AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

Quarterly Report Nov 10, 2025

9026_rns_2025-11-10_3f35cd7a-3fa7-4e65-8d8f-d22b155c7efb.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 SEPTEMBER 2025

(ORIGINALLY ISSUED IN TURKISH)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONCONSOLIDATED STATEMENTS OF PROFIT OR LOSS
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME 4
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYCONSOLIDATED STATEMENTS OF CASH FLOWS
NOTE 1 - GROUP'S ORGANISATION AND NATURE OF OPERATIONS
NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS {
NOTE 3 - BUSINESS COMBINATIONS
NOTE 4 - DISCLOSURE OF INTERESTS IN OTHER ENTITIES
NOTE 5 - SEGMENT REPORTING 22
NOTE 6 - CASH AND CASH EQUIVALENTS 22
NOTE 7 - FINANCIAL INVESTMENTS 23
NOTE 8 - FINANCIAL LIABILITIES 23
NOTE 9 - OTHER FINANCIAL LIABILITIES 24
NOTE 10 - TRADE RECEIVABLES AND PAYABLES 24
NOTE 11 - OTHER RECEIVABLES AND PAYABLES 25
NOTE 12 - DERIVATIVE INSTRUMENTS 26
NOTE 13 - INVENTORIES 26
NOTE 14 - PREPAID EXPENSES AND DEFERRED INCOME 26
NOTE 15 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD 27
NOTE 16 - INVESTMENT PROPERTIES 27
NOTE 17 - PROPERTY, PLANT AND EQUIPMENTS 27
NOTE 18 - RIGHT OF USE ASSETS 28
NOTE 19 - INTANGIBLE ASSETS 28
NOTE 20 - EMPLOYEE BENEFITS 29
NOTE 21 - SHORT-TERM PROVISIONS 30
NOTE 22 - COMMITMENTS 31
NOTE 23 - LONG-TERM PROVISIONS 32
NOTE 24 - TAX ASSETS AND LIABILITIES 32
NOTE 25 - OTHER ASSETS AND LIABILITIES 32
NOTE 26 - EQUITY 33
NOTE 27 - REVENUE AND COST OF SALES 35
NOTE 28 - GENERAL ADMINISTRATIVE EXPENSES AND MARKETING SALES AND DISTRIBUTION EXPENSES 35
NOTE 29 - EXPENSES BY NATURE 35
NOTE 30 - OTHER OPERATING INCOME AND EXPENSES 36
NOTE 31 – INCOME AND FROM INVESTMENT ACTIVITIES 37
NOTE 32 - FINANCIAL INCOME AND EXPENSES 37
NOTE 33 - NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS 38
NOTE 34 - INCOME TAXES 38
NOTE 35 - EARNINGS PER SHARE 40
NOTE 36 - RELATED PARTY DISCLOSURES 40
NOTE 37 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS 42
NOTE 38 - FINANCIAL INSTRUMENTS (FAIR VALUE DISCLOSURES AND HEDGE ACCOUNTING) 49
NOTE 39 - EXPLANATIONS ON NET MONETARY POSITION GAINS/(LOSSES)
NOTE 40 - EVENTS AFTER THE REPORTING PERIOD 50
NOTE 41 - OTHER MATTERS THAT SIGNIFICANTLY AFFECT THE FINANCIAL STATEMENTS OR THAT NEED D TO BE
DISCLOSED IN ORDER TO ENSURE THAT THE FINANCIAL STATEMENTS ARE CLEAR, INTERPRETABLE LE, AND
INDEPOTANDADI E 50

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2025 AND 31 DECEMBER 2024

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

ASSETS Notes Unaudited
Current period
30 September
2025
Audited
Prior period
31 December
2024
Current Assets
Cash and cash equivalents 6 194.610.295 287.012.977
Trade receivables 10 244.399.881 138.023.596
- Trade receivables from related parties 10-36 158.965.297 59.930.568
- Trade receivables from third parties 10 85.434.584 78.093.028
Other receivables 11 492.624 617.898
- Other receivables from third parties 11 492.624 617.898
Inventories 13 1.220.645.403 1.486.039.512
Prepaid expenses 14 35.293.356 109.564.986
- Prepaid expenses from third parties 14 35.293.356 109.564.986
Other current assets 25 32.668.323 20.170.711
Total Current Assets 1.728.109.882 2.041.429.680
Non-Current Assets
Other receivables 11 9.680.441 9.397.931
- Other receivables from third parties 11 9.680.441 9.397.931
Property, plant and equipment 17 531.032.027 368.374.016
Right of use assets 18 1.095.115.556 849.311.825
Intangible assets 19 52.745.398 37.317.745
- Other intangible assets 19 52.745.398 37.317.745
Total Non-Current Assets 1.688.573.422 1.264.401.517
TOTAL ASSETS 3.416.683.304 3.305.831.197

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2025 AND 31 DECEMBER 2024

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

LIABILITIES Notes Unaudited
Current period
30 September
2025
Audited
Prior period
31 December
2024
Current Liabilities
Short-term borrowings 8 244.169.549 570.451.936
Lease liabilities 8 416.266.575 280.866.384
Short-term portion of long-term borrowings 8 266.437.028 88.023.643
Trade payables 10 126.996.088 197.372.958
- Trade payables to related parties 10-36 23.167.508 76.789.749
- Trade payables to third parties 10 103.828.580 120.583.209
Employee benefits 20 70.230.016 68.971.277
Other payables 11 2.619.154 2.481.256
- Other payables to third parties 11 2.619.154 2.481.256
Deferred income 14 11.063.587 12.403.374
Current income tax liabilities 34 40.553.724 12.847.942
Short-term provisions 21 20.385.534 17.988.737
- Short-term provisions for employee benefits 21 9.408.094 9.859.266
- Other short-term provisions 21 10.977.440 8.129.471
Other current liabilities 25 16.898.690 20.872.628
Total Current Liabilities 1.215.619.945 1.272.280.135
Non-Current Liabilities
Long-term borrowings 8 76.246.666 43.310.353
Lease liabilities 8 351.780.673 285.959.784
Deferred income 14 - 2.469.376
Long-term provisions 23 7.992.135 7.753.749
- Long-term provisions for employee benefits 23 7.992.135 7.753.749
Deferred tax liabilities 34 178.891.833 117.096.787
Total Non-Current Liabilities 614.911.307 456.590.049
EQUITY
Equity Holders of the Parent 26 1.586.152.052 1.576.961.013
Paid-in share capital 26 560.000.000 224.000.000
Adjustment to share capital 26 501.195.014 465.427.583
Treasury shares (-) 26 (145.147.218) (142.447.080)
Share premium 26 176.022.664 176.022.664
Other comprehensive income or expenses not to be
reclassified to profit or loss (12.563.274) (6.377.814)
- Losses on remeasurements of defined benefit plans (12.563.274) (6.377.814)
Other comprehensive income or expenses to be
reclassified to profit or loss (31.478.334) (18.470.018)
- Currency translation differences 26 (31.478.334) (18.470.018)
Restricted reserves 26 221.521.348 208.187.778
Retained earnings 26 208.088.211 379.220.960
Net profit for the period 108.513.641 291.396.940
TOTAL EQUITY 1.586.152.052 1.576.961.013
TOTAL LIABILITIES AND EQUITY 3.416.683.304 3.305.831.197

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS

FOR THE PERIODS ENDED 30 SEPTEMBER 2025 AND 2024

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

Notes Unaudited
Current
period
1 January -
30 September
2025
Unaudited
Current
period
1 July -
30 September
2025
Unaudited
Prior
period
1 January -
30 September
2024
Unaudited
Prior
period
1 July -
30 September
2024
Revenue
Cost of sales (-)
27
27
4.359.164.048
(2.126.566.246)
1.770.941.406
(897.368.549)
4.087.968.943
(1.906.700.587)
1.697.228.028
(870.441.725)
Gross profit 2.232.597.802 873.572.857 2.181.268.356 826.786.303
General administrative expenses (-) 29 (166.522.229) (57.036.834) (156.781.568) (50.964.672)
Marketing, sales and distribution expenses (-) 29 (1.658.600.683) (598.521.837) (1.531.326.737) (560.334.753)
Other operating income 30 79.442.733 8.020.655 98.557.394 31.029.419
Other operating expenses (-) 30 (112.651.530) (32.000.379) (66.392.992) (12.314.612)
Operating profit 374.266.093 194.034.462 525.324.453 234.201.685
Income from investment activities 31 4.681.079 779.176 10.779.165 3.993.338
Operating profit before financial expense 378.947.172 194.813.638 536.103.618 238.195.023
Financial income 32 45.951.239 20.474.471 58.684.934 25.026.506
Financial expense (-) 32 (526.857.830) (213.869.224) (390.879.381) (130.950.798)
Monetary gains 39 318.542.751 75.577.703 179.513.051 69.468.639
Net profit before tax from continuing operations 216.583.332 76.996.588 383.422.222 201.739.370
Tax expense from continuing operations (108.069.691) (38.694.345) (123.115.321) (77.617.760)
Current period tax expense (-) 34 (44.427.040) (44.427.040) (84.323.668) (33.668.935)
Deferred tax expense /(income) 34 (63.642.651) 5.732.695 (38.791.653) (43.948.825)
Net profit for the period from continuing
operations
108.513.641 38.302.243 260.306.901 124.121.610
Net profit for the period from discontinued
operations
- - - -
Net profit for the period 108.513.641 38.302.243 260.306.901 124.121.610
Net profit attributable to: 108.513.641 38.302.243 260.306.901 124.121.610
- Non-controlling interests - - - -
- Equity holders of the parent 108.513.641 38.302.243 260.306.901 124.121.610
Earnings per share ("TRY") 35 0,2593 0,0684 1,1621 0,5541
- Earnings per share from continuing operations 35 0,2593 0,0684 1,1621 0,5541
- Earnings per share from discontinued operations - - - -

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME

FOR THE PERIODS ENDED 30 SEPTEMBER 2025 AND 2024

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

Notes Unaudited
Current
period
1 January -
30 September
2025
Unaudited
Current
period
1 July -
30 September
2025
Unaudited
Prior
period
1 January -
30 September
2024
Unaudited
Prior
period
1 July -
30 September
2024
Net profit for the period 108.513.641 38.302.243 260.306.901 124.121.610
Other compherensive expense
Items not to be reclassified to profit or loss
Losses on remeasurements of defined benefit plans
Deferred tax effect
(8.033.065)
1.847.605
527.860
(121.408)
(1.916.011)
440.682
(385.767)
88.726
Items to be reclassified to profit or loss
Currency translation differences (13.008.316) (1.399.180) (8.386.861) (4.163.617)
Other compherensive expense (19.193.776) (992.728) (9.862.190) (4.460.658)
Total compherensive income 89.319.865 37.309.515 250.444.711 119.660.952
Total compherensive income attributable to:
Non-controlling interests
Equity holders of the parent
-
89.319.865
-
37.309.515
-
250.444.711
-
119.660.952

CONVENIENCE TRANSLATION INTO ENGLISH OF THE CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE PERIODS ENDED 30 SEPTEMBER 2025 AND 2024

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

Items not to be
reclassified to
profit or loss
Items to be
reclassified
to profit or
loss
Paid-in
share
capital
Adjustment
to share
capital
Treasury
shares
Share
premium
Restricted
reserves
Gains/(losses)on
remeasurements
Currency
translation
differences
Retained
earnings
Net profit
for the
period
Equity
holders of the
parent
Non
controlling
interests
Total equity
Balances at 1 January 2024 224.000.000 465.427.583 (9.950.081) 176.022.664 48.888.814 (5.221.636) (14.143.962) 269.369.632 346.909.302 1.501.302.316 - 1.501.302.316
Dividends paid - - - - - - - (82.639.523) - (82.639.523) - (82.639.523)
Transfers - - - - 51.494.639 - - 295.414.663 (346.909.302) - - -
Increase/(decrease) due to share buybacks - - (24.692.896) - - - - - - (24.692.896) - (24.692.896)
Total comprehensive income - - - - - (1.475.329) (8.386.861) - 260.306.901 250.444.711 - 250.444.711
Balances at 30 September 2024 224.000.000 465.427.583 (34.642.977) 176.022.664 100.383.453 (6.696.965) (22.530.823) 482.144.772 260.306.901 1.644.414.608 - 1.644.414.608
Balances at 1 January 2025 224.000.000 465.427.583 (142.447.080) 176.022.664 208.187.778 (6.377.814) (18.470.018) 379.220.960 291.396.940 1.576.961.013 - 1.576.961.013
Dividends paid - - - - - - - (77.428.688) - (77.428.688) - (77.428.688)
Transfers - - - - 13.333.570 - - 278.063.370 (291.396.940) - - -
Capital increases (*) 336.000.000 35.767.431 - - - - - (371.767.431) - - - -
Increase/(decrease) due to share buybacks - - (2.700.138) - - - - - - (2.700.138) - (2.700.138)
Total comprehensive income - - - - - (6.185.460) (13.008.316) - 108.513.641 89.319.865 - 89.319.865
Balances at 30 September 2025 560.000.000 501.195.014 (145.147.218) 176.022.664 221.521.348 (12.563.274) (31.478.334) 208.088.211 108.513.641 1.586.152.052 - 1.586.152.052

