Steppe Cement Limited

Interim / Quarterly Report • Sep 15, 2025

National Storage Mechanism | Additional information

RNS Number : 3033Z

Steppe Cement Limited

15 September 2025

15 September 2025

Steppe Cement Ltd

("Steppe Cement" or the "Company")

Unaudited Interim Results for the Half Year Ended 30 June 2025 and General Market Update

Steppe Cement Ltd (AIM: STCM), is pleased to announce its unaudited interim results for the half year ended 30 June 2025, and a general market update.

A copy of this announcement and the full interim financial statements are available on the Company's website at www.steppecement.co m    

Unaudited Interim Results 

During the six-month period to 30 June 2025 ("H1 2025" or the "Period"), the Group reported revenue of USD40.9 million, a 19% increase from USD34.4 million in the corresponding period in 2024. This increase was attributable to the 18% increase in sales volume. Volume of sales has been stable in the third quarter of 2025, and the price of cement has slightly increased as is typical during the high season.

	6 months ended 30 June 2025	6 months ended 30 June 2024	% change
Sales (Tonnes)	850,424	719,294	+18%
Consolidated Turnover (KZT million)	20,717	15,435	+34%
Consolidated Turnover (USD million)	40.9	34.4	+19%
Consolidated (loss)/profit after tax (USD million)	-0.5	-3.5	n/a
(Loss)/earnings per share (Cents)	-0.2	-1.6	n/a
Average exchange rate (USD/KZT)	507	449	+13%

The average sales price of cement delivered for the Company was USD48 per tonne (KZT24,361 per tonne) the same in USD as in 2024.  

The gross margin increased by 21% in the six-month period to 30 June 2025 compared with 15% in the same period last year due mostly to the higher production and selling price in Kazakhstani Tenge ("KZT").  The cost of electricity continues to increase well above inflation however selling expenses have fallen by 13% as the Company concentrates on markets closer to the factory, while administration expenses have increased by 6%. 

General inflation in Kazakhstan has increased to 11.8% in H1 2025 vs 8.4% the previous year. The increase is due to higher prices of utilities (water, electricity and heating), food and imported goods following a 13% depreciation of the KZT. In response, the National Bank of Kazakhstan increased the refinancing rate in KZT to 16.5% in March 2025 to try to reduce inflation. 

The Group reported a net loss for the Period of USD0.5 million compared with a loss of USD3.5 million after tax in the same period in 2024. 

Production and Capex 

• Cash production costs remained flat in KZT terms in the H1 2025 compared to the same period in 2024, as higher production levels offset increased electricity, diesel and consumable costs. In H2 2025, further increases in electricity tariffs and continued general inflation is expected. The government has announced an inflation target of 11% to 12% for the full year.

• Clinker production volume increased by 4% in H1 2025 and continued to increase in the third quarter of 2025 with a full year growth target growth of 8%.

• Capex has been focused on compliance with ecological requirements, particularly the installation of filters.

• A new dynamic separator for raw mill number 3 has been commissioned.

• The Company is exploring the opportunities to further increase clinker production in Line 6 as well as other options to optimise our assets.

Kazakh Cement Market Update 

• During H1 2025, the Kazakh cement market increased in size by 19% compared to the same period in 2025 due to weather conditions, general economic growth, infrastructure projects, population growth and subsidised lending for private mortgages. The growth has been mostly concentrated in South Kazakhstan. We expect slower growth in the second half of 2025.

• The Company expects to maintain its market share at approximately 14% for the full financial year ended 31 December 2025 and volumes of 1.8 to 1.85 million tonnes. 

• Exports of cement from Kazakhstan in the first half of 2025 declined to 0.4 million tonnes compared to 0.45 million in the same period of 2024.

• Imports of cement in the Period represented 7.7% of the local market, 1.5 times higher than in 2024. A significant built up of capacity in Uzbekistan has led to lower prices, resulting in reduced exports to Uzbekistan and increased imports into South Kazakhstan.

Financial Update

• Total finance costs for the Period were USD0.6 million, including interest expenses on bank debt of USD0.5 million, mostly from subsidised loans.

• The Company recorded USD0.1 million in advanced income tax payments, which are expected to be offset against future tax liabilities. 

