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LYDİA YEŞİL ENERJİ KAYNAKLARI A.Ş.

Quarterly Report Oct 27, 2025

8828_rns_2025-10-27_ef23a355-1c10-46f2-b992-2f69d4f766e2.pdf

Quarterly Report

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LYDİA YEŞİL ENERJİ KAYNAKLARI A.Ş.

FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY- 30 SEPTEMBER 2025

(CONVENIENCE TRANSLATION INTO ENGLISH OF THE FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY- 30 SEPTEMBER 2025

CONTENTS PAGE
STATEMENTS OF FINANCIAL POSITION1-2
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME3
STATEMENTS OF CHANGES IN EQUITY4
STATEMENTS OF CASH FLOWS5
NOTES TO THE FINANCIAL STATEMENTS6- 40

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2025 AND 31 DECEMBER 2024

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

Current period Prior period
Unreviewed Audited
ASSETS Notes 30 September 2025 31 December 2024
Current Assets 44,505,605 1,742,335,815
Cash and Cash Equivalents 5 7,282 16,933,915
Financial Investments 6 19,516,044 1,706,080,583
Trade Receivables 7 11,839,322 5,114,283
Trade Receivables Due from Third Parties 7 11,839,322 5,114,283
Other Receivables 8 - 855,756
Other Receivables Due from Third Parties 8 - 855,756
Prepaid Expenses 9 265,812 359,764
Other Current Assets 10 12,877,145 12,991,514
Total 44,505,605 1,742,335,815
Non-Current Assets 3,029,973,628 662,660,694
Financial Investments 6 2,411,760,000 -
Other Receivables 8 41,227 -
Other Receivables Due from Third Parties 8 41,227 -
Investment Properties 13 - 337,015
Property, Plant and Equipment 11 617,833,816 661,624,238
Intangible Assets 12 - 699,441
Other Intangible Assets 12 - 699,441
Prepaid Expenses 9 338,585 -
TOTAL ASSETS 3,074,479,233 2,404,996,509

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2025 AND 31 DECEMBER 2024

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

Current period Prior period
Unreviewed Audited
LIABILITIES Notes 30 September 2025 31 December 2024
Current Liabilities 8,302,324 52,100,179
Trade Payables 7 346,074 1,306,920
Trade Payables Due to Related Parties 7 - 345,649
Trade Payables Due to Third Parties 7 346,074 961,271
Employee Benefits 14 - 137,277
Other Payables 8 4,551,446 1,537,539
Other Payables Due to Related Parties 8 3,489,208 95,008
Other Payables Due to Third Parties 8 1,062,238 1,442,531
Deferred Income 9 - 8,483
Current Income Tax Liabilities - 47,357,734
Short-Term Provisions 15 1,263,184 1,588,909
Short-Term Provisions for Employee Benefits 15 - 4,503
Other Short-Term Provisions 15 1,263,184 1,584,406
Other Current Liabilities 10 2,141,620 163,317
Total 8,302,324 52,100,179
Non-Current Liabilities 715,791,074 521,441,364
Long-Term Provisions 15 - 401,029
Long-Term Provisions for Employee Benefits 15 - 401,029
Deferred Tax Liabilities 22 715,791,074 521,040,335
Equity Attributable to Owners of Parent 2,350,385,835 1,831,454,966
Paid-in Share Capital 16 1,891,070 1,891,070
Adjustment to Share Capital 16 16,058,395 16,058,395
Share Premium 16 149,374,707 149,374,707
Additional Capital Contributions of the Shareholders 16 11,771,109 11,771,109
Business Combinations 16 - 310,947,845
Other Comprehensive Income or Expenses not to be
Reclassified to Profit or Loss 16 196,230,665 195,607,474
Actuarial gains/(losses) on Employee Benefits 16 - (623,191)
Gains/(losses) on revaluation and reclassifications 16 196,230,665 196,230,665
Retained Earnings 16 1,456,752,211 (58,838,968)
Profit for the Period 16 518,307,678 1,204,643,334
TOTAL LIABILITIES AND EQUITY 3,074,479,233 2,404,996,509

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2025 AND 31 DECEMBER 2024

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

Current
Current period period Prior period Prior period
Unreviewed Unreviewed Unreviewed Unreviewed
1 January - 1 July - 1 January - 1 July -
Notes 30 September 30 September 30 September 30 September
2025 2025 2024 2024
Profit or loss
Revenue 17 42,813,790 15,543,005 54,385,190 44,923,842
Cost of Sales (-) 17 (26,215,482) (10,705,238) (31,447,663) (21,895,513)
GROSS PROFIT 16,598,308 4,837,767 22,937,527 23,028,329
Marketing, Sales and Distribution Expenses (-) 18 - - (133,971) -
General Administrative Expenses (-) 18 (16,625,430) (2,084,523) (27,505,093) (13,812,188)
Other Operating Income 19 16,683,921 4,162,973 5,139,741 3,459,386
Other Operating Expenses (-) 19 (40,381,063) (37,266,503) (3,899,784) 354,034
OPERATING PROFIT (23,724,264) (30,350,286) (3,461,580) 13,029,561
Gains from investment activities 20 726,161,314 (163,593,280) 156,319,171 (33,774,290)
Losses from investment activities (-) 20 (17,309,351) 4,987,530 - -
Operating profit before financial income/(expense) 685,127,699 (188,956,036) 152,857,591 (20,744,729)
Financial Income 21 18,767,013 2,787,145 - -
Financial Expense (-) 21 (14,366,200) (1,324,668) (30,405,998) (22,310,384)
Net monetary position gains/(losses) 23 23,529,905 34,580,631 (2,692,035) 11,943,079
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS 713,058,417 (152,912,928) 119,759,558 (31,112,034)
Tax income/(expense) (194,750,739) 27,103,021 (61,743,282) (21,142,503)
- Current period tax income/(expense) 22 - - (3,954,675) (3,954,675)
- Deferred tax income/(expense) 22 (194,750,739) 27,103,021 (57,788,607) (17,187,828)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING
OPERATIONS
518,307,678 (125,809,907) 58,016,276 (52,254,537)
PROFIT/(LOSS) FOR THE PERIOD 518,307,678 (125,809,907) 58,016,276 (52,254,537)
Attributable to
Non-Controlling Interests - - - -
Equity Attributable to Owners of Parent 518,307,678 (125,809,907) 58,016,276 (52,254,537)
Earnings per share from continuing operations 274 317 31 (28)
OTHER COMPREHENSIVE INCOME/(EXPENSE) - (125,780) (56,006) (14,428)
Items not to be reclassified to profit or loss - (125,780) (56,006) (14,428)
Actuarial gains/(losses) on Employee Benefits - (167,707) (74,674) (19,236)
Tax effect - 41,927 18,668 4,808
TOTAL COMPREHENSIVE INCOME 518,307,678 (125,935,687) 57,960,270 (52,268,965)

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS ENDED 30 SEPTEMBER 2025 AND 2024

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

Items not to be
reclassified to profit or loss
Retained
earnings
Unreviewed prior period Paid-in
share
capital
Adjustment to
share capital
Share premium Capital
contribution
fund
(Advance)
Business
Combination
under Common
Control
Actuarial
(losses)
Gains/(losses) on
revaluation and
reclassifications
Prior year's
income
Profit/(loss)
for the period
Total equity
Balances at 1 January 2024
(Beginning of the period)
1,891,070 16,058,395 149,374,096 11,771,061 314,248,339 (501,579) - (142,918,737) 84,038,689 433,961,334
Transfers
Total comprehensive income
-
-
-
-
-
-
-
-
-
-
-
(60,579)
-
-
84,038,689
-
(84,038,689)
58,016,276
-
57,955,697
Balances at 30 September
2024 (End of the period)
1,891,070 16,058,395 149,374,096 11,771,061 314,248,339 (562,158) - (58,880,048) 58,016,276 491,917,031
Unreviewed current period
Balances at 1 January 2025
(Beginning of the period)
1,891,070 16,058,395 149,374,707 11,771,109 310,947,845 (623,216) 196,230,665 (58,838,968) 1,204,643,334 1,831,454,941
Transfers
Total comprehensive income
-
-
-
-
-
-
-
-
(310,947,845)
-
623,216
-
-
-
1,515,591,179
-
(1,204,643,334)
518,307,678
623,216
518,307,678
Balances at 30 September
2025 (End of the period)
1,891,070 16,058,395 149,374,707 11,771,109 - - 196,230,665 1,456,752,211 518,307,678 2,350,385,835

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

STATEMENTS OF CASH FLOWS

FOR THE PERIODS ENDED 30 SEPTEMBER 2025 AND 2024

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

Current period Prior period
Unreviewed Unreviewed
Notes 1 January -
30 September 2025
1 January -
30 September 2024
A. CASH FLOWS FROM OPERATING ACTIVITIES (31,318,737) 99,025,925
Profit for the period from continuing operations 16 518,307,678 58,016,276
Adjustments to reconcile profit for the period to cash generated from operating activities 225,003,137 (28,978,728)
Adjustments for depreciation and amortisation 12,672,627 19,351,914
Adjustments for tax income and expenses 22 194,750,739 57,788,607
Adjustments for provisions (321,222) 1,348,393
Adjustments for discount income and expenses 19 105,901 -
Adjustments for interest expenses 14,366,200 30,358,067
Adjustments for interest income (18,872,914) -
Adjustments for fair value losses/(gains) - (152,667,202)
Adjustments for non-cash items - -
Adjustments for gains/(losses) on disposal of property, plant and equipment and intangible
assets
11-12 34,242,047 -
Gains/(losses) on disposal of a subsidiary (Business combinations under common control) (310,947,845) -
Adjustments for net monetary position gains/losses 299,007,604 14,841,493
Other adjustments to reconcile profit for the period 225,003,137 (28,978,728)
Changes in working capital (727,271,818) 72,403,241
Adjustments for changes in financial investments 6 (725,195,461) (20,615,638)
Adjustments for increase (decrease) in trade receivables 7 (6,725,039) 25,708
Adjustments for increase (decrease) in inventories - 9,332,175
Adjustments for increase (decrease) in trade payables 7 (960,846) (14,639,877)
Adjustments for increase (decrease) in prepaid expenses 9 93,952 854,305
Changes in payables due to employee benefits 14 (405,532) (569,091)
Changes in other assets and liabilities 10 1,978,303 -
Adjustments for losses/(gains) on Other Receivables 8 928,898 2,392,053
Adjustments for losses/(gains) on Other Payables 8 3,013,907 95,623,606
Adjustments for increase (decrease) in changes in working capital
Total cash flows from operating activities (774,629,552) 69,988,377
Tax payments (-) (47,357,734) (2,414,864)
B. CASH FLOWS FROM INVESTING ACTIVITIES 9,885,390 (202,338)
Cash inflows from sales of property, plant and equipment 11 9,130,248 -
Cash outflows from purchases of intangible assets (-) 12 699,441 -
Cash inflows from sales of investment properties 13 337,015 -
Cash outflows from purchases of property, plant and equipment (-) 11 (281,314) (202,338)
C. CASH FLOWS FROM FINANCING ACTIVITES 4,506,714 (30,310,301)
Interest received 18,872,914 -
Cash inflows from borrowings (14,366,200) (30,310,301)
D. NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEFORE
EFFECT OF EXCHANGE RATE CHANGES
- -
Inflation effect on cash and cash equivalents - -
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A+B+C+D) (16,926,633) 68,513,286
E. CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 5 16,933,915 6,310,266
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (A+B+C+D+E) 5 7,282 74,823,552

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 1- COMPANY'S ORGANISATION AND NATURE OF OPERATIONS

Lydia Yeşil Enerji Kaynakları Anonim Şirketi ("Lydia Yeşil Enerji" or the "Company"), was established with the title of "Taze Kuru Gıda İnş. İth. İhr. San. Tic. Ltd. Şti." in Ankara in 2009. The Company has been converted from a "limited liability company" to a "" joint stock company, as announced in Official Gazette on 30 May 2012.

