Al Fajar Al Alamia Company SAOG ($AFAI)

[Foreign Language].

[Foreign Language] Thank you, ladies and gentlemen. It's a pleasure to have you in this periodic meeting. It's a chance for us to share with the market, the information and the update. You are all well aware that Al Fajar is going through a turnaround which after the very tough time resulted from the COVID pandemic, the hike in the ammonium raw material price, in particular, in the years '21, '22. We managed over 2 or 3 years to recover the company and put it on the right track, at least in Oman, but now we are facing another tough situation that we will talk about and we will touch on. But in general, the outlook is very, very positive. We will share with you some general presentation, first talking about the highlights of the performance for the first 6 months of the fiscal year for the company, which have seen a very excellent, very good performance. And for the first quarter or for the first half year since long time, we were positive in all aspects when we talk about Oman operation. Even at the net profit level, we were in a very good position in Oman operation. The UAE showed very good signs of recovery, and we are approaching fast to reach the breakeven there. And we hope our plan was within this year that we will reach the breakeven, and we will be able to be reporting much more healthier position for this year. As you are aware, the current situation is making it a little bit more difficult, and we are still touching on the results and the impact. But so far, everything is under control and in a good situation. In the first 6 months of the year, the total revenue has grown by 86% compared to the comparative period of the previous year. We reached OMR 8.3 million, which is a very good level. And this is almost 90% of that, or 85% of that revenue was generated only from Oman. For Oman, we exceeded the budget, and we managed to benefit from the unutilized assets in the UAE to utilize it in the Oman operation and have resulted in the hike of the operation. The efficiencies, the volume efficiencies and cost cutting that we have implemented have resulted that we achieved an almost OMR 1 million profit from the operation for the first 6 months. This is covering Oman and the UAE. For Oman, it was almost more than OMR 2.2 million of profit from operation, but there was a loss of the operation from the UAE due to the slow performance there. And this is what resulted to the OMR 965,000 profit. Of course, our biggest burden at this stage and will continue for some good time is the finance cost until we finalize the second round of the financial restructuring and the divestment plan that we are ongoing, but it's seeing some delays. The biggest concern for us for the time being is the high finance cost and the ability to keep servicing this high finance cost. And because of that, we have resulted in a net loss for the first 6 months of the year of OMR 360,000. Nonetheless, we are expecting, with the current performance level and with the situation that we are in up to the previous week, we were hoping that we will recover this, and we will be able to close the year on a group level on positive sign on black. And so far, the performance is very good. Our very strong performance on the revenue level is backed by a very strong order book. There were so many long-awaited projects that have been in the pipeline for so much time. It gained momentum. And although we saw some competition over the last 12 months coming into the market, but still your company is performing the leadership. And with our diversified assets, diversified location and also business segments, we are able to be in a very good position and in the leading position in the market. Still with the projects that we are -- major projects that we are doing, there's still many more to come. And with the strong economic performance of the Sultanate and very good government expenditure that have occurred and expected to sustain for some time, we are seeing that the next 5 years will have a very strong order book, and that will be enhanced with the continuous announcement of new projects. For the UAE, as you are well aware, we have faced, over the last year, some technical issues related to the license to the drilling and blasting license in the UAE, which we sorted out and we are working into regaining our market in full. On the production or in the explosive production in the UAE, which will be the main feeder for our drilling and blasting, the changes in the environment that have been there, it has come to our interest, but it gives us more time to complete. We are in the final stage of installing our bulk explosive manufacturing unit in the UAE. Our storage facility is fully completed under the standards of Ministry of Interior in the UAE, and it has the highest grades from the UAE authorities there. Only our production facility is what is still pending, and we are anticipating the machinery to be coming to the country within the next 6 weeks maximum. And we are anticipating, within this fiscal year itself, to start our full production, bulk ammunition (sic) [ explosive ] production, which is the new technology that is under adaptation of (sic) [ adoption by ] the UAE. Once we have the full production swing in the UAE operational, this will give us very much more confidence to penetrate the market and to reoffer ourselves as one of the main contributors. Currently, we are maintaining just a few projects. Actually, we don't want to overwhelm ourselves with things until we get the full production in the UAE as the logistics will be very difficult to support big transaction or big operations in the UAE. So still, we are within our targets. Within the first half of the year, we will have the production on the UAE, and we will be able to make it up. Of course, the slowdown that we had in the operation in the UAE was totally covered by the super and very good operation in Oman, and we managed to shift most of our resources, whether it's human or machinery, and machinery mainly, we shifted to utilize it for our projects, mainly our Dibba-Lima-Khasab Road project, which we are doing a very, very good performance on it, and we are getting a good chunk of the performance and the works on the road there. So we are hoping -- on the conclusion of the introduction, we are hoping that we will be able within this year to close on a positive note. Now what happened over the last 2 weeks and the geopolitical development that occurred maybe have an impact on us, and we will discuss on that on the next section about the future outlook for the company. In terms of future outlook, still as what we mentioned earlier, Oman