• As at 30 June 2025, the Company's borrowings totalled USD4.8 million, with a cash balance of USD7.3 million. Inventories of clinker and cement were also valued at USD7.3 million as at 30 June 2025.

For further information, please contact:  

Steppe Cement Ltd	www.steppecement.com
Javier del Ser Pérez, Chief Executive Officer	Tel: +(603) 2166 0361
Strand Hanson Ltd (Nominated & Financial Adviser and Broker)	www.strandhanson.co.uk
James Spinney / Ritchie Balmer / Imogen Ellis	Tel: +44 20 7409 3494

CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE PERIOD ENDED 30 JUNE 2025 (UNAUDITED)

			The Group					The Company
			6 months ended					6 months ended
			30 June 2025		30 June 2024			30 June 2025		30 June 2024
		##### Note	USD'000		USD'000			USD'000		USD'000
Revenue		7	40,948		34,376			871		738
Cost of sales			(32,355)		(29,158)			-		-
Gross profit			8,593		5,218			871		738
Other Income			554		760			9		88
Selling expenses			(5,364)		(6,138)			-		-
Administrative expenses			(3,625)		(3,417)			(228)		(199)
Other expenses			(148)		(251)			-		(4)
Profit/(Loss) from operations Finance cost		8	10 (611)			(3,828) (614)		652 -		623 -
(Loss)/Profit before tax			(601)		(4,442)			652		623
Tax credit		9	125		938			-		-
(Loss)/Profit for the period			(476)		(3,504)			652		623
Attributable to shareholders
of the Company			(476)		(3,504)			652		623
Basic and diluted earnings
per ordiary share (cents)		10	(0.2)		(1.6)

The accompanying notes form an integral part of the Condensed Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2025 (UNAUDITED)

		The Group				The Company
		6 months ended				6 months ended
		30 June 2025		30 June 2024		30 June 2025		30 June 2024
		USD'000		USD'000		USD'000		USD'000
(Loss)/Profit for the period		(476)		(3,504)		652		623
Other comprehensive income/ (loss):
Item that may not be reclassified subsequently to profit or loss
Exchange differences arising on translation of foreign operations		158		(3,140)		-		-
Total comprehensive (loss)/income for the period		(318)		(6,644)		652		623
Attributable to shareholders
of the Company		(318)		(6,644)		652		623

The accompanying notes form an integral part of the Condensed Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2025 (UNAUDITED)

					The Group				The Company
					Unaudited		Audited		Unaudited		Audited
					30 June 2025		31 Dec 2024		30 June 2025		31 Dec 2024
				Note	USD'000		USD'000		USD'000		USD'000
Assets
Non-Current Assets
Property, plant and equipment				11	44,319		46,364		-		-
Right-of-use assets					922		19		-		-
Investment in subsidiary companies					-		-		36,200		36,200
Loan to subsidiary company					-		-		26,990		27,000
Other assets				12	220		308		-		-
Total Non-Current Assets					45,461		46,691		63,190		63,200
Current Assets
Inventories				13	19,258		20,314		-		-
Trade  receivables Other receivables				14	498 5,440		601 3,407		- 18		- 8
Tax recoverable					2,706		2,098		-		-
Loans and advances to subsidiary companies					-		-		923		211
Cash and cash equivalents				15	7,267		6,064		67		117
Total Current Assets					35,169		32,484		1,008		336
### Total Assets					80,630		79,175		64,198		63,536

(Cont'd)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2025 (UNAUDITED)

			##### The Group				The Company
			Unaudited		##### Audited		Unaudited		Audited
			30 June 2025		31 Dec 2024		30 June 2025			31 Dec 2024
		Note	USD'000		USD'000		USD'000		USD'000
Equity and Liabilities
Capital and Reserves
Share capital			65,400		65,400		65,400		65,400
###### Asset revaluation reserve			3,669		3,669		-		-
Translation reserve			(133,724)		(133,883)		-		-
Retained earnings / (Accumulated losses)			121,388		121,865		(1,413)		(2,065)
Total Equity			56,733		57,051		63,987		63,335
### Non-Current Liabilities
Borrowings		16	2,842		2,072		-		-
Deferred taxes			2,623		2,557		-		-
Deferred income Lease Payable			1,840 -		1,840 17		- -		- -
Provision for site restoration			35		32		-		-
Total Non-Current Liabilities			7,340		6,518		-		-
Current liabilities
Trade and payables Other payables			8,601 5,893		6,670 5,626		- 211		- 201
Borrowings		16	1,950		3,121		-		-
Lease liabilities			-		4		-		-
Deferred income			113		185		-		-
Total Current Liabilities			16,557		15,606		211		201
### Total Liabilities			23,897		22,124		211		201
Total Equity and Liabilities			80,630		79,175		64,198		63,536