The Board of Directors has prepared a draft amendment to the Articles of Association regarding the change in the scope of business to "Energy Company" and the change in its title to "Lydia Yeşil Enerji Kaynakları Anonim Şirketi" pursuant to the decision on 19 February 2024. In order to commence operations in the energy production sector and in accordance with the long-term strategies and competitive objectives on 19 February 2024, and in order to ensure that the Company also contributes in positive manner to the nature of business, in accordance with the Capital Markets Board's (the "CMB") Merger and Division Circular No. II-23.2, the Turkish Commercial Code No. 6102 (the "TCC"), the Corporate Tax Law numbered 5520 ("CTL"), and the provisions of other relevant legislation, it has been decided that "MYK2 Enerji Elektrik İnşaat Taah. San. ve Tic. A.Ş." ("MYK2") will be acquired, including all its assets and liabilities, by Lydia Yeşil Energy, resulting in the business combination of the two entities. An application was submitted to the Capital Markets Board (the "CMB") for the amendment of the Articles of Association and the approval of the business combination, and it was announced that the relevant transactions were approved by the CMB on 25 July 2024.

In accordance with the decision of the "General Assembly" of Lydia Yeşil Enerji on 27 August 2024, the amendment to the articles of association regarding the change in the scope of nature of business and the title of Lydia Yeşil Enerji, as well as the business combination through the acquisition of MYK2, has been approved. The General Assembly Resolution was registered in the Commercial Registry on 4 September 2024 and published in the Official Gazette on 9 September 2024 and numbered 11160.

Lydia Yeşil Enerji's business activities include ensuring the compliance with energy market regulations and upon obtaining the necessary permits and licenses from the Energy Market Regulatory Authority, to produce electricity and heat energy by utilizing all types of underground and above-ground energy sources, as well as energy sources such as solar, hydrogen, wind, and other energy resources and to produce electricity and heat energy, sell the electricity and heat energy produced, establish, operate, take over, or lease any facilities for the purpose of producing electricity, and engage in other activities specified in the articles of association.

The registered address of Lydia Yeşil Enerji is as follows:

Levazım Mahallesi Vadi Caddesi Zorlu Center No:2 İç Kapı No:141 Beşiktaş/İstanbul

The shareholding structure of Lydia Yeşil Enerji is disclosed in Note 16.

The information regarding the subsidiaries consolidated in the financial statements of Lydia Yeşil Enerji prior to the business combination on 30 June 2025 is as follows:

Subsidiaries

Taze Kuru Net Gıda Pazarlama A.Ş. ("Taze Kuru Net")

Taze Kuru Net Gıda Pazarlama Anonim Şirketi was established on 23 June 2020 in İstanbul, Türkiye. Taze Kuru's business activities include ensuring the production, packaging, and packing of all types of food products, particularly fresh vegetables and fruits, fresh or dried products, semi-finished products, and all raw and auxiliary materials related to these products and semi-finished products.

Birinci Enerji Üretim A.Ş. ("Birinci Enerji")

Birinci Enerji Üretim Anonim Şirketi was established in 2015. Birinci Enerji's nature of business includes ensuring the establishment, commissioning, operation, and leasing of all types of electrical energy production facilities, and the production of electrical energy.

With the acquisition of MYK2, which is owned by Birinci Enerji, Lydia Holding has become a subsidiary and has been included in the scope of consolidation of Lydia Yeşil Enerji.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 1- COMPANY'S ORGANISATION AND NATURE OF OPERATIONS (Continued)

Subsidiaries (Continued)

In accordance with the decision of the Board of Directors on 13 March 2025, in order to adapt to the Company's structural transformation and reduce operational burdens and costs, it has been decided to merge Birinci Enerji and Taze Kuru Net, of which the Company has 100% effective ownership interest, into the Company through a simplified procedure by acquiring all of their assets and liabilities as a whole, and to carry out the relevant applications and other necessary procedures. The announcement regarding the relevant business combination was approved by the Capital Markets Board on 30 May 2025 and notified to our Company on 2 June 2025. The business combination was registered in the trade register on 30 June 2025, and announced in the Official Gazette on 30 June 2025, and numbered 11361. As indicated in the material disclosure on 22 July 2025, As of 30 June 2025, since there are no subsidiaries that need to be consolidated under TAS/TFRS, the preparation of nonconsolidated financial statements has commenced instead of consolidated financial statements.

Lydia Yeşil Enerji has no personnel employed during the reporting period (31 December 2024: None).

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

2.1 Financial reporting standards

The financial statements of the Company have been prepared in accordance with Turkish Financial Reporting Standards ("TFRS") promulgated by the Public Oversight Accounting and Auditing Standards Authority ("POA") that are set out in the 5th article of the communiqué numbered II-14.1 "Communiqué on the Principles of Financial Reporting in Capital Markets" ("the Communiqué") announced by the Capital Markets Board ("CMB") on 13 June 2013 and published in Official Gazette numbered 28676. The accompanying financial statements as at and for the period ended 30 September 2025 have been prepared following Turkish Financial Reporting Standards ("TFRS/TAS") with additions and interpretations as issued by POA.

In accordance with the Turkish Accounting Standard No: 34 "Interim Financial Reporting" and provisions of the CMB, entities are allowed to prepare a complete or condensed set of interim financial statements as at and for the period ended 30 September 2025. In this respect, the Company has preferred to prepare complete financial statements in the interim periods.

The accompanying financial statements are presented in accordance with the "Announcement regarding TAS Taxonomy" issued by POA and "Illustrative Examples of Financial Statements and User Guide" issued by CMB including the format and mandatory information.

The Company maintains its statutory records in accordance with the Turkish Commercial Code No. 6102 ("TCC"), tax legislation, and the Uniform Chart of Accounts published by the Ministry of Treasury and Finance of the Republic of Türkiye. However, to ensure proper presentation in accordance with TAS/TFRS, the financial statements have been prepared in accordance with the accounting policies disclosed in Note 2.9, including those related to changes in the purchasing power of the Turkish currency.

Approval of the financial statements

These financial statements as at and for the period ended 30 September 2025 have been approved for issue by the Board of Directors ("BOD") on 27 October 2025. These financial statements will be finalised following the approval by the General Assembly.

Functional and reporting currency

The financial statements are presented in TL, which is Lydia Yeşil Enerji's functional and presentation currency.

2.2 Going concern

As of 30 September 2025, the Company has prepared its financial statements with the assumption of the Company's ability to continue its operations in the foreseeable future as a going concern basis of accounting.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.3 Adjustments of financial statements in hyperinflationary periods

In accordance with the announcement realised by the Public Oversight Accounting and Auditing Standards Authority (POA) on 23 November 2023, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies for the annual reporting period ending on or after 31 December 2023. TAS 29 is applied to the financial statements, including the financial statements, of entities whose functional currency is the currency of a hyperinflationary economy. In accordance with the standard, financial statements prepared in the currency of a hyperinflationary economy are stated in terms of the purchasing power of that currency at the balance sheet date. For comparative purposes, comparative information in the prior period financial statements is expressed in terms of the measuring unit current at the end of the reporting period. Therefore, the Company has also presented its financial statements as at and for the year ended 31 December 2024 and as at for the period ended 30 September 2024 in terms of the purchasing power on 30 September 2025.

In accordance with the CMB's resolution No: 81/1820 on 28 December 2023, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to apply inflation accounting by applying the provisions of TAS 29 beginning with the annual financial statements for the accounting periods ending on 31 December 2023.

The restatement in accordance with TAS 29 has been made by using the adjustment factor derived from the Consumer Price Index ("CPI") in Türkiye published by the Turkish Statistical Institute ("TURKSTAT"). As of 30 September 2025, the indices and adjustment factors used in the restatement of the financial statements are as follows:

Adjustment coefficient Three-year cumulative
Date Index inflation rates
30 September 2025 3,367.22 1.00000 222%
31 December 2024 2,684.55 1.25430 291%
30 September 2024 2,526.16 1.33294 343%

The main components of the Company's restatement for financial reporting purposes in hyperinflationary economies are as follows:

  • The financial statements for the current period presented in TL are expressed in terms of the purchasing power of TL at the balance sheet date and the amounts for the previous reporting periods are restated in accordance with the purchasing power of TL at the end of the reporting period.
  • Monetary assets and liabilities are not restated as they are currently expressed in terms of the purchasing power at the balance sheet date. Where the inflation-adjusted carrying amounts of non-monetary items exceed their recoverable amounts or net realisable values, the provisions of TAS 36 "Impairment of Assets" and TAS 2 "Inventories" are applied, respectively.
  • Non-monetary assets, liabilities and equity items that are not expressed in the current purchasing power at the statement of financial position date are restated by using the relevant adjustment factors.
  • All items in the statement of comprehensive income, except for the non-monetary items in the statement of financial position that have impact on the statement of comprehensive income, are restated by applying the coefficients calculated over the periods in which the income and expense accounts were initially recognised in the financial statements.
  • The effect of inflation on the Company's net monetary asset position in the current period is recognised in the gains/(losses) on net monetary position in the statement of profit or loss.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.4 Group accounting and basis of consolidation

The Group has prepared consolidated financial statements for its two subsidiaries prior to the business combination effective from 30 June 2025.

