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Shapir Engineering and Industry Ltd.

SHAPIR ENGINEERING AND INDUSTRY LTD

Number in the Register: 514892801

To: Israel Securities Authority

www.isa.gov.il

To: Tel-Aviv Stock Exchange Ltd.

www.tase.co.il

T930 (Public)

Filed via MAGNA: 26/05/2026

Reference:

2026-01-048128

Report on the financial position

Is this a report of a Periodic report/Quarterly report of an insurance corporation? No

Explanation: As of the financial statements for the first quarter of 2017, a corporation that is an insurer (i.e., reported in the past within Form T932) shall report within this form and shall mark "Yes" in this field; other corporations may proceed to the following sections.

Periodic report pursuant to Chapter 8 of the Securities Regulations (Periodic and Immediate Reports), 1970
Quarterly report pursuant to Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970
Semi-annual report pursuant to Regulation 5D of the Securities Regulations (Periodic and Immediate Reports), 1970

Small corporation

During the reporting period the corporation meets the definition of a "small corporation" No

Explanation: According to the definition of "small corporation" as stated in Regulation 5C of the Securities Regulations (Periodic and Immediate Reports), 1970

(1) As of the determining date the following conditions are met in the corporation:
(2) The corporation has chosen to apply the reliefs on the following matters:

Reporting on a semi-annual basis
Attaching very material valuation reports
Attaching financial statements of an associate company
Reporting regarding effectiveness of internal control
The corporation did not adopt any relief

I Periodic report

Hereby attached is a Periodic report for the year _ signed on _.
Date of the meeting – to the extent a meeting of shareholders was convened in which the financial statements will be presented:
Details of signatories of the Periodic report:

Name of signatory	Position of signatory

II Financial statements

Attached herewith:

Periodic report for the year
Quarterly report for the period ended on 31/03/2026.

Signed on 25/05/2026.

Do the attached financial statements include a correction of an error by way of correction of comparative figures as a "restatement due to an immaterial adjustment of comparative figures": No

Do the attached financial statements include correction of a material error by way of "restatement" of comparative figures: No

Attached herewith Review report of the auditor

Date on which the auditor signed the opinion/review: 25/05/2026.

Name of the auditing accounting firm

1 Somekh Chaikin, Accountants

Name of the signing auditor on the opinion:

License number of the auditor:

A. The opinion is given in an unqualified wording
B. The review report is given in an unqualified wording Yes
C. There is an emphasis of matter in the financial statements No

Emphasis of matter

Quoted wording of the emphasis of matter:

D. Type of change or addition to the standard wording:

Explanation: If in section 7(A) or 7(B) "No" was marked, one of the following fields must be marked.

Qualification
Adverse opinion
Disclaimer of opinion

Quotation of the paragraphs that are not required in the standard wording:

Explanation: If the auditors' opinion or the review report are not in the standard wording or include additions to the standard wording, specify the change and present from the auditors' opinion or the review report additional paragraphs that are not required in the standard wording (emphasis of matter, qualification, etc.).

Date of approval of the financial statements: 25/05/2026
Details of signatories of the financial statements:

Name of signatory	Position of signatory
Yehuda Segev	Chairman of the Board
Harel Shapira	Other	CEO and Director
Moshe Savoski	Other	CFO and Controller

Details of material associates whose financial statements are attached:

1 Name of company

Do the attached financial statements include a correction of an error by way of correction of comparative figures as a "restatement due to an immaterial adjustment of comparative figures": _____

Do the attached financial statements include correction of a material error by way of "restatement" of comparative figures: _____

Details of guarantor companies whose financial statements are attached:

1 Name of company

Do the attached financial statements include a correction of an error by way of correction of comparative figures as a "restatement due to an immaterial adjustment of comparative figures": _____

Do the attached financial statements include correction of a material error by way of "restatement" of comparative figures: _____

Has the corporation performed early application of an accounting standard No

Explanation: If "Yes" is selected, please specify which accounting standard is involved

III Board of Directors' Report – presentation

A. Attached herewith is the Board of Directors' Report signed on 25/05/2026.

B. Details of signatories of the Board of Directors' Report:

Name of signatory	Position of signatory
Yehuda Segev	Chairman of the Board
Harel Shapira	Other	CEO and Director

C. Does the corporation have obligations that must be disclosed in accordance with Regulations 9D and 38E of the Securities Regulations (Periodic and Immediate Reports), 1970: Yes

Regarding the manner of completing the section and the exemption granted to companies from parallel reporting under Form 126, see Q&A No. 105.37 at the following link: Link

D. Does the company publish separate financial statements ("solo" statements):

☐ Yes
☐ No

(1). Cash and cash equivalents, securities held for trading and short-term deposits based on data from the separate financial statements of the corporation ("solo" statements) (in thousands of NIS): 763
(2). Cash and cash equivalents, securities held for trading and short-term deposits based on data from the consolidated financial statements of the corporation (in thousands of NIS): 441,542

Explanation: The data will include only balances that are not pledged.

