027. Earlier application is permitted IFRS 19 permits an eligible subsidiary to provide reduced disclosures when applying IFRS Accounting Standards in its financial statements. A subsidiary is eligible for the reduced disclosures if it does not have public accountability and its ultimate or any intermediate parent produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it. An entity is only permitted to apply IFRS 19 if, at the end of the reporting period: • it is a subsidiary (this includes an intermediate parent) • it does not have public accountability, and • its ultimate or any intermediate parent produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. Management anticipates that these new standards, interpretations and amendments will be adopted in the Group’s financial statements as and when they are applicable. The Group is currently evaluating the impact of these new standards and amendments to existing standards.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 12 - 3. MATERIAL ACCOUNTING POLICIES Statement of compliance These consolidated financial statements have been prepared in accordance with I FRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and applicable provisions of Qatar Commercial Companies’ Law and the ’s articles of association. The preparation of consolidated financial statements in conformity with IFRS Accounting Standards requires the use of certain critical accounting estimates and judgments. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or are as where assumptions and estimates are significant to consolidated financial statements are disclosed in Note 4. Basis of preparation These consolidated financial statements have been prepared under the historical cost basis except for investment properties and certain financial assets that are measured at revalued amounts or fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using anothe r valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liabil ity at measurement date. For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: (i) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; (ii) Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and (iii) Level 3 inputs are unobservable inputs for the asset or liability. Functional and presentation currency These consolidated financial statements are presented in Qatari Riyal (QR.), which is the Group’s functional and presentation currency. The material accounting policies adopted are stated below: Basis of consolidation These consolidated financial statements include the financial statements of the Group and the financial statements of the entities controlled by the Group and its subsidiaries and associate. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 13 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Basis of consolidation (continued) Specifically, the Group controls an investee if and only if the Company has: • has power over the investee; • is exposed, or has rights, to variable returns from its involvement with the investee; and • has the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Group has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it power, including: • the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; • potential voting rights held by the Group, other vote holders or other parties; • rights arising from other contractual arrangements; and • any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholder’s meetings. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Profit or loss and each component of other comprehensive income are attributable to the owners of the Parent and to the non-controlling interests. Total comprehensive income of the subsidiaries is attributed to the owners of the Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the Group’s accounting policies. The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of profit or loss from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of the subsidiaries to bring their accounting policies in line with those used by the Group. All intragroup assets and liabilities, equity, income and expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 14 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Basis of consolidation (continued) The financial Statements of the subsidiaries were prepared for the same period ended December 31, 2025. Non‑controlling interests in subsidiaries are identified separately from the Group’s equity therein. Those interests of non‑controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets upon li quidation may initially be measured at fair value or at the non‑controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement is made on an acquisition‑by‑acquisition basis. Other non‑cont rolling interests are initially measured at fair value. Subsequent to acquisition, the carrying amount of non‑controlling interests is the amount of those interests at initial recognition plus the non‑controlling interests’ share of subsequent changes in e quity. Total comprehensive income is attributed to non‑controlling interests even if this results in the non‑controlling interests having a deficit balance. Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Group’s interests and the non‑controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non‑controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the Parent. Business combinations and goodwill Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition - date fair values of the assets transferred by th e Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. In a business combination achieved without the transfer of consideration, the Group substitutes the acquisition-date fair value of its interest in the acquiree for the acquisition -date fair value of the consideration transferred to measure goodwill or a gain on a bargain purchase. Acquisition-related costs are generally recognised in the consolidated statement of profit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value. When a business combination is achieved in stages, the Groups’ previously held interests in the acquired entity are remeasured to its acquisition‑date fair value and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that h ave previously been recognised in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognised as of that date.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 15 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Business combinations & goodwill (continued) Goodwill Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non- controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the a cquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition -date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non -controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognised immediately in the consolidated statement of profit or loss and other comprehensive income as a bargain purchase gain. Goodwill arising on an acquisition of a business is initially recognised and measured as set out above. Goodwill is not amortised but is reviewed for impairment at least annually. For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (or groups of cash- generating units) that is expected to benefit from the synergies of the combination. A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in the consolidated statement of profit or loss and other comprehensive income. An impairment loss recognised for goodwill is not reversed in subsequent periods. On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Investments in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operations policy decisions of the investee but is not control or joint control over those policies. The resul ts and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Under the equity method, an investment in an associate is initially recognised in the consolidated statement of f inancial position at cost and adjusted thereafter to recognise the Group's share of the profit or loss and other comprehensive income of the associate. When the Group's share of losses of an associate exceeds the Group’s interest in that associate (which includes any long-term interests that, in substance, form part of the Group's net investment in the associate), the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred l egal or constructive obligations or made payments on behalf of the associate. An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group's share of the net fa ir value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in which the investment is acquired.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 16 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Investments in associates (continued) When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less cost s to sell) with its carrying amount. Any impairment loss recognised forms part of the carrying amount of the investment. The Group discontinues the use of the equity method from the date when the investment ceases to be an associate, or when the investment is classified as held for sale. When the Group retains an interest in the former associate and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial recognition in accordance with IFRS 9. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. If a gain or loss previ ously recognised in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, then Group also reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. Unrealized gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. Investment properties Investment properties are properties held to earn rentals and/or capital appreciation (including property under construction for such purposes). Investment properties are initially measured at cost and subsequently at fair value with any change therein recognised in the consolidated statement of profit or loss and other comprehensive income in the period in which they arise. Investment properties are derecognised when either they have been disposed of or when the investment properties are permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceed s and the carrying amount of the asset is recognised in the consolidated statement of profit or loss and other comprehensive income in the period of derecognition. Transfers are made to or from investment properties only when there is a change in use. For a transfer from investment properties to owner-occupied properties, the deemed cost for subsequent accounting is the net book value at the date of change in use. If owner-occupied properties become investment properties, the Group accounts for such properties in accordance with the policy stated under properties and equipment up to the date of change in use. Following a decision to transfer a previously owner - occupied property to investment properties, the Group transferred a portion of owner-occupied property to investment properties, The transfer resulted in a revaluation surplus of QR. 8,660,631 that was recognised in other comprehensive income. Inventories Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average cost method. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 17 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation and any impairment in value. Land is not depreciated. Depreciation is recognised to write-off the cost of assets less their residual values over their useful lives using the straight line method. The Group has applied the unit of production method for depreciating production related plant and equipment. The following are the estimated useful lives of the assets other than amortised using unit of production method: Useful life in years Buildings 15-50 Plant & equipment 5-30 Furniture and fixtures 5 Computers and software 3 Motor and heavy vehicles 5-10 The asset’s residual values, useful lives and method of depreciation are reviewed and adjusted, if appropriate, at each reporting date. The effect of any changes to estimates are accounted for on a prospective basis. Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property, plant and equipment, commences when the assets are ready for their intended use. Expenditure incurred to replace a component of an item of property, plant and equipment that is accounted for separately is capitalised and the carrying amount of the component that is replaced is written off. Other subsequent expenditure is capitalised only when it increases future economic benefits of the related item of property, plant and equipment. All other expenditure is recognised in the consolidated statement of profit or loss and other comprehensive income as the expense is incurred. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of profit or loss and other comprehensive income in the period the asset is derecognised. Impairment of tangible and intangible assets other than goodwill At each annual reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash -generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identifi ed, corporate assets are also allocated to individual cash -generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 18 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Impairment of tangible and intangible assets other than goodwill (continued) Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired. The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash -generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the consolidated statement of profit or loss unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash -generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the consolidated statement of profit or loss unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Financial instruments Financial assets and financial liabilities are recognised in the Group’s statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss. Financial assets All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value, depending on the classification of the financial assets. Classification of financial assets (i) Debt instruments designated at amortised cost Debt instruments that meet the following conditions are measured subsequently at amortised cost: • the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 19 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial assets (continued) Classification of financial assets (i) Debt instruments designated at amortised cost (continued) • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. (ii) Debt instrument designated at other comprehensive income Debt instruments that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI): • the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL). For financial instruments other than purchased or originated credit-impaired financial assets (i.e. assets that are credit-impaired on initial recognition), the effective interest rate is the rate that exactly discounts estimated future cash receipts (incl uding all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) excluding expected credit losses, through the expected life of the debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt instrument on initial recognition. For purchased or originated credit-impaired financial assets, a credit-adjusted effective interest rate is calculated by discounting the estimated future cash flows, including expected credit losses, to the amortised cost of the debt instrument on initial recognition. The group has no debt instruments designated at amortised cost or debt instruments designated at other comprehensive income. (iii) Equity instruments designated as at FVTOCI On initial recognition, the Group may make an irrevocable election (on an instrument‑by‑instrument basis) to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognised by an acquirer in a business combination. A financial asset is held for trading if: • it has been acquired principally for the purpose of selling it in the near term; or • on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has evidence of a recent actual pattern of short‑term profit‑taking; or • it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 20 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial assets (continued) Classification of financial assets (continued) (iii) Equity instruments designated as at FVTOCI (continued) Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the investments revaluation reserve. The cumulative gain or loss is not reclassified to profit or loss on disposal of the equity investments, instead, it is transferred to retained earnings. Dividends on these investments in equity instruments are recognised in profit or loss in accordance with IFRS 9, unless the dividends clearly represent a recovery of part of the cost of the investment. The Group has designated all investments in equity instruments that are not held for trading as at FVTOCI on initial application of IFRS 9. Hedge accounting The Group designates certain derivatives as hedging instruments in respect of interest rate risk in cash flow hedges. At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging relationships meet all of the following hedge effectiveness requirements: • There is an economic relationship between the hedged item and the hedging instrument • The effect of credit risk does not dominate the value changes that result from that economic relationship • The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged items. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the Group adjusts the hedge ratio of the hedging relationship (i.e. rebalances the hedge) so that it me ets the qualifying criteria again. Movements in the hedging reserve in equity are detailed in statement of changes in equity.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 21 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial assets (continued) Classification of financial assets (continued) Hedge accounting (continued) Cash flow hedges The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve, limited to the cumulative change in fair value of the hedged item from inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss,and is included in the ‘other gains and losses’ line item. Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item. However, when the hedged forecast transaction results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously recognised in other comprehensive income and accumulated in equity are removed from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability. This transfer does not affect other comprehensive income. Furthermore, if the Group expects that some or all of the loss accumulated in the cash flow hedging reserve will not be rec overed in the future, that amount is immediately reclassified to profit or loss. The Group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet the qualifying criteria (after rebalancing, if applicable). This includes instances when the hedging instrument expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. Any gain or loss recognised in other comprehensive income and accumulated in cash flow hedge reserve at that time remains in equity and is reclassified to profit or loss when the forecast transaction occurs. When a forecast transaction is no longerexpected to occur, the gain or loss accumulated in the cash flow hedge reserve is reclassified immediately to profit or loss. i. Financial assets at FVTPL Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI (see (i) to (ii) above) are measured at FVTPL. Financial assets at FVTPL are measured at fair value at the end of each reporting period. Foreign exchange gains and losses The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period. Specifically: • for financial assets measured at amortised cost that are not part of a designated hedging relationship, exchange differences are recognised in profit or loss in the ‘other gains and losses’ line item • for debt instruments measured at FVTOCI that are not part of a designated hedging relationship, exchange differences on the amortised cost of the debt instrument are recognised in profit or loss in the ‘other gains and losses’ line item. Other exchange dif ferences are recognised in other comprehensive income in the investments revaluation reserve;
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 22 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial assets (continued) Foreign exchange gains and losses (continued) • for financial assets measured at FVTPL that are not part of a designated hedging relationship, exchange differences are recognised in profit or loss in the ‘other gains and losses’ line item; and • for equity instruments measured at FVTOCI, exchange differences are recognised in other comprehensive income in the investments revaluation reserve. Impairment of financial assets The Group recognizes a loss allowance for expected credit losses on investments in debt instruments that measured at amortised cost or at FVTOCI, lease receivables, and contract assets, as well as on financial guarantee contracts. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risks since initial recognition of the respective financial instrument. The Group always recognizes lifetime ECL for account receivables, contract assets and lease receivables. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of many where appropriate. For all other financial instruments, the Group recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initia l recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12 -month ECL. The assessment of whether lifetime ECL should be recognised is based on significant increases in the likelihood or risk of a default occu rring since initial recognition instead of on evidence of a financial asset being credit-impaired at the reporting date. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of financial instrument. In contrast, 12 -month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instruments that are possible within 12 months after the reporting date. (i) Significant increase in credit risk In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward‑looking information that is available without undue cost or effort. Forward‑looking information considered includes the future prospects of the industries in which the Group’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think‑tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group’s core operations.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 23 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial assets (continued) Impairment of financial assets (continued) (i) Significant increase in credit risk (continued) In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition: • an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating; • significant deterioration in external market indicators of credit risk for a particular financial instrument, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor, or the length of time or the extent to which the fair value of a financial asset has been less than its amortised cost; • existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; • an actual or expected significant deterioration in the operating results of the debtor; • significant increases in credit risk on other financial instruments of the same debtor; • an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations. Despite the foregoing, the Group assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if: 1. The financial instrument has a low risk of default, 2. The debtor has a strong capacity to meet its contractual cash flow obligations in the near term, and 3. Adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations. The Group considers a financial asset to have low credit risk when the asset has external credit rating of ‘investment grade’ in accordance with the globally understood definition or if an external rating is not available, the asset has an internal rating of ‘performing’. Performing means that the counterparty has a strong financial position and there is no past due amounts. For financial guarantee contracts, the date that the Group becomes a party to the irrevocable commitment is considered to be the date of initial recognition for the purposes of assessing the financial instrument for impairment. In assessing whether there has been a significant increase in the credit risk since initial recognition of a financial guarantee contracts, the Group considers the changes in the risk that the specified debtor will default on the contract. The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 24 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial assets (continued) Impairment of financial assets (continued) (i) Definition of default The Group considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable: • when there is a breach of financial covenants by the debtor; or • information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group). (ii) Credit-impaired financial assets A financial asset is credit‑impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit‑impaired includes observable data about the following events: a. significant financial difficulty of the issuer or the borrower; b. a breach of contract, such as a default or past due event; c. the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider; d. it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or e. the disappearance of an active market for that financial asset because of financial difficulties. (iii) Write‑off policy The Group fully provide for or writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings,. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in profit or loss. (iv) Measurement and recognition of expected credit losses The measurement of expected credit losses is a function of the probability of default, loss given (i.e., the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward‑looking information as described above. As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date; for financial guarantee contracts, the exposure includes the amount drawn down as at the reporting date, together with any additional amounts expected to be drawn down in the future by default date determined based on historical trend, the Group’s understanding of the specific future financing needs of the debtors, and other relevant forward‑looking information.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 25 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial assets (continued) Impairment of financial assets (continued) (iv) Measurement and recognition of expected credit losses (continued) For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate. For a lease receivable, the cash flows used for determining the expected credit losses is consistent with the cash flows used in measuring the lease receivable in accordance with IAS 16 Leases. For a financial guarantee contract, as the Group is required to make payments only in the event of a default by the debtor in accordance with the terms of the instrument that is guaranteed, the expected loss allowance is the expected payments to reimburse the holder for a credit loss that it incurs less any amounts that the Group expects to receive from the holder, the debtor or any other party. If the Group has measured the loss allowance for a financial instrument at an amount equal to lifetime ECL in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL are no longer met, the Group measures the loss allowance at an amount equal to 12‑month ECL at the current reporting date, except for assets for which simplified approach was used. The Group recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the investment revaluation reserve, and does not reduce the carrying amount of the financial asset in the statement of financial position. Derecognition of financial assets The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognizes a collateralized borrowing for the proceeds received. On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. In addition, on derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. In contrast, on derecognition of an investment in equity instrument which the Group has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 26 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial liabilities and equity Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement and the definition of a financial liability and an equity instrument. Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a group entity are recognised at the proceeds received, net of direct issue costs. Repurchase of the Group’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Financial liabilities All financial liabilities are measured subsequently at amortised cost using the effective interest method or at FVTPL. However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, and financial guarantee contracts issued by the Group, are measured in accordance with the specific accounting policies set out below. Financial liabilities at FVTPL Financial liabilities are classified as at FVTPL when the financial liability is (i) contingent consideration of an acquirer in a business combination, (ii) held for trading or (iii) it is designated as at FVTPL. A financial liability is classified as held for trading if: • it has been acquired principally for the purpose of repurchasing it in the near term; or • on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or • it is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument. As at reporting date, the Group did not carry any financial liabilities that has been measured at FVTPL. Financial liabilities measured subsequently at amortised cost Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held‑for‑trading, or (iii) designated as at FVTPL, are measured subsequently at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating financ e cost expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (includin g all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 27 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Financial instruments (continued) Financial liabilities (continued) Financial guarantee contract liabilities A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. Financial guarantee contract liabilities are measured initially at their fair values and, if not designated as at FVTPL and do not arise from a transfer of an asset, are measured subsequently at the higher of: • the amount of the loss allowance determined in accordance with IFRS 9 (see financial assets above); and • the amount recognised initially less, where appropriate, cumulative amortisation recognised in accordance with the revenue recognition policies set out above. Foreign exchange gains and losses For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments. These foreign exchange gains and losses are recognised in the ‘other gains and losses’ line item in profit or loss for financial liabilities that are not part of a designated hedging relationship. For those which are designated as a hedging instrument for a hedge of foreign currency risk foreign exchange gains and losses are recognised in other comprehensive income and accumulated in a separate component of equity. The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses and is recognised in profit or loss for financial liabilit ies that are not part of a designated hedging relationship. Derecognition of financial liabilities The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. When the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between: (1) the carrying amo unt of the liability before the modification; and (2) the present value of the cash flows after modification should be recognised in profit or loss as the modification gain or loss within other gains and losses.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 28 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Provisions Provisions are recognized when the Group has an obligation (legal or constructive) arising from a past event, and the costs to settle the obligation are both probable and able to be reliably measured. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the statement of financial position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. Dividend distribution Dividend distribution to the shareholders is recognised as a liability in the consolidated financial statements in the period in which the dividends are approved. Employees’ end of service benefits and pension entitlements The Group provides end of service benefits to its employees. The entitlement to these benefits is based upon the employees’ final salary and length of service, subject to the completion of a minimum service period, calculated under the provisions of the Q atar Labour Law and the employees’ contracts and is payable upon resignation or termination of the employee. The expected costs of these benefits are accrued over the period of employment. Under Law No. 24 of 2002 on Retirement and Pension, the Group is required to make contributions to a Government fund scheme for Qatari employees calculated as a percentage of the Qatari employees’ salaries. The Group’s obligations are limited to these contributions, which are expensed when due. The provision is not discounted as the difference between the provision stated in the statement of financial position and net present value is not expected to be significant. Revenue recognition The Group recognises revenue from the following major sources • Revenue from industrial activities • Contracting revenues • Services revenue Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control of a product or service to a customer.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 29 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Revenue from industrial activities Revenue from industrial activities includes revenue from sale of cement. Revenue from industrial activities is recognized when control of the goods has transferred, being when the goods have been shipped to the customer’s specific location (delivery). Following delivery, the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when onselling the goods and bears the risks of obsolescence and loss in relation to the goods. A receivable is recognized by the Group when the goods are delivered to the customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due. (i) Variable consideration If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Some contracts for the sale of electronics equipment provide customers with a right of return and volume rebates. The rights of return and volume rebates give rise to variable consideration. (ii) Rights of return Certain contracts provide a customer with a right to return the goods within a specified period. The Group uses the expected value method to estimate the goods that will not be returned because this method best predicts the amount of variable consideration to which the Group will be entitled. The requirements in IFRS 15 on constraining estimates of variable consideration are also applied in order to determine the amount of variable consideration that can be included in the transaction price. For goods that are expected to be returned, instead of revenue, the Group recognises a refund liability. (iii) Volume rebates The Group provides volume rebates to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Rebates are offset against amounts payable by the customer. (iv) Significant financing component Generally, the Group receives short-term advances from its customers. Using the practical expedient in IFRS 15, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract i nception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one year or less. The transaction price for such contracts is discounted, using the rate that would be reflected in a separate financing transaction between the Group and its customers at contract inception, to take into consideration the significant financing component.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 30 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Services revenue Services revenue includes installation services relating to security equipment, and shipping agency services. Services revenue is recognised over time as a performance obligation is satisfied. Revenue is recognised for these services based on the stage of completion of the contract. The management has assessed that the stage of completion determined as the proportion of the total time expected to render the service that has elapsed at the end of the reporting period is an appropriate measure of progress towards complete satisfaction of these performance obligations under IFRS 15. Payment for such services is not due from the customer until the services are complete and therefore a contract asset is recognised over the period in which the services are performed representing the entity’s right to consideration for the services performed to date. Contracting revenues Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The Group becomes entitled to invoice customers based on achieving a series of performance -related milestones. When a particular milestone is reached, the customer is sent a relative statement of work and an invoice for the related milestone payment. The Group will previously have recognised a contract asset for any work performed. Any amount previously recognised as a contract asset is reclassified to account receivables at the point at which it is invoiced to customer. If the milestone payment exceeds the revenue recognised to date under the cost -to-cost method, then the Group recognises a contract liability for the difference. There is not considered to be a significant financing component in construction contracts with customers as the period between the recognition of revenue under the cost-to-cost method and the milestone payment is always less than one year. Revenue form rental of vehicles Revenue from services is recognised as the services are rendered, including where they are based on contractual daily rates for the renting of vehicles in respect of multi -year service contracts. Revenue from vehicles hired on time is recognised over time as the customer simultaneously received and consumes the benefits provided by the Group’s performance as the Group’s performs. Service income for shipping services The Group is appointed as agent to provide several services to its principals which include marketing and information services, vessel clearance and husbandry, cargo operations including collection and remittance of freight / demurrage and investigations / claims coordination. A fee is agreed in the agreement with the principals for the agency services on the basis of number of vessels calls in the port of the State of Qatar. Similarly, a container control fee (related to cargo operations) and a commission on collection and remittance of charges / demurrage are separately agreed. Revenue relating to above income is recognized over time as the performance obligation is satisfied. For vessel operations and husbandry services, the discharge of the vessel from the Qatari port is considered as the revenue recognition point. Revenue is recognized on a monthly basis, based on the number of vessels cleared by the end of the month. For cargo operations including collection and remittance of charges, completed unloading / loading of cargo for that particular month is considered as the revenue recognition point.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 31 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Service income for freight forwarding services The Group provides port clearance and freight forwarding services to its customers, since it holds a port clearance license. Revenue relating to service income for provision of freight forwarding and port clearance services is recognized over time as the performance obligation is satisfied. Lease rental income Rental income from investment properties is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Dividend income Dividend income from investments is recognised when the Group’s right to receive payment has been established provided that it is probable that the economic benefits will flow to the Group’s and the amount of income can be measured reliably. Dividend inco me is recognized in the consolidated statement of profit or loss on the date that the Group’s right to receive payment is established. Finance income Finance income from financial assets is recognized when it is probable that the economic benefits will flow to the group and the amount of income can be measured reliably. Finance income is accrued on a time basis with reference to the principal outstanding and at the effective profit rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognised in the consolidated statement of profit or loss and other comprehensive income in the period in which they are incurred. Foreign currency transactions Transactions in currencies other than the Group’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign curre ncies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non -monetary items tha t are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except as otherwise stated in the Standards.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 32 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of profit or loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Deferred tax Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Current and deferred tax are recognised in statement of profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Earnings per share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options granted to employees, if any. Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components, whose operating r esults are reviewed regularly by the Group’s top management (being the chief operating decision maker) to make decisions about resources allocated to each segment and assess its performance, and for which discrete financial information is available.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 33 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Leases The Group considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. To apply this definition, the Group assesses whether the contract meets three key evaluations which are whether: • the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Group; • the Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract ; and • the Group has the right to direct the use of the identified asset throughout the period of use. The Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use. The Group as a lessee At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where it is established that the Group is a lessee, a right-of-use asset (refer accounting policy “Right-of- use assets”) and a lease liability are recognized at the lease commencement date. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate is used. Lease payments included in the measurement of the lease liability comprise the following: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • amounts expected to be payable under a residual value guarantee; and • the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unl ess the Group is reasonably certain not to terminate early. Lease liabilities are subsequently measured at amortised cost using the effective interest method. A lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When a lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of use asset has been reduced to zero.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 34 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Leases (continued) The Group as a lessor As a lessor the Group classifies its leases as either operating or finance leases. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the underlying asset, and classified as an operating lease if it does not. Grouping of right-of-use asset The Group accounts and identifies assets as a portfolio based on its similar characteristics and has applied the requirements of IFRS 16 on estimates and assumptions that reflect the size and composition of that portfolio. Events after the reporting date The consolidated financial statements are adjusted to reflect events that occurred between the reporting date and the date when the consolidated financial statements are authorised for issue, provided they give evidence of conditions that existed at the reporting date. Any post year-end events that are non-adjusting are discussed on the consolidated financial statements when material. Current versus non-current classification The Group presents assets and liabilities based on current/non-current classification. An asset as current when it is: • Expected to be realised or intended to sold or consumed in normal operating cycle • Held primarily for the purpose of trading • Expected to be realised within twelve months after the reporting period, or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. A liability is current when: • It is expected to be settled in normal operating cycle • It is held primarily for the purpose of trading • It is due to be settled within twelve months after the reporting period, or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Group classifies all other liabilities as non-current. Climate-related matters The Group considers climate -related matters in accounting judgements, estimates and assumptions, where appropriate. This assessment includes a wide range of possible impacts on the Group due to both physical and transition risks. Most climate -related risks are expected to impact over a term that is generally longer than the contractual maturity of most exposures, nonetheless climate -related matters increase the uncertainty in estimates and assumptions underpinning certain items in the financial statements.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 35 - 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Climate-related matters (continued) Currently, climate-related risks do not have a significant impact on measurement, though the Group is closely monitoring relevant changes and developments. The items and considerations that are most directly impacted by climate-related matters include useful life of property and equipment, impairment of non-financial assets, expected credit losses and fair value measurement, among others. 4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Group’s accounting policies, which are described in Note 3, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. 4.1 Critical judgments in applying accounting policies The following are the critical judgements, apart from those involving estimations, that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in consolidated financial statements: Going concern Management has made an assessment of the Group’s ability to continue as a going concern and is satisfied that the Group has the resources to continue in business for the foreseeable future. The Group has been profitable, and it had positive net asset (equity), working capital and cash flow positions as at the year end. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Group’s ability to continue as a going concern. Therefore, the consolidated financial statements continue to be prepared on a going concern basis. Revenue recognition The Group applied the following judgements that significantly affect the determination of the amount and timing of revenue from contracts with customers: Identifying performance obligations in a bundled sale of equipment and installation services The Group provides installation services that are either sold separately or bundled together with the sale of equipment to a customer. The installation services are a promise to transfer services in the future and are part of the negotiated exchange between the Group and the customer. The Group determined that both the equipment and installation are capable of being distinct. The fact that the Group regularly sells both equipment and installation on a stand-alone basis indicates that the customer can benefit from both products on their own. The Group also determined that the promises to transfer the equipment and to provide installation are distinct within the context of the contract. The equipment and installation are not inputs to a combined item in the contract. The Group is not provi ding a significant integration service because the presence of the equipment and installation together in this contract do not result in any additional or combined functionality and neither the equipment nor the installation modify or customise the other. In addition, the equipment and installation are not highly interdependent or highly interrelated, because the Group would be able to transfer the equipment even if the customer declined installation and would be able to provide installation in relation to products sold by other distributors.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 36 - 4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED) 4.1 Critical judgments in applying accounting policies (continued) Revenue recognition (continued) Identifying performance obligations in a bundled sale of equipment and installation services (continued) Consequently, the Group allocated a portion of the transaction price to the equipment and the installation services based on relative stand-alone selling prices. Determining the timing of satisfaction of performance obligations for installation services The Group concluded that revenue for installation services is to be recognised over time because the customer simultaneously receives and consumes the benefits provided by the Group. The fact that another entity would not need to re-perform the installation that the Group has provided to date demonstrates that the customer simultaneously receives and consumes the benefits of the Group’s performance as it performs. Determining the timing of satisfaction of sale of goods The Group concluded that revenue from sale of goods is recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods, at which point the Group has a right to payment, the customer has legal title, physical possession, significant risks and rewards of ownership and has accepted the goods. Determining the timing of satisfaction of performance obligation for contracting services The Group concluded that revenue from contracting services, including shipping and marine services is recognised over time as set out in revenue recognition policy. Determining the timing of satisfaction of performance obligation for vehicle rental services The Group concluded that revenue from vehicle rental services is recognised over time as it performs continuous transfer of control of goods or services to the customers. Because customer simultaneously receives and consumes the benefits provided and the control transfer takes place over time, revenue is also recognised based on the extent of transfer/completion of transfer of each performance obligation. In determining the method for measuring progress for these performance obligations, we have considered the nature of these goods and services as well as nature of its performance. Determining if the Group is transacting as principal or an agent Significant judgements are made by management when concluding whether the Group is transacting as an agent or a principal. The assessment is performed for each separate revenue stream in the Group. The assessment requires an analysis of key indicators, specifically whether the Group: • carries any inventory risk; • has the primary responsibility for providing the goods or services to the customer; • has the latitude to establish pricing; and • bears the customer’s credit risk. These indicators are used to determine whether the Group has exposure to the significant risks and rewards associated with the sale of goods or rendering of services. For example, any sale relating to inventory that is held by the Group, not on consignment, is a strong indicator that the Group is acting as a principal.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 37 - 4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED) 4.1 Critical judgments in applying accounting policies (continued) Revenue recognition (continued) Estimating variable consideration for returns and volume rebates The Group estimates variable considerations to be included in the transaction price for the sale of equipment with rights of return and volume rebates. Capitalisation of costs Management determines whether the Group will recognise an asset from the costs incurred to fulfil a contract and costs incurred to obtain a contract if the costs meet all the following criteria: a) the costs relate directly to a contract or to an anticipated contract that the Group can specifically identify; b) the costs generate or enhance resources of the Group that will be used in satisfying performance obligations in the future; and c) the costs are expected to be recovered. Such asset will be amortised on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. Classification of associate The Group has various investments in associates. Despite holding of more than 50% of the shareholding of these companies, by virtue of the contractual arrangements, the Group does not have control over the financial and operating policy decisions and hence has a significant influence over these associate companies. Business model assessment Classification and measurement of financial assets depends on the results of the SPPI and the business model test (see Note 3). The Group determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence including how the performance of the assets is evaluated and their performance measured, the risks that affect the performance of the assets and how these are managed and how the managers of the assets are compensated. The Group monitors financial assets measured at amortised cost or fair value through other comprehensive income that are derecognised prior to their maturity to understand the reason for their disposal and whether the reasons are consistent with the objective of the business for which the asset was held. Monitoring is part of the Group’s continuous assessment of whether the business model for which the remaining financial assets are held continues to be appropriate and if it is not appropriate whether there has been a change in business model and so a prospective change to the classification of those assets. No such changes were required during the periods presented. Significant increase in credit risk As explained in Note 3, ECL are measured as an allowance equal to 12‑month ECL for stage 1 assets, or lifetime ECL for stage 2 or stage 3 assets. An asset moves to stage 2 when its credit risk has increased significantly since initial recognition. IFRS 9 does not define what constitutes a significant increase in credit risk. In assessing whether the credit risk of an asset has significantly increased the Group takes into account qualitative and quantitative reasonable and supportable forward looking information.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 38 - 4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED) 4.1 Critical judgments in applying accounting policies (continued) Legal Cases Note 40 describes a number of legal actions against the Group. Management has chosen not to make a provision for any claims against the Group as the eventual outcome of the legal actions are uncertain and we do not believe will have any financial impact. Measurement of investment properties Management of the Group is required to choose as its accounting policy either the fair value model or the cost model and shall apply this policy to all of its investment property, except if it holds an investment property as a lessee under an operating lease, under which it is required to hold these investment properties only at fair value. The Group has chosen to adopt the fair value model for the purposes of measuring its investment properties in the statement of financial position. Amortisation of right-of-use assets Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Management reviews annually the useful lives of these assets. Future depreciation charge could be materially adjusted where management believes the useful lives differ from previous estimates. No such adjustments were considered necessary at the end of the current year. Impairment of property and equipment and right-of-use assets The carrying amounts of the Group’s property and equipment and right -of-use assets are reviewed to determine whether there is any indication of impairment. The determination of what can be considered impaired requires judgement. As at the reporting date, management did not identify any evidence from internal reporting indicating impairment of an asset or class of assets except the one disclosed in note 5 of the financial statements. Property lease classification –Group as lessor The Group has entered into commercial property leases on its investment property portfolio. The Group has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the present value of the minimum lease payments not amounting to substantially all of the fair value of the commercial property, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases. The Group as a lessor As a lessor the Company classifies its leases as either operating or finance leases. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the underlying asset, and classified as an operating lease if it does not.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 39 - 4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED) 4.1 Critical judgments in applying accounting policies (continued) Determining whether a contract is, or contains, a lease – Group as lessee The Group determines whether a contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an identified asset, is assessed by considering whether the Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use and has the right to direct the use the identified asset throughout the period of use. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). The lease t erm is reassessed if an option is actually exercised (or not exercised) or the Group becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee. The following factors are normally the most relevant: • If there are significant penalties to terminate (or not extend), the Group is typically reasonably certain to extend (or not terminate). • If any leasehold improvements are expected to have a significant remaining value, the group is typically reasonably certain to extend (or not terminate). • Otherwise, the Group considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset. Determining the incremental borrowing rate –Group as lessee The Group cannot readily determine the interest rate implicit in the lease, therefore, its uses its Incremental Borrowing Rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rates are available (such as for sub sidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s financial currency). The Group estimates the IBR using observab le inputs (such as market interest rates) when available and is required to make certain entity-specific estimates. Fair value and hedge effectiveness of cash flow hedges Fair value of hedges is derived based on confirmation from banks. Management performs an independent check to assess the accuracy of the fair values. Management also reviews its hedging relationship between the interest rate swaps and the underlying loans on a regular basis. Based on most recent review, the hedge was found to be highly effective. As a result, the fair value of the derivative is recorded in equity under hedging reserve.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 40 - 4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED) 4.2 Key sources of estimation uncertainty The key assumptions concerning the future, and other key sources of estimation uncertainty at the statement of financial position date, that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed as below: Percentage-of-completion The Group uses the input method to recognise revenue on the basis of entity’s efforts or inputs to the satisfaction of a performance obligation in accounting for its construction contracts. This is done by measuring the costs incurred to date relative to the total expected costs to be incurred (forecast final costs). At each reporting date, the Group is required to estimate stage of completion and costs to complete on its construction contracts. These estimates require the Group to make estimates of future costs to be incurred, based on work to be performed beyond the reporting date. These estimates also include the cost of potential claims by subcontractors and the cost of meeting other contractual obligations to the customers. Effects of any revision to these estimates are reflected in the year in which the estimates are revised. When it is probable that total contract costs will exceed total contract revenue, the total expected loss is recognised immediately, as soon as foreseen, whether or not work has commenced on these contracts. The Group uses its commercial teams together with project managers to estimate the costs to complete of construction contracts. Factors such as delays in expected completion date, changes in the scope of work, changes in material prices, increase in labour and other costs are included in the construction cost estimates based on best estimates updated on a regular basis. Impairment of goodwill Determining whether goodwill is impaired requires an estimation of the value in the use of the cash - generating units to which goodwill has been allocated. The value in use calculation requires the management to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate present value. The recoverable amount of the cash generating unit is determined by management based on value in use calculation which uses cash flow projections based on forecast revenue and profit margin which have been projected for five years discrete period. The forecast. Details of the value in use calculation are set out in Note 8. Fair value of investment properties Fair value is time specific as of a given date. Because market conditions may change, the amount reported as fair value may be incorrect or inappropriate if estimated as of another time. The management uses independent appraiser to evaluate the investment properties and believes that the value of investment properties reflects the fair market value of these investment properties. Information about the fair value of investment properties is set out in Note 7. Depreciation of property, plant and equipment Items of property, plant and equipment are depreciated over their estimated individual useful lives. The determination of useful lives is based on the expected usage of the asset, physical wear and tear, and technological or commercial obsolescence, and impacts the annual depreciation charge recognized in the consolidated financial statements. The Group Management reviews annually the depreciation method, residual values and useful lives of these assets. Future depreciation charge could be materially adjusted where management believes the depreciation method, useful lives and / or the residual values differ from previous estimates.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 41 - 4. CRITICAL JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED) 4.2 Key sources of estimation uncertainty (continued) Provision for expected credit losses of accounts receivable (ECL) The Group uses a provision matrix to calculate ECLs for accounts receivable, advances and contract assets. The provision rates are based on days past due for groupings of various customer segments that have similar loss patterns (i.e., by geography, product type, customer type and rating, and coverage by letters of credit and other forms of credit insurance). The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate the matrix to adjust the historical credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group’s histo rical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in the future. Fair value of unquoted investments Some of the Group’s assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Group prepares an internal valuation using appropriate valuation techniques and inputs. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in respective notes. Impairment of inventories Inventories are held at the lower of cost and net realizable value. When inventories become old or obsolete, an estimate is made of their net realizable value. For individually significant amounts this estimation is performed on an individual basis. Amounts which are not individually significant, but which are old or obsolete, are assessed collectively and a provision applied according to the inventory type and the degree of ageing or obsolescence, based on anticipated selling prices. Write-down of slow-moving inventories The management determines the estimated amount of slow moving inventories. This estimate is based on the age of items in inventories and this provision is subject to change as a result of technical innovations and the usage of items. Impairment of tangible and intangible assets The Group’s management assess impairment of tangible and intangible assets with finite lives whenever there is an indication that these assets have suffered impairment in accordance with accounting policies stated in note 3. The recoverable amount of an asset is determined based on value -in-use method. This method uses estimated cash flow projections over the estimated useful life of the asset discounted using market rates.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 42 - 5. PROPERTY, PLANT AND EQUIPMENT Buildings Plant & equipment Furniture and fixtures Computers and software Motor and heavy vehicles Capital work in progress Total QR. QR. QR. QR. QR. QR. QR. Cost: Balance as at January 1, 2024 1,185,136,494 1,493,528,090 38,244,710 17,558,681 176,839,546 80,147,752 2,991,455,273 Additions during the year 100,000 2,422,601 803,327 3,788,712 27,445,184 996,873 35,556,697 Transfers -- -- 6,000 11,845 -- (17,845) -- Disposals during the year (77,000) -- (5,948) (19,160) (20,251,149) -- (20,353,257) Balance as at December 31, 2024 1,185,159,494 1,495,950,691 39,048,089 21,340,078 184,033,581 81,126,780 3,006,658,713 Additions during the year -- 2,158,562 1,045,205 275,806 14,364,486 14,364,486 3,374,750 21,218,809 Transfers -- -- 14,808,263 -- -- (14,808,263) -- Transfer to investment properties* (20,785,514) -- -- -- -- -- (20,785,514) Write offs (66,235) -- (818,569) (970,468) (158,968) -- (2,014,240) Disposals during the year -- (120,717) (651,560) -- (15,971,426) -- (16,743,703) Balance as at December 31, 2025 1,164,307,745 1,497,988,536 53,431,428 20,645,416 182,267,673 69,693,267 2,988,334,065 Accumulated depreciation and impairment: Balance at January 1, 2024 230,605,291 414,402,828 25,229,420 13,862,370 105,345,973 63,427,565 852,873,447 Depreciation for the year 27,736,930 14,415,941 2,828,366 2,753,687 18,614,842 -- 66,349,766 Depreciation related to disposals - -- (5,948) (18,524) (16,109,243) -- (16,133,715) Balance at December 31, 2024 258,342,221 428,818,769 28,051,838 16,597,533 107,851,572 63,427,565 903,089,498 Depreciation for the year 22,677,123 12,315,956 4,070,391 2,479,746 18,656,272 -- 60,199,488 Transfer to other comprehensive income* (8,660,631) -- -- -- -- -- (8,660,631) Write offs (66,235) -- (818,569) (970,468) (158,968) -- (2,014,240) Disposals during the year -- (120,717) (208,551) -- (11,363,217) -- (11,692,485) Balance as at December 31, 2025 272,292,478 441,014,008 31,095,109 18,106,811 114,985,659 63,427,565 940,921,630 Net carrying amount: At December 31, 2025 892,015,267 1,056,974,528 22,336,319 2,538,605 67,282,014 6,265,702 2,047,412,435 At December 31, 2024 926,817,273 1,067,131,922 10,996,251 4,742,545 76,182,009 17,699,215 2,103,569,215
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 43 - 5. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Certain credit facilities are secured by a possessory mortgage over the plant’s machinery and equipment (Note 22 (i)). Depreciation charges for the year are allocated as set out below: 2025 2024 QR. QR. Cost of revenue 50,220,474 54,517,266 Selling and distribution expenses (Note 31) 53,751 62,244 General and administrative expenses (Note 32) 9,925,263 11,770,256 60,199,488 66,349,766 *During the year, following a decision to use previously owner-occupied property as investment property to earn rental income, the Group transferred a portion of owner-occupied property to investment properties. The transfer was made following an assessment of the fair value of the said owner-occupied property which was assessed at QR. 20,785,514. This resulted in a gain of QR. 8,660,631 which has been recognised in other comprehensive income and revaluation surplus under statement of changes in equity. 6. RIGHT-OF-USE-ASSETS Net carrying amount: At December 31, 2025 22,343,406 1,629,881 -- 23,973,287 At December 31, 2024 45,801,914 2,483,822 56,675,837 104,961,573 Lands Buildings Marine Equipment Total QR. QR. QR. QR. Cost: Balance at January 1, 2024 82,402,854 7,527,699 80,965,232 170,895,785 Lease expired during the year -- (3,737,686) -- (3,737,686) Additions during the year -- 469,432 -- 469,432 Balance as at December 31, 2024 82,402,854 4,259,445 80,965,232 167,627,531 Additions during the year 877,397 339,418 -- 1,216,815 Lease expired during the year -- (667,470) -- (667,470) Cancellations during the year (36,263,972) -- (80,965,232) (117,229,204) Balance at December 31, 2025 47,016,279 3,931,393 -- 50,947,672 Accumulated amortisation: Balance at January 1, 2024 30,277,680 4,284,604 8,096,526 42,658,810 Amortisation during the year 6,323,260 1,228,705 16,192,869 23,744,834 Lease expired during the year -- (3,737,686) -- (3,737,686) Balance as at December 31, 2024 36,600,940 1,775,623 24,289,395 62,665,958 Amortisation during the year 3,359,363 1,193,359 9,445,856 13,998,578 Lease expired during the year -- (667,470) -- (667,470) Cancellations during the year (15,287,430) -- (33,735,251) (49,022,681) Balance at December 31, 2025 24,672,873 2,301,512 -- 26,974,385
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 44 - 6. RIGHT-OF-USE-ASSETS (CONTINUED) Amortisation charges for the year are allocated as set out below: 2025 2024 QR. QR. Cost of revenue 12,751,865 22,431,852 General and administrative expenses (Note 32) 1,246,713 1,312,982 13,998,578 23,744,834 7. INVESTMENT PROPERTIES 2025 2024 QR. QR. Balance as at January 1, 838,016,722 821,050,455 Additions during the year 4,902,796 3,948,932 Transfers from property, plant and equipment (Note 5) 20,785,514 -- Net change in fair value of investment properties 712,862 13,017,335 Balance as at December 31, 864,417,894 838,016,722 Investment properties comprise of a number of commercial and residential properties that have been developed or are in developmental stage to earn future lease rentals via lease to third parties. The fair value of the Group’s investment properties as at December 31, 2025 is arrived on the basis of a valuation carried out at the reporting date by a qualified, external, independent property valuer certified in the State of Qatar and has an appropriate recognised qualifications and re levant experience in the location and category of the properties being valued. In estimating the fair value of the properties, the highest and best use of the properties is considered to be their current use. The fair value as at December 31, 2025 and December 31, 2024 is determined by the independent valuers using the following a combination of valuation approaches in accordance with the International Valuation Standards Committee: • Market comparable method that reflects recent transactions in the same area, taking into account the characteristics of the property, the differences in location, and individual factors, such as frontage and size, between the comparable property, at an average rate. • Income method provides an indication of value by converting future cash flows to a single current value. Under the income approach, the value of an asset is determined by reference to the value of income, cash flows or cost savings generated by the asset.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 45 - 7. INVESTMENT PROPERTIES (CONTINUED) Significant unobservable input(s) Comparable rate per square meter is used for valuation, by taking into account the differences in location, and individual factors, such as frontage and size, between the comparable and the property. All of the properties have been valued using the market comparable approach except for certain commercial properties which are valued using the income approach. A difference in the assumption of the rate per square meter of the comparable property could result in an increase/decrease in fair value. Following table shows the rental, income, operating expenses and change in fair value related to investment properties during the year: 2025 2024 QR. QR. Rental income 34,541,955 33,926,802 Operating expenses 5,778,821 4,013,292 Changes in fair value 712,862 13,017,335 The Group has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements. Details of the Group’s investment properties and information about the fair value as at the end of the reporting period are as follows: 2025 2024 QR. QR. Residential units 103,300,000 93,200,000 Commercial property, land and others 761,117,894 744,816,722 864,417,894 838,016,722 All of the investment properties are considered level 3 in the fair value hierarchy. 