The consolidated financial statements include the financial statements of Lydia Yeşil Enerji and its subsidiaries. The principles for the preparation of the consolidated financial statements are as follows:

  • -Subsidiary is company over which Lydia Yeşil Enerji has the power to control the financial and operating policies for the benefit of Lydia Yeşil Enerji, either (a) through the power to exercise more than 50% of voting rights relating to the shares in the companies as a result of the ownership interest owned directly and indirectly by itself, and/or by certain Lydia Yeşil Enerji members and companies owned by them where by Lydia Yeşil Enerji exercises control over the ownership interest of the shares held by them and shares to be used according to Lydia Yeşil Enerji preferences; or (b) although not having the power to exercise more than 50% of the ownership interest, Lydia Yeşil Enerji has power to control the investee due to the dispersed capital structure of the investee and/or Lydia Yeşil Enerji has rights or is exposed to variable returns from its involvement with the investee and when at the same time it has the power to affect these returns through its power over the investee.
  • -Subsidiaries are included in the scope of consolidation from the date control over their operations is transferred to the Group and excluded from consolidation when control ceases. The accounting policies applied by subsidiaries have been made consistent with those applied by the Group to ensure consistency.
  • The financial statements of subsidiaries have been consolidated using the full consolidation method. In this context, the carrying value and equity of subsidiaries have been netted, and the carrying value of the shares owned by the Company and the dividends arising therefrom have been netted against the related equity and income statement accounts. The receivables and payables of subsidiaries within the scope of consolidation, as well as the sales of goods and services realised with each other, and the income and expense items arising from transactions realised with each other, have been offset against each other.
  • -Amounts attributable to non-controlling interests in the equity of the subsidiaries within the scope of consolidation, including paid-in/issued share capital, are deducted and presented in the consolidated statement of financial position under the "Non-Controlling Interests".

As of 31 December 2024, the subsidiaries ("Subsidiaries") included in the consolidation scope of Lydia Yeşil Enerji; their, voting rights, direct and indirect ownership interests are as follows:

Subsidiaries Direct and indirect ownership interests
held by Lydia Yesil Enerji (%)
31 December 2024
Taze Kuru Net Gıda Pazarlama A.Ş. (-*) 100%
Birinci Enerji Üretim A.Ş. (-*) 100%
  • (*) Birinci Enerji became a subsidiary with 100% effective ownership interest of MYK2, which acquired 100% of Birinci Enerji, and was included in the scope of consolidation. Birinci Enerji realised a business combination with Lydia Yeşil Enerji.
  • (**) Taze Kuru and Birinci Enerji became a subsidiary with 100% effective ownership interest of Lydia Yeşil Enerji and was included in the scope of consolidation. Taze Kuru and Birinci Enerji realised a business combination with Lydia Yeşil Enerji on 30 June 2025.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.5 Comparatives and adjustment of prior period's financial statements

Any change in accounting policies resulting from the first-time adoption of a new standard is made either retrospectively or prospectively in accordance with the transition requirements of standard. Changes without any transition requirement, material changes in accounting policies or material errors are corrected, retrospectively by restating the prior period financial statements. If changes in accounting estimates are related to only one period, they are recognised in the period when the changes are applied; if changes in estimates are related to future periods, they are recognised both in the period where the change is applied and in future periods prospectively.

2.6 Changes in accounting estimates and errors

Changes in accounting estimates are applied prospectively in the current period if the change affects only that period, or in the current and future periods if the change affects both. Identified significant accounting errors are applied retrospectively, and the prior period financial statements are restated.

2.7 New and Revised Turkish Financial Reporting Standards

New and revised standards and interpretations

The accounting policies adopted in preparation of the financial statements as at and for the period ended 30 September 2025 are consistent with those of the previous financial year, except for the adoption of new and amended Turkish Accounting Standards ("TFRS/TAS") and interpretations effective as of 1 January 2025 and thereafter. The effects of these standards and interpretations on the Company's financial position and performance have been disclosed in the related paragraphs.

i) The new standards, amendments and interpretations and interpretations to the existing previous standards which are effective as of 1 January 2025 are as follows:

Amendments to TAS 21 - Lack of exchangeability

The amendments will be effective for annual reporting periods beginning on or after 1 January 2025. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance, financial position and cash flows.

The Company is in the process of assessing the material influence of the amendments on financial position or performance of the Company.

ii) Standards issued but not yet effective and not early adopted

Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the financial statements are as follows. The Company will make the necessary changes if not indicated otherwise, which will be affecting the financial statements and disclosures, when the new standards and interpretations become effective.

Amendments to TFRS 10/TAS 28 — Sales or contributions of assets between an investor and its associate/joint venture

In December 2017, the POA postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. Early application of the amendments is still permitted. The Company will assess the effects of the amendments after the new standards have been finalized.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.7 New and Revised Turkish Financial Reporting Standards (Continued)

TFRS 17 - The new Standard for insurance contracts

POA issued TFRS 17 in February 2019, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. TFRS 17 model combines a current balance sheet measurement of insurance contract liabilities with the recognition of profit over the period that services are provided. The mandatory effective date of the Standard postponed to accounting periods beginning on or after 1 January 2026 with the announcement made by the POA.

The standard is not applicable for the Company, and the standard has no material influence on the financial position or performance of the Company.

TFRS 18 Presentation and Disclosure in Financial Statements

The standard is effective from annual periods beginning on or after 1 January 2027 and published in the Official Gazette on 8 May 2025. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in TFRS 18 relate to:

  • the structure of the statement of profit or loss,
  • required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures); and
  • enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general,

The Company is in the process of assessing the material influence of the standard on financial position or performance of the Company.

TFRS 19 – Subsidiaries without Public Accountability: Disclosures

TFRS 19 – Subsidiaries without Public Accountability: Disclosures ("TFRS 19") was published in the Official Gazette on 10 August 2025. It is effective for annual reporting periods beginning on or after 1 January 2027. Early application is permitted. The standard aims to reduce the disclosure requirements in TAS/TFRS for subsidiaries covered by its scope. Under TFRS 19, businesses that are not subject to public accountability and are themselves subsidiaries are expected to apply the simplified disclosure provisions set out in TFRS 19 instead of the disclosure provisions in other TAS/TFRS. This aims to reduce the reporting obligations of these businesses in terms of disclosure provisions. The application of TFRS 19 is not mandatory and is left to the discretion of the entity.

A subsidiary meets the relevant conditions in the following circumstances:

  • It is a non-public subsidiary or a subsidiary whose capital market instruments are not traded on a stock exchange, or
  • It has a parent or intermediate parent that produces financial statements in accordance with TAS/TFRS that are available to the public,

The standard has no material influence on the financial position or performance of the Company.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.7 New and Revised Turkish Financial Reporting Standards (Continued)

Amendments to TFRS 9 and TFRS 7 – Classification and measurement of financial instruments

On 10 August 2025, the POA issued amendments to the classification and measurement of financial instruments (amendments to TFRS 9 and TFRS 7). The amendment clarifies that a financial liability is derecognised on the 'settlement date'. It also introduces an accounting policy option to derecognise financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met. The amendment also clarified how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features as well as the treatment of non-recourse assets and contractually linked instruments. Additional disclosures in TFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income are added with the amendment. The amendment will be effective for annual periods beginning on or after 1 January 2026. Entities can early adopt the amendments that relate to the classification of financial assets plus the related disclosures and apply the other amendments later. The new requirements will be applied retrospectively with an adjustment to opening retained earnings. The Company is in the process of assessing the material influence of the amendments on financial position or performance of the Company.

Contracts Referencing Nature-dependent Electricity—Amendments to TFRS 9 and TFRS 7

On 10 August 2025, the POA issued the amendment "Contracts for Electricity Generated from Natural Resources" (related to TFRS 9 and TFRS 7). The amendment clarifies the application of the "own use" exception and permits hedge accounting when such contracts are used as hedging instruments. The amendment also introduces new disclosure requirements to help investors understand the impact of these contracts on an entity's financial performance and cash flows. The amendment is not applicable for the Company and has no material influence on the financial position or performance of the Company.

Annual Improvements to TAS/TFRS Accounting Standards - Amendment 11

On 27 September 2025, the POA issued "Annual Improvements to TAS/TFRS Accounting Standards /Amendment 11" published in the Official Gazette with the following amendments:

  • TFRS 1 First-time Adoption of International Financial Reporting Standards Hedge accounting by a first-time adopter: The amendment is intended to eliminate potential confusion caused by the inconsistency between the wording in TFRS 1 and the hedge accounting requirements in TFRS 9.
  • TFRS 7 Financial Instruments: Disclosures Gains or losses on derecognition: TFRS 7 amends the wording of unobservable inputs and adds a reference to TFRS 13.
  • TFRS 9 Financial Instruments Transaction price when the lease liability is derecognized by the lessee: TFRS 9 has been amended to clarify that when the lease liability is extinguished for the lessee, the lessee is required to apply the derecognition provisions in TFRS 9 and the resulting gain or loss is recognized in profit or loss. TFRS 9 has also been amended to remove the reference to "transaction price".
  • TFRS 10 Consolidated Financial Statements Identifying the "de facto agent": Amendments to TFRS 10 to remove inconsistencies in paragraphs.
  • TAS 7 Statement of Cash Flows Cost method: The wording in the Standard has been deleted following the removal of "cost method" in previous amendments.

The Company is in the process of assessing the material influence of the amendments on financial position or performance of the Company.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.8 Offsetting

Financial assets and liabilities are presented net when there is a legal right to do so, when there is an intention to evaluate the assets and liabilities net, or when the acquisition of the assets and the settlement of the liabilities are near-simultaneous.

The items of significant content and amount, even if similar in nature, are presented separately in the financial statements. Items that are not significant are aggregated and presented together based on their nature or function.

If the nature of the transaction or event requires offsetting, the presentation of such transactions or events at net amounts or the recognition of assets at their amounts after impairment, rather than their original amounts, does not constitute a violation of the offsetting prohibition.

Income earned by the Company outside of the income defined under the "Revenue" because of the transactions realised within the ordinary course of business is presented at its net value, provided that it is consistent with the nature of the transaction or event.

2.9 Summary of significant accounting policies

The accounting policies used in the preparation of the financial statements are summarised below:

Cash and cash equivalents

Cash comprises cash on hand and demand deposits and time deposits up to 3 months. Cash equivalents are shortterm, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. The cash and cash equivalents are carried at acquisition costs and accrued interests. Bank balances denominated in foreign currencies are valued at the exchange rate prevailing at the end of the period.