The accompanying notes form an integral part of the Condensed Financial Statements.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2025 (UNAUDITED)

			Non-distributable					Distributable
The Group	Share capital		Revaluation reserve		Translation reserve			Retained earnings			Total
	USD'000		USD'000		USD'000			USD'000			USD'000
As at 1 January 2025	65,400		3,669,		(133,882)			121,864			57,051
Loss for the period Other comprehensive income	- -		- -		- 158				(476) -		(476) 158
Total comprehensive income/(loss) for the period Transfer of revaluation reserve relating to property, plant and equipment through use	- -		- -		158 -				(476) -		(318) -
As at 30 June 2025	65,400		3,669		(133,724)				121,388		56,733

(Cont'd)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2025 (UNAUDITED)

			Non-distributable					Distributable
The Group	Share capital		Revaluation reserve		Translation reserve			Retained earnings			Total
	USD'000		USD'000		USD'000			USD'000			USD'000
As at 1 January 2024	73,761		1,516		(125,178)				120,596		70,695
Loss for the period	-		-		-				(3,504)		(3,504)
Other comprehensive (loss)	-		-		(3,140)				-		(3,140)
Total comprehensive (loss) for the period Capital reduction	- (4,161)		- -		(3,140) -				(3,504) -		(6,644) (4,161)
Transfer of revaluation reserve relating to property, plant and equipment through use	-		(110)		-				110		-
As at 30 June 2024	69,600		1,406		(128,318)				117,202		59,890

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2025 (UNAUDITED)

The Company	Share capital		Accumulated losses			Total
	USD'000		USD'000			USD'000
As at 1 January 2025	65,400			(2,065)			63,335
Total comprehensive income for the period	-			652			652
As at 30 June 2025	65,400			(1,413)			63,987

As at 1 January 2024	73,761			(3,148)		70,613
Total comprehensive income for the period Capital reduction	- (4,161)			623 -		623 (4,161)
As at 30 June 2024	69,600			(2,525)		67,075

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2025 (UNAUDITED)

			The Group				The Company
			6 months ended				6 months ended
			30 June 2025		30 June 2024		30 June 2025		30 June 2024
			USD'000		USD'000		USD'000		USD'000
#### OPERATING ACTIVITIES
(Loss)/Profit before income tax			(601)		(4,442)		653		623
Adjustments for:
Depreciation of property,  plant and equipment			2,833		2,898		-		-
Depreciation of right-of-use  Assets			3		3		-		-
Other non-cash items			896		(2,413)		(604)		(1,094)
Operating Profit/(Loss) Before Working Capital Changes			3,131		(3,954)		49		(471)
(Increase)/Decrease in:
Inventories			1,056		5,096		-		-
Trade and other receivables, advances and prepaid expenses			(3,353)		(1,725)		(11)		(9)
Loans and advances to subsidiary companies			-		-		(98)		(67)
Increase/(Decrease) in:
Trade and other payables, accrued and other liabilities			2,171		1,879		10		(4,152)
Cash Generated From/(Used In) Operations			3,005		1,296		(50)		(4,699)
Income tax paid			(661)		(926)		-		-
Interest paid			(173)		(224)		-		-
Net Cash Generated From/(Used In) Operating Activities			2,171		146		(50)		(4,699)
(Cont'd)