(*) In accordance with the decision of the Company's Board of Directors dated December 26, 2024, it has been decided to increase the issued capital by TRY 336.000.000 (150%) by fully meeting the registered capital ceiling of TRY 300.000.000 for one time only, and thus to increase the capital from TRY224.000.000 to TRY560.000.000. The issuance certificate prepared within this scope has been approved by the Capital Markets Board's decision dated April 10, 2025 and numbered 21/635; the new version of Article 6 of the Articles of Association regarding the capital, which shows that the issued capital is TRY560.000.000 has been registered on April 25, 2025 and published in the Turkish Trade Registry Gazette dated April 25, 2025 and numbered 11319.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED 30 SEPTEMBER 2025 AND 2024

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

Notes Unaudited
Current
period
1 January -
30 September
2025
Unaudited
Prior
period
1 January -
30 September
2024
NET PROFIT FOR THE PERIOD 108.513.641 260.306.901
Adjustments related to reconciliation of net profit for the period 691.248.006 739.037.168
Depreciation and amortisation 17-18-19 435.762.152 415.961.932
Adjustments for tax expense 34 108.069.691 123.115.321
Adjustments for provisions 21-23 8.067.812 11.402.255
- Adjustments for provision for employee benefits (reversal) 21-23 3.484.280 7.288.409
- Adjustments for provision for lawsuits, litigations and penalties (reversal) 21 610.958 (48.022)
- Adjustments for other provisions (reversal) 21 3.972.574 4.161.868
Adjustments for impairment loss 13 315.033 (2.885.540)
Adjustments for interest income 32 (45.838.559) (57.851.819)
Adjustments for interest expenses 32 524.146.939 381.243.046
Adjustments for losses/(gains) on disposal of non-current assets 31 (4.681.079) (10.779.165)
- Adjustments related to gains arising from the disposal of tangible and
intangible fixed assets 31 (4.681.079) (10.779.165)
Other adjustments for reconcile profit for the period (1.786.015) (16.134.173)
- Discount income from trade payables 30 (10.745.404) (25.212.001)
- Discount expenses from trade receivables 30 8.959.389 9.077.828
Adjustments for monetary gains (332.807.968) (105.034.689)
Changes in working capital 121.957.800 (606.695.151)
Adjustments for increase on trade receivables 10 (115.335.674) (2.771.884)
Adjustments for increase/(decrease) on inventories 13 265.079.076 (509.318.682)
Adjustments for increase/(decrease) on other receivables related to operations 61.616.782 54.573.748
Adjustments for increase/(decrease) on trade payables 10 (59.631.466) (12.318.797)
Adjustments for decrease on other payables related to operations (4.538.859) (35.346.963)
Employee benefits paid 23 (8.510.801) (16.052.568)
Income taxes paid (16.721.258) (85.460.005)
Cash flows from investing activities 921.719.447 392.648.918
Cash inflows from sale of property, plant and equipment and intangible asset 17-19 26.628.055 68.858.563
Cash outflows from purchase of property, plant and equipment and intangible assets 17-19 (327.265.287) (163.313.506)
Cash flows from financing activities (300.637.232) (94.454.943)
Cash inflows from borrowings 8 655.100.364 531.776.413
Cash outflows from repayments of borrowings 8 (569.005.967) (271.981.293)
Interest received 32 47.012.117 58.366.221
Interest paid, bank commissions and fees 32 (407.005.353) (312.976.384)
Cash outflows from lease liabilities 8 (307.464.270) (231.544.321)
Cash outflows from treasury shares (-) (2.700.138) (24.692.896)
Dividends paid (77.428.688) (82.639.523)
Cash flows from financing activities (661.491.935) (333.691.783)
Monetary loss on cash and cash equivalents (45.292.587) (77.588.777)
The effect of foreign currency translation differences
on cash and cash equivalents
(5.526.817) (375.557)
Net decrease in cash and cash equivalents (91.229.124) (113.462.142)
Cash and cash equivalents at the beginning of the period 4 285.838.144 330.525.302
Cash and cash equivalents at the end of the period 4 194.609.020 217.063.160

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 1 - GROUP'S ORGANISATION AND NATURE OF OPERATIONS

Suwen Tekstil Sanayi Pazarlama Anonim Şirketi (the "Company" or "Suwen Tekstil") was established on 5 August 2003 in İstanbul with the title of "Ekofer Tekstil Parfümeri Sanayi Pazarlama Limited Şirketi". The title of Ekofer Tekstil Parfümeri Sanayi Pazarlama Limited Şirketi has been changed to "Suwen Tekstil Sanayi Pazarlama Anonim Şirketi" which published in Official Gazzette on 27 July 2018 and numbered 821.

Suwen Tekstil's business activities include ensuring to produce, import, export, domestic purchase and sale of all kinds of raw materials, semi-finished materials and finished products related to textiles written in the articles of the association.

Suwen Tekstil is a retail company that produces and sells to its customers with a wide range of products from underwear to home wear, from socks to corsets, from beach wear collections to puerperal groups with its own brand and design in Turkey.

The Companys share have been traded on Borsa İstanbul's BIST Star since April 21, 2022.

The registered address of Suwen Tekstil is as follows:

Fatih Sultan Mehmet Mah. Balkan Cad. No:39 - 41 İç Kapı No:1 Ümraniye/İstanbul.

As of 30 September 2025 and 31 December 2024, the number of the stores and dealers of the Company is as follows:

30 September 2025 31 December 2024
Stores 181 175
Franchises 5 5
Foreign stores 9 9
Foreign franchises 6 9
Total 201 198

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

30 September 31 December
Shareholders 2025 Share 2024 Share
Ali Bolluk 58.104.160 10,38% 23.241.664 10,38%
Birol Sümer 58.104.160 10,38% 23.241.664 10,38%
Özcan Sümer 58.104.160 10,38% 23.241.664 10,38%
Çiğdem Ferda Arslan 20.000.020 3,57% 8.000.008 3,57%
Public traded shares 365.687.500 65,30% 146.275.000 65,30%
Total paid-in share capital 560.000.000 100,00% 224.000.000 100,00%

The subsidiaries ("Subsidiaries"), included in the consolidation scope of Suwen Tekstil, their country of incorporation, nature of business, their effective interests and their respective business segments are as follows:

Subsidiary Country of
incorporation
30 September
2025
31 December
2024
Nature of
business
Suwen Lingerie SRL. Romania 100,00% 100,00% Retail sales

For the purpose of the consolidated financial statements and notes to the consolidated financial statements, Suwen Tekstil and its consolidated subsidiary are hereinafter referred to as "the Group".

Total end of period and average number of personnel employed by the Group is 1.416 (31 December 2024: 1.147).

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

2.1. Basis of presentation

2.1.1 Financial reporting standards

The consolidated financial statements of the Group have been prepared in accordance with Turkish Financial Reporting Standards ("TAS/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 consolidated financial statements are presented in accordance with the "Announcement regarding to TAS Taxonomy" which was published by POA and the format and mandatory information recommended by CMB.

The Group maintains their books of account and prepares their statutory consolidated financial statements in accordance with the Turkish Commercial Code ("TCC") numbered 6102, tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. These consolidated financial statements have been prepared in Turkish Lira ("TRY") under the historical cost conversion except for the financial assets and liabilities presented at fair values. Adjustments and restatements, required for the fair presentation of the consolidated financial statements in conformity with the TAS/TFRS, have been accounted for in the statutory financial statements, which are prepared in accordance with the historical cost principle.

These consolidated financial statements as of and for the interim period ended 1 January - 30 September 2025 have been approved for issue by the Board of Directors ("BOD") on 7 November 2025.

2.1.2. Functional and presentation currency

Items included in the consolidated financial statements of the Group are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in TRY, which is Group's functional and presentation currency.

2.1.3. Adjustments of financial statements in hyperinflationary periods

Financial Reporting in Hyperinflationary Economies

In accordance with the announcement realised by the Public Oversight Accounting and Auditing Standards Authority (the "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 consolidated 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 Group has also presented its consolidated 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 consolidated financial statements are as follows:

Date Index Adjustment coefficient Three-year cumulative
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%

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.1.3. Adjustments of financial statements in hyperinflationary periods (Continued)

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

  • The consolidated financial statements for the current period presented in TRY are expressed in terms of the purchasing power of TRY at the balance sheet date and the amounts for the previous reporting periods are restated in accordance with the purchasing power of TRY 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 an effect 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 Group's net monetary asset position in the current period is recognised in the gain/(loss) on net monetary position in the consolidated statement of profit or loss.

2.2. Statement of compliance with TFRS

The accompanying consolidated financial statements as of and for the period ended 30 September 2025 and as of for the period ended 31 December 2024 have been prepared in accordance with Turkish Financial Reporting Standards ("TFRS/TAS") with additions and interpretations as issued by POA. The accompanying consolidated financial statements and the related notes are presented in accordance with the "Financial Statement Examples and User Guide" published in the Official Gazette No. 28652 dated 20 May 2013.

2.3. Basis of consolidation

The consolidated financial statements include the accounts of the parent company, the Group, and the subsidiary until having the power over investee. Controlling interest is provided by having power over the financial and operational policies of an entity in order to have economic benefit from its operations.

The financial statements of the subsidiaries operating in foreign countries

Financial statements of subsidiaries that are operating in foreign countries are prepared in accordance with the laws and regulations in force in the countries in which they are registered in and required adjustments and reclassifications reflected for the purpose of fair presentation in accordance with the Group's accounting policies. The results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that statement of financial position,
  • Income and expense items for each statement of profit or loss are translated at average exchange rates; and all resulting exchange differences (currency translation differences) are recognized as a separate component of equity and statements of comprehensive income.

When a foreign operation is partially disposed of or sold, exchange differences that were recorded in equity are recognized in the statement of profit or loss as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate.

Going concern

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

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.3. Basis of consolidation (Continued)

Subsidiaries

Subsidiary is a seperate entity controlled by the Group. The Group have controlling interest over the entity when it is exposed to variable returns due to its relationship with a entity or has rights to these returns and has the ability to influence these returns with its controlling interest simultaneously. The financial statements of the subsidiary have been included in the consolidated financial statements from the commencement date of control until the date that it ceases.

The accounting policies of the subsidiary have been changed when deemed necessary in order to comply with the policies accepted by the Group. Even if the abovementioned matter reversed in non-controlling interests, total comprehensive income is transferred to the parent company's shareholders and non-controlling interests.

Subsidiaries included in the scope of the consolidation and their effective interests (%) is as follows:

Effective ownership interests (%)
Country of Nature of
Subsidiary incorporation 30 September 2025 31 December 2024 business
Suwen Lingerie SRL. Romania 100,00 100,00 Retail sales

In order to start an operation that the Group will manage within its own structure with store openings and e-commerce sales in Romania, the Group has been established a subsidiary ("Subsidiary") at the registered address of Voluntari City, 1/VI Pipera Blvd. Hyperion Towers building, Tower 2, Ilfov county, in Romania with the title of "Suwen Lingerie S.R.L." which was published in Official Gazette on 3 June 2019. As of 30 September 2025, the Group has 7 stores in Romania.

Consolidation procedures and eliminations

During the preparation of consolidated financial statements, consolidated financial statements eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group (profits or losses resulting from intragroup transactions that are recognised in assets, such as inventory and non-current assets, are eliminated in full). Consolidated financial statements offset the carrying amount of the parent's investment in each subsidiary and the parent's portion of equity of each subsidiary. Unrealized losses are eliminated accordingly as unrealized gains, unless there is evidence of impairment.

Consolidated statement of financial position and profit or loss restatement principles

Full consolidation method

  • The paid in share capital and balance sheet items of the Group and the subsidiary are aggregated. In the aggregation, the receivables and payables of the subsidiaries in scope of consolidation from each other eliminated in full.
  • The paid in share capital of the consolidated balance sheet is the paid in share capital of the Group; paid in share capital of the subsidiary is not included in the consolidated balance sheet.
  • Equity items including paid / issued capital of the subsidiary within the scope of consolidation, less the amounts corresponding to the shares other than the parent company and subsidiaries presented as the "Non-Controlling Interests" after the equity of the group in the consolidated balance sheet.
  • Current and non-current assets acquired by the subsidiaries subject to full consolidation method from each other, in principle, are included in the consolidated balance sheet over carried at cost before the sale, by making adjustments to present these assets at the acquisition cost to the subsidiaries subject to the full consolidation method.
  • The profit or loss items of the Group and the subsidiary are aggregated separately and the sales of goods and services made by the subsidiaries subject to the full consolidation method to each other in the aggregation process have been deducted from the total sales amount and cost of goods sold. The profit arising from the purchase and sale of goods between these subsidiaries related to the inventories of the subsidiaries subject to the full consolidation method was deducted from the inventories in the consolidated financial statements and added to the cost of the sold goods, the loss was added to the inventories and deducted from the cost of the goods sold.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.3. Basis of consolidation (Continued)

Income and expense items resulting from the transactions of the subsidiaries subject to full consolidation method with each other have been offset in the relevant accounts.