Trade receivables

Trade receivables that are created by way of providing goods or services directly to a debtor are carried at amortised cost. Trade receivables, net of unearned financial income, are measured at amortised cost, using the effective interest rate method, less the unearned financial income. Short duration receivables with no stated interest rate are measured at the original invoice amount unless the effect of imputing interest is significant.

If there is a situation indicating that the Company will be unable to collect the amounts due, a provision is allocated for trade receivables. The amount of this provision is the difference between the recorded value of the receivable and the amount that can be collected. The collectible amount is the discounted value of all cash flows, including amounts collectible from collateral and guarantees, discounted using the effective interest rate of the trade receivables. If the impairment amount decreases due to a matter arising after the impairment loss is recognized, the amount is recognised in the statement of profit or loss for the current period.

The Company measures the expected credit loss for trade receivables that have not been impaired for specific reasons at an amount equal to the lifetime expected credit losses. In calculating expected credit losses, the Company considers both past credit loss experience and its future expectations.

Trade payables

Trade payables are payments to be made arising from the purchase of goods and services from suppliers within the ordinary course of business. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 Summary of significant accounting policies (Continued)

Inventories

Inventories are evaluated at either the lower of acquisition cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Inventory costs are determined using the "weighted average cost method." Those costs also include systematically distributed costs from fixed and variable general production expenses incurred in covering direct raw material to the goods. The cost of inventories is determined by the weighted average method. Net realisable value is the estimated selling price in the ordinary course of business, less the costs of completion and selling expenses. When the net realizable value of the inventory below its cost, the inventories are reduced to their net realizable value and the expense is reflected in the statement of profit or loss in the year in which the impairment incurred.

Property, plant and equipment

The property, plant and equipment, except for machinery, plant, and equipment, are carried at their acquisition cost less accumulated depreciation and impairment losses. The cost of a property, plant and equipment consists of the purchase price, non-refundable taxes, and expenses incurred to bring the asset to a condition ready for use. Except for land, buildings and construction in progress, the cost of property, plant and equipment are subject to depreciation on a straight-line basis based on their expected useful lives. The expected useful life, residual value, and depreciation method are reviewed annually to assess the potential effects of changes in estimates, and any changes in estimates are accounted for prospectively. The depreciation periods for property, plant and equipment, which approximate the economic useful lives of such assets, are as follows:

Depreciation Economic
useful
lives
(year)
Plant,
machinery
and
equipment
5

25
Motor
vehicles
4

10
Furniture
and
fixtures
4

15
Leasehold
improvements
5

10

Property, plant and equipment are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the asset's net selling price or value in use. Recoverable amount of the property, plant and equipment is the higher of future net cash flows from the utilisation of this property, plant and equipment or its fair value less cost to sell.

The Company has revalued its plant, machinery, and equipment. The accumulated depreciation as of the revaluation date of 30 September 2024, has been offset against the gross carrying amount of the asset, and the net amount has been adjusted to the revalued amount.

Recoverable amount of the property, plant and equipment is the higher of future net cash flows from the utilisation of this property, plant and equipment or its fair value less cost to sell. Property, plant and equipment are reviewed for possible impairment losses and where the carrying amount of the property, plant and equipment is greater than the estimated recoverable amount, it is written down to its recoverable amount.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 Summary of significant accounting policies (Continued)

Intangible assets

Intangible assets comprise of rights and computer software and are initially carried at their acquisition cost. Intangible assets are capitalized when it is probable that future economic benefits will flow to the entity and the cost can be measured reliably. After initial recognition, intangible assets are carried at their carrying amount, which is the cost less any accumulated amortization and, if any, accumulated impairment losses. Intangible assets are subject to amortization on a straight-line basis based on their estimated useful lives.

The depreciation periods for intangible assets, which approximate the economic useful lives of such assets, are as follows:

Depreciation Economic useful lives (year)

Rights 5 years

Investment properties

Land and buildings that are held for rental yields or for capital appreciation or both (by the owner or the lessee under a financial lease agreement) rather than held in the production or supply of goods or services or for administrative purposes or for the sale in the ordinary course of business are classified as "investment property".

An investment property is recognized as an asset when it is probable that future economic benefits associated with the property will flow to the entity and the cost of the investment property can be measured reliably.

The Company recognises investment properties at cost. Cost refers to the amount of cash or cash equivalents paid during the acquisition or construction of an asset, or the fair value of other payments made, or, if applicable, the amount attributed to the asset at initial recognition.

Impairment of assets

The Company assesses whether there is any indication of impairment of an asset at each financial statement date. If such an indication exists, the recoverable amount of the asset is estimated. If the carrying amount of the asset or any cash-generating unit to which the asset belongs exceeds the amount recoverable from its disposal or use, impairment has occurred. The recoverable amount is determined by selecting the higher of the net selling price and the value in use of the asset. The value in use is the estimated present value of the cash flows expected to be generated from the continued use of an asset and from its disposal at the end of its useful life. Impairment losses are recognized in the statement of profit or loss.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as part of the cost of the related qualifying asset. Other borrowing costs are recognized as expenses in the period in which they are incurred.

Bank borrowings

Bank borrowings are carried at their value less transaction costs. Long-term borrowings are carried at their discounted cost using the effective interest method. The difference between the amount remaining less discount transaction fees and the discounted cost is recognised in the statement of profit or loss as financing costs over the period. Financing costs arising from borrowings are recognised in the statement of profit or loss when they arise.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 Summary of significant accounting policies (Continued)

Share capital and dividends

Common shares are classified as equity. Dividends on common shares are recognized in equity less retained earnings in the period in which they are approved and declared.

Revenue

In accordance with "TFRS 15 Revenue from Contracts with Customers" is that the entity reflects the proceeds to the financial statements from an amount that reflects the cost that the Company expects to qualify for the transfer of the goods or services it commits to its customers.

Revenue is accounted for in the financial statements within the scope of the five-step model below in accordance with the TFRS 15.

  • a) Identification of customer contracts,
  • b) Identification of performance obligations,
  • c) Determination of the transaction price in the contracts,
  • d) Allocation of transaction price to the performance obligations,
  • e) Recognition of revenue when the performance obligations are satisfied.

Accordingly, the goods or services promised in each contract with customers are first evaluated, and each promise to transfer the goods or services is identified as a separate performance obligation. Subsequently, it is determined whether the performance obligations will be satisfied over time or at a specific point in time. If the company transfers control of a good or service over time and therefore satisfies the performance obligations related to the relevant sales over time, it recognizes revenue over time in the financial statements by measuring the progress toward the complete satisfaction of the performance obligations.

Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present legal or constructive obligation because of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Contingent liabilities are consistently reviewed prior to the probability of any cash out-flow. In case of the cash outflow is probable, provision is allocated in the financial statements of the year the probability of contingent liability accounts is changed. A provision is recognized when the Company has a present obligation (legal or constructive) because of a past event; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and reliable estimate can be made for the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the statement of financial position date, considering the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount of provision shall be the present value of the expenditures expected to be required to settle the obligation. The discount rate reflects current market assessments of the time value of money and the risks specific to the liability. The discount rate shall be a pretax rate and shall not reflect risks for which future cash flow estimates have been adjusted.

Possible assets or obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company are not included in the financial statements and treated as contingent assets or liabilities.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 Summary of significant accounting policies (Continued)

Events after the reporting period

Events after the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue. The Company adjusts the amounts recognised in its financial statements to reflect the adjusting events after the balance sheet date. If non-adjusting events after the balance sheet date have material influence on the economic decisions of users of the financial statements, they are disclosed in the notes to the financial statements.

Employee benefits

Defined benefit plans

The provision for employment termination benefits, as required by Turkish Labour Law represents the present value of the future probable obligation of the Company arising from the retirement of its employees based on the actuarial projections. TAS 19 "Employee Benefits" requires actuarial assumptions (net discount rate, turnover rate to estimate the probability of retirement etc.) to estimate the entity's obligation for employment termination benefits. The effects of differences between the actuarial assumptions and the actual outcome together with the effects of changes in actuarial assumptions compose the actuarial gains / losses and recognised under other comprehensive income.

Defined contribution plans

The Company has to pay contributions to the Social Security Institution on a mandatory basis. The Company has no further payment obligations once the contributions have been paid. These contributions are recognised as an employee benefit expense when they are accrued.

Taxes on income

Income tax expense (or income) is the sum of the current tax expense and the deferred tax expense (or income).

Deferred tax assets and liabilities are determined by calculating the temporary differences between the amounts presented in the financial statements and the amounts considered in the statutory tax base in accordance with the balance sheet method. Deferred tax liabilities are recognized for all taxable temporary differences, whereas deferred tax assets resulting from deductible temporary differences are recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary difference can be utilized. Deferred tax liability or asset is not calculated in respect of temporary timing differences arising from the initial recognition of assets or liabilities other than goodwill or business combinations and which do not affect both commercial and financial profit /loss.

Deferred tax liabilities are calculated for all taxable temporary differences related to the investments in subsidiaries and associates and shares in joint ventures, except in cases where the Company is able to control the discontinuation of temporary differences and in the near future it is unlikely that such difference will be eliminated. Deferred tax assets resulting from taxable temporary differences related to such investments and shares are calculated on the condition that it is highly probable that future taxable profit will be available and that it is probable that future differences will be eliminated.

The carrying amount of the deferred tax asset is reviewed at each balance sheet date. The carrying amount of a deferred tax asset is reduced to the extent that it is no longer probable that financial profit will be available to allow the benefit of some or that entire amount.

Deferred tax assets and liabilities are calculated over the tax rates that are expected to be valid in the period when the assets are realized, or the liabilities are fulfilled and legalized or substantially legalized as of the balance sheet date (tax regulations). During the calculation of deferred tax assets and liabilities, the tax consequences of the methods that the Company expects to recover or settle the carrying amount of the assets as of the balance sheet date are taken into consideration.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.9 Summary of significant accounting policies (Continued)

Earnings per share

Earnings per share disclosed in the statement of profit or loss are determined by dividing net income attributable to equity holders of the parent by the weighted average number of shares outstanding during the period concerned.

In Türkiye, companies can increase their share capital through a pro-rata distribution of shares ("bonus shares") to existing shareholders from retained earnings and inflation adjustment to equity. For the purpose of earnings per share computations, the weighted average number of shares in existence during the period has been adjusted in respect of bonusshare issues without a corresponding change in resources, by giving them retroactive effect for the period in which they were issued and each earlier period as if the event had occurred at the beginning of the earliest period reported.