			The Group				The Company
			6 months ended				6 months ended
			30 June 2025		30 June 2024		30 June 2025		30 June 2024
			USD'000		USD'000		USD'000		USD'000
INVESTING ACTIVITIES
Purchase of property, plant and equipment			(668)		(2,171)		-		-
Purchase of other assets			(28)		7		-		-
Interest received			271		119		-		200
Net Cash (Used In)/Generated From Investing Activities			(425)		(2,045)		-		200
FINANCING ACTIVITIES
Proceeds from borrowings			1,306		9,629		-		-
Repayment of borrowings			(2,034)		(10,752)		-		-
Net Cash Used In Financing Activities			(728)		(1,123)		-		-
NET DECREASE IN CASH AND CASH EQUIVALENTS			1,018		(3,022)		(50)		(4,499)
EFFECTS OF FOREIGN EXCHANGE RATE CHANGES			185		(1,370)		-		-
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD			6,064		6,435		117		4,624
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD (NOTE 15)			7,267		2,043		67		125

The accompanying notes form an integral part of the Condensed Financial Statements.

STEPPE CEMENT LTD

(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)

AND ITS SUBSIDIARY COMPANIES

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

1.         GENERAL INFORMATION

Steppe Cement Ltd ("the Company") is incorporated and domiciled in Malaysia. The Company's and its subsidiaries' ("the Group") principal place of business is located at Aktau village, Karaganda region, Republic of Kazakhstan. The Company's shares are listed on the AIM Market of the London Stock Exchange plc.

The registered office of the Company is located at Brumby Centre, Lot 42, Jalan Muhibbah, 87000 Labuan FT, Malaysia.

2.         BASIS OF PREPARATION OF CONDENSED INTERIM FINANCIAL STATEMENTS

Basis of presentation

The condensed interim financial statements of the Group and the Company are unaudited and have been prepared in accordance with International Financial Reporting Standards ("IFRS").

The condensed interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the audited financial statements for the year ended 31 December 2024. 

The condensed interim financial statements of the Group and the Company were authorised for issue by the Board of Directors on 10 September 2025.

Use of estimates and assumptions

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Due to the inherent uncertainty in making those estimates, actual results reported in future periods could differ from such estimates.

3.         SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The financial statements of the Group and the Company have been prepared under the historical cost convention except the revaluation of land and building to fair values in accordance with IAS 16 "Property, Plant and Equipment" (Note 11).

The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2024, except for the adoption of new standards effective as of 1 January 2025.

The adoption of these Amendments did not have an impact on the Group's condensed consolidated interim financial statements.

The principal closing rates used in translation of foreign currency amounts are as follows:

		USD
1 Pound Sterling		1.3713
1 Ringgit Malaysia		0.2371
1 Euro Dollar		0.8541
1 Kazakhstan Tenge ("KZT")		0.0019

		KZT
1 US Dollar		520.39

4.         REVIEW OF RESULTS FOR THE PERIOD

During the six-month period ended 30 June 2025, the Group posted revenue of USD40.9 million, an increase of 19% from USD34.4 million in the corresponding period of 2024. The growth in revenue was mainly attributable to an 18% increased in sales volume, particularly in regions nearer to the plant. 

The average sales price in tenge was KZT24,656 per tonne compared with  KZT21,458 per tonne in the same period of 2024. However, in USD terms, the average price remained  unchanged at USD48 per tonne.

The gross margin improved to 21% in the six-month period to 30 June 2025, compared with 15% in the same period last year, driven by higher volumes, increased selling prices and production efficiencies despite higher costs.  Selling expenses decreased by USD0.7 million or 13% to USD5.4 million, while general and administration expenses increased by 6% (USD0.2 million) to USD3.6 million.

As a result, the Group recorded a lower net loss of USD0.5 million, compared with a loss after tax of USD3.5 million in the same period of 2024.

5.         SEASONAL OR CYCLICAL FACTORS

The Group's revenue is closely linked to the construction sector which experiences seasonal, significant slow-down in construction activities due to extreme, cold temperature especially during the months of December, January and February in most parts of Kazakhstan. Each year, the Group's sales improve after winter and typically peak during the summer months.

6.         SEGMENTAL REPORTING

No industry and geographical segmental reporting are presented as the Group's primary business is in the production and sale of cement which is located in the central region of the Republic of Kazakhstan. 