  • Net profit or loss of the subsidiary within the scope of consolidation, the part corresponding to the shares other than the subsidiaries subject to the consolidation method has been presented as the "Non-Controlling Interests" after the net consolidated period profit.

Full consolidation method (Continued)

  • The necessary adjustments have been made for the compliance of the financial statements of the subsidiary with the accounting principles applied by other intragroups, when deemed necessary.

2.4. Offsetting

Financial assets and liabilities are offset, and the net amount is recognised in the statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

2.5. Comparatives and adjustment of prior periods' financial statements

The current period consolidated financial statements of the Group include comparative financial information to enable the determination of the trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to the changes in the presentation of the current period consolidated financial statements.

Accounting estimates are based on reliable information and reasonable estimation methods. However, estimates are revised as a result of changes in circumstances, estimating new information or additional developments. If changes in accounting forecasts are related to only one period, amendments are made in the current period. If amendments are related to the forthcoming periods, changes are applied in both current period and forthcoming periods.

The nature and amount of a change in the accounting estimate, which has an impact on the outcome of the current period or is expected to have an impact on subsequent periods, is disclosed in the notes to the consolidated financial statements, except when the estimation of the effect on the future periods is not possible. The current period consolidated financial statements of the Group include comparative financial information to enable the determination of the trends in financial position and performance.

2.6. Changes in accounting policies

Whether there are changes and errors in accounting policies and accounting estimates, the amended significant changes and the identified significant accounting errors are implemented retrospectively and the previous periods Group's consolidated financial statements are adjusted. Whether the changes are amended in accounting policies effect the previous periods, aforementioned policy is implemented retrospectively to the consolidated financial statements as it had been used in. There has been no change in the accounting policies of the Group in the current period.

The Group started to apply TFRS 16 Leases standard to annual reporting periods beginning on or after 1 January 2019. As of 1 January 2019, the summary financial statements for leases previously classified as operating leases in accordance with TAS 17, right of-use assets are accounted for at an amount equal to the lease liabilities (adjusted for the amount of prepaid or accrued lease payments) in accordance with the simplified transition method in the related standard.

2.7. Changes in accounting estimates and errors

Accounting estimates are based on reliable information and reasonable estimation methods. However, estimates are revised as a result of changes in circumstances, estimating new information or additional developments. If changes in accounting forecasts are related to only one period, amendments are made in the current period. If amendments are related to the forthcoming periods, changes are applied in both current period and forthcoming periods.

The nature and amount of a change in the accounting estimate, which has a material influence on the outcome of the current period or is expected to have a material influence on subsequent periods, is disclosed in the notes to the consolidated financial statements, except when the estimation of the effect on the future periods is not possible. There are no changes in the accounting estimates expected to have a material influence on the results of operations in the current period.

The Group has applied accounting policies consistent with each other in its consolidated financial statements for the periods presented and has no significant changes in accounting policies other than TFRS 16 in the current period.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.8. Significant accounting judgements, estimates and assumptions

The preparation of the consolidated financial statements in accordance with TFRS requires management to make estimates and assumptions that are reflected in the measurement of income and expense in the consolidated statement of profit or loss and in the carrying value of assets and liabilities in the consolidated statement of financial position, and in the disclosure of information in the notes to the consolidated financial statements. Managements do exercise judgment and make use of information available at the date of the preparation of the consolidated financial statements in making these estimates. The actual future results from operations in respect of the areas where these judgments and estimates have been made may in reality be different than those estimates.

The key assumptions concerning the future and other key resources of estimation at the consolidated balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year and the significant judgments (apart from those involving estimations) with the most significant effect on amounts recognized in the consolidated financial statements are as follows:

  • a) Provision for employment termination benefits is determined by using actuarial assumptions (discount rates, future salary increases and employee exit rates) (Note 23).
  • b) The Group depreciates its property, plant and equipment and intangible assets on a straight-line basis over their useful lives. Expected useful life residual value and amortization method are reviewed every year for possible effects of changes in estimates and are accounted for prospectively if there is a change in estimates. (Note 17, 19).
  • c) Provision for doubtful receivables reflects the amounts that the Group Management believes will meet future losses as of the balance sheet date. Provision for doubtful receivables represents the amounts that the Group believes will compensate future losses of receivables which are present as of the balance sheet date but which are not subject to collection in current economic conditions. The past performance of borrowers assessed for impairment of receivables impairment, credits on the market and their performance from the balance sheet date to the date of approval of the financial statements are also taken into consideration. As of the balance sheet date, the related provisions are disclosed in Note 10.
  • d) Inventories are valued at the lower of cost or net realisable value.
  • e) Provision for inventory impairment is recognized when net realisable value less the costs of completion and selling expenses.
  • f) The physical properties of the inventories and the past are examined in relation to the inventory impairment, the availability of the personnel is determined according to the opinions of the technical personnel and provision is made for the items that are estimated to be unavailable. Average sales prices are used to determine the net realizable value of inventories. The information about the inventory impairment that has been set as of the balance sheet date is given in Note 13.

2.9. Summary of significant accounting olicies

Revenue recognition

When a performance obligation is satisfied by transferring promised goods or services to a customer, the Group recognises the revenue as the amount of the transaction price that is allocated to that performance obligation. An entity shall recognise revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

Revenue is accounted for in the consolidated financial statements within the scope of the five-stage model below.

  • (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.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.9. Summary of significant accounting policies (Continued)

Revenue recognition (Continued)

A contract with a customer will be identified if all the following conditions are met:

  • (a) the contract has been approved by the parties to the contract,
  • (b) each party's rights in relation to the goods or services to be transferred can be identified,
  • (c) the payment terms for the goods or services to be transferred can be identified,
  • (d) the contract has commercial substance and,
  • (e) it is probable that the consideration to which the entity is entitled to in exchange for the goods or services will be collected. In assessing whether a consideration is likely to be collectible, the entity considers only the customer's intention to pay that amount on time (Note 27).

Revenue from goods sold

The Group generates revenue by selling bras, panties, socks, undershirts, dressing gowns, nightgowns, swimsuits, bikinis, pareos, pijamas, tights, underwear and textile products. The revenue is recognised when the goods or services are transferred to the customers.

If Group expects, at contract inception, that the period between when the Group transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less, the promised amount of consideration for the effects of a significant financing component is adjusted. On the other hand, when the contract effectively constitutes a financing component, the fair value of the consideration is determined by discounting all future receipts using an imputed rate of interest. The difference between the fair value and the nominal amount of the consideration is recognised on an accrual basis and classified under other operating income.

Inventories

Inventories are valued at the lower of cost or net realisable value. Cost of inventories includes; all purchasing costs, covering costs and other costs incurred to make the inventories ready to sell. Cost elements included in inventories are materials, labour and an appropriate amount of factory overheads. 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 realisable value of the inventory falls below its cost, the inventories are reduced to their net realisable value and the expense is reflected in the profit or loss statement in the year in which the impairment incurred. In cases where the conditions that previously caused inventories to be reduced to net realizable value lose their validity or there is an increase in the net realizable value due to changing economic conditions, the provision for the impairment is reversed. The reversal is limited to prior impairment amount (Note 13).

Cash and cash equivalents

Cash and cash equivalents are carried at cost in the consolidated statement of financial position. Cash and cash equivalents represent cash on hand and demand deposits, deposits held in banks with maturities of 3 months or less, together with shortterm, highly liquid investments that are readily convertible to a known amount of cash, and that are subject to an insignificant risk of changes in value (Note 6).

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.9. Summary of significant accounting policies (Continued)

Related parties

  • (a) A person or a close member of that person's family is related to a reporting entity if that person:
  • (i) has control or joint control over the reporting entity;
  • (ii) has significant influence over the reporting entity; or
  • (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.
  • (b) An entity is related to a reporting entity if any of the following conditions applies:
  • (i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
  • (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).
  • (iii) Both entities are joint ventures of the same third party.
  • (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
  • (v) The entity is a post-employment defined plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
  • (vi) The entity is controlled or jointly controlled by a person identified in (a).
  • (vii) A person identified in (a) (i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged.

According to the explanations above, in accordance with TAS 24, directly or indirectly on the company; Real and legal person partners who have control power alone or together and their close family members (up to second degree) and legal entities controlled directly or indirectly, alone or together by them, and that they have a significant impact and / or legal entities serving as senior management personnel; Subsidiaries of the Group, Board Members, key management personnel and their close family members (up to second degree) and legal entities controlled directly or indirectly, alone or together, are considered as related parties (Note 36).

Trade receivables and provision for doubtful receivables

Trade receivables generated by the Group by way of providing goods or services to a buyer are carried at amortized cost. Trade receivables that are not accrued after the unearned finance income are calculated by discounting the amounts to be obtained in the subsequent periods from the original invoice value. Short term receivables with no stated interest rate are measured at cost unless the effect of effective interest is significant (Note 10). The effective interest method is that the present value is calculated on the basis of "compound interest basis". The rate used in this method and determined on the basis of compound interest is called as en effective interest rate. Effective interest rate; is the rate that discounts the estimated future cash collections or payments to the present value of the financial asset over the expected useful life of the financial asset.

Considering the Group's normal trading cycle, trade receivables are subject to administrative and / or legal follow-up, secured or unsecured, objective finding, etc., for the trade receivables whose maturities are out of the ordinary business cycle. and evaluates the provision of provision for doubtful receivables. The amount of this provision is the difference between the carrying amount of the receivable and the amount that is available for collection. The recoverable amount is the present value of expected cash inflows, including amounts recoverable from guarantees and collateral, discounted based on the original effective interest rate of the receivable originally formed. The Group management evaluates the provision for doubtful receivables for the receivables that are under administrative and / or legal follow-up, unsecured and collection possibility over the term of the Group's ordinary business cycle.

In case of collecting the provision for the doubtful receivable, in case all or part of the doubtful receivable amount is collected, the collected amount is deducted from the provisioned doubtful receivable and recognized in other operating income.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.9. Summary of significant accounting policies (Continued)

Financial liabilities and borrowing costs

Financial liabilities are recognized initially at the proceeds received, net of transaction costs incurred. Financial liabilities are subsequently measured at amortized cost using the effective interest method. Any difference between proceeds, net of transaction costs, and the redemption value is recognized in the statement of profit or loss over the period of the borrowings.

Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset (which is intended to be intended for use and intended for sale over an extended period of time) may be capitalized as part of the cost of that asset. The Group has no capitalized financing costs during the period (Note 8).

TFRS 16 "Leases"

Group - as a lessee

At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Group considers following indicators for the assessment of whether a contract conveys the right to control the use of an identified asset for a period of time or not:

  • The contract includes an identified asset (contract includes a definition of a specified asset explicitly or implicitly),
  • A capacity portion of an asset is physically distinct or represents substantially all of the capacity of an asset (if the supplier has a substantive right to substitute the asset and obtain economic benefits from use of the asset, then the asset is not an identified asset)
  • Group has the right to obtain substantially all of the economic benefits from use of the identified asset,
  • Group has the right to direct the use of an identified asset. Group has the right to direct the use of the asset throughout the period of use only if either:
  • a) Group has the right to direct how and for what purpose the asset is used throughout the period of use or
  • b) Relevant decisions about how and for what purpose the asset is used are predetermined
  • i. Group has the right to operate the asset (or to direct others to operate the asset in a manner that it determines) throughout the period of use, without the supplier having the right to change those operating instructions; or
  • ii. Group designed the asset (or specific aspects of the asset) in a way that predetermines how and for what purpose the asset will be used throughout the period of use.

Group recognises a right-of-use asset and a lease liability at the commencement date of the lease following the consideration of the above mentioned factors.

Right-of-use asset

At the commencement date, the Group measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

  • a) The amount of the initial measurement of the lease liability,
  • b) Any lease payments made at or before the commencement date, less any lease incentives received,
  • c) Any initial direct costs incurred by the Group, and
  • d) An estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease (unless those costs are incurred to produce inventories).

When applying the cost model, Group measures the right-of-use asset at cost:

  • a) Less any accumulated depreciation and any accumulated impairment losses; and
  • b) Adjusted for any remeasurement of the lease liability.

Group applies the depreciation requirements in TAS 16 "Property, Plant and Equipment" in depreciating the right-of-use asset.

Group applies TAS 36 "Impairment of Assets" to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.9. Summary of significant accounting policies (Continued)

TFRS 16 "Leases" (Continued)

Right-of-use asset (Continued)

The rate of depreciation applied on right of use assets is 33% for motor vehicles and 10%-50% for buildings.

Lease liability

At the commencement date, the Group measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted by using the interest rate implicit in the lease, if that rate can be readily determined, or by using the Group's incremental borrowing rate.

The lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

  • a) Fixed payments, less any lease incentives receivable,
  • b) Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date,
  • c) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, Group measures the lease liability by:

  • a) Increasing the carrying amount to reflect interest on the lease liability,
  • b) Reducing the carrying amount to reflect the lease payments made, and
  • c) Remeasuring the carrying amount to reflect any reassessment or lease modifications.

The Group recognises the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.