is still in a very healthy and very good situation, and we are anticipating this to continue for the next 5 years. The demand for the drilling and blasting services for infrastructure projects is in its best levels with so many mega roads, mega infrastructure projects are in the pipeline. The green ammonia development or the green development in the center of Oman is also taking a lot of services. And all that, of course, resulting in a need for more explosives and more drilling and blasting services. Also, the mining sector is moving in a very good and stable progress toward being one main contributor to the GDP of the country. And we are attached to this sector by owning our ownership of some of the quarries and also the service that we are providing for the other. Our gypsum facility, we are in discussion with an international party to take over or enter into a long-term arrangement with us, and this is part of our announced and declared divestment plan. There was some obstacles or some situation that we faced with a ministerial decision that was launched last year of putting certain constraints of the export of gypsum and routed through a single entity. We are dealing with this situation as we speak now. And we hope that within the next few weeks or month or 2 maximum, we will have a sort out of this issue. Once the issue is cleared with the government decision on that, we will be able to close and to move ahead with our initial discussion with that international partner or buyer or the party that we will enter into a long-term arrangement with. So for the 3 sectors, production of explosives, drilling and blasting and mining in Oman, it's doing very, very good. The UAE is not least in terms of demand, in terms of requirement and in terms of availability of market and mega projects to come. This is all we are very positive on. And the ball is in our court to complete our readiness to service the market. We are confident that once we complete our production facility, we will be able to service our drilling and blasting arm, and we will be able to capture many more projects to come. As a concluding point, I want to touch on to the latest development and the geopolitical situation and its impact on our industry and on our business. As you are well aware, our industry, our line of business is very sensitive to such geopolitical situation, and it has several impacts, several level of impact on our operation. The main one is the logistics related one. In general, whenever any turbulence or any actions or severe accidents like what we have now, the cost of logistics, the cost of shipment increased very significantly. In our industry, in particular on being moving or involving in moving dangerous goods, whether by sea or by road, the costs hike and increase. We are already seeing that for our supplies for the month of March have already either canceled, delayed or the prices, due to the insurance and other elements, have increased significantly. We are dealing with this situation, and we are trying to source from different sources to make sure, as we speak now, we have good inventory level, and this is a lesson that we learned from the time when we had dry inventory. We are keeping good levels of inventory, and we are making sure that we will be able to service the market at least the minimal until we get the supply. We enhanced our supply chain very good over the last 2 years. But in circumstances like this, delays happen, hike in the prices happen, and this is part of the risk that we are involved. Also another kind of risk that involves us is the cancellation or the reduction or limitation of our drilling and the blasting activities. We saw that a little bit at the beginning, but what we observed or what we are seeing is that the commitment through Oman and the UAE is to continue the operation without interruption, and this is a very good and brave movement that is adopted, and we are taking all the security measures to make sure that our service to our customers is uninterrupted due to the circumstances. We make sure that we have enough supply for the service and for the raw material that make us able to present to make that service. And all that we are doing it, and we are dealing with the situation on a day by day. This involves cooperation with some other industry practice participants and some government authorities to combine our efforts to make sure that there will be no interruption on the operation. We pray to God that this situation will not stay for longer time, because short period or short time of actions like this will have an impact, but it will be limited. But if the impact extends to be months or longer period, then definitely there will be a lot of limitation of the export of aggregates and minerals in general, and that will result in less drilling and blasting activities required from there. And also, it will result into more constraints or more dryness of the supply of the raw material, and this will lead to a very negative situation. We are watching the situation very, very closely and take all the measures to make sure that we will minimize the impact and make everything in control. And of course, it's evolving subject, and we hope that it will not have a significant impact for us, and we pray to God that it will be sorted out as soon as possible with the wisdom of everybody involved. So this is, in general, a very quick review about the situation. In this presentation, we didn't go through the numbers in general in more details. We are very delighted and we will be -- of course, we published our financial information and our financial results for the 6 months ended December 2025. And we are very delighted to answer to any questions. Whether now during this session or at any time, our communication channels are open, and we will be very delighted to answer to any query or to any information needed. Thank you, but this is all for the time being. I will leave the floor. If anybody wants to have any comment or any inquiry, we will be very delighted to answer and to reply to that.

Thank you very much to our CEO for the comprehensive presentation. Thank you to all investors and stakeholders for the continued support and the trust in Al Fajar Group. We will open the floor for any questions or discussions, if any. I will just repeat in Arabic. [Foreign Language]. If there is any of the investors who is having queries or questions, they can send it to our e-mails in the website or they are most welcome to visit us in our office in Ghala. Thank you very much. [Foreign Language]. Thank you very much for your time. Thank you very much for participation today, and thank you very much.

Thank you.