7.         REVENUE

	#### The Group					The Company
	6 months ended					6 months ended
	30 June 2025		30 June 2024			30 June 2025		30 June 2024
	USD'000		USD'000			USD'000		USD'000

Sales of manufactured goods	40,944		34,369		-		-
Transmission and distribution of electricity	4		7		-		-
Net interest income	-		-		871		738
Total	40,948		34,376		871		738

8.         FINANCE COSTS

	#### The Group
	6 months ended
	30 June 2025		30 June 2024
	USD'000		USD'000

Interest expense on borrowings	533		436
Other finance costs	78		178
Total	611		614

9.         INCOME TAX EXPENSE

	#### The Group				The Company
	6 months ended				6 months ended
	30 June 2025		30 June 2024		30 June 2025		30 June 2024
	USD'000		USD'000		USD'000		USD'000

Income tax expense	-		-		-		-
Deferred tax benefit	125		938		-		-
	125		938		-		-

10.       EARNINGS PER SHARE

	The Group
	6 months ended			6 months ended
	30 June 2025			30 June 2024
	##### USD'000			USD'000
##### Loss attributable to ordinary shareholders	(476)		(3,504)

	6 months ended		6 months ended
	30 June 2025		30 June 2024
	'000		'000
##### Number of ordinary shares in issue at beginning and at end of period	219,000		219,000
##### Weighted average number of ordinary shares at beginning and at end of period	219,000		219,000
##### Earnings per share, basic and diluted (cents)	(0.2)		(1.6)

The basic earnings per share is calculated by dividing the consolidated profit attributable to shareholders of the Company by the weighted average number of ordinary shares in issue during the financial period.

There are no dilutive instruments in issue as at 30 June 2025 and 30 June 2024.

11.      PROPERTY, PLANT AND EQUIPMENT, NET

The Group	Freehold land and land improvement				Buildings			Machinery and equipment		Railway Wagons		Other assets		Stand-by equipment and major spare parts		Construction in progress		Total
	USD'000				USD'000			USD'000		USD'000		USD'000		USD'000		USD'000		USD'000
Cost
At 1 January 2025	1,807				9,383			66,755		5,592		10,213		6,897		1,415		102,062
Additions	-				-			39		-		71		50		507		667
Transfers	-				63			379		453		61		(176)		(780)		-
Disposals	-				-			(17)		-		(14)		-		(82)		(113)
Reclassification from inventories	-				-			(2)		-		143		(389)		85		(163)
Exchange differences	11				(3,619)			1,802		27		168		(60)		13		(1,658)
At 30 June 2025	1,818				5,827			68,956		6,072		10,642		6,322		1,158		100,795
Accumulated depreciation
At 1 January 2025		-				3,700		43,701		2,781		5,516		-		-		55,698
Charge for the period		-				174		1,965		155		540		-		-		2,834
Disposals		-				-		(17)		-		(14)		-		-		(31)
Exchange differences		-				(3,655)		1,591		14		25		-		-		(2,025)
At 30 June 2025		-				219		47,240		2,950		6,067		-		-		56,476
Net Book Value
At 30 June 2025		1,818				5,608		21,716		3,122		4,575		6,322		1,158		44,319
At 31 December 2024		1,807				5,683		23,054		2,811		4,697		6,897		1,415		46,364

12.       OTHER ASSETS

	#### The Group				The Company
	As at		As at		As at		As at
	30 June 2025		31 Dec 2024		30 June 2025		31 Dec 2024
	USD'000		USD'000		USD'000		USD'000

Site restoration fund	214		186		-		-
Others	6		122		-		-
Total	220		308		-		-

13.       INVENTORIES

	#### The Group				The Company
	As at		As at		As at		As at
	30 June 2025		31 Dec 2024		30 June 2025		31 Dec 2024
	USD'000		USD'000		USD'000		USD'000

Finished goods	6,105		6,527		-		-
Spare parts	6,376		5,674		-		-
Work in progress	1,219		4,986		-		-
Raw materials	3,344		2,703		-		-
Other materials	2,810		799		-		-
Packing materials	94		225		-		-
Total	19,948		20,914		-		-
Less: Provision for obsolete inventories	(690)		(600)		-		-
Net	19,258		20,314		-		-

No additional provision for obsolete inventories is necessary based on current conditions as at 30 June 2025.

.