Statement of cash flow

In the statement of cash flows, cash flows are classified according to operating, investing and financing activities. The cash and cash equivalents included in the statement of cash flows include cash on hand and bank deposits.

Operating segments

Lydia Yeşil Eenerji's business activities include ensuring to generate electricity and heat energy by utilizing all types of underground and above-ground energy sources, as well as energy sources such as solar, hydrogen, wind, other energy resources and, to sell the electricity and heat energy produced, and to establish, operate, take over, lease, and engage in other activities specified in the articles of association for the purpose of generating electricity. The Company has a single operating segment.

2.10 Significant accounting estimates and assumptions

The accounting estimates that have a significant material influence on the carrying amounts of assets and liabilities are as follows:

Discount on notes receivables/payables

In calculating the amortized cost of trade receivables and payables using the effective interest method, the expected collection and payment dates based on the current information available for receivables and payables have been taken into consideration.

Economic useful lives

Property, plant and equipment and intangible assets are subject to amortization and depreciation over their estimated useful lives.

Employment termination benefits

Provision for employment termination benefits is calculated considering the turnover rate based on experience and expectations, and the value was reduced to its balance sheet date.

Provision for lawsuits

When provisions for lawsuits are allocated, the possibility of losing the relevant litigations are assessed in accordance with the opinions of the Company's legal counsel, and provisions are allocated by the Company management using the data at its disposal.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 2- BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)

2.10 Significant accounting estimates and assumptions (Continued)

Provision for unused vacation

Liabilities arising from unused vacations of the employees are accrued in the period when the unused vacations are qualified.

Provision for doubtful receivables

The Company management allocates provisions for receivables that are past due and have collection risk, as well as receivables in litigation and collection proceedings.

The accounting estimates are disclosed in the relevant accounting policies or in notes to the financial statements.

NOTE 3 –BUSINESS COMBINATIONS

In accordance with the decision of the Board of Directors on 13 March 2025, in order to adapt to the Company's structural transformation and reduce operational burdens and costs, it has been decided to merge Birinci Enerji and Taze Kuru Net, of which the Company has 100% effective ownership interest, into the Company through a simplified procedure by acquiring all of their assets and liabilities as a whole, and to carry out the relevant applications and other necessary procedures. The announcement regarding the relevant business combination was approved by the Capital Markets Board on 30 May 2025 and notified to our Company on 2 June 2025. The business combination was registered in the trade register on 30 June 2025, and announced in the Official Gazette on 30 June 2025, and numbered 11361. As indicated in the material disclosure on 22 July 2025, As of 30 June 2025, since there are no subsidiaries that need to be consolidated under TAS/TFRS, the preparation of nonconsolidated financial statements has commenced instead of consolidated financial statements.

NOTE 4 – RELATED PARTY DISCLOSURES

a) Receivable/payable balances

As of 30 September 2025, and 31 December 2024, the Company has no trade receivables due from related parties.

As of 30 September 2025, and 31 December 2024, the details of trade payables due to related parties are as follows:

30 September 2025 31
December
2024
Short-term Short-term
Lydia Holding Anonim Şirketi - 77,339
EC Gayrimenkul Yatırımları Sanayi ve Ticaret A.Ş. - 268,310
Total - 345,649

As of 30 September 2025, and 31 December 2024, the Company has no other receivables due from related parties.

As of 30 September 2025, and 31 December 2024, the details of other payables due to related parties are as follows:

30 September 2025 31
December
2024
Short-term Short-term
Lydia Holding Anonim Şirketi 3,489,208 -
Lydia Yatırım Holding Anonim Şirketi - 95,008
Total 3,489,208 95,008

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 4 – RELATED PARTY DISCLOSURES (Continued)

b) Purchases/sales

As of 30 September 2025, and 2024, the details of purchases and sales realised with the related parties are as follows:

1 January- 30 September 2025 Sales Purchases Rent expenses
Lydia Holding Anonim Şirketi - 1,114,399 -
EC Gayrimenkul Yatırımları Sanayi ve Ticaret A.Ş. - - 810,775
Birinci Enerji Üretim Anonim Şirketi 854,413 - -
Taze Kuru Net Gıda Pazarlama A.Ş. 11,086,529 - -
Total 11,940,942 1,114,399 810,775
1 January- 30 September 2024 Sales Purchases Rent expenses
Lydia Holding Anonim Şirketi - 21,894,265 -
EC Gayrimenkul Yatırımları Sanayi ve Ticaret A.Ş. - 712,391
Total - 22,606,656 -

c) Key management compensation

As of 30 September 2025, and 2024, the detailed analysis of key management compensation is as follows:

1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2024
Key management compensation 2,045,417 953,285 1,232,984 650,292
Total 2,045,417 953,285 1,232,984 650,292

NOTE 5- CASH AND CASH EQUIVALENTS

As of 30 September 2025, and 31 December 2024, the breakdown and details of cash and cash equivalents are as follows:

30 September 2025 31 December 2024
Banks 7,282 16,933,915
Demand deposits 7,282 303,443
Time deposits up to 3 months - 16,630,472
Cash and cash equivalents, net 7,282 16,933,915

As of 30 September 2025, and 31 December 2024, the detailed analysis of time deposits is as follows:

Currency Annual effective interest rate (%) Maturity 31 December 2024
TL 43% 1 day 4,474,046
TL 50% 1 day 12,156,426
Total 16,630,472

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 6 – FINANCIAL INVESTMENTS

30 September 2025 31 December 2024
Short-term
financial
investments
at
fair
value through
profit or loss
(*)
Equity
securities
- 1,685,598,688
Mutual
funds
19,516,044 20,481,895
Total 19,516,044 1,706,080,583
30 September 2025 31 December 2024
Long-term
financial
investments
at
fair
value through
profit or loss
(*)
Mutual
funds
2,411,760,000 -
Total 2,411,760,000 -

(*) As of 31 December 2024, the equity securities of Lydia Yeşil Enerji comprise of 2,319,000 nominal shares quoted and traded on Borsa İstanbul owned by Ufuk Yatırım Yönetim ve Gayrimenkul Anonim Şirketi.

The short and long-term financial investments of the Company are carried at fair value in the accompanying financial statements (Note 20). The fair value of shares subject to purchase and sale is determined based on market prices due to their trading in an active market and is classified as "Level 1" input under TFRS 13 "Fair Value Measurement" standard ("TFRS 13"). As of 30 September 2025, and 2024, the shares are classified as held-for-trading and are valued at the best estimated selling price.

NOTE 7 – TRADE RECEIVABLES AND PAYABLES

As of 30 September 2025, and 31 December 2024, the functional breakdown of trade receivables is as follows:

30 September 2025 31 December 2024
Short-term
Trade
receivables
11,799,322 6,379,118
-
Trade receivables due from third parties
11,799,322 6,379,118
Doubtful
trade
receivables
456,737 -
Advances given 40,000 -
12,296,059 6,379,118
Provision
for
doubtful
trade
receivables
(-)
(456,737) (1,132,004)
Deferred
financial
income
(-)
- (132,831)
Trade
receivables
due
from
third
parties
11,839,322 5,114,283

As of 30 September 2025, and 31 December 2024, the movement of doubtful receivables is as follows:

30 September 2025 30 September 2024
Beginning
of
the
period-
1
January
1,132,004 3,221,007
Reversals - -
Additions 456,737 -
Net
monetary
position
gains/(losses)
(1,132,004) (850,179)
End
of the
period –
30 September
456,737 2,370,828

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 7 – TRADE RECEIVABLES AND PAYABLES (Continued)

As of 30 September 2025, and 31 December 2024, the functional breakdown of trade payables is as follows:

30 September 2025 31 December 2024
Short-term
Trade
payables
346,074 1,326,364
-
Trade payables due to related parties
- 345,649
-
Trade payables due to third parties
346,074 980,715
346,074 1,326,364
Deferred
financial
income
(-)
- (19,444)
Total 346,074 1,306,920

NOTE 8 – OTHER RECEIVABLES AND PAYABLES

As of 30 September 2025, and 31 December 2024, the functional breakdown of short-term other receivables and payables is as follows:

30 September 2025 31 December 2024
Short-term
Deposits
and
guarantees
given
- 66,947
Other - 788,809
Total - 855,756
30 September 2025 31 December 2024
Short-term
Other payables due to related parties 3,489,208 95,008
Other short-term payables 1,062,238 1,442,531
Total 4,551,446 1,537,539

As of 30 September 2025, and 31 December 2024, the functional breakdown of long-term other receivables is as follows:

30 September 2025 31 December 2024
Long-term
Deposits
and
guarantees
given
41,227 -
Total 41,227 -

As of 30 September 2025, and 31 December 2024, the Company has no long-term other payables.

NOTE 9 – PREPAID EXPENSES AND DEFERRED INCOME

As of 30 September 2025, and 31 December 2024, the details of short-term prepaid expenses are as follows:

30 September 2025 31 December 2024
Short-term
Short-term
prepaid
expenses
265,812 359,764
Total 265,812 359,764

As of 30 September 2025, and 31 December 2024, the details of long-term prepaid expenses are as follows:

30 September 2025 31 December 2024
Long-term
Long-term
prepaid
expenses
338,585 -
Total 338,585 -

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 9 – PREPAID EXPENSES AND DEFERRED INCOME (Continued)

As of 30 September 2025, and 31 December 2024, the details of short-term deferred income are as follows:

30 September 2025 31 December 2024
Short-term
Advances
received
- 8,483
Total - 8,483

NOTE 10 – OTHER ASSETS AND LIABILITIES

As of 30 September 2025, and 31 December 2024, the details of other current assets and liabilities are as follows:

30 September 2025 31 December 2024
Other
current
assets
Prepaid taxes 4,182,649 -
VAT refund 8,694,496 12,991,514
Total 12,877,145 12,991,514
30 September 2025 31 December 2024
Other
current
liabilities
Taxes
payable
722,921 86,097
Social
security
premiums
payable
- 77,220
Expense accruals 1,418,699 -
Total 2,141,620 163,317

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 11 – PROPERTY, PLANT AND EQUIPMENT

As of 30 September 2025, and 31 December 2024, the movements for property, plant and equipment, and related depreciation are as follows:

Opening
balance

1
January 2025
Additions Impairment
(-)
Disposals Transfers Closing
balance

30
September 2025
Cost
Land 11,968,385 - - - - 11,968,385
Plant,
machinery
and
equipment
710,836,911 281,314 (16,592,074) (7,935,846) - 686,590,305
Furniture
and
fixtures
4,312,682 - (964,638) (889,458) - 2,458,586
Leasehold
improvements
16,719,110 - (15,275,553) - - 1,443,557
Total property, plant and equipment 743,837,088 281,314 (32,832,265) (8,825,304) - 702,460,833
Accumulated
depreciation
Plant,
machinery
and
equipment
74,144,486 17,568,977 (4,635,858) (4,493,363) - 82,584,242
Furniture
and
fixtures
1,956,953 437,849 (722,123) (737,623) - 935,056
Leasehold
improvements
6,111,411 6,130,770 (11,134,462) - - 1,107,719
Total accumulated
depreciation
82,212,850 24,137,596 (16,492,443) (5,230,986) - 84,627,017
Net book
value
661,624,238 617,833,816

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 11 – PROPERTY, PLANT AND EQUIPMENT (Continued)

Opening
balance

1
January 2024
Additions Disposals Business
(*)
combinations
Revaluation
(**)
surplus
Transfers Closing
balance

31
December
2024
Cost
Land - - - 11,968,385 - - 11,968,385
Plant,
machinery
and
equipment
24,483,917 - (195,312) 424,105,495 261,640,888 801,923 710,836,911
Furniture
and
fixtures
4,206,527 - (2,352,430) 2,458,585 - - 4,312,682
Leasehold
improvements
9,074,943 - - 2,974,194 - 4,669,973 16,719,110
Constructions
in
progress
5,471,896 - - - - (5,471,896) -
Total property, plant and equipment 43,237,283 - (2,547,742) 441,506,659 261,640,888 - 743,837,088
Accumulated
depreciation
Plant,
machinery
and
equipment
4,686,705 26,063,676 (52,437) 43,446,542 - - 74,144,486
Furniture
and
fixtures
2,273,759 1,259,575 (1,816,703) 240,322 - - 1,956,953
Leasehold
improvements
2,518,932 3,311,312 - 281,167 - - 6,111,411
Total accumulated
depreciation
9,479,396 30,634,563 (1,869,140) 43,968,031 - - 82,212,850
Net
book
value
33,757,887 661,624,238

(*) The effect of business combination is attributable to the acquisition of MYK2 (Note 3).

As of 30 September 2025, and 31 December 2024, the Company has no mortgages, pledges and restrictions on property, plant and equipment.

As of 30 September 2025, and 2024, the functional breakdown of depreciation and amortisation charges on intangible assets is disclosed in Note 18.

(**) The revaluation surplus is determined in accordance with the appraisal report on 30 September 2024 which was prepared by Net Kurumsal Gayrimenkul Değerleme ve Danışmanlık Anonim Şirketi authorized by the Capital Markets Board of Türkiye to determine the fair value of the Solar Power Plants ("SPP"). The valuation was performed using the income approach ("Discounted Cash Flow- DCF method"), and the gross revaluation increase amounting to TL 261,640,888 has been recognised in the accompanying financial statements (Recalculated according to inflation accounting on 30 September 2025). After adjusting for deferred tax effects, the remaining amount has been recognized in other comprehensive income and recognised under equity in the "Revaluation surplus" account. The DCF method is calculated based on future cash flow projections and market assumptions and is classified as "Level 3 input" under TFRS 13.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 12 – INTANGIBLE ASSETS

As of 30 September 2025, and 31 December 2024, the movements for intangible assets, and related depreciation are as follows:

Opening balance –
1 January 2025
Additions Impairment (-) Disposal
s
Closing balance – 30 September 2025
Cost
Rights 2,805,213 - (2,500,269) (304,944) -
Total intangible assets 2,805,213 - (2,500,269) (304,944) -
Accumulated depreciation
Rights 2,105,772 208,297 (2,147,406) (166,663) -
Total accumulated depreciation 2,105,772 208,297 (2,147,406) (166,663) -
Net book value 699,441
Opening 1 balance –
lary 2024
Additions Closing balance – 31 December 2024
Cost
Rights ' 2,602,882 202,331 2,805,213
Total intangible assets , 2,602,882 202,331 2,805,213
Accumulated depreciation Rights 1,553,652 552,120 2,105,772
Total accumulated depreciation n 1,553,652 552,120 2,105,772
Net book value 1.049.230 699,441

As of 30 September 2025, and 31 December 2024, the functional breakdown of depreciation and amortisation charges on intangible assets is disclosed in Note 18.

NOTE 13 – INVESTMENT PROPERTIES

30 September 2025 31 December 2024
Cost
Land - 337,015
Net book value - 337,015

The Company has not generated rent income arising from the land included in the investment properties.

NOTE 14 – EMPLOYEE BENEFITS

As of 30 September 2025, and 31 December 2024, the functional breakdown and detailed analysis of employee benefits are as follows:

30 September 2025 31 December 2024
Short-term
Other - 137,277
Total - 137,277

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 15 – PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

15.1 Short-term provisions

As of 30 September 2025, and 31 December 2024, the breakdown of short-term provisions is as follows:

30 September 2025 31 December 2024
Short-term
provisions
Provision
for
unused
vacation
- 4,503
Provision
for
lawsuits
1,263,184 1,584,406
Total 1,263,184 1,588,909

The movement of provision for unused vacation is as follows:

30 September 2025 30 September 2024
Beginning
of
the
period

1
January
4,503 -
Reversals (3,590) 47,895
Monetary gains/(losses) (913) 23,732
End
of the
period –
30 September
- 71,627

15.2Litigations and contingencies

As of 30 September 2025, the Company allocated provision for lawsuits amounting to TL 1,263,184 and the Company management has allocated a provision for lawsuits within the amount of the related litigation (31 December 2024: TL 1,584,406).

The movement of provision for lawsuits is as follows:

30 September 2025 30 September 2024
Beginning
of
the
period

1
January
1,584,406 395,270
Additions - 1,392,809
Monetary gains/(losses) (321.222) (104,331)
End
of the
period –
30 September
1,263,184 1,683,749

15.3 Collaterals/Pledges/Mortgages/Bill of Guarantees position

30 September 2025 31 December 2024
Collaterals, Pledges, Mortgages and Bill of Guarantees Given by the
Company
A. Total amount of CPMB's given in the name of its own legal personality
(*)
4,907,478 3,901,831
B. Total amount of CPMB's given on behalf of the fully consolidated
subsidiaries - -
C. Total amount of CPMB's given on behalf of third parties for ordinary
course of business - -
D. Total amount of other CPMB's given (**) - -
i) Total amount of CPMB's given on behalf of the majority shareholder - -
ii) Total amount of CPMB's given to on behalf of other group companies
which are not in scope of B and C - -
iii) Total amount of CPMB's given on behalf of third parties which are not
in scope of C - -
Total CPMB's, net 4,907,478 3,901,831

(*) As of 30 September 2025, the letter of guarantee amounting to TL 2,977,583 includes guarantees issued to BEDAŞ (under the distribution agreement) due to unlicensed energy production and letter of guarantee amounting to TL 1,929,895 issued to Ankara Enforcement Directorate.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 15 – PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (Continued)

15.3 Collaterals/Pledges/Mortgages/Bill of Guarantees position (Continued)

As of 30 September 2025, and 31 December 2024, the details of collaterals/pledges/mortgages/bill of guarantees are as follows:

Guarantees Type Given/Received Currency 30 September 2025 31 December 2024
Collaterals Given Bank TL 4,907,478 3,901,831
Pledges (*) Received Lydia Holding A.Ş. TL 20,000,000 21,500,876
Pledges (*) Received Ufuk Yatırım Yönetim
Ve Gayrimenkul A.Ş.
TL 20,000,000 -

(*) The pledge amounting to TL 20,000,000 was received from Vakıfbank on 23 September 2024 from Lydia Holding Anonim Şirketi. The pledge amounting to TL 20,000,000 was received from Vakıfbank on 11 September 2025 from Ufuk Yatırım Yönetim ve Gayrimenkul Anonim Şirketi.

As of 30 September 2025, and 31 December 2024, the details of the long-term provisions for employee benefits are as follows:

30 September 2025 31 December 2024
Long-term
Provision
for
employment
termination
benefits
- 401,029
- 401,029

Under Turkish Labour Law, Lydia Yeşil Enerji incorporated in Türkiye is required to pay termination benefits to each employee who has completed one year of service and whose employment is terminated without due cause, who is called up for military service, dies or retires after completing 25 years of service (20 years for women) and reaches the retirement age (58 for women and 60 for men). As of 30 September 2025, the amount payable consists of one month's salary limited to a maximum of TL 53,919.68 for each year of service effective from 1 October 2025.

The liability is not funded as there is no funding requirement. The provision has been calculated by estimating the present value of the future probable obligation of the Company arising from the retirement of the employees. TAS 19 ("Employee Benefits") requires actuarial valuation methods to be developed to estimate the entity's obligation under defined benefit plans.

The principal assumption is that the maximum liability for each year of service will increase in accordance with inflation. Thus, the discount rate applied representsthe expected real rate after adjusting for the anticipated effects of future inflation. As of 30 September 2025, the provisions in the accompanying financial statements are calculated by estimating the present value of the future probable obligation of the Company arising from the retirement of the employees. Accordingly, the following actuarial assumptions are used in the calculation of total liabilities:

As of 30 September 2025, and 2024, the movements of provision for employment termination benefits are as follows:

30 September 2025 30 September 2024
Beginning
of
the
period-
1
January
401,029 319,272
Payments
during
the
period
(-)
(498,163) -
Interest
costs
- 5,424
Service
costs
- 196,423
Actuarial
(gains)/losses
- (74,674)
Net
monetary
position
gains/(losses)
97,134 (84,271)
End
of
the
period –
30 September
- 362,174

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 16 – EQUITY

As of 30 September 2025, and 31 December 2024, the principal shareholders and their respective shareholding rates in Lydia Yeşil Enerji are as follows:

30 September 2025 31
December
2024
Share
(%)
Amount Share
(%)
Amount
Lydia Holding A. Ş. 64.89% 1,227,078 64.89% 1,227,078
Other shareholders 35.11% 663,992 35.11% 663,992
100% 1,891,070 100% 1,891,070
Adjustment to share capital 16,058,395 16,058,395
17,949,465 17,949,465

Additional capital contributions of the shareholders

The Company management has classified the balance amounting to TL 11,771,109 as a capital advance to be used in a capital increase. The details of the capital advances are as follows:

30 September 2025 31
December
2024
Additional capital contributions of the shareholders 11,771,109 11,771,109
Total 11,771,109 11,771,109

Share premium

As of 30 September 2025, and 31 December 2024, the details of share premium are as follows:

30 September 2025 31
December
2024
Share
premium
149,374,707 149,374,707
Total 149,374,707 149,374,707

Restricted reserves

The legal reserves consist of first and second legal reserves, appropriated in accordance with the Turkish Commercial Code (TCC). The TCC stipulates that the first legal reserve is appropriated out of historical statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Company's historical paid-in share capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash distributions in excess of 5% of the historical paid-in share capital. Under TCC, the legal reserves are not available for distribution unless they exceed 50% of the historical paid-in share capital but may be used to offset losses if historical general reserve is exhausted.