8. GOODWILL 2025 2024 QR. QR. Goodwill 230,506,403 230,506,403 The shareholders approved in their extra -ordinary general assembly meeting on April 26, 2009, 100% acquisition of QIG Industries L.L.C (previously “Qatari Investor Company W.L.L.”). The total purchase consideration amounted to QR. 879 million, which was settled by issuance of additional shares at a premium of QR. 435.73 million. The transaction resulted in a goodwill of QR. 314.46 million. On December 31, 2025, an impairment review of the goodwill was undertaken by the m anagement internally and compared the carrying value of goodwill with the anticipated recoverable amounts of the cash-generating unit s to which the goodwill was allocated. The recoverable amounts of the cash - generating units are based on value in use, which is calculated from cash flow projections for 5 years ending December 31, 2030 using data from management prepared budgets.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 46 - 8. GOODWILL (CONTINUED) A key assumption for the value in use calculations was the discount rate represented in the Group’s weighted average cost of capital of 12.5% (2024: 12.5%). . The Management estimates discount rates that reflect the current market assessments of the time value of money and risks specific to the cash - generating units, and they consider the appropriate risk adjusted discount rate is 12.5% (2024: 12.5%). Changes in revenue and direct costs are based on an assumed compound growth rate of 3% (2024: 3%), as well as past experience and expectations of future changes in the market. Based on the assessment performed, the recoverable amount exceeds the carrying value, accordingly no impairment is recognized The carrying amount of goodwill has been allocated to the relevant cash generating units. Sensitivity analysis The Group conducted an analysis of the sensitivity of the impairment test to changes in the key assumptions used to determine the recoverable amount for each of the group of CGUs to which goodwill is allocated. The directors believe that any reasonably possible change in the key assumptions on which the recoverable amount of these CGUs are based would not cause the carrying amount s to exceed the recoverable amounts of the related CGUs. 9. INVESTMENT IN ASSOCIATES The Group has interests in associate companies which are all incorporated in State of Qatar with a profit and loss sharing percentages varying between 20% to 50%. Despite holding more than 50% of the shareholding of these companies, based on contractual arrangements, the Group does not have control over the financial and operating policy decisions and hence has a signi ficant influence only over the associate companies at December 31, 2025. These associates are in the industry of shipping services, manufacturing, and others. Movement in the investments in associates balance during the year is as follows: 2025 2024 QR. QR. Balance as at January 1, 21,274,863 29,094,355 Share of profit/ (loss) for the year 16,642,205 (4,121,903) Dividends received (7,505,049) (3,697,589) Balance as at December 31, 30,412,019 21,274,863 All of the associates are accounted for using the equity method in these consolidated financial statements.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 47 - 9. INVESTMENT IN ASSOCIATES (CONTINUED) Summarized financial information in respect of the Group’s investment in associates is set out below: 2025 2024 QR. QR. Total assets 310,658,118 313,444,565 Total liabilities 208,059,828 244,223,189 Equity 102,598,290 69,221,376 Revenue 216,951,315 195,346,339 Net profit for the year 35,366,501 2,924,355 Share of profit/ (loss) 16,642,205 (4,121,903) Share of other comprehensive income -- -- Share of total comprehensive income/(loss) 16,642,205 (4,121,903) * Share of profit/(loss) from investments in associates has been calculated based on the management accounts and includes adjustments with respect to lag in investee reporting and represent the differences between numbers available at the time of finalisation of the financial statements of the group and the actual results of the associates as included in their own audited financial statements. The Group’s management does not expect any material differences on account of lag in reporting timelines. 10. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI) At December 31, investment in financial assets designated at FVTOCI comprised of the following: Unquoted equity securities are carried at fair value as disclosed in Note 36. These investments in equity instruments are not held for trading. Instead, they are held for medium to long- term strategic purposes. Accordingly, the directors of the Group have elected to designate these investments in equity instruments as at FVTOCI as they believe that recognising short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes and realising their performance potential in the long run. The investments fair value reserve represents the cumulative gains and losses arising on the revaluation of investments in equity instruments designated as at FVTOCI, net of cumulative gain/ loss transferred to retained earnings upon disposal. 2025 2024 QR. QR. Unquoted equity securities 9,670,503 8,964,576
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 48 - 11. DERIVATIVE FINANCIAL ASSETS The Group has entered into interest rate swap agreements with financial institutions. As at December 31, 2025 the outstanding notional amount of swap agreements is QR. 645,554,527 (USD. 176,864,254) (2024: QR 802,116,039 (USD. 219,757,819)). The derivative financial asset is classified in consolidated statement of financial position as follows: 12. CONTRACT ASSETS Movement noted in provision for expected credit loss is as follows: Management of the Group measures the loss allowance on contract assets at an amount equal to lifetime ECL, taking into consideration the historical default experience and the future prospects of the industry. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished between the Group’s different customer base. There has not been any significant change in the gross amounts of contract assets that has affected the estimation of the loss allowance. 2025 2024 QR. QR. Derivative financial assets Derivatives designated as hedging instrument Interest rate swaps-cash flow hedges 32,792,819 64,469,212 2025 2024 QR. QR. Current portion 9,369,376 14,326,492 Non-current portion 23,423,443 50,142,720 32,792,819 64,469,212 2025 2024 QR. QR. Gross amounts due from customers 4,068,226 2,826,783 Less: Expected credit losses (1,050,661) (382,462) 3,017,565 2,444,321 2025 2024 QR. QR. Balance as at January 1, 382,462 454,881 Provision/(reversal) during the year 668,199 (72,419) Balance as at December 31, 1,050,661 382,462
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 49 - 13. INVENTORIES 2025 2024 QR. QR. Finished goods 3,818,794 3,382,189 Semi-finished goods 235,243,578 239,083,955 Raw materials 22,957,518 18,598,868 Goods-in-transit 634,004 145,376 Spare parts 53,071,949 61,551,092 315,725,843 322,761,480 Less: provision for slow moving inventories (2,127,047) (2,482,143) 313,598,796 320,279,337 The movement in the provision for slow moving inventories was as follows: 2025 2024 QR. QR. Balance as at January 1, 2,482,143 3,542,262 Net movement in provision for inventories (355,096) (1,060,119) Balance at December 31, 2,127,047 2,482,143 14. PREPAYMENT AND OTHER DEBIT BALANCES * This balance mainly includes the amount in lieu of accrued interest recoverable as a result of hedging. 15. ADVANCES TO CONTRACTORS AND SUPPLIERS Refer to Note 36 for the details on the credit quality of the Group financial assets. The movement in lifetime ECL has been recognised for advances to contractors and suppliers that has been recognised in accordance with the simplified approach set out in IFRS 9. 2025 2024 QR. QR. Accrued interest 4,613,416 4,268,171 Prepayments 4,335,995 4,337,236 Refundable deposits 28,386,777 28,569,985 Due from staff 1,657,139 1,751,861 Others* 17,516,048 25,987,089 56,509,375 64,914,342 2025 2024 QR. QR. Advances to contractors and suppliers 8,566,843 9,347,545 Less: Expected credit losses (6,003,874) (6,379,788) 2,562,969 2,967,757 2025 2024 QR. QR. Balance as at January 1, 6,379,788 9,922,529 Reversal of provision during the year (375,914) (3,542,741) Balance as at December 31, 6,003,874 6,379,788
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 50 - 16. RELATED PARTY DISCLOSURES Related parties as defined in International Accounting Standard 24: Related Party Disclosures, represent major shareholders, directors and key management personnel of the Group, and entities controlled, jointly controlled or significantly influenced by such parties. Balances and transactions between the Group and its subsidiaries, which are related parties of the Group, have been eliminated on consolidation. Details of transactions between the Group and other related parties are disclosed below. Pricing policies and terms of these transactions are approved by the Group’s management. a) Due from related parties 2025 2024 QR. QR. Entities under common control: Al Misnad L.L.C. 1,015,898 890,098 Vodafone Q.P.S.C. 2,719,305 3,569,583 National Aviation Services W.L.L. 200,000 200,000 Associates: Eversandai W.L.L. 1,597,873 1,696,795 Medlog Logistics W.L.L. 2,268,019 3,968,397 Affiliates: Others 988,162 1,452,718 8,789,257 11,777,591 b) Due to related parties 2025 2024 QR. QR. Entities under common control: National Aviation Services W.L.L. 164,697 164,697 Associates: Medlog Logistics W.L.L. -- 350,270 RESA Financial Group 363,040 1,283,673 Affiliates: First Information Security W.L.L. 60,119 60,119 Al Jazeera Exchange W.L.L. 59,550 59,550 Others 576,650 870,893 1,224,056 2,789,202 c) Transactions with related parties Nature 2025 2024 QR. QR. Relationship Associate: United Gulf Cement Company W.L.L. Sales 32,051,738 31,351,292 United Gulf Cement Company W.L.L. Purchases 3,255,998 2,635,763 United Gulf Cement Company W.L.L. Services 2,076,040 1,166,474 Common control: Vodafone Qatar Q.P.S.C. Rental income 11,721,970 10,662,204
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 51 - 17. ACCOUNT RECEIVABLES 2025 2024 QR. QR. Industrial activities 89,929,436 103,778,190 Contracting activities 11,420,147 29,370,335 Marine and logistics activities 16,609,629 19,666,083 Vehicle rental activities 6,400,297 7,846,610 124,359,509 160,661,218 Less: Expected credit losses (15,385,662) (24,273,174) 108,973,847 136,388,044 No profit is charged on outstanding account receivables. The Group measures the loss allowance for account receivables at an amount equal to lifetime ECL. The expected credit losses on account receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. There has been no change in the estimation techniques or significant assumptions made during the current reporting period. The Group writes off / fully provides for an account receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. , when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or when the account receivables are over one year past due, whichever occurs earlier. None of the account receivables that have been written off / fully provided for are subject to enforcement activities. The following table details the risk profile of account receivables based on the Group’s provision matrix. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished between the Group’s different customer base: As at December 31, the aging of account receivables is as follows: Expected credit loss Rate 1.83% 2.76% 2.51% 10.99% 100.00% 2025 Less than 90 Days 91 to 180 Days 181 to 270 days 271 to 365 days More than 365 days Total QR. QR. QR. QR. QR. QR. Estimated total gross carrying amount at default 85,290,439 15,674,903 7,495,992 3,025,540 12,872,635 124,359,509 Less: Lifetime ECL 1,560,046 432,114 188,319 332,548 12,872,635 15,385,662 83,730,393 15,242,789 7,307,673 2,692,992 - 108,973,847
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 52 - 17. ACCOUNT RECEIVABLES (CONTINUED) Expected credit loss Rate 1.64% 8.78% 8.30% 23.29% 100.00% 2024 Less than 90 Days 91 to 180 Days 181 to 270 days 271 to 365 days More than 365 days Total QR. QR. QR. QR. QR. QR. Estimated total gross carrying amount at default 105,579,174 20,393,289 11,125,162 4,873,766 18,689,827 160,661,218 Less: Lifetime ECL 1,734,995 1,790,326 923,112 1,134,914 18,689,827 24,273,174 103,844,179 18,602,963 10,202,050 3,738,852 -- 136,388,044 The following table shows the movement in lifetime ECL that has been recognised for account receivables in accordance with the simplified approach set out in IFRS 9; collectively assessed: 18. CASH AND BANK BALANCES * Short term deposits and saving accounts are placed with various local banks and earn effective profit rate ranging from 0.8% to 5.8% per annum (2024: ranging from 0.8% to 6.0% per annum). Short term deposits have a maturity period of 3 months or less. ** Restricted cash are mainly composed of dividends to be paid to shareholders (Note 27) held at local bank account, in addition to bank margin kept as pledged account to secure bank guarantees and letter of credits Balances with banks are assessed to have low credit risk of default since these banks are highly regulated by the Qatar Central Bank. Accordingly, the management of the Group have assessed that there is no material impairment, and hence have not recorded any loss allowances on these balances. 2025 2024 QR. QR. Balance as at January 1, 24,273,174 18,690,369 (Reversal)/ Provision for expected credit losses (8,887,512) 5,582,805 Balance as at December 31, 15,385,662 24,273,174 2025 2024 QR. QR. Cash in hand 541,445 532,566 Bank balances: Current accounts 130,694,687 125,854,466 Saving accounts 7,356,850 13,269,113 Term deposits* 188,589,320 268,663,115 Unrestricted cash and cash equivalents 327,182,302 408,319,260 Restricted cash** 267,357,903 235,396,304 Cash and bank balances 594,540,205 643,715,564