Variable lease payments

Some lease contracts of the Group contain variable payment terms. Variable lease payments are not in the scope of TFRS 16 Standard and recognised in the statement of income as rent expense in the related period.

Practical expedients

The short-term lease agreements with a lease term of 12 months or less and agreements related to information on low value assets, which are determined by the Group as low value, have been evaluated within the scope of practical expedients introduced by the TFRS 16 Leases Standard and related lease payments are recognised as an expense in the period in which they are incurred.

Group - as a lessor

The Group has no operating and finance leases as a lessor during the period.

Transition to TFRS 16 "Leases"

The Group applied TFRS 16, "Leases", which superseded TAS 17, "Leases", and recognized in the consolidated financial statements by using "cumulative effect method" on the transition date of 1 January 2019. The standard allows a "simplified transition", which does not require restatement of the comparative information and retained earnings of the financial statements.

At the date of initial application of TFRS 16 "Leases", the Group recognised "lease liability" in the financial statements regarding the lease commitments classified as operating leases in accordance with TAS 17 "Leases" before 1 January 2019. Related lease liabilities are measured at their present value by discounting the unrealised lease payments using the Group's incremental borrowing rate at the date of initial application. Right of-use assets are recognized for at an amount equal to the lease liabilities (adjusted for the amount of prepaid or accrued lease payments) in accordance with the simplified transition method in the related standard.

The Group applies TFRS 16 Leases standard to annual reporting periods beginning on or after 1 January 2019. As of 1 January 2019, the summary financial statements for leases previously classified as operating leases in accordance with TAS 17, right of-use assets are accounted for at an amount equal to the lease liabilities (adjusted for the amount of prepaid or accrued lease payments) in accordance with the simplified transition method in the related standard.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.9. Summary of significant accounting policies (Continued)

Property, plant and equipments

Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided for property, plant and equipment (except land) on a straight-line basis over their estimated useful lives. Land is not depreciated as it is deemed to have an indefinite useful life.

The depreciation periods for property, plant and equipment, which approximate the economic useful lives of such assets, are as follows:

Economic Useful Lives (Years)
Plant, Machinery and Equipment 8-15
Motor Vehicles 15
Furniture and Fixtures 2-20
Leasehold Improvements 2-8

Useful life and the depreciation method are constantly reviewed, and accordingly, parallels are sought between the depreciation method and the period and the useful life to be derived from the related asset. Gains or losses on disposals of property, plant and equipment are determined by comparing proceeds with their net carrying amounts and are classified under "gains/(losses) from investing activities" in the current period.

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. 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.

Repairs and maintenance expenses are charged to statement of profit or loss during the period in which they are incurred. The cost of major renovations is included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed standard of performance of the existing asset will flow to the Group. Gains or losses on disposals of property, plant and equipment are determined with respect to the difference between collections received and carrying amounts of property, plant and equipment and are included in the related income and expense accounts, as appropriate.

Intangible assets and related amortisation

Intangible assets acquired before 1 January 2005 are carried at acquisition costs adjusted for inflation; whereas those purchased in and purchased after 2005 are carried forward at their acquisition cost less accumulated amortization.

They are initially recognised at acquisition cost and amortised on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each annual reporting period, with the effect of any changes in estimate being recognized for on a prospective basis.

Intangible assets acquired are amortised on a straight-line basis over their estimated useful lives. The estimated useful life of intangible assets are vary over 3-15 years.

Foreign currency translation

Foreign currency transactions are translated into Turkish Lira using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into Turkish Lira using the exchange rates at the consolidated balance sheet date. Foreign exchange gains and losses resulting from trading activities (trade receivables and payables) denominated in foreign currencies of the Group have been accounted for under "other operating income/(expenses)".

The consolidated financial statements are presented in TRY, which is Suwen Tekstil's functional and presentation currency. Transactions in currencies other than functional currency are recognised at the rates of exchange prevailing on the dates of the transactions. Foreign currency indexed monetary assets and liabilities are recorded at the rates of exchange prevailing on the balance sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated to functional currency as Turkish Lira using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Currency translation differences recognized as profit or loss in the period which they incurred.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED 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 Turkey, 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 bonus share 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.

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 consolidated financial statements are authorised for issue. The Group 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 consolidated financial statements, they are disclosed in the notes to the consolidated financial statements.

Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Group has a present legal or constructive obligation as a result 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 Group has a present obligation (legal or constructive) as a result 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, taking into account 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 pre-tax 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 nonoccurrence of one or more uncertain future events not wholly within the control of the Group are not included in the consolidated financial statements and treated as contingent assets or liabilities.

Taxes on income

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

Current tax

Current year tax liability is calculated over the taxable profit for the period. Taxable profit differs from profit as recognised in the statement of profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it excludes items that cannot be taxed or deducted. The Group's liability for current tax is calculated using legal statuory tax rates that have been enacted or substantively enacted by the balance sheet date.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.9. Summary of significant accounting policies (Continued)

Deferred tax

Deferred tax assets and liabilities are determined by calculating the temporary differences between the amounts shown 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 Group 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 Group expects to recover or settle the carrying amount of the assets as of the balance sheet date are taken into consideration

Deferred tax assets and liabilities are recognized when there is a legal right to offset current tax assets and current tax liabilities, or if such assets and liabilities are associated with the income tax collected by the same tax authority, or if the Group intends to pay off the current tax assets and liabilities.

Current and deferred tax for the period

The deferred tax, other than those directly attributable to debt or liability recognized in equity (in which case deferred tax is recognized directly in equity) or deferred tax, other than those arising from initial recognition of business combinations, is recognized as income or expense in the statement of profit or loss. In business combinations, the tax effect is taken into consideration in the calculation of goodwill or in determining the part of the purchaser that exceeds the acquisition cost of the share of the acquiree's identifiable assets, liabilities and contingent liabilities in the fair value.

The taxes included in the consolidated financial statements include current period tax and the change in deferred taxes. The Group calculates current and deferred tax on the results for the period.

Offsetting in tax assets and liabilities

The amount of corporate tax payable is netted because it is related to prepaid corporate tax amounts. Deferred tax assets and liabilities are also offset in the same way.

Provision for employment termination benefits

The provision for employment termination benefits, as required by Turkish Labour Law represents the present value of the future probable obligation of the Group 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 consolidated statement of other comprehensive income. These estimates are reviewed at each balance sheet date and revised if deemed necessary.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.9. Summary of significant accounting policies (Continued)

Statement of cash flow

Cash and cash equivalents are carried at cost in the consolidated statement of financial position. Cash flows during the period are classified and reported by operating, investing and financing activities in the cash flow statements. Cash flows from operating activities represent the cash flows generated from the Group's activities such as cash on hand, bank deposits and liquid investments.

Cash flows from investing activities represent the cash flows that are used in or provided from the investing activities of the Group (property, plant and equipment, intangible assets and financial assets).

Cash flows from financing activities represent the cash proceeds from the financing activities of the Group and the repayments of these funds.

2.10. New and Revised Turkish Financial Reporting Standards

The new standards, amendments, and interpretations

The accounting policies adopted in preparation of the consolidated 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 Group's financial position and performance have been disclosed in the related paragraphs.

i) The new standards, amendments and interpretations and interpretations 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 Group is in the process of assessing the material influence of the amendments on financial position or performance of the Group.

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 consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the consolidated 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 Group will assess the effects of the amendments after the new standards have been finalized.

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 Group and the standard has no material influence on the financial position or performance of the Group.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.10. New and Revised Turkish Financial Reporting Standards (Continued)

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 IFRS 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 Group is in the process of assessing the material influence of the standard on financial position or performance of the Group.

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 consolidated 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 Group.

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

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 Group and has no material influence on the financial position or performance of the Group.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

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

2.10. New and Revised Turkish Financial Reporting Standards (Continued)

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

NOTE 3 - BUSINESS COMBINATIONS

As of 30 September 2025 and 31 December 2024, the Group has no business combinations subject to common control and relevant transactions.

NOTE 4 - DISCLOSURE OF INTERESTS IN OTHER ENTITIES

As of 30 September 2025 and 31 December 2024, Group has no interests in subsidiaries, joint arrangements, associates and unconsolidated "structured entities".

NOTE 5 - SEGMENT REPORTING

As of 30 September 2025 and 2024, the Group has no reportable segments considered under segment reporting.

NOTE 6 - CASH AND CASH EQUIVALENTS

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

30 September
2025
31 December
2024
Cash on hand 1.126.166 615.546
Banks 170.215.467 262.872.608
- Time deposit 153.823.883 238.932.405
- Demand deposit 16.391.584 23.940.203
Other cash and cash equivalents (*) 23.268.662 23.524.823
Cash and cash equivalents 194.610.295 287.012.977
Interest accruals (1.275) (1.174.833)
Cash and cash equivalents, for cash flow 194.609.020 285.838.144

As of 30 September 2025 and 31 December 2024, the Group has no blocked deposits.

(*) Includes credit card arising from reetail sales transactions receivables.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 6 - CASH AND CASH EQUIVALENTS (Continued)

The details of time deposits are as follows:

Time deposits

Currency Interest rate (%) Effective maturity 30 September
2025
TRY 37,50 - 43,60 0 - 1 month 153.823.883
Total 153.823.883
Time deposits
Currency Interest rate (%) Effective maturity 31 December
2024
TRY 27,30 - 48,15 0 - 1 month 238.932.405
Total 238.932.405

NOTE 7 - FINANCIAL INVESTMENTS

As of 30 September 2025 and 31 December 2024, the Group has no short and long-term financial investments.

NOTE 8 - FINANCIAL LIABILITIES

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

30 September 31 December
2025 2024
Short-term borrowings 243.061.769 568.894.090
Short-term lease liabilities (TFRS 16) 416.266.575 280.866.384
Short-term portion of long-term borrowings 266.437.028 88.023.643
Other financial liabilitie 1.107.780 1.557.846
Total short-term financial liabilities 926.873.152 939.341.963
30 September 31 December
2025 2024
Long-term borrowings 76.246.666 43.310.353
Long-term lease liabilities (TFRS 16) 351.780.673 285.959.784
Total long-term financial liabilities 428.027.339 329.270.137
As of 30 September 2025 and 31 December 2024, the repayment schedule of borrowings is as follows:
30 September
2025
31 December
2024
0 - 3 months 242.416.810 286.141.938
4 - 12 months 268.189.767 372.333.641
1 - 5 years 76.246.666 43.310.353

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 8 - FINANCIAL LIABILITIES (Continued)

As of 30 September 2025 and 31 December 2024, the breakdown of annual effective interest rates of borrowings in terms of currencies is as follows:

Currency Annual
effective
Interest rate
Short-term Long-term 30 September
2025
Total
TRY 52,86% 510.606.577 76.246.666 586.853.243
510.606.577 76.246.666 586.853.243
Annual
effective
31 December
2024
Currency Interest rate Short-term Long-term Total
TRY 50,11% 658.475.579 43.310.353 701.785.932

The breakdown and movement of cash and non-cash changes regarding the liabilities arising from financing activities are as follows:

2025 2024
Beginning of the period, 1 January, 701.785.932 112.767.698
Cash inflows from borrowings 655.100.364 531.776.413
Principal and interest payments (569.005.967) (271.981.293)
Changes in interest accruals 11.955.236 6.404.411
Monetary gains (212.982.322) (29.765.035)
End of the period, 30 September, 586.853.243 349.202.194

The movement of short and long-term lease liabilities is as follows:

2025 2024
Beginning of the period, 1 January, 566.826.168 517.288.551
Payments (-) (307.464.270) (231.544.321)
Additions 561.414.572 434.513.141
Disposals (-) - (143.967.686)
Interest expenses (-) 105.186.350 61.862.251
Monetary gains (157.915.572) (140.603.996)
End of the period, 30 September, 768.047.248 497.547.940

NOTE 9 - OTHER FINANCIAL LIABILITIES

None.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 10 - TRADE RECEIVABLES AND PAYABLES

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

Trade receivables 30 September
2025
31 December
2024
Trade receivables 78.693.291 72.988.457
Cheques and notes received 6.741.293 5.104.571
Doubtful trade receivables 2.970.340 3.725.697
Provision for doubtful trade receivables (-) (2.970.340) (3.725.697)
Due from related parties (Note 36) 158.965.297 59.930.568
Total 244.399.881 138.023.596

Movements of provision for doubtful receivables are as follows:

2025 2024
Beginning of the period, 1 January, 3.725.697 817.554
Monetary gains (755.357) (215.793)
End of the period, 30 September, 2.970.340 601.761

As of 30 September 2025 and 31 December 2024, the Group has no long-term trade receivables.

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

30 September 31 December
Trade payables 2025 2024
Trade payables 83.642.091 99.093.307
Due to related parties (Note 36) 3.167.508 26.615.133
Notes payables 20.186.489 21.489.902
Notes payables due to related parties (Note 36) 20.000.000 50.174.616
Total 126.996.088 197.372.958

Libor interest rates were applied as the annual effective interest rate in the calculation of discount (30 September 2025 and 31 December 2024: 40,50% and 50,88%, respectively).