Actuarial gains/(losses) on provision for employment termination benefits

The amendment to TAS 19 "Employee Benefits" does not permit the actuarial gains and losses considered in calculating termination benefits to be recognized in the statement of profit or loss. Gains and losses arising from changes in actuarial assumptions have been recognized in equity.

As of 30 September 2025, and 31 December 2024, the details of the actuarial gains and losses on defined benefit plans are as follows:

30 September 2025 31
December
2024
Actuarial gains/(losses) on defined benefit plans - (623,191)
Total - (623,191)

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 16 – EQUITY (Continued)

Gains/(losses) on revaluation

The plant, machinery and equipment of Lydia Yeşil Enerji is carried at fair value, and the revaluation surplus are recognised under "Property, plant and equipment revaluation surplus" account in the statement of financial position.

As of 30 September 2025, and 31 December 2024, the details of the property, plant and equipment revaluation surplus are as follows:

30 September 2025 31
December
2024
Gains/(losses)
on
revaluation
and
reclassifications
196,230,665 196,230,665
Total 196,230,665 196,230,665

Additional disclosures regarding equity items

As of 30 September 2025, and 31 December 2024, the details of the other equity items are as follows:

30 September 2025 31
December
2024
Paid-in
Share
Capital
1,891,070 1,891,070
Adjustment
to
Share
Capital
16,058,395 16,058,395
Share Premium 149,374,707 149,374,707
Additional Contribution of the Shareholders 11,771,109 11,771,109
Business Combinations - 310,947,845
Actuarial
gains/(losses)
- (623,191)
Gains/(losses)
on
revaluation
and
reclassifications
196,230,665 196,230,665
Retained
Earnings
1,456,752,211 (58,838,968)
Profit
for
the
Period
518,307,678 1,204,643,334
Total 2,350,385,835 1,831,454,966

NOTE 17 – REVENUE AND COST OF SALES

As of 30 September 2025, and 2024, the functional breakdown of revenue and cost of sales is as follows:

1 January –
30 September
2025
1 July

30 September
2025
1 January –
30 September
2024
1 July –
30 September
2024
Domestic sales 42,813,790 15,543,005 54,385,190 44,923,842
Cost of services sold (26,215,482) (10,705,238) (31,447,663) (21,895,513)
Gross profit 16,598,308 4,837,767 22,937,527 23,028,329

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 18 – GENERAL ADMINISTRATIVE EXPENSES, RESEARCH AND DEVELOPMENT EXPENSES AND MARKETING, SALES AND DISTRIBUTION EXPENSES

General administrative expenses 1 January –
30 September
2025
1 July –
30 September
2025
1 January –
30 September
2024
1 July –
30 September
2024
Personnel expenses (3,614,894) (897,299) (7,443,163) (3,737,721)
Provision for employment termination benefits (498,163) (467,254) - -
Provision for unused vacation (29,136) (29,136) - -
Depreciation and amortisation charges (2,521,878) (24,549) (8,296,974) (4,166,478)
Advertisement and promotion expenses (213,780) (61,428) - -
Subscription costs (1,465,898) (98,023) - -
Travel and accommodation expenses (720) - - -
Consultancy expenses (1,509,277) (410,096) (2,971,511) (1,492,199)
Stationery expenses (11,502) (11,502) (831,626) (417,616)
IT expenses (591,617) (235,682) (801,527) (402,502)
Rent expenses (2,475,398) (358,182) (4,493,017) (2,256,251)
Insurance expenses (50,884) (1) (370,753) (186,180)
Communication expenses (19,610) 2,452 - -
Taxes, duties and charges (264,198) (145,727) (510,500) (256,357)
Representation and hospitality expenses (62,003) (1,171) - -
Grants and donations (621,993) (213,476) - -
Litigation costs, fees and charges (696,168) (216,085) - -
Management contribution costs (1,296,597) (299,999) - -
Other general administrative expenses (681,714) 1,382,635 (1,786,022) (896,884)
General administrative expenses, net (16,625,430) (2,084,523) (27,505,093) (13,812,188)
Marketing, sales and distribution expenses 1 January –
30 September
2025
1 July –
30 September
2025
1 January –
30 September
2024
1 July –
30 September
2024
Other - - (133,971) -
Total - - (133,971) -

NOTE 19 – OTHER OPERATING INCOME/(EXPENSES)

Other operating income 1 January –
30 September
2025
1 July - 30
September
2025
1 January –
30 September
2024
1 July - 30
September
2024
Provision for doubtful receivables 445,764 (45,247) - -
Foreign exchange gains - - 2,589,506 1,742,909
Reversal of discount income 105,901 - 122,480 82,437
Rent income 340,830 69,919 1,775,842 1,195,259
Income from scrap sales 62,894 - 69,074 46,491
Income from grants and incentives 21,163 3,718 51,092 34,388
Gain on sale of non-current assets 13,146,728 3,903,930 - -
Other 2,539,564 211,194 531,747 357,902
Other extraordinary gains 21,077 19,459 - -
Total 16,683,921 4,162,973 5,139,741 3,459,386

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 19 – OTHER OPERATING INCOME/(EXPENSES) (Continued)

Other operating expenses (-) 1 January –
30 September
1 July - 30
September
1 January –
30 September
1 July - 30
September
2025 2025 2024 2024
Foreign exchange losses (-) (63,722) (8,732) (178,181) (24,146)
Interest expenses (-) (15,502) 1,163 - -
Rent expenses (-) (101,385) (101,385) - -
Discount expenses (-) - - (132,638) (361,267)
Loss on sale of non-current assets (-) (37,249,641) (37,066,955) - -
Expenses from provision for doubtful receivables (-) - - (1,392,809) (58,627)
Other (-) (6,063) 455 - -
Other extraordinary expenses and losses (-) (2,944,750) (91,049) (2,196,156) 798,074
Other operating expenses, net (-) (40,381,063) (37,266,503) (3,899,784) 354,034

NOTE 20 – GAINS/(LOSSES) FROM INVESTMENT ACTIVITES

Gains from investment activities 1 January –
30 September
2025
1 July –
30 September
2025
1 January –
30 September
2024
1 July –
30 September
2024
Gain on equity securities 726,161,314 (163,593,280) 156,319,171 (33,774,290)
Gains from investment activities, net 726,161,314 (163,593,280) 156,319,171 (33,774,290)
Losses from investment activities (-) 1 January –
30 September
2025
1 July –
30 September
2025
1 January –
30 September
2024
1 July –
30 September
2024
Provision for impairment of non-current assets (17,309,351) 4,987,530 - -
Losses from investment activities, net (17,309,351) 4,987,530 - -

NOTE 21 – FINANCIAL INCOME/(EXPENSES)

Financial income 1 January –
30 September
2025
1 July –
30 September
2025
1 January –
30 September
2024
1 July –
30 September
2024
Interest income 18,767,013 2,787,145 - -
Total 18,767,013 2,787,145 - -
Financial expenses (-) 1 January –
30 September
2025
1 July –
30 September
2025
1 January –
30 September
2024
1 July –
30 September
2024
Interest expenses (14,366,200) (1,324,668) (30,405,998) (22,310,384)
Total (14,366,200) (1,324,668) (30,405,998) (22,310,384)

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 22 - INCOME TAXES

Corporate tax

The corporate tax to be accrued on the taxable income is calculated based on the deduction of the expenses that cannot be deducted from the tax base expense in the determination of the earnings, and the amount of dividends received from domestic companies is calculated over taxable income and investment allowances. As of 30 September 2025, the effective corporate tax rate applied in Türkiye is 25% (2024: 25%).

The "Minimum Corporate Tax" was introduced by Law No. 7524, published on 2 August 2024. The minimum corporate tax rate of 10% will apply effective from 1 January 2025. The minimum corporate tax is based on the principle that it must not be less than 10% of the corporate income calculated in accordance with general rules, before any deductions or exemptions specified in Law No. 7524 are applied.

Advance tax in Türkiye is calculated and accrued on a quarterly basis. Accordingly, the Company has been calculated tax in accordance with the 2025 earnings in the first advance tax period, an advance tax rate of 25% was calculated on corporate earnings (2024: 25%).

According to Turkish Corporate Tax Law, losses can be carried forward to offset the future taxable income for a maximum period of 5 years. On the other hand, such losses cannot be carried back to offset prior years' profits. According to corporate tax law article numbered 24, the corporate tax is imposed by the taxpayer's tax returns. In Türkiye, there is no procedure for a final and definitive agreement on tax assessments. Companies file their corporate tax returns between 1-25 April following the close of the accounting year. Tax authorities may, however, examine such returns and the underlying accounting records and may revise assessments within five years. Corporate tax losses can be carried forward for a maximum period of 5 years following the year in which the losses were incurred. The tax authorities can inspect tax returns and the related accounting records for a retrospective maximum period of five years.

In addition to the corporate tax, it is required to calculate income tax withholding on any dividends, except for those distributed to all taxpayer entities and Turkish branches of foreign companies gaining dividend for such distribution and declaring these dividends within the corporate profit. The rate of income withholding tax implemented as 15%.

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 22 - INCOME TAXES (Continued)

Corporate tax (Continued)

As of 30 September 2025, and 31 December 2024, the Company has no current income tax assets.

As of 30 September 2025, and 31 December 2024, the details of current income tax liabilities recognised in the statement of financial position are as follows:

As of 30 September 2025, and 2024, the details of tax expenses recognised in the statement of profit or loss are as follows:

Tax income/expenses 1 January –
30 September
2025
1 July –
30 September
2025
1 January –
30 September
2024
1 July –
30 September
2024
- Current period tax income/(expense) - - (3,954,675) (3,954,675)
- Deferred tax income/(expense) (194,750,739) 27,103,021 (57,788,607) (17,187,828)
Total (194,750,739) 27,103,021 (61,743,282) (21,142,503)

Lydia Yeşil Enerji recognises deferred tax assets and liabilities based upon temporary differences arising between their financial statements prepared in accordance with TFRS and the Turkish tax legislations. These differences usually result in the recognition of revenue and expenses in different reporting periods for tax purposes and for the purposes of the Turkish Financial Reporting Standards and disclosed below. In the deferred tax calculation, the enacted tax rate, in accordance with the tax legislation, is used as of the balance sheet date. Lydia Yeşil Enerji calculated its deferred tax and liabilities as 25% for 2025 accounting period (31 December 2024: 25%).