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 53 - 19. SHARE CAPITAL 2025 2024 QR. QR. Authorized, issued and fully paid up share capital 1,243,267,780 shares (2024: 1,243,267,780 shares) of QR. 1 per share 1,243,267,780 1,243,267,780 Proposed dividends: On February 3, 2026 the Board of Directors of the Group have proposed a cash dividend distribution of 10% of the paid up capital amounting to QR. 124,326,778 for the year ended December 31, 2025 which is subject to the approval by the shareholders in the General Assembly Meeting. There is a freeze on the dividends for certain shareholders which has been mandated by the Public Prosecutor/Anti-Money Laundering and Counter Terrorism Division. The corresponding dividend amount is included in restricted cash and disclosed in Note 18. 20. LEGAL RESERVE As required by Qatar Commercial Companies’ Law and the Company’s Articles of Association, a minimum of 10% of the net profit for the year should be transferred to legal reserve each year until this reserve equals 50% of the paid up share capital. The reserve is not available for distribution except in the circumstances stipulated in the above-mentioned Law. 21. HEDGING RESERVE Hedging reserve represents the Group’s share of the effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedge that was recognized by one of its subsidiaries. The positive hedging reserve represents an accounting entry from the revaluation to fair value the interest rate swaps. The hedging reserve is expected to decrease over time as loans are repaid and the notional amount of the swaps decreases. The reserve on designated hedges is not expected to impact either consolidated statement of income or retained earnings. The change in hedge reserve arises on interest rate swaps that relate to variable interest-bearing loans. Below was the movement noted in hedging reserve during the year.: 2025 2024 QR. QR. Balance as at January 1, 64,469,212 85,864,500 Net movement in cash flow hedges recognized through other comprehensive income (31,676,393) (21,395,288) Balance as at December 31, 32,792,819 64,469,212
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 54 - 22. BANK BORROWINGS (i) The Group has a syndicated term loan facility agreement with two local banks. The facility amount of USD 407.9 million is currently carrying average interest rate of 3.35% (2024: 3.35%) per annum. Final maturity date of this facility is 10 years from the date of first drawdown and the repayments are to be made in 19 semi-annual instalments of USD 25 million starting from January 2, 2020 with final settlement of the balance loan value in July 2029. The credit facilities are secured by a possessory mortgage over the cement plant, routing of revenue proceeds of the cement factory to the bank accounts, assign cement plant insurance, assign usage right over plant leasehold land favoring the bank to cover the limits including the profit and corporate guarantees from Qatari Investors Group Q.P.S.C. and a subsidiary company. (ii) The Group has entered into a facility with a local bank amounting to QR. 40,000,000 to finance 75% of the cost of the vehicles purchases which is partially utilised. The loan bears interest rate ranging from 4.6% to 8.0% and is secured against the vehicles purchased. The loan amount will be repaid in 48 equal monthly installments for each drawdown after six-month grace period. Reconciliation of liabilities arising from financing activities The table below details changes in the Group’s liabilities arising from financing activities, including cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified i n the Group’s consolidated statement of cash flows as cash flows from financing activities. As at January 1, 2025 Financing cash flows Non cash changes As at December 31, 2025 QR. QR. QR. QR. Bank borrowings 933,552,970 (115,181,411) (8,960,917) 809,410,642 Lease liabilities 111,385,490 (15,754,583) (66,986,490) 28,644,417 Notes payable 2,645,725 1,849,990 -- 4,495,715 Dividend payable 230,545,103 (161,624,811) 197,096,805 266,017,097 2025 2024 QR. QR. Facility I (i) 6,948,887 924,035,295 Facility II (ii) 802,461,755 9,517,675 809,410,642 933,552,970 2025 2024 QR. QR. Presented in the consolidated statement of financial position: Current portion – Gross 186,324,697 188,716,863 Less: deferred charges (51,185,473) (61,776,808) Current portion – Net 135,139,224 126,940,055 Non-current portion – Gross 756,150,056 942,342,607 Less: deferred charges (81,878,638) (135,729,692) Non-current portion – Net 674,271,418 806,612,915 809,410,642 933,552,970
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 55 - 22. BANK BORROWINGS (CONTINUED) As at January 1, 2024 Financing cash flows Non-cash changes As at December 31, 2024 QR. QR. QR. QR. Bank borrowings 1,044,053,886 (106,406,135) (4,094,781) 933,552,970 Lease liabilities 132,506,718 (21,891,958) 770,730 111,385,490 Notes payable 6,674,655 (4,028,930) -- 2,645,725 Dividend payable 174,570,111 (186,490,167) 242,465,159 230,545,103 23. LEASE LIABILITIES 2025 2024 QR. QR. Balance as at January 1, 111,385,490 132,506,718 Additions during the year 1,216,815 469,432 Derecognition during the year (72,744,850) -- Interest expenses on lease liabilities 4,541,545 8,301,298 Payment of lease liabilities (15,754,583) (29,891,958) Balance as at December 31, 28,644,417 111,385,490 24. EMPLOYEES’ END OF SERVICE BENEFITS 2025 2024 QR. QR. Balance as at January 1, 10,516,783 10,639,133 Charge for the year 1,440,352 1,942,821 Paid during the year (1,834,171) (2,065,171) Balance as at December 31, 10,122,964 10,516,783 2025 2024 QR. QR. Presented in the consolidated statement of financial position: Current portion: Payable not later than 1 year 6,009,117 29,294,803 Less: deferred interest expenses (1,906,831) (6,810,376) Current portion – Net 4,102,286 22,484,427 Non-current portion: Payable later than 1 year but not later than 5 years 27,173,858 93,226,557 Payable later than 5 years 2,528,630 9,356,693 Less: deferred interest expenses (5,160,357) (13,682,187) Non-current portion – Net 24,542,131 88,901,063 28,644,417 111,385,490
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 56 - 25. ACCOUNT PAYABLE 2025 2024 QR. QR. Local suppliers / contractors 21,573,954 28,708,042 Foreign suppliers / contractors 8,890,112 5,478,979 30,464,066 34,187,021 Account payables principally comprise amounts outstanding for trade purchases and ongoing costs. The Group has financial risk management policies in place to ensure that all payables are paid within the pre- agreed credit terms. The directors consider that the carrying amount of trade payables approximates to their fair value. 26. NOTES PAYABLE 2025 2024 QR. QR. Notes payable 4,495,715 2,645,725 Notes payable represent post-dated cheques issued for vehicles purchased. 27. ACCRUALS AND OTHER LIABILITIES 2025 2024 QR. QR. Dividends payable 266,017,097 230,545,103 Accrued production expenses 84,813,104 89,072,962 Income tax payable 17,774,003 1 14,276,665 Advances from customers 13,441,325 17,965,095 Consumables and spares payable 12,352,394 10,222,913 Staff provision 8,721,809 9,774,074 Marine and logistics services accruals 4,692,594 4,431,483 Social and sport fund contribution (Note 34) 3,610,672 4,132,014 Contractors and others accruals 2,160,767 2,170,853 Accrued royalties 469,526 738,401 Accrued expenses and other payables 30,194,550 32,260,625 444,247,841 415,590,188 28. REVENUE The Group derives its revenue from contracts with customers for the transfer of goods and services over time and at a point in time in the following major product lines: 2025 2024 QR. QR. Revenue – at a point in time Revenue from industrial activities 421,058,803 369,576,873 Revenue – over time Contracting revenue 37,395,981 20,412,897 Services revenue – maintenance and other services -- 35,646 Services revenue – marine and logistics services 23,734,569 41,639,793 Services revenue – vehicle rental 40,439,516 39,886,472 Lease rental income from investment properties 29,850,342 29,807,247 552,479,211 501,358,928
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 57 - 29. COST OF REVENUE 2025 2024 QR. QR. Cost of industrial activities 261,018,518 178,618,564 Cost of contracting revenue 27,312,026 18,472,513 Cost of marine and logistics services 12,992,743 25,993,959 Cost of vehicle rental 31,747,917 24,919,122 Cost of lease rental income 5,902,075 5,036,564 338,973,279 253,040,722 30. OTHER INCOME 2025 2024 QR. QR. Gain on sale of property, plant and equipment 2,273,355 2,736,305 Gain on cancellation of lease 4,538,326 -- Other income 19,791,305 17,837,639 26,602,986 20,573,944 31. SELLING AND DISTRIBUTION EXPENSES 2025 2024 QR. QR. Repair and maintenance expenses 1,118,618 1,263,665 Salaries and benefits 1,686,775 1,529,654 Depreciation on property, plant and equipment (Note 5) 53,751 62,244 Selling and marketing expenses 740,298 207,130 Insurance expenses 27,343 5,769 Export expenses -- 3,133,024 Others 112,877 118,415 3,739,662 6,319,901 32. GENERAL AND ADMINISTRATIVE EXPENSES 2025 2024 QR. QR. Salaries and benefits 60,877,937 51,215,363 Legal and professional charges* 2,739,530 3,162,757 Fees and subscriptions 2,934,215 4,231,700 Depreciation on property, plant and equipment (Note 5) 9,925,263 11,770,256 Amortisation of right-of-use assets (Note 6) 1,246,713 1,312,982 Repairs and maintenance 6,375,534 7,026,596 Short term rent expenses 1,002,211 909,669 Insurance expenses 737,731 721,786 Travel and entertainment expenses 280,588 275,381 Communication expenses 1,768,893 1,404,290 Expected credit losses 647,363 1,967,645 Others 3,331,683 3,660,926 91,867,661 87,659,351 * Legal and professional charges include audit and assurance services fee of QR 1,558,500 (2024: QR 1,450,000) and other services fee of QR 163,500 (2024: QR 159,500).
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 58 - 33. INCOME TAX EXPENSE The income tax expense for the year represents the amount recognised by each subsidiary. The major components of income tax expense for the year are as follows: 2025 2024 QR. QR. Current income tax 3,336,756 4,109,870 Deferred income tax 365,666 1,020,190 Income tax expense for prior year (280,257) (1,699) 3,422,165 5,128,361 34. SOCIAL AND SPORTS FUND CONTRIBUTION In accordance with Law No. 13 of 2008, the Group has taken a provision for the support of sports, social, cultural and charitable activities for an amount equivalent of 2.5% of the net profit of the Group. As per the instructions issued in the year 2010 by the Ministry of Economy and Finance, this social contribution has been treated as distribution from retained earnings of the Group. An amount of QR 3,610,672 (2024: QR. 4,132,014) has been provided based on the net profit for the year ended December 31, 2025. 35. BASIC AND DILUTED EARNINGS PER SHARE Basic and diluted earnings per share are calculated by dividing the net profit attributed to the Group’s shareholders for the year by the weighted average number of shares outstanding during the year. There are no dilutive potential ordinary shares. The information necessary to calculate basic and diluted earnings per share based on the weighted average number of shares outstanding during the year are as follows: 2025 2024 QR. QR. Net profit for the year after income tax attributable to the owners of the Parent (QR.) 144,426,880 165,280,565 Weighted average number of shares 1,243,267,780 1,243,267,780 Basic and diluted earnings per share (QR.) 0.12 0.13
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 59 - 36. FINANCIAL INSTRUMENTS Material accounting policies Details of material accounting policies and methods adopted including the criteria for recognition for the basis of measurement in respect of each class of financial assets and financial liabilities are disclosed in Note 3 to the financial statements. December 31, 2025 FVTOCI Amortised cost Total Fair value hierarchy QR. QR. QR. Financial assets: Financial investment at FVTOCI (Note 10) 9,670,503 -- 9,670,503 Level 3 Derivative financial asset (Note 11) 32,792,819 -- 32,792,819 Level 2 Contract assets (Note 12) -- 3,017,565 3,017,565 Due from related parties (Note 16(a)) -- 8,789,257 8,789,257 Account receivables (Note 17) -- 124,359,509 124,359,509 Cash and bank balances (Note 18) -- 594,540,205 594,540,205 Financial Liabilities: Due to related parties (Note 16(b)) -- 1,224,056 1,224,056 Bank borrowings (Note 22) -- 809,410,643 809,410,643 Lease liabilities (Note 23) -- 28,644,417 28,644,417 Account payable (Note 25) -- 30,464,066 30,464,066 Notes payable (Note 26) -- 4,495,715 4,495,715 Retention payables -- 5,025,772 5,025,772 Accruals and other liabilities (Note 27) -- 444,247,841 444,247,841 December 31, 2024 FVTOCI Amortised cost Total Fair value hierarchy QR. QR. QR. Financial assets: Financial investment at FVTOCI (Note 10) 8,964,576 -- 8,964,576 Level 3 Derivative financial asset (Note 11) 64,469,212 -- 64,469,212 Level 2 Contract assets (Note 12) -- 2,444,321 2,444,321 Due from related parties (Note 16(a)) -- 11,777,591 11,777,591 Account receivables (Note 17) -- 160,661,218 160,661,218 Cash and bank balances (Note 18) -- 643,715,564 643,715,564 Financial Liabilities: Due to related parties (Note 16(b)) -- 2,789,202 2,789,202 Bank borrowings (Note 22) -- 933,552,970 933,552,970 Lease liabilities (Note 23) -- 111,385,490 111,385,490 Account payable (Note 25) -- 34,187,021 34,187,021 Notes payable (Note 26) -- 2,645,725 2,645,725 Retention payables -- 7,108,365 7,108,365 Accruals and other liabilities (Note 27) -- 415,590,188 415,590,188
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 60 - 36. FINANCIAL INSTRUMENTS (CONTINUED) (a) Fair value measurements The fair values of financial assets and financial liabilities are determined as follows: • The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market bid prices at the close of the business on the reporting date. • The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes for similar instruments. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using anoth er valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Management considers that the carrying amounts of financial assets and financial liabilities recognised at amortised cost in the financial statements approximate their fair values. Valuation techniques and assumptions applied for the purposes of measuring fair value. • Fair value measurements recognised in the consolidated statement of financial position Some of the Group’s financial assets are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets are determined; Financial assets/financial liabilities Fair value as at December 31, Fair value hierarchy Valuation techniques and key inputs Significant Unobservable inputs and its relationship to fair value 2025 2024 QR. QR. Financial assets at fair value through Other Comprehensive Income (Note 10) 9,670,503 8,964,576 Level 3 Fair value Management’s experience and knowledge of market conditions of the specific industries Derivative financial assets (Note 11) 32,792,819 64,469,212 Level 2 Fair value Current price quoted, valuation of underlying assets, market liquidity, swap model and assumptions