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

NOTE 11 - OTHER RECEIVABLES AND PAYABLES

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

Short-term other receivables 30 September
2025
31 December
2024
Tax receivables 492.624 617.898
Total 492.624 617.898

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

Long-term other payables 30 September
2025
31 December
2024
Deposits and guarantees provided 9.680.441 9.397.931
Total 9.680.441 9.397.931

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 11 - OTHER RECEIVABLES AND PAYABLES (Continued)

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

Short-term other payables 30 September
2025
31 December
2024
Deposits and guarantees received 2.619.154 2.481.256
Total 2.619.154 2.481.256

NOTE 12 - DERIVATIVE INSTRUMENTS

None.

NOTE 13 - INVENTORIES

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

30 September
2025
31 December
2024
Merchandises 1.223.956.400 1.467.106.415
Other inventories (*) 3.170.330 25.099.391
Provision for impairment on inventories (-) (6.481.327) (6.166.294)
Total 1.220.645.403 1.486.039.512

(*) Includes materials such as hangers and mannequins

The movement of provision for impairment on inventories is as follows:

2025 2024
Beginning of the period, 1 January,
Reversals (-)
6.166.294
315.033
7.130.378
(2.885.540)
End of the period, 30 September, 6.481.327 4.244.838

The impairment provision for inventories has been recognized within cost of sales.

NOTE 14 - PREPAID EXPENSES AND DEFERRED INCOME

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

Short-term prepaid expenses 30 September
2025
31 December
2024
Advances given to third parties 2.580.351 61.373.095
Other prepaid expenses 32.713.005 48.191.891
Total 35.293.356 109.564.986

As of 30 September 2025 and 31 December 2024, the Group has no long-term prepaid expenses.

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

Short-term deferred income 30 September
2025
31 December
2024
Advances received 4.817.505 2.525.882
Short-term deferred income 6.246.082 9.877.492
Total 11.063.587 12.403.374

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 14 - PREPAID EXPENSES AND DEFERRED INCOME (Continued)

As of 30 September 2025 and 31 December 2024, the breakdown of long-term deferred income is as follows:

Long-term deferred income 30 September
2025
31 December
2024
Long-term deferred income (*) - 2.469.376
Total - 2.469.376

(*) Represents bank promotions.

NOTE 15 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

None.

NOTE 16 - INVESTMENT PROPERTIES

None.

NOTE 17 - PROPERTY, PLANT AND EQUIPMENTS

As of 30 September 2025 and 2024, the movements for property, plant and equipments, and depreciation are as follows:

Currency
1 January translation 30 September
2025 Additions Disposals (-) differences 2025
Cost
Plant, machinery and equipment 2.060.842 - - - 2.060.842
Motor vehicles 44.902.932 48.864.305 (24.768.152) - 68.999.085
Furniture and fixtures 97.029.703 53.750.825 (33.194) (463.655) 150.283.679
Leasehold improvements 643.381.229 187.802.915 - 839.317 832.023.461
787.374.706 290.418.045 (24.801.346) 375.662 1.053.367.067
Accumulated depreciation
Plant, machinery and equipment (1.339.914) (111.336) - - (1.451.250)
Motor vehicles (9.149.244) (7.834.969) 2.713.319 - (14.270.894)
Furniture and fixtures (61.068.754) (12.947.526) 141.051 9.958 (73.865.271)
Leasehold improvements (347.442.778) (84.622.466) - (682.381) (432.747.625)
(419.000.690) (105.516.297) 2.854.370 (672.423) (522.335.040)
Net book value 368.374.016 531.032.027

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 17 - PROPERTY, PLANT AND EQUIPMENTS (Continued)

1 January
2024
Additions Disposals (-) Currency
translation
differences
30 September
2024
Cost
Plant, machinery and equipment 1.709.801 316.540 - - 2.026.341
Motor vehicles 69.497.685 35.087.172 (56.140.367) - 48.444.490
Furniture and fixtures 84.061.515 11.829.551 (871.513) - 95.019.553
Leasehold improvements 523.169.160 106.036.170 (10.942.992) 3.826.375 622.088.713
678.438.161 153.269.433 (67.954.872) 3.826.375 767.579.097
Accumulated depreciation
Plant, machinery and equipment (1.183.677) (118.328) - - (1.302.005)
Motor vehicles (7.599.379) (7.608.733) 6.964.990 - (8.243.122)
Furniture and fixtures (48.398.236) (9.494.910) 176.201 - (57.716.945)
Leasehold improvements (256.832.804) (72.371.303) 2.734.283 (771.959) (327.241.783)
(314.014.096) (89.593.274) 9.875.474 (771.959) (394.503.855)
Net book value 364.424.065 373.075.242

As of 30 September 2025, the Group has no pledges, mortgages and restrictions on property, plant and equipment, (31 December 2024: None).

As of 30 September 2025, total insurance coverage on property, plant and equipment is amounting to TRY2.002.827.364 (As of 31 December 2024: TRY1.903.038.947).

NOTE 18 - RIGHT OF USE ASSETS

As of 30 September 2024 and 2024, the movements for right of use assets, and amortization of are as follows:

1 January
2025
Additions Disposals
(-)
Currency
translation
differences
30 September
2025
Right of use assets 2.176.642.004 561.414.572 - (11.626.485) 2.726.430.091
Amortization of right of use assets (1.327.330.179) (308.826.266) - 4.841.910 (1.631.314.535)
Net book value 849.311.825 1.095.115.556
1 January
2024
Additions Disposals (-) Currency
translation
differences
30 September
2024
Right of use assets 1.942.347.276 434.513.140 (377.399.173) (15.478.228) 1.983.983.015
Amortization of right of use assets (1.169.340.849) (305.930.201) 233.431.491 4.412.489 (1.237.427.070)
Net book value 773.006.427 746.555.945

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 19 - INTANGIBLE ASSETS

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

1 January 30 September
2025 Additions Disposals (-) 2025
Cost
Rights 106.894.250 36.847.242 - 143.741.492
106.894.250 36.847.242 - 143.741.492
Accumulated amortization
Rights (69.576.505) (21.419.589) - (90.996.094)
(69.576.505) (21.419.589) - (90.996.094)
Net book value 37.317.745 52.745.398
1 January
2024
Additions Disposals (-) 30 September
2024
Cost
Rights 93.183.332 10.044.073 - 103.227.405
93.183.332 10.044.073 - 103.227.405
Accumulated amortization
Rights (42.721.452) (20.438.457) - (63.159.909)
(42.721.452) (20.438.457) - (63.159.909)
Net book value 50.461.880 40.067.496

Goodwill

None (31 December 2024: None).

NOTE 20 - EMPLOYEE BENEFITS

As of 30 September 2025 and 31 December 2024, the breakdown of employee benefits is as follows:

30 September
2025
31 December
2024
Due to employees 50.790.967 47.374.725
Social security premiums payable 19.439.049 21.596.552
Total 70.230.016 68.971.277

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 21 - SHORT-TERM PROVISIONS

As of 30 September 2025 and 31 December 2024, the functional breakdown and detailed analysis of short-term provisions, contingent liabilities and contingent assets are as follows:

Short-term provisions 30 September
2025
31 December
2024
Provision for unused vacation 9.408.094 9.859.266
Other short-term provisions 10.977.440 8.129.471
Total 20.385.534 17.988.737
The movement of provision for unused vacation is as follows:
2025 2024
Beginning of the period, 1 January, 9.859.266 6.237.574
Additions 1.547.721 5.089.341
Monetary gains (1.998.893) (1.646.408)
End of the period, 30 September, 9.408.094 9.680.507
30 September 31 December
Other short-term provisions 2025 2024
Provision for sales returns 6.571.466 4.612.533
Provision for price revision 3.301.291 2.788.067
Provision for lawsuits (*) 1.104.683 728.871
Total 10.977.440 8.129.471

(*) Mainly comprise of employment-related and workplace lawsuits filed against the Group

The movement of other short-term provisions is as follows:

Other short-term provisions Provision for
lawsuits (*)
Provision
for price revision
Provision
for sales
returns
Total
Beginning of the period, 1 January 2025 728.871 2.788.067 4.612.534 8.129.472
Additions 610.958 3.866.551 7.506.624 11.984.133
Reversals (-) - (2.788.067) (4.612.534) (7.400.601)
Monetary gains/(losses) (235.146) (565.260) (935.158) (1.735.564)
End of the period, 30 September 2025 1.104.683 3.301.291 6.571.466 10.977.440

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 21 - SHORT-TERM PROVISIONS (Continued)

Other short-term provisions Provision for lawsuits (*) Provision for price revision Provision for sales returns Total
Beginning of the period, 1 January 2025 1.358.322 3.024.887 1.974.575 6.357.784
Additions - 466.977 8.694.353 9.161.330
Reversals (-) (48.022) (3.024.887) (1.974.575) (5.047.484)
Monetary gains/(losses) (349.797) 2.226.468 1.453.386 3.330.057
End of the period, 30 September 2025 960.503 2.693.445 10.147.739 13.801.687

i) Commitments, mortgages and guarantees not included in the liability

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

30 Septembe er 2025 31 December 2 2024
Currency Original
currency
amount
TRY
equivalent
Original
currency
amount
TRY
equivalent
Letter of guarantee TRY 2.000.000 2.000.000 1.881.450 1.881.450
Letter of guarantee USD 100.000 4.158.160 125.430 4.439.833
Letter of guarantee EUR 140.000 6.837.460 175.602 6.472.268
Guarantees received, total 12.995.620 12.793.551

ii) Total mortgages and guarantees on assets

None.

iii) Ratio of guarantees and mortgages to equity

As of 30 September 2025 and 31 December 2024, the breakdown of collateral/pledge/mortgage ("CPM") position of the Group is as follows:

30 September 2025 31 December 2024
Original _ Original
currency TRY currency TRY
Currency amount equivalent amount equivalent
A. Total amount of CPM's TRY 144.292.365 144.292.365 212.304.262 212.304.262
given in the name of its own USD 160.000 6.653.056 125.430 4.439.833
legal personality EUR 34.500 1.684.946 43.273 1.594.952
B. Total amount of CPM's given
on behalf of the fully - - - -
consolidated subsidiaries
C. Total amount of CPM's given
on behalf of third parties for - - - -
ordinary course of business
D. Total amount of other CPM's _ _ _ _
given
i. Total Amount of TRIs Granted
in Favor of the Main Partner
- - - -
ii. Total Amount of TRIs
Granted in Favor of Other Group
Companies Not Covered by - - - -
Articles B and C
iii. Total Amount of TRIs
Granted in Favor of Third - _ - -
Parties Not Covered by Article
Guarantees given, total 152.630.367 218.339.047

NOTE 22 - COMMITMENTS

None.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 23 - LONG-TERM PROVISIONS

As of 30 September 2025 and 31 December 2024, the detailed analysis of long-term provisions of Suwen Tekstil is as follows:

Provision for employment termination benefits

Long-term provisions 30 September
2025
31 December
2024
Provision for employment termination benefits 7.992.135 7.753.749
Total 7.992.135 7.753.749

Under the Turkish Labor Law, the Company is required to pay termination benefits to each employee whose employment is terminated without due cause and whose employment is terminated without due cause. Such payments are calculated on the basis of 30 days' pay for each year of employment at the rate of pay applicable at the date of termination or retirement. As of July 1, 2025, the amount payable consists of TRY 59.919,68.

The severance pay liability is not legally subject to any funding.

The liability is calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of the employees. TAS 19 ("Employee Benefits Standard") requires actuarial valuation methods to be developed to estimate the enterprise's obligation under defined benefit plans. Accordingly, the actuarial assumptions used in the calculation of the total liability are set out below:

The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Accordingly, the discount rate applied represents the expected real rate after adjusting for the effects of future inflation. As at September 30, 2025, provisions in the accompanying financial statements are calculated by estimating the present value of the future probable obligation arising from the retirement of the employees. As at September 30, 2025, provisions are calculated assuming an annual inflation rate of 22.00% and an interest rate of 27.00%, resulting in a real discount rate of 4.10%. (31 December 2024: 4.10%).

The movements of provision for employment termination benefits are as follows:

2025 2024
Beginning of the period, 1 January, 7.753.749 7.668.219
Service cost 1.936.559 2.199.068
Interest cost 400.162 1.292.107
Actuarial losses 8.033.065 1.916.011
Monetary gains/(losses) (8.510.801) (16.052.568)
Payments during the period (-) (1.620.599) 12.456.936
End of the period, 30 September, 7.992.135 9.479.773

NOTE 24 - TAX ASSETS AND LIABILITIES

None (31 December 2024: None).

NOTE 25 - OTHER ASSETS AND LIABILITIES

As of 30 September 2025 and 31 December 2024, the breakdown of other current assets is as follows:

Other current assets 30 September
2025
31 December
2024
Deferred VAT 25.064.786 12.352.474
Advances given to employees 5.148.013 5.094.931
Other 2.455.524 2.723.306
Total 32.668.323 20.170.711

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 25 - OTHER ASSETS AND LIABILITIES (Continued)

As of 30 September 2025 and 31 December 2024, the breakdown of other current liabilities is as follows:

Other current liabilities 30 September
2025
31 December
2024
Taxes, duties and charges 13.674.640 15.585.385
Expense accruals - 1.790.612
Other 3.224.050 3.496.631
Total 16.898.690 20.872.628

As of 30 September 2025 and 31 December 2024, the Group has no other non-current liabilities.