14.       TRADE RECEIVABLES

	#### The Group				The Company
	As at	As at			As at		As at
	30 June 2025		31 Dec 2024		30 June 2025		31 Dec 2024
	USD'000		USD'000		USD'000		USD'000

Trade Receivables	1,270		1,267		-		-
Less: Loss allowances	(772)		(666)		-		-
	498		601		-		-

The Company enters into sales contracts with trade customers on cash terms. Some customers with good payment history are granted certain credit periods on their cement purchases which are secured against bank guarantee or other credit enhancements.

The recoverability of trade accounts receivable depends to a large extent on the Group's customers' ability to meet their obligations and other factors which are beyond the Group's control. The recoverability of the Group's trade accounts receivable is determined based on conditions prevailing and information available as at reporting date. The directors have reviewed the trade receivables and considered no further loss allowances for trade receivables is necessary based on conditions prevailing and available information as at 30 June 2025.

15.       CASH AND CASH EQUIVALENTS

		The Group
		As at		As at
		30 June 2025		31 Dec 2024
		USD'000		USD'000

Cash in hand and at banks		460		199
Short-term deposit		6,807		5,865
Total		7,267		6,064

16.       BORROWINGS

		#### The Group
		As at		As at
		30 June 2025		31 Dec 2024
		#### USD'000		USD'000

Current portion:
Bank loans			1,950		3,121
Non-current portion:
Bank loans			2,842		2,072
Total borrowings			4,792		5,193

Undrawn loan amounts

As at 30 June 2025, the Group has USD3.8 million in working capital facilities available for drawdown under the Halyk Bank JSC short-term loan facilities.

17.       RELATED PARTIES

Related parties include shareholders, directors, affiliates and entities under common ownership, over which the Group has the ability to exercise a significant influence.

Other related parties include entities which are controlled by a director, which a director of the Group has ownership interests and exercises significant influence.

Balances and transactions between the Company and its subsidiary companies, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.

The transactions between a related party and the Group included in the condensed consolidated income statement and condensed statement of financial position are as follows:

	The Group                  Purchase of services
	30 June 2025		30 June 2024
	#### USD'000		#### USD'000
Other related party
Office rental	-		4

	Payable to related parties
	30 June 2025		30 June 2024
	#### USD'000		#### USD'000
Other related party
Office rental	-		-

Compensation of key management personnel

Included in the staff costs are remuneration of directors and other members of key management during the financial period as follows:

	#### The Group				The Company
	30 June 2025		30 June 2024		30 June 2025		30 June 2024
	#### USD'000		USD'000		USD'000		USD'000

Short-term benefits	415		429		75		75

The remuneration of directors and key executives is determined by the remuneration committees of the Company and subsidiary companies having regard to the performance of individuals and market trends.

18.       FINANCIAL INSTRUMENTS

Financial Risk Management Objectives and Policies

The operations of the Group are subject to various financial risks which include foreign currency risk, credit risk and liquidity risk.

The condensed interim financial statements of the Group do not include all financial risk management information and disclosures required in the annual financial statements. There has been no change in the financial risk management objectives and policies since the previous financial year ended 31 December 2024. The Group continuously manages its exposures to risks and/or costs associated with the financing, investing and operating activities of the Group.

Fair Value of Financial Assets and Financial Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market condition regardless of whether that price is directly observable or estimated using another valuation technique. As no readily available market exists for a large part of the Group's financial instruments, judgement is necessary in arriving at fair value, based on current economic conditions and specific risks attributable to the instrument. The fair value of the instruments presented herein is not necessarily indicative of the amounts the Group could realise in a market exchange from the sale of its full holdings of a particular instrument. 

The following methods and assumptions were used by the Group to estimate the fair value of financial instruments:

Cash and cash equivalents

The carrying value of cash and cash equivalents approximates their fair value due to the short-term maturity of these financial instruments.

Trade and other receivables and payables and accrued and other liabilities

For assets and liabilities with maturity less than twelve months, the carrying value approximate fair value due to the short-term maturity of these financial instruments.

Borrowings

The fair values of the borrowings are estimated by discounting expected future cash flows at market interest rates prevailing at the end of the relevant period with similar maturities adjusted by credit risk.

As at 30 June 2025 and 2024, the fair values of financial assets and short-term financial liabilities approximate their carrying values.

19.       CONTINGENCIES

There are no significant changes in the contingencies since the financial year ended 31 December 2024.

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