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 61 - 36. FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management The Group’s Treasury function provides services to the business, co -ordinates access to financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, profit rate risk, and equity price risk), credit risk and liquidity risk. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, profit rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, profit rates, equity and commodity prices. Foreign currency risk The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchases and borrowings are denominated and the respective functional currencies of Group companies. The functional currencies of Group is the Qatari Riyal. The currencies in which these transactions are primarily denominated are US Dollars and Euro. Management is of the opinion that the Group’s exposure to currency risk is minimal as the Group’s significant transactions are denominated in Qatari Riyal and the US Dollar, against which the Qatari Riyal is pegged. Interest rate risk The Group is exposed to interest rate risk as it borrows and invests funds at both fixed and floating profit rates. The risk is managed by the Group by maintaining an appropriate mix of debt and equity. Sensitivity analysis for variable rate instruments Presently, the Group holds interest bearing loans obtained from financial institutions that exposes the Group to cash flow profit rate risk. In case of 50 basis points increase / decrease in profit rate on December 31, 2025, with all other variables held constant, the net assets and income of the Group for the year would change as follows: December 31, 2025 Increase / (decrease) in basis points Effect on profit (QR.) Liabilities 50 4,047,050 (50) (4,047,050) December 31, 2024 Liabilities 50 4,667,765 (50) (4,667,765) Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates on the cash flow exposures on the issued variable rate debt. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows quoted by the respective swap counter parties.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 62 - 36. FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Interest rate on swap contracts The following table details the notional principal amounts and remaining terms of interest rate swap contracts outstanding as at reporting date: Cash flow hedges Outstanding balance Average contracted fixed interest rate Notional principal amount outstanding Fair value 2025 2024 2025 2024 2025 2024 % % QR. QR. QR. QR. 3 years and above 3.35 3.35 645,554,527 802,116,039 32,792,819 64,469,212 The interest rate swap settles semi-annually. The floating rate on interest rate swaps is SOFR/synthetic LIBOR. The Group will settle the difference between the fixed and floating rate on a net basis. The interest rate swap contract exchanging floating rate interest amount for fixed rate interest amounts are designated as cash flow hedges in order to reduce the Group's cash flow exposure resulting from variable interest rates on borrowings. The interest rate swaps and the interest payments on the loan occur simultaneously. Equity price risks Equity price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market prices (other than those arising from profit rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Group's quoted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group manages the equity price risk through diversification. Reports on the equity portfolio are subm itted to the Group's Board of Directors on a regular basis. The Board of Directors review and approve all equity investment decisions. A decrease of 10% in the fair values of the quoted securities would not significantly affect the profit and equity of the Group. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. As at December 31, 20 25, the Group’s maximum exposure to credit risk without taking into account any collateral held or other credit enhancements, which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties and financial guarantees provided by the Group arises from: • the carrying amount of the respective recognised financial assets as stated in the consolidated statement of financial position; and
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 63 - 36. FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Credit risk (continued) • the maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee b eing exercised and the related loss allowance as disclosed in Note 17. In order to minimise credit risk, the Group has tasked its management to develop and maintain the Group’s credit risk grading to categorise exposures according to their degree of risk of default. The credit rating information is supplied by independent rating agencies where available and, if not available, the management uses other publicly available financial information and the Group’s own trading records to rate its major customers and other debtors. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. The Group’s current credit risk grading framework comprises the following categories: Category Description Basis for recognising Performing The counterparty has a low risk of default and does not have any past-due amounts 12-month ECL Doubtful When there has been a significant increase in credit risk since initial recognition Lifetime ECL – not credit impaired In default When there is evidence indicating the asset is credit- impaired Lifetime ECL – credit- impaired Write-off There is evidence indicating that there is a severe financial difficulty and the Group has no realistic prospect of recovery Amount is written off The tables below detail the credit quality of the Group’s financial assets, contract assets and financial guarantee contracts, as well as the Group’s maximum exposure to credit risk by credit risk rating grades: December 31, 2025 Note 12-month or lifetime ECL Gross carrying amount Loss allowance Net carrying Amount QR. QR. QR. Contract assets 12 Lifetime ECL 4,068,226 (1,050,661) 3,017,565 Advances to contractors and suppliers 15 Lifetime ECL 8,566,843 (6,003,874) 2,562,969 Due from related parties 16(a) Lifetime ECL 8,789,257 -- 8,789,257 Accounts receivables 17 Lifetime ECL 124,359,509 (15,385,662) 108,973,847 December 31, 2024 Note 12-month or lifetime ECL Gross carrying amount Loss allowance Net carrying Amount QR. QR. QR. Contract assets 12 Lifetime ECL 2,826,783 (382,462) 2,444,321 Advances to contractors and suppliers 15 Lifetime ECL 9,347,545 (6,379,788) 2,967,757 Due from related parties 16(a) Lifetime ECL 11,777,591 -- 11,777,591 Accounts receivables 17 Lifetime ECL 160,661,218 (24,273,174) 136,388,044
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 64 - 36. FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Credit risk (continued) For account receivables, advances to contractors and suppliers , contract assets and due from related parties, the Group has applied the simplified approach in IFRS 9 to measure the loss allowance at lifetime ECL. The Group determines the expected credit losses on these items by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of futur e economic conditions. Accordingly, the credit risk profile of these assets is presented based on their past due status in terms of the provision matrix. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requi rements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The table below analyses the Group’s non-derivative financial liabilities based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due wit hin 12 months equal their carrying balances as the impact of discounting is not significant. December 31, 2025 Carrying Amounts Contractual cash flows Less than 1 year More than 1 year QR. QR. QR. QR. Bank borrowings 809,410,642 942,474,754 186,324,697 756,150,057 Lease liabilities 28,644,417 35,711,605 6,009,117 29,702,488 Account payables 30,464,066 30,464,066 30,464,066 -- Due to related parties 1,224,056 1,224,056 1,224,056 -- Retention payable 5,025,772 5,025,772 5,025,772 -- Accruals and other liabilities 444,247,841 444,247,841 444,247,841 -- Notes payable 4,495,715 4,495,715 4,495,715 -- 1,323,512,509 1,463,643,809 677,791,264 785,852,545
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 65 - 36. FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Liquidity risk (continued) December 31, 2024 Carrying Amounts Contractual cash flows Less than 1 year More than 1 year QR. QR. QR. QR. Bank borrowings 933,552,970 1,131,059,470 188,716,863 942,342,607 Lease liabilities 111,385,490 131,878,053 29,294,803 102,583,250 Account payables 34,187,021 34,187,021 34,187,021 -- Due to related parties 2,789,202 2,789,202 2,789,202 -- Retention payable 6,942,765 6,942,765 6,942,765 -- Accruals and other liabilities 415,590,188 415,590,188 415,590,188 -- Notes payable 2,645,725 2,645,725 2,645,725 -- 1,507,093,361 1,725,092,424 680,166,567 1,044,925,857 The following table details the Group’s expected maturity for its non -derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets. The inclusion of information on non -derivative financial assets is necessary in order to understand the Group’s liquidity risk management as the liquidity is managed on a net asset and liability basis. At December 31, 2025 Less than 1 year More than 1 year Total QR. QR. QR. Account receivables – Net of ECL 108,973,847 -- 108,973,847 Contract assets 3,017,565 -- 3,017,565 Financial investments at FVTOCI -- 9,670,503 9,670,503 111,991,412 9,670,503 121,661,915 At December 31, 2024 Less than 1 year More than 1 year Total QR. QR. QR. Account receivables – Net of ECL 136,388,044 -- 136,388,044 Contract assets 2,444,321 -- 2,444,321 Financial investments at FVTOCI -- 8,964,576 8,964,576 138,832,365 8,964,576 147,796,941
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 66 - 36. FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Capital risk management The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholders value. The Group actively monitors and manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, after fulfilling senior debt obligations, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years ended December 31, 2025 and December 31, 2024. The Group monitors capital using a gearing ratio, which is debt divided by equity. The gearing ratio at the yearend was as follows: 2025 2024 QR. QR. Debt (i) 809,410,642 933,552,970 Less: Cash and bank balances (Note 18) (327,182,302) (408,319,260) Net debt 2482,228,340 525,233,710 Equity (ii) 3,002,586,231 3,042,093,997 Net debt to equity ratio 16% 17% (i) Debt is defined as bank borrowings. (ii) Equity includes all capital and reserves of the Group that are managed as capital. 37. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS 2025 2024 QR. QR. Letters of bank guarantees 31,474,349 35,073,217 Letters of credit 1,329,400 1,318,811 Secured cheques 6,806,027 8,851,663
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 67 - 38. FUTURE LEASE RECEIVABLES The Group as lessor As set out in Note 7 property rental income earned during the year was QR. 34,541,955 (2024: QR. 33,926,802). Lease income is recognised over time over the lease period. All operating lease contracts contain market review clauses in the event that the lessee exercises its option to renew. The lessee does not have an option to purchase the property at the expiry of the lease period. The future lease commitments in respect of the above lease agreements are as follows: 2025 2024 QR. QR. Not later than 1 year 26,833,056 23,078,933 Later than 1 year and not longer than 5 years 59,771,467 52,746,467 Later than 5 years 63,522 8,325,216 86,668,046 84,150,616 39. SEGMENT INFORMATION The Group has the following strategic divisions, which are its reportable segments. These divisions offer different products and services, and are managed separately because they require different technology and marketing strategies. The following summary describes the operations of each segment: Reportable segment Operations Real estate Purchase, construction and selling of lands and buildings Marine services Shipping, logistics, marine and aviation services. Industrial General industrial activity Contracting and technology Supply, installation of security system Others* Investments in agencies, sponsorship shares, vehicle rental, various trading activities and engineering businesses. The Chief Executive officer reviews internal management reports of each division at least quarterly. *Other segment doesn’t meet the quantitative threshold for reporting segments in 2025 or 2024.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 68 - 39. SEGMENT INFORMATION (CONTINUED) (a) Information about reportable segments Information related to each reportable segment as of and for the year ended December 31, 2025 is set out below. Segment profit, as included in internal management reports reviewed by the Chief Executive Officer, is used to measure performance because management believes that such information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industry. Real Estate Marine services Industrial Contracting & Technology Other segments Consolidated QR. QR. QR. QR. QR. QR. As at December 31, 2025 Total assets 888,134,559 73,639,464 2,877,206,882 41,661,598 446,534,871 4,327,177,374 Total liabilities (13,819,428) (24,329,668) (997,968,391) (16,108,409) (281,409,577) (1,333,635,473) Revenue 29,615,274 23,734,569 421,903,843 36,786,009 40,439,516 552,479,211 Other income* 3,695,214 11,368,654 21,235,128 2,323,629 24,965,214 63,587,839 Net profit (loss) 17,376,026 2,368,877 132,602,185 6,979,033 (14,878,278) 144,447,843 As at December 31, 2024 Total assets 921,748,210 141,931,555 3,048,388,287 41,966,831 400,214,637 4,554,249,520 Total liabilities (18,716,639) (89,807,213) (1,142,754,803) (14,110,654) (252,220,835) (1,517,610,144) Revenue 28,582,487 41,639,793 370,955,860 20,003,885 40,176,903 501,358,928 Other income* 11,072,703 7,995,871 4,343,954 1,533,137 15,899,285 40,844,950 Net profit (loss) 28,116,691 2,852,037 141,339,939 4,401,579 (11,768,145) 164,942,101 * Other income includes income from short-term deposits and saving accounts, other income, investment income, and share of profit/ (loss) from investment in associates.
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QATARI INVESTORS GROUP Q.P.S.C. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2025 - 69 - 40. LEGAL CASES As of December 31, 2025, there are no ongoing lawsuits that would negatively or financially affect the Group. 41. SUBSEQUENT EVENTS There were no significant events after the reporting date, which have a bearing on these consolidated financial statements. 42. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements were approved by the board of directors and were signed on February 3, 2026.