E. Disclosure regarding projected cash flow pursuant to Regulation 10(b)(14)(a) of the Securities Regulations (Periodic and Immediate Reports), 1970 (Note: this subsection is not relevant to an insurance corporation):

Has the corporation issued debentures held by the public as of the signing date of the report? Yes
Does one or more of the warning signs prescribed in the Regulation apply to the company? Yes

3A. Mark all warning signs applicable to the company:

☐ Deficit in equity.
☐ Emphasis of matter relating to the financial condition of the company, other than an emphasis of matter regarding significant doubts as to the company's continued activity as a going concern.
Deficit in working capital or in working capital for a twelve-month period together with a persistent negative cash flow from operating activities (in the consolidated statements and also in the separate financial statements pursuant to Regulation 9G or Regulation 38D, as applicable).
Deficit in working capital or in working capital for a twelve-month period or a persistent negative cash flow from operating activities, and the Board of Directors has not determined that this does not indicate a liquidity problem in the company.
☐ Emphasis of matter regarding significant doubts as to the company's continued activity as a going concern.

3B. One or more of the following options must be completed according to the consolidated financial statements:

☐ The company has a deficit in working capital or in working capital for a twelve-month period.
☐ The company has a persistent negative cash flow from operating activities.
☐ The company does not have a deficit in working capital or in working capital for a twelve-month period and does not have a persistent negative cash flow from operating activities.

3C. One or more of the following options must be completed according to separate financial information (Regulation 9G or 38D, as applicable):

Mark the section relevant to the company:

☐ The company included in the Board of Directors' Report disclosure regarding projected cash flow due to the existence of a warning sign.

At the end of one of the periods included in the disclosure regarding projected cash flow, is a negative cash balance expected?

The Board of Directors has determined that the existence of a deficit in working capital or a deficit in working capital

for a twelve-month period or a persistent negative cash flow from operating activities does not indicate a liquidity problem in the company.

F. Compliance with financial covenants regarding debentures:

Does the corporation meet all the financial covenants set forth in the trust deeds? Yes
Does non-compliance with the financial covenants give rise to grounds for immediate repayment of the debentures?

G. Details regarding the auditor of the corporation:

1 Total fees paid to the auditor __ for:

Audit services

Services other than audit services

Note: The total fees paid to the auditor for audit services, services related to the audit, including tax services related to the audit.

Details regarding the auditor of material consolidated corporations:

The data must be entered separately for each accounting firm.

1 Total fees paid to the auditor
of material consolidated corporations of the corporation for:

Audit services

Services other than audit services

ISOX IV Report on internal control

Is the company exempt from implementing internal control? No

Explanation: If "Yes" is selected, please specify the reason for the exemption from implementing internal control

A. A management report on internal control, in the wording prescribed in the Regulations, updated to the date of the statements, has been attached (according to the Ninth Schedule – Periodic report – Regulation 9B; Quarterly report – Regulation 38(c)) Yes

If it is not in the wording prescribed in the Regulations, specify the content of the change

B. Internal control as of the date of this report was found to be: Effective

C. Has the conclusion of the Board of Directors regarding the effectiveness of control changed since the last report submitted (i.e., from effective control to ineffective and vice versa)? No

D. Management declarations

Has a declaration of the CEO been attached, in the standard wording prescribed in the Regulations (Periodic report – Regulation 9B(d)(1); Quarterly report according to Regulation 38G(d)(1)) with emphasis on sections 1, 4(a) and 5(a)? Yes
Has a declaration of the senior officer in the finance field been attached, in the standard wording prescribed in the Regulations – Annual report 9B(d)(2); Quarterly report Regulation 38G(d)(2)? Yes
Has the wording in section 4 of the management declarations been adjusted according to what is prescribed in the Regulations – Annual report 9B(d)(1)(2); Quarterly report according to Regulation 38G(d)(1)(2), in a case where there is a Financial Statements Committee that is not an Audit Committee? No
Are the management declarations signed as required (name of officer and his signing date as of the date of signing the statements)? Yes

V Attached files

A. Periodic report in IXBRL format:

Regarding attaching Periodic reports in iXBRL format, see the Authority's position here

Periodic report in PDF format: Quarterly_report_32026_PDFUA_isa.pdf The quarterly report