NOTE 26 - EQUITY

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

30 September 31 December
Shareholders 2025 Share 2024 Share
Ali Bolluk 58.104.160 10,38% 23.241.664 10,38%
Birol Sümer 58.104.160 10,38% 23.241.664 10,38%
Özcan Sümer 58.104.160 10,38% 23.241.664 10,38%
Çiğdem Ferda Arslan 20.000.020 3,57% 8.000.008 3,57%
Public traded shares 365.687.500 65,30% 146.275.000 65,30%
Total paid-in capital 560.000.000 100,00% 224.000.000 100,00%
Capital adjustment differences (*) 501.195.014 465.427.583
Adjusted capital 1.061.195.014 689.427.583

(*) Share capital adjustment differences refer to the difference between the total amounts of cash and cash equivalent additions to capital adjusted in accordance with TFRS published by the POA and their pre-adjustment amounts. Capital adjustment differences have no use other than being added to capital.

i) Capital reserves

None.

ii) Restricted reserves

Restricted reserves consist of legal reserves. The legal reserves are divided into first and second legal reserves in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Group's paid-in share capital. The second legal reserve is appropriated out of statutory profits at the rate of 10% of all distributions in excess of 5% of paid-in share capital. Under the Turkish Commercial Code, the legal reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid-in share capital. As of 30 September 2025 and 31 December 2024, the details of the restricted reserves are as follows:

30 September
2025
31 December
2024
Legal reserves 76.374.130 65.740.698
Treasury shares (*) 145.147.218 142.447.080
Total 221.521.348 208.187.778

(*) In accordance with the Turkish Commercial Code and CMB regulations, reserves are set aside for treasury shares at an amount equal to their acquisition value. In this context, as of September 30, 2025, a reserve for treasury shares amounting to TRY 145.147.218, including transaction costs, has been set aside in the restricted reserves in the consolidated financial statements.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 26 - EQUITY (Continued)

iii) Retained earnings

As of 30 September 2025 and 31 December 2024, the breakdown of retained earnings which includes other retained earnings is as follows:

30 September
2025
31 December
2024
Retained earnings 208.088.211 379.220.960
Total 208.088.211 379.220.960

iv) Treasury shares

As the Group repurchase their own equity instruments, these instruments are accounted for as "treasury shares" and deducted from equity. Gain or loss is recognized in the consolidated statement of profit or loss due to the purchase, sale, issue or cancellation of the equity instruments of the Group and the amounts received or paid for these transactions including tax effect are recognized directly in equity. The Group has treasury shares amounting to TRY 145.147.218.

As of 30 September 2025 and 31 December 2024, the breakdown of treasury shares is as follows:

30 September
2025
31 December
2024
Treasury shares (145.147.218) (142.447.080)
Total (145.147.218) (142.447.080)

v) Share premium

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

30 September
2025
31 December
2024
Share premium 176.022.664 176.022.664
Total 176.022.664 176.022.664

Expenses incurred during the initial public offering have been deducted from the share premiums.

vi) Other comprehensive income or expenses to be reclassified to profit or loss

As of 30 September 2025 and 31 December 2024, the detailed table of other comprehensive income or expenses to be reclassified to the consolidated statement of profit or loss recognised under equity is as follows:

30 September
2025
31 December
2024
Currency translation differences (31.478.334) (18.470.018)
Total (31.478.334) (18.470.018)

vii) Other comprehensive income or expenses not to be reclassified to profit or loss

As of 30 September 2025 and 31 December 2024, the detailed table of other comprehensive income or expenses not to be reclassified to the consolidated statement of profit or loss recognised under equity is as follows:

30 September
2025
31 December
2024
Losses on remeasurements of defined benefit plans (12.563.274) (6.377.814)
Total (12.563.274) (6.377.814)

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 27 - 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 4.566.235.498 1.903.071.536 4.136.806.950 1.729.193.279
Foreign sales 95.746.286 35.778.839 95.694.696 34.345.192
Sales returns (-) (229.342.983) (139.157.108) (82.406.873) (36.330.239)
Other discounts (-) (73.474.753) (28.751.861) (62.125.830) (29.980.204)
Revenue 4.359.164.048 1.770.941.406 4.087.968.943 1.697.228.028
Cost of sales (-) (2.126.566.246) (897.368.549) (1.906.700.587) (870.441.725)
Gross profit 2.232.597.802 873.572.857 2.181.268.356 826.786.303

The breakdown of channels for the sales of the Group is as follows:

Sales channel 1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2024
Retail sales 3.680.903.577 1.501.271.003 3.489.034.269 1.441.232.390
E-Commerce sales 631.532.113 254.941.786 535.851.693 237.737.130
Wholesales 18.581.701 6.928.175 34.851.252 7.900.196
Franchise sales 28.146.657 7.800.442 28.231.729 10.358.312
Total 4.359.164.048 1.770.941.406 4.087.968.943 1.697.228.028

NOTE 28 - GENERAL ADMINISTRATIVE EXPENSES AND MARKETING SALES AND DISTRIBUTION EXPENSES

As of 30 September 2025 and 2024, the breakdown of operating expenses is as follows:

1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30September
2024
Marketing, sales and distribution expenses (-) (1.658.600.683) (598.521.837) (1.531.326.737) (560.334.753)
General administrative expenses (-) (166.522.229) (57.036.834) (156.781.568) (50.964.672)
Total (1.825.122.912) (655.558.671) (1.688.108.305) (611.299.425)

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 29 - EXPENSES BY NATURE

As of 30 September 2025 and 2024, the functional breakdown of marketing, sales and distribution expenses and general administrative expenses recognized in expenses by nature is as follows:

1 January - 1 July - 1 January - 1 July -
30 September 30 September 30 September 30 September
Marketing, sales and distribution expenses (-) 2025 2025 2024 2024
Personnel expenses (756.731.686) (260.328.355) (695.307.506) (242.235.524)
Depreciation and amortisation charges (416.236.556) (153.964.903) (405.001.079) (143.623.489)
Rent expenses (143.265.053) (63.763.153) (145.981.442) (64.672.803)
Advertisement and promotion expenses (128.684.439) (50.359.116) (87.565.698) (33.076.603)
Transportation and freight costs (94.187.822) (34.129.132) (70.625.185) (31.292.512)
Common expenses (42.769.379) (15.693.846) (39.974.899) (16.450.812)
Consultancy expenses (23.730.381) (7.780.988) (29.342.820) (12.125.750)
Insurance, maintanence and repair expenses (11.984.220) (3.468.430) (10.414.433) (3.403.924)
Packaging expenses (11.117.049) (2.578.949) (14.287.361) (4.240.295)
Travel and accommodation expenses (9.854.083) (900.739) (21.319.683) (10.666.838)
Taxes, duties and charges (7.184.710) (1.937.537) (5.141.788) (1.787.999)
Other (12.855.305) (3.616.689) (6.364.843) 3.241.796
Total (1.658.600.683) (598.521.837) (1.531.326.737) (560.334.753)
1 January - 1 July - 1 January - 1 July -
30 September 30 September 30 September 30 September
General administrative expenses (-) 2025 2025 2024 2024
Personnel expenses (110.326.089) (35.510.890) (114.129.768) (35.778.019)
Consultancy expenses (20.844.140) (7.513.913) (18.777.737) (7.755.180)
Depreciation and amortisation charges (19.525.596) (8.362.875) (10.960.853) (3.506.562)
Insurance, maintanence and repair expenses (2.730.104) (1.324.839) (2.202.022) (848.469)
Travel and accommodation expenses (2.674.970) (996.074) (1.558.724) (469.776)
Common expenses (2.653.916) (962.877) (2.472.035) (1.240.771)
Taxes, duties and charges (1.195.688) (107.383) (436.960) (54.446)
Transportation and freight expenses (317.634) (174.382) (935.926) 188.368
Other (6.254.092) (2.083.601) (5.155.401) (1.499.817)
Total (166.522.229) (57.036.834) (156.781.568) (50.964.672)
1 January - 1 July - 1 January - 1 July -
Depreciation and amortization charges 30 September
2025
30 September
2025
30 September
2024
30 September
2024
Marketing, sales and distribution expenses (-) (416.236.556) (153.964.903) (405.001.079) (143.623.489)
General administrative expenses (-) (19.525.596) (8.362.875) (10.960.853) (3.506.562)
Total (435.762.152) (162.327.778) (415.961.932) (147.130.051)
1 January - 1 July - 1 January - 1 July -
30 September 30 September 30 September 30 September
Personnel expenses 2025 2025 2024 2024
Marketing, sales and distribution expenses (-) (753.477.852) (257.074.521) (695.307.506) (242.235.524)
General administrative expenses (-) (110.326.089) (35.510.890) (114.129.768) (35.778.019)

Total (863.803.941) (292.585.411) (809.437.274) (278.013.543)

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 30 - OTHER OPERATING INCOME AND EXPENSES

As of 30 September 2025 and 2024, the functional breakdown of other operating income and expenses is as follows:

Other operating income 1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2024
Foreign exchange gains from operations 42.711.955 8.078.421 36.864.458 15.259.073
Discount income 10.745.404 (7.039.975) 25.212.001 4.705.683
Interest income from eliminated sales 10.070.867 1.347.064 18.048.324 6.675.904
Income from incentives 5.665.693 3.485.496 810.706 810.706
Income from bank promotion 3.132.992 980.631 6.102.295 2.102.479
Income from insurance compensations and claims 206.906 94.907 2.663.395 1.446.224
Other 6.908.916 1.074.111 8.856.215 29.350
Total 79.442.733 8.020.655 98.557.394 31.029.419
Other operating expenses (-) 1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2024
Interest expenses eliminated from
purchases (84.736.390) (30.422.932) (47.327.028) (13.019.289)
Foreign exchange losses from operations (12.349.584) (1.133.988) (5.285.229) (974.171)
Discount expenses (8.959.389) 1.682.108 (9.077.828) 701.902
Financing cost arising from trade
activities (2.645.220) (356.266) (2.131.049) -
Grants and donations (1.979.115) (160.251) (944.751) (304.991)
Provision for lawsuits (610.958) (53.745) - 476.807
Other (1.370.874) (1.555.305) (1.627.107) 805.130
Total (112.651.530) (32.000.379) (66.392.992) (12.314.612)

NOTE 31 – INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES

As of 30 September 2025 and 2024, the functional breakdown of gains from investment activities is as follows:

Income from investment activities 1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2024
Gains on sale of fixed assets 4.681.079 779.176 10.779.165 3.993.338
Total 4.681.079 779.176 10.779.165 3.993.338

As of 30 September 2025 and 2024, the Group has no losses from investment activities.

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 32 - FINANCIAL INCOME AND EXPENSES

As of 30 September 2025 and 2024, the functional breakdown of financial income/(expenses) is as follows:

1 January -
30 September
1 July -
30 September
1 January -
30 September
1 July -
30 September
Financial income 2025 2025 2024 2024
Interest income 45.838.559 20.434.928 57.851.819 24.696.720
Foreign exchange gains 112.680 39.543 833.115 329.786
Total 45.951.239 20.474.471 58.684.934 25.026.506
Financial expenses (-) 1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2024
Interest expenses (223.375.031) (97.217.879) (129.576.954) (39.130.908)
Commission expenses (195.585.558) (78.620.270) (189.803.841) (74.761.415)
Finance expenses from leases (105.186.350) (37.417.731) (61.862.251) (18.265.259)
Foreign exchange losses (2.710.891) (613.344) (9.636.335) 1.206.784
Total (526.857.830) (213.869.224) (390.879.381) (130.950.798)

NOTE 33 - NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

None.

NOTE 34 - INCOME TAXES

The Group's tax expense (or income) consists of current period corporate income tax expense and deferred tax expense or income and the breakdown and details of income taxes are as follows:

30 September
2025
31 December
2024
Current period tax expense
Prepaid taxes (-)
44.427.040
(3.873.316)
93.141.186
(80.293.244)
Profit for the period tax liability 40.553.724 12.847.942
1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2024
Corporate tax expenses (44.427.040) (44.427.040) (84.323.668) (33.668.935)
Deferred tax expense/(income) (63.642.651) 5.732.695 (38.791.653) (43.948.825)
Tax expenses from continuing operations (108.069.691) (38.694.345) (123.115.321) (77.617.760)

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 34 - INCOME TAXES (Continued)

i) Corporate tax

Advance tax in Turkey is calculated and accrued on a quarterly basis. Accordingly, the Group has been calculated tax in accordance with the 2025 and 2024 earnings in the first advance tax period, an advance tax rate of 23%, respectively was calculated on corporate earnings.

Entities whose shares representing at least 20% of the capital are offered to the public for the first time in the Borsa Istanbul Equity Market. The corporate tax rate to be applied to corporate earnings will be applied at a discount of two (2) points for five accounting periods, starting from the accounting period in which the shares are offered to the public for the first time. The tax rate applied in 2025 is 25% but the tax rate applied as 23% since the initial public offering of Suwen Tekstil was completed.