The breakdown of cumulative temporary differences and deferred tax assets and liabilities provided using principal tax rates are as follows:

Cumulative
temporary differences
Deferred tax
assets
/(liabilities)
Cumulative
temporary
differences
Deferred tax
assets
/(liabilities)
30 September 2025 30 September 2025 31 December 2024 31 December 2024
Adjustments for property, plant and equipment
and intangible assets
(541,757,447) (135,439,362) (250,973,436) (62,743,361)
Property, plant and equipment revaluation
surplus
- - (261,640,889) (65,410,222)
Provision for doubtful receivables 456,737 114,184 1,132,003 283,001
Provision for lawsuits 1,263,184 315,796 1,584,406 396,102
Deferred financial income - - 132,831 33,207
Provision for employment termination benefits - - 401,028 100,257
Provision for unused vacation - - 4,503 1,126
Deferred financial expenses - - (19,444) (4,862)
Adjustments for prepaid expenses - - 22,649 5,663
Adjustments for accruals from time deposits - - - (94,649)
Adjustments for financial investments (2,323,126,773) (580,781,692) (1,574,426,395) (393,606,597)
Deferred tax assets/(liabilities), (net) (715,791,074) (521,040,335)

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 22 - INCOME TAXES (Continued)

The movements in deferred tax assets/(liabilities) are as follows:

Deferred tax

1 January- 1 January -
Deferred tax liabilities 30 September
2025
30
September
2024
Beginning of the period -
1 January (-)
(521,040,335) (18,078,697)
Charge to the equity - (18,668)
Business combinations - (53,626,655)
Monetary (losses)/gains - 4,526,157
Deferred income tax during the period (194,750,739) (57,788,607)
End of the period

30 September
(715,791,074) (124,986,470)

NOTE 23- NET MONETARY POSITION GAINS/(LOSSES)

As of 30 September 2025, the details of net monetary position gains/(losses) arising from non-monetary items recognised in the statement of profit or loss are as follows:

Non-monetary
items
30 September 2025
Statement
of
financial
position
22,943,961
Marketable
securities
341,738,186
Property,
plant
and
equipment
and
intangible
assets
6,109,382
Capital
contributions
(41,335,723)
Adjustment
to
share
capital
(3,642,664)
Share
premium
(30,284,220)
Restricted
reserves
(2,386,474)
Retained
earnings
(100,807,978)
Property,
plant
and
equipment
revaluation
surplus
(39,783,795)
Deferred
tax
(105,635,689)
Other (1,027,064)
Statement
of
profit
or
loss
585,944
Revenue (1,790,242)
Cost
of
goods
sold
840,425
General
administrative
expenses
1,398,269
Financial
income
and
(expenses)
(207,431)
Other
income
and
(expenses)
344,923
Net
monetary
position
gains/(losses)
23,529,905

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 24 – EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

30 September 2025 30 September 2024
Profit
for
the
period
from
continuing
operations
518,307,678 58,016,276
Weighted
average
number
of
shares
1,891,070 1,891,070
Earnings
per
share from continuing operations
274.082 30.679

NOTE 25 – NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS

Capital risk management

The Company, while trying to maintain the continuity of its activities in capital management on one hand, aims to increase its profitability by using the balance between debts and equity on the other hand. The capital structure of the Company consists of borrowings including the loans, cash and cash equivalents and equity items containing respectively issued share capital, capital reserves, profit reserves and retained earnings.

General strategy based on the Company's equity does not differ from the prior period. The analysis of the main risks to which the Company is exposed are as follows:

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company's credit risk arises from trade receivables. Trade receivables of the Company is trying to be managed as the credit risk by limiting the transactions with certain parties and continuously evaluating the reliability of the related parties. Trade receivables are evaluated by taking into consideration the Company's accounting policies and procedures and past experiences and performances. Total credit risk of the Company is presented in the statement of financial position less provision for doubtful receivables. The Company management has not estimated any additional risks regarding its trade receivables.

As of 30 September 2025, and 31 December 2024, the exposure of financial assetsto credit risk is as follows:

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 25 – NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

Credit risk (Continued)

CREDIT RISK DETAILS IN RESPECT OF FINANCIAL INTRUMENT TYPES

30.09.2025

Receivables
Trade
Receivables
Other
Receivables
Related
Party
Other Related
Party
Other
(*)
Total
Bank
Deposits
Maximum
exposure
to
credit
risk
as
of
reporting date (*)
- 11,839,322 - - 7,282 11,846,604
(A+B+C+D+E)
-
Maximum
risk
secured
with
guarantees
and
collaterals
- - - - - -
A.
Net
book
value
of
neither
past
due
nor
impaired financial assets
- 11,839,322 - - 7,282 11,846,604
-
Maximum
risk
secured
with
guarantees
and
collaterals
- - - - - -
B.
Conditions
are
renegotiated
otherwise,
net
book
value
of
past
due
but
not
impaired
financial
assets
- - - - - -
-
Maximum
risk
secured
with
guarantees
and
collaterals
- - - - - -
C.
Net
book
value
of
past
due
but
not
impaired
financial
assets
- - - - - -
-
Maximum
risk
secured
with
guarantees
and
collaterals
- - - - - -
D.
Net
book
value
of
impaired
assets
- - - - - -
-
Past
due
(gross
book
value)
- (456,737) - - - (456,737)
-
Impairment
(-)
- 456,737 - - - 456,737
-
Secured
with
guarantees
and
collaterals
- - - - - -
-
Not
past
due
(gross
book
value)
- - - - - -
-
Impairment
(-)
- - - - - -
-
Secured
with
guarantees
and
collaterals
- - - - - -
E.
Off-balance
sheet
expected
credit
losses
(-)
- - - - - -

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 25 – NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

Credit risk (Continued)

31.12.2024

Receivables
Trade
Receivables
Other
Receivables
Total
Related
Party
Other Related
Party
Other
(*)
Bank
Deposits
Maximum
exposure
to
credit
risk
as
of
reporting
date
(*)
(A+B+C+D+E) - 5,114,283 - 855,757 16,933,915 22,903,955
-
Maximum
risk
secured
with
guarantees
and
collaterals
- - - - - -
A.
Net
book
value
of
neither
past
due
nor
impaired
financial
assets
- 5,114,283 - 855,757 16,933,915 22,903,955
-
Maximum
risk
secured
with
guarantees
and
collaterals
- - - - - -
B.
Conditions
are
renegotiated
otherwise,
net
book
value
of past due but not
impaired financial assets
- - - - - -
-
Maximum
risk
secured
with
guarantees
and
collaterals
- - - - - -
C.
Net
book
value
of
past
due
but
not
impaired
financial
assets
- - - - - -
-
Maximum
risk
secured
with
guarantees
and
collaterals
- - - - - -
D.
Net
book
value
of
impaired
assets
- - - - - -
-
Past
due
(gross
book
value)
- (1,132,004) - - - (1,132,004)
-
Impairment
(-)
- 1,132,004 - - - 1,132,004
-
Secured
with
guarantees
and
collaterals
- - - - - -
-
Not
past
due
(gross
book
value)
- - - - - -
-
Impairment
(-)
- - - - - -
-
Secured
with
guarantees
and
collaterals
- - - - - -
E.
Off-balance
sheet
expected
credit
losses
(-)
- - - - - -

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 25 – NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

Liquidity risk

Liquidity risk is the risk that the Company will be unable to meet its funding needs. Prudent liquidity risk management is to provide sufficient cash and cash equivalents, to enable funding with the support of credit limits provided by reliable credit institutions and to close funding deficit. The Company provides funding by balancing cash inflows and outflows through the provision of credit lines in the business environment.

As of 30 September 2025, and 31 December 2024, the analysis of liquidity risk statement is asfollows:

30 September
2025
Carrying
value
Total
contractual
cash
outflows
3-12 months 1-5 years
Non-derivative financial liabilities
Trade
payables
346,074 346,074 346,074 -
Other
payables
4,551,446 4,551,446 4,551,446 -
Total 4,897,520 4,897,520 4,897,520 -
31 December 2024 Carrying
value
Total
contractual
cash
outflows
3-12 months 1-5 years
Non-derivative financial liabilities
Trade
payables
1,306,920 1,306,920 1,306,920 -
Other
payables
1,537,539 1,537,539 1,537,539 -
Total 2,844,459 2,844,459 2,844,459 -

Market risk

Market risk is the risk of adverse changes in interest rates, exchange rates, and the value of other financial contracts that could adversely affect the Company.

Foreign exchange risk

As of 30 September 2025, and 31 December 2024, the Company has no foreign currency denominated balances.

NOTE 26 – FINANCIAL INSTRUMENTS (FAIR VALUE DISCLOSURES AND HEDGE ACCOUNTING)

Fair value is the amount for which a financial instrument could be exchanged, or a liability settled between, willing parties during current transaction, other than in a forced sale or liquidation, and is best evidenced through a quoted market price, if one exists.

The Company determined fair value of financial instruments by using available market information and appropriate valuation methods. However, evaluating the market information and forecasting the real values requires interpretation. As a result, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange.

The following methods and assumptions are used to estimate the fair values of financial instruments:

LYDİA YEŞİL ENERJİ KAYNAKLARI ANONİM ŞİRKETİ

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2025

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL on 30 September 2025, unless otherwise indicated.)

NOTE 26 – FINANCIAL INSTRUMENTS (FAIR VALUE DISCLOSURES AND HEDGE ACCOUNTING) (Continued)

Financial assets

The fair values of certain financial assets carried at cost including cash and cash equivalents and other financial assets are considered to approximate their respective carrying values due to their short-term nature. The carrying values of trade receivables less provision for doubtful receivables are considered to approximate their respective carrying values. Monetary items denominated in foreign currencies have been translated using the exchange rates prevailing at the end of the reporting period.

Financial liabilities

Monetary items denominated in foreign currencies have been translated using the exchange rates prevailing at the end of the reporting period. The fair value of trade payables and other monetary liabilities are considered to approximate their respective carrying values due to their short-term nature. When long-term fixed-rate bank borrowings are valued at the fixed interest rate valid as of the balance sheet date, their fair value is considered to approximate their respective carrying values. For short-term borrowings, due to their short-term nature, it is assumed that their carrying amounts are considered to approximate their fair value.

NOTE 27- EVENTS AFTER THE REPORTING PERIOD
---------- -- ----------------------------------- -- --

None.

NOTE 28 – OTHER MATTERS

None.

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