B. Below is the file of the very material valuation reports the attachment of which is required under Regulation 8B or Regulation 49 of the Securities Regulations (Periodic and Immediate Reports), 1970, as applicable
C. _ Explanation of the information attached in the file: _

Are the attached PDF files in a textual format that allows search? Yes

Do the financial statements include all comparative periods required by accounting rules and Securities Regulations? Yes

VI Financial data (except earnings per share) in: Millions of ILS (Israel, New Shekels)

Representative exchange rate of the reporting currency against the NIS at the end of the reporting period: _

Data from the consolidated statement of financial position

The amounts of assets and liabilities shall be recorded as a positive amount, i.e., with the "+" sign, whereas amounts appearing in the company's balance sheets in parentheses (such as deficit in equity) shall be recorded as a negative amount, i.e., with the "-" sign.

Assets
1. Total current assets	4,301
2. Total non-current assets	12,566
3. Total assets	16,867
Liabilities
4. Total current liabilities	4,482
5. Total non-current liabilities	8,508
6. Total liabilities	12,990
Equity
7. Total equity attributable to owners of the parent company	3,329
8. Non-controlling interests	548
9. Total equity	3,877
10. Total equity and liabilities	16,867

Presentation method of the statement of profit or loss is:

☐ Presentation by function of expense
☐ Presentation by nature of expense

Data from the consolidated statement of profit or loss: For the three-month period ended on the balance sheet date

In quarterly reports the data in the statement of profit or loss shall be completed for the 3-month period and not for the cumulative period. In a semi-annual report the data in the statement of profit or loss shall be completed for the six-month period. Negative totals (such as loss from ordinary activities) shall be recorded as a negative amount, i.e., with the "-" sign. If the item does not appear in the company's financial statements, the appropriate checkbox shall be selected.

Revenue 1,557
Gross profit ☐ Not applicable 218
Profit (loss) from operating activities ☐ Not applicable 118
Profit (loss) before tax 79
Profit (loss) 59
Profit (loss) attributable to:
6.1 Profit (loss) attributable to owners of the parent company 56
6.2 Profit (loss) attributable to non-controlling interests 3
Earnings per share

7.1 Total basic earnings (loss) per share 0.16
7.2 Total diluted earnings (loss) per share 0.15

Total comprehensive income 97

8.1. Comprehensive income attributable to owners of the parent company 94
8.2. Comprehensive income attributable to non-controlling interests 3

Data from the statement of cash flows: For the three-month period ended on the balance sheet date

Cash flows used for activities shall be recorded as a negative amount, i.e., with the "-" sign

(1) Net cash flows from (used in) operating activities -71
(2) Net cash flows from (used in) investing activities -73
(3) Net cash flows from (used in) financing activities -108
(4) Effect of changes in exchange rates of foreign currency on cash and cash equivalents 0
(5) Additional effects not reflected in items 1-4 above 0

Increase (decrease), net in cash and cash equivalents during the period -252

Balance of cash and cash equivalents at beginning of period 613

Balance of cash and cash equivalents at end of period 361

A. As of the date of the financial report, is the company a shell company as defined in the TASE Regulations? No

B. As of the date of publication of the financial report, is the company a shell company as defined in the TASE Regulations?

We hereby declare that we have completed the form in accordance with the data in the full financial statements.

Details of authorized signatories on behalf of the corporation:

	Name of signatory	Position
1	Moshe Savoski	Other CFO and Controller

Explanation: According to Regulation 5 of the Securities Regulations (Periodic and Immediate Reports), 1970, a report submitted pursuant to these Regulations shall be signed by those authorized to sign on behalf of the corporation. The Staff position on the subject can be found on the Authority's website: Click here.

Reference numbers of previous documents on the subject (the reference does not constitute incorporation by reference):

Securities of the corporation are listed for trading on the Tel-Aviv Stock Exchange Form structure update date: 09/12/2025

Short name: Shapir Engineering

Address: Barkat12, Petah Tikva49170 Telephone: 03-9169500, Fax: 03-9169600

E-mail: [email protected] Company website:www.shapir.co.il

Previous names of reporting entity: Shapir Holdings Barkat Ltd.

Name of electronic reporter: Savoski Moshe EdvardoPosition: Group ControllerName of employing company: Shapir Civil and Marine Engineering Ltd.

Address: Barkat12, Petah Tikva4951780Telephone: 03-9169512Fax: 03-9169600E-mail: [email protected]

AI assistant

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Details of authorized signatories on behalf of the corporation:

AI assistant

Shapir Engineering — Interim / Quarterly Report 2026

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Details of authorized signatories on behalf of the corporation:

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