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 numbered 5520 and article numbered 24, the corporate tax is imposed by the taxpayer's tax returns. In Turkey, 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.

As of 30 September 2025, the domestic corporate tax rate applied in Romania is 16%. However, the corporate tax rate to be applied due to the grants and incentives of the Group has benefited from in Romania is 1%.

ii) Deferred tax

Suwen Tekstil and its subsidiaries, recognise 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 due to the recognition of revenue and expense items in different reporting periods for the TFRS and tax purposes, the differences explained as below. Temporary differences are result of recognizing certain income and expense items differently for accounting and tax purposes. Temporary differences are calculated off of the property, plant and equipment (except land), intangible assets, inventories, the revaluation of prepaid expenses, discount of receivables, provision for employment termination benefits, and prior years' losses. Every accounting year, the Group reviews the deferred tax asset and in circumstances, where the deferred tax assets cannot be used against the future taxable income, the Group writes-off the recognized deferred tax asset.

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

30 September
2025
31 December
2024
30 September
2025
31 December
2024
Cumulative Cumulative Deferred tax Deferred tax
temporary
differences
temporary
differences
assets
/(liabilities)
assets
/(liabilities)
Provision for unused vacation (9.408.094) (9.859.266) 2.163.862 2.267.631
Employee termination benefits (7.992.135) (7.753.749) 1.838.191 1.783.362
Provision for sales returns (3.422.969) (2.622.228) 787.283 603.113
Price difference provisions (3.301.291) (2.788.067) 759.297 641.256
Trade and other receivables (2.454.639) (2.345.585) 564.567 539.484
Provision for litigation (1.104.683) (728.871) 254.077 167.641
Trade payables 7.408.710 6.664.478 (2.287.890) (2.349.518)
Borrowings 17.327.917 (2.586.363) (3.985.421) 594.863
Property, plant and equipment and intangible assets 115.152.896 68.045.214 (26.485.166) (15.650.399)
Right-of-use assets 311.645.948 243.764.209 (71.965.112) (56.073.683)
Inventories 342.362.227 209.851.981 (78.800.023) (48.265.956)
Other 7.528.953 4.984.882 (1.735.498) (1.354.581)
Deferred tax liabilities, net 773.742.840 504.626.635 (178.891.833) (117.096.787)

Movements in deferred tax liabilities are as follows:

2025 2024
Beginning of the period, 1 January, (117.096.787) (77.915.865)
Deferred income tax during the period (63.642.651) (38.791.653)
Defined benefit plans, deferred tax effect 1.847.605 440.682
End of the period, 30 September, (178.891.833) (116.266.836)

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 35 - 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. Accordingly, the weighted average number of shares used in earnings per share calculation as of 30 September 2025 and 2024, which is as follows:

Earnings per share 1 January -
30 September
2025
1 July -
30 September
2025
1 January -
30 September
2024
1 July -
30 September
2024
Profit attributable to equity holders of the
parent 108.513.641 38.302.243 260.306.901 124.121.610
Weighted average number of shares with
nominal value of TRY 1 each 418.461.538 560.000.000 224.000.000 224.000.000
Earnings per share ("TRY") 0,2593 0,0684 1,1621 0,5541

NOTE 36 - RELATED PARTY DISCLOSURES

a) Related party balances due from related parties are as follows:

Trade receivables due from related parties (short-term) 30 September
2025
31 December
2024
Eko Tekstil San. ve Tic A.Ş. 158.965.297 59.930.568
Total 158.965.297 59.930.568
Trade payables due to related parties (short-term) 30 September
2025
31 December
2024
Eko Tekstil San. ve Tic. A.Ş. 19.846.813 50.978.526
Livadi Tekstil İth. İhr. Tic. A.Ş. 2.473.245 -
Aseyya Tekstil Sermin Sümer 847.450 9.464.528
Elmas Çamaşır İth. İhr. Tic. A.Ş. - 16.337.392
Netcad Yazılım A.Ş. - 9.303
Total 23.167.508 76.789.749

b) Related party transactions are as follows:

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

1 January - 30 September 2025
Purchases from related parties Goods Financial
transactions
Other Services Total
Eko Tekstil San. ve Tic. A.Ş. 1.288.299.543 2.716.503 27.440 285.146 1.291.328.632
Livadi Tekstil İth. İhr. Tic. A.Ş. 196.459.364 - - - 196.459.364
Elmas Çamaşır İth. İhr. Tic. A.Ş. 125.270.863 - - - 125.270.863
Aseyya Tekstil Sermin Sümer 73.110.755 - - - 73.110.755
Netcad Yazılım A.Ş. - - - 82.934 82.934

Total 1.683.140.525 2.716.503 27.440 368.080 1.686.252.548

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 36 - RELATED PARTY DISCLOSURES (Continued)

b) Related party transactions are as follows (Continued):

1 July - 30 September 2025
Financial
Purchases from related parties Goods transactions Other Services Total
Eko Tekstil San. ve Tic. A.Ş. 513.567.850 - - 285.146 513.852.996
Livadi Tekstil İth. İhr. Tic. A.Ş. 81.094.789 - - - 81.094.789
Elmas Çamaşır İth. İhr. Tic. A.Ş. - - - - -
Aseyya Tekstil Sermin Sümer 24.657.944 - - - 24.657.944
Netcad Yazılım A.Ş. - - - - -
Total 619.320.583 - - 285.146 619.605.729
1 January - 30 September 2024
Financial
Purchases from related parties Goods transactions Other Services Total
Eko Tekstil San. ve Tic. A.Ş. 1.225.856.424 2.131.050 12.835 - 1.228.000.309
Elmas Çamaşır İth. İhr. Tic. A.Ş. 335.294.423 - - - 335.294.423
Livadi Tekstil İth. İhr. Tic. A.Ş. 175.768.535 - - - 175.768.535
Moni Tekstil Sanayi Ticaret A.Ş. 153.796.208 - - - 153.796.208
Aseyya Tekstil Sermin Sümer 89.443.261 - - - 89.443.261
Latte Tekstil Sanayi ve Ticaret A.Ş. 2.404.343 - - - 2.404.343
Netcad Yazılım A.Ş. - - - 353.934 353.934
Total 1.982.563.194 2.131.050 12.835 353.934 1.985.061.013
1 July - 30 September 2024
Financial
Purchases from related parties Goods transactions Other Services Total
Eko Tekstil San. ve Tic. A.Ş. 413.845.985 - - - 413.845.985
Elmas Çamaşır İth. İhr. Tic. A.Ş. 139.466.785 - - - 139.466.785
Livadi Tekstil İth. İhr. Tic. A.Ş. 99.976.903 - - - 99.976.903
Moni Tekstil Sanayi Ticaret A.Ş. 17.584.198 - - - 17.584.198
Aseyya Tekstil Sermin Sümer 30.205.882 - - - 30.205.882
Latte Tekstil Sanayi ve Ticaret A.Ş. - - - - -
Netcad Yazılım A.Ş. - - - 32.796 32.796
Total 701.079.753 - - 32.796 701.112.549
Sales
1 January - 30 September 2025
Sales to related parties Goods Financial
transactions
Other Services Total
Eko Tekstil San. ve Tic. A.Ş. 64.870.231 - 1.159.152 - 66.029.383
Aseyya Tekstil Sermin Sümer 737.409 - - - 737.409
Livadi Tekstil İth. İhr. Tic. A.Ş. 398.399 - - - 398.399

Elmas Çamaşır İth. İhr. Tic. A.Ş. 171.514 - - - 171.514

Total 66.177.553 - 1.159.152 - 67.336.705

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 36 - RELATED PARTY DISCLOSURES (Continued)

b) Related party transactions are as follows (Continued):

1 July - 30 September 2025
-- ----------------------------
Financial
Sales to related parties Goods transactions Other Services Total
Eko Tekstil San. ve Tic. A.Ş. 3.095.412 - 431.930 - 3.527.342
Aseyya Tekstil Sermin Sümer 18.991 - - - 18.991
Livadi Tekstil İth. İhr. Tic. A.Ş. 87.486 - - - 87.486
Elmas Çamaşır İth. İhr. Tic. A.Ş. - - - - -
Total 3.201.889 - 431.930 - 3.633.819

1 January - 30 September 2024

Sales to related parties Goods Financial
transactions
Other Services Total
Eko Tekstil San. ve Tic. A.Ş. - - 371.571 - 371.571
Elmas Çamaşır İth. İhr. Tic. A.Ş. - - 1.378.951 - 1.378.951
Total - - 1.750.522 - 1.750.522

1 July - 30 September 2024

Sales to related parties Goods Financial
transactions
Other Services Total
Eko Tekstil San. ve Tic. A.Ş. - - 130.301 - 130.301
Elmas Çamaşır İth. İhr. Tic. A.Ş. - - - - -
Total - - 130.301 - 130.301

Key management compensations

Total key management compensation incurred by Suwen Tekstil for the period ended 30 September 2025 amounted to TRY 34.870.433 (30 September 2024: TRY 31.007.795).

NOTE 37 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS

Financial risk management objectives and policies

The Group is exposed to variety of financial risks due to its operations. These risks include credit risk, price risk, foreign exchange risk, interest rate risk and liquidity risk. The Group's overall risk management strategy focuses on the unpredictability of financial markets and targets to minimise potential adverse effects on the Group's financial performance. The Group also has financial instruments such as trade receivables and trade payables that arise directly from its operations.

The Group has financial instruments such as bank borrowings, cash on hand and short-term bank deposits which are applied on foreign exchange risk, interest rate risk, credit risk and liquidity risk. The Group management manages these risks as follows. The Group also monitors the market risk that may arise from the use of financial instruments.

Foreign exchange risk

Foreign exchange risk arises from the fact that the Group has liabilities denominated in USD, EURO and GBP.

Foreign exchange transactions result in foreign exchange risk arising from foreign exchange denominated assets and liabilities into Turkish Lira. The Group's exposure to foreign exchange risk arises from its trade payables, purchases and sales denominated in foreign currencies. In order to minimize this risk, the Group monitors its financial position and cash inflows/outflows with detailed cash flow statements as of 30 September 2025 and 31 December 2024.

CONVENIENCE TRANSLATION INTO ENGLISH OF THE CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 37 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

As of 30 September 2025 and 31 December 2024, foreign exchange position of the Group is as follows:

30 September 2025 31 December 2024
TRY TRY
equivalent EUR USD GBP equivalent EUR USD GBP
1. Trade Receivables 7.819.101 134.061 31.054 - 105.980.606 2.300.965 251 -
2a. Monetary Financial Assets 62.300 - 1.502 - 62.425.730 34.263 1.378.214 -
2b. Non-Monetary Financial Assets - - - - - - - -
3. Other - - - - - - - -
4. Total Current Assets (1+2+3) 7.881.401 134.061 32.556 - 168.406.336 2.335.228 1.378.465 -
5. Trade Receivables - - - - - - - -
6a. Monetary Financial Assets - - - - - - - -
6b. Non-monetary financial assets - - - - - - - -
7. Other - - - - 1.865.292 2.300 39.850 -
8. Total Non-Current Assets (5+6+7) - - - - 1.865.292 2.300 39.850 -
9. Total Assets (4+8) 7.881.401 134.061 32.556 - 170.271.628 2.337.528 1.418.315 -
10. Trade Payables 2.231.185 2.145 51.273 - 3.561.010 57.102 10.422 8.210
11. Financial Liabilities - - - - - - - -
12a. Other Monetary Liabilities - - - - - - - -
12b. Other Non-Monetary Liabilities - - - - - - - -
13. Total Current Liabilities (10+11+12) 2.231.185 2.145 51.273 - 3.561.010 57.102 10.422 8.210
14. Trade Payables - - - - - - - -
15. Financial Liabilities - - - - - - - -
16a. Other Monetary Liabilities - - - - - - - -
16b. Other Non-
Monetary Liabilities
- - - - - - - -
17. Total Non-Current Liabilities (14+15+16) - - - - - - - -
18. Total Liabilities (13+17) 2.231.185 2.145 51.273 - 3.561.010 57.102 10.422 8.210
19. Off-Balance Sheet Derivative Instruments Net Asset / (Liability)
Position (19a-19b) - - - -
19a. Total Asset Amount of Hedged - - - - - - - -
19b. Total Liabilities Amount of Hedged - - - - -
20. Net Foreign Exchange Asset / (Liability) Position (9-18+19) 5.650.216 131.916 (18.717) - 166.710.617 2.280.426 1.407.893 (8.210)
21. Monetary Items Net Foreign Exchange Asset / (Liabilities) Position
(1+2a+3+5+6a-10-11-12a-14-15-16a) 5.650.216 131.916 (18.717) - 166.710.617 2.280.426 1.407.893 (8.210)
22. Export 6.917.848 - - - 14.419.529 - - -
23. Import 117.024 - - - 215.429.344 - - -

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 37 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

The following table details the Group's foreign currency sensitivity as at 30 September 2025 and 31 December 2024 for the changes at the rate of 10%:

30 September 2025 Profit/Loss Profit/Loss
Appreciation of
foreign currency
Appreciation of
foreign currency
Change in USD against TRY by 10%
1- USD Net Asset/Liability (77.634) 77.634
2- Hedged portion of USD Risk (-) - -
3- USD Net Effect (1+2) (77.634) 77.634
Change in EUR against TRY by 10%
4- EUR Net Asset/Liability 642.655 (642.655)
5- Hedged portion of EUR Risk (-) - -
6- EUR Net Effect (4+5) 642.655 (642.655)
Change in GBP against TRY by 10%
7- GBP Net Asset/Liability - -
8- Hedged portion of GBP Risk (-) - -
9- GBP Net Effect (7+8) - -
Total (3+6+9) 565.022 (565.022)
Exchange rate sensitivity analysis
31 December 2024
Profit/Loss Profit/Loss
Appreciation of Appreciation of
foreign currency foreign currency
Change in USD against TRY by 10%
1- USD Net Asset/Liability 4.955.455 (4.955.455)
2- Hedged portion of USD Risk (-) - -
3- USD Net Effect (1+2) 4.955.455 (4.955.455)
Change in EUR against TRY by 10%
4- EUR Net Asset/Liability 8.372.243 (8.372.243)
5- Hedged portion of EUR Risk (-) - -
6- EUR Net Effect (4+5) 8.372.243 (8.372.243)
Change in GBP against TRY by 10%
7- GBP Net Asset/Liability (36.570) 36.570
8- Hedged portion of GBP Risk (-) - -
9- GBP Net Effect (7+8) (36.570) 36.570
Total (3+6+9) 13.291.128 (13.291.128)

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 37 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Group attempts to control credit risk by monitoring credit exposures, limiting transactions with specific counterparties, and continually assessing the creditworthiness of counterparties. Total credit risk is presented in consolidated the statement of financial position.

Concentrations of credit risk arise when a number of counterparties are engaged in similar business activities or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. The Group seeks to manage its credit risk exposure through diversification of sales activities to avoid undue concentrations of risks with individuals or groups of customers in specific locations or businesses. The Group also obtains security when appropriate. It is the Group's policy to enter into financial instruments with a diversity of creditworthy counterparties.

The exposure of consolidated financial assets to credit risk is as follows:

Receiv vables Financial
30 September 2025 Trade reco eivables Other rece eivables Time assets and Other
30 September 2023 Related party Other Related party Other deposits derivative instruments Other
Maximum exposure to credit risk as of reporting date (A+B+C+D) 158.965.297 85.434.584 - 10.173.065 170.215.467 - -
- Maximum risk secured with guarantees and collaterals - - - - - - -
A. Net book value of
neither past due nor
impaired financial
assets
158.965.297 85.434.584 - 10.173.065 170.215.467 - -
B. Net book value of
past due but not
impaired financial
assets
- - - - - - -
C. Net book value of impaired assets - - - - - - -
Past due (gross book value) - 2.970.340 - - - - -
Impairment (-) - (2.970.340) - - - - -
Secured with guarantees and collaterals - - - - ı - -
Not past due (gross book value) - - - - 1 - -
Impairment (-) - - - - - - -
Secured with guarantees and collaterals - - - - - - -
D. Off-balance sheet expected credit losses - - - - - - -

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 37 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

Receiv vables Financial
31 December 2024 Trade reco eivables Other rece eivables Time assets and Other
31 December 2024 Related party Other Related party Other deposits derivative instruments Other
Maximum exposure to
credit risk as of
reporting date
(A+B+C+D)
59.930.568 78.093.028 - 10.015.829 262.872.608 - -
- Maximum risk secured with guarantees and collaterals - - - - - - -
A. Net book value of
neither past due nor
impaired financial
assets
59.930.568 78.093.028 - 10.015.829 262.872.608 - ı
B. Net book value of
past due but not
impaired financial
assets
- - - - - - -
C. Net book value of impaired assets - - - - - - -
Past due (gross book value) - 3.725.697 - - - - -
Impairment (-) - (3.725.697) - - - - -
Secured with guarantees and collaterals - - - - - - -
Not past due (gross book value) - - - - - - -
Impairment (-) - - - - - - -
Secured with guarantees and collaterals - - - - - - -
D. Off-balance sheet expected credit losses - - - - - - -

Liquidity risk

Liquidity risk is the risk that the Group 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 Group provides funding by balancing cash inflows and outflows through the provision of credit lines in the business environment.

Undiscounted contractual cash flows of the non-derivative consolidated financial liabilities in TRY as of 30 September 2025 and 31 December 2024 are as follows:

Total
contractual
Demand or up to 3 3-12
Carrying cash outflows months months 1-8 years
30 September 2025 value (I+II+III) (I) (II) (III)
Borrowings 586.853.243 762.585.122 289.103.981 340.974.283 132.506.858
Trade payables 126.996.088 135.278.891 122.178.440 13.100.451 -
Lease liabilities 768.047.248 869.557.169 77.927.263 192.589.621 599.040.285

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 37 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

31 December 2024 Carrying value Total
contractual
cash outflows
(I+II+III)
Demand or
up to 3
months (I)
3-12 months
(II)
1-5 years
(III)
Borrowings 701.785.932 864.185.442 297.064.877 483.345.553 83.775.012
Trade payables 197.372.958 217.914.719 216.291.655 1.623.064 -
Lease liabilities 566.826.168 946.295.997 84.896.917 218.287.051 643.112.029
1.465.985.058 2.028.396.158 598.253.449 703.255.668 726.887.041

Interest rate risk

The Group is exposed to interest rate risk arising from the rate changes on interest-bearing liabilities and assets. The Group manages this risk by balancing the repricing terms of interest-bearing assets and liabilities with fixed and floating interest rate financial instruments and short-long term nature of borrowings.

As of 30 September 2025 and 31 December 2024, interest position of Suwen Tekstil is as follows:

Interest position statement 30 September
2025
31 December
2024
Fixed-interest rate financial instruments
Financial assets 153.822.608 237.757.572
Financial liabilities 1.354.900.491 1.268.612.100
- Borrowings 586.853.243 701.785.932
- Lease liabilities 768.047.248 566.826.168

As of 30 September 2025 and 31 December 2024, the Group has no floating-interest rate financial instruments.

Price risk

Price risk include foreign exchange risk, interest rate and market risk. The Group manages this risk by balancing the repricing terms of interest-bearing assets and liabilities with fixed-floating interest. Market risk have been determined by the Group by using available market information and appropriate valuation methodologies.

Capital risk management

The Group's main objectives for capital management are to keep the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The capital structure of the Group consists of cash and cash equivalents, borrowings and equity items containing respectively issued share capital, capital reserves, profit reserves and profits of previous years.

Risks, associated with each capital class, and the senior management evaluates the capital cost. It is aimed that the capital structure will be stabilized by means of new borrowings or repaying the existing debts as well as dividend payments and new share issuances based on the senior management evaluations.

General strategy based on the Group's equity does not differ from the prior period.

Consolidated net financial debt/invested capital ratio as of 30 September 2025 and 31 December 2024 are as follows:

30 September
2025
31 December
2024
Borrowings (except for TFRS 16) 586.853.243 701.785.932
Total borrowings 1.354.900.491 1.268.612.100
Less: Cash and cash equivalents 194.610.295 287.012.977
Net financial debt 1.160.290.196 981.599.123
Total equity 1.586.152.052 1.576.961.013
Net financial debt/total equity ratio 73,15% 62,25%

As of 30 September 2025, the debt to equity ratio, calculated excluding lease liabilities, is 37,00% (31 December 2024: 44,50%).

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 37 - NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (Continued)

Fair value of financial assets and liabilities

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.

Foreign currency denominated receivables and payables are translated with the exchange rates prevailing as of the date of the financial statements.

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

Financial assets

Carrying values of cash and cash equivalents, accrued interests and other financial assets are approximate to their fair values due to their short-term nature and insignificant credit risk. The carrying values of receivables estimated that reflecting the fair value with the less provision for doubtful receivables.

Financial liabilities

The fair values of trade payables and other monetary liabilities are considered to approximate their respective carrying values due to their short-term nature. Bank borrowings are carried at their discounted cost and transaction costs are added to the initial cost of the borrowing. The fair values of the borrowings after discount are considered to be approximate to their corresponding carrying values. In addition, it is considered that the fair values of the trade payables are approximate to their respective carrying value due to their short-term nature.

CONVENIENCE TRANSLATION INTO ENGLISH OF THE CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 38 - FINANCIAL INSTRUMENTS (FAIR VALUE DISCLOSURES AND HEDGE ACCOUNTING)

30 September 2025 Notes Other financial assets at
amortised costs
Loans and
receivables
Financial assets at fair
value through profit or
loss
Other financial liabilities
at amortised costs
Book value Fair value
Financial assets 194.610.295 244.399.881 - - 439.010.176 439.010.176
Cash and cash equivalents 6 194.610.295 - - - 194.610.295 194.610.295
Trade receivables
Financial investments
10 -
-
244.399.881
-
-
-
-
-
244.399.881
-
244.399.881
-
Financial liabilities - 126.996.088 - 1.354.900.491 1.481.896.579 1.481.896.579
Financial liabilities 8 - - - 1.354.900.491 1.354.900.491 1.354.900.491
Borrowings 8 - - - 586.853.243 586.853.243 586.853.243
Lease liabilities 8 - - - 768.047.248 768.047.248 768.047.248
Trade payables 10 - 126.996.088 - - 126.996.088 126.996.088
31 December 2024
Financial assets 287.012.977 138.023.596 - - 425.036.573 425.036.573
Cash and cash equivalents 6 287.012.977 - - - 287.012.977 287.012.977
Trade eeceivables 10 - 138.023.596 - - 138.023.596 138.023.596
Financial investments - - - - - -
Financial liabilities - 197.372.958 - 1.268.612.100 1.465.985.058 1.465.985.058
Financial liabilities 8 - - - 1.268.612.100 1.268.612.100 1.268.612.100
Borrowings 8 - - - 701.785.932 701.785.932 701.785.932
Lease liabilities 8 - - - 566.826.168 566.826.168 566.826.168
Trade payables 10 - 197.372.958 - - 197.372.958 197.372.958

SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

(Amounts are expressed in TRY based on the 30 September 2025 purchasing power of the Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 39 - EXPLANATIONS ON NET MONETARY POSITION GAINS/(LOSSES)

The Group's net monetary position gains as of September 30, 2025, in accordance with TMS 29, are detailed below:

Non-Monetary Items 30 September
2025
30 December
2024
Statement of financial position items (97.962.443) (257.959.089)
Inventories 139.622.149 115.848.581
Prepaid expenses 5.259.706 4.038.921
Financial investments 97.426 6.491.746
Property, plant and equipment 37.424.744 44.068.903
Intangible assets 2.857.889 4.612.236
Right-of-use assets 98.560.593 45.461.189
Deferred income (272.822) (4.794.213)
Paid-in capital (175.543.749) (181.973.815)
Treasury shares 29.016.224 8.087.248
Share premium (35.687.283) (46.461.031)
Restricted reserves (13.957.368) (12.869.938)
Defined benefit plan remeasurement gains/(losses) 1.293.054 1.882.515
Deferred tax liabilities (65.524.991) (74.179.745)
Retained earnings/(losses) (121.108.015) (168.171.686)
Statement of profit or loss items 416.505.194 437.472.140
Revenue (328.020.796) (353.540.487)
Cost of Sales 412.579.101 422.405.603
Marketing expenses 264.078.477 296.573.185
General administrative expenses 27.126.076 21.627.534
Other operating income (5.669.338) (11.584.740)
Other operating expenses (28.293.928) 5.662.514
Income from investing activities (439.898) (5.822.755)
Financing income (3.436.273) (5.387.140)
Financing expenses 36.839.625 28.925.784
Deferred tax income/expense 41.742.148 38.612.642
Net monetary position gains 318.542.751 179.513.051

NOTE 40 - EVENTS AFTER THE REPORTING PERIOD

At the Board of Directors meeting held on July 8, 2025, the Company decided to repurchase its shares in accordance with the Capital Markets Board's principle decisions dated March 19, 2025, numbered 16/531, and March 23, 2025, numbered 18/574, and the Repurchased Shares Communiqué numbered II-22.1, as the prices of the Company's shares on the Istanbul Stock Exchange do not reflect the Company's actual performance, it was decided to launch a share buyback program to support a healthier price formation in the Company's share market and to protect the interests of shareholders. It was also decided to allocate a maximum of TRY300.000.000 from the Company's equity for the program, to set the maximum number of shares to be repurchased at 13.760.000 shares, and to set the duration of the share buyback program at a maximum of one year from the date of the decision.

NOTE 41 - OTHER MATTERS THAT SIGNIFICANTLY AFFECT THE FINANCIAL STATEMENTS OR THAT NEED TO BE DISCLOSED IN ORDER TO ENSURE THAT THE FINANCIAL STATEMENTS ARE CLEAR, INTERPRETABLE, AND UNDERSTANDABLE

None.

Talk to a Data Expert

Have a question? We'll get back to you promptly.