Half-year Report

Steppe Cement Limited

09 September 2026

 

9 September 2026

Steppe Cement Ltd

("Steppe Cement" or the "Company")

Unaudited Interim Results for the Half Year Ended 30 June 2026, Market Update and Dividend

Steppe Cement Ltd (AIM: STCM), is pleased to announce its unaudited interim results for the half year ended 30 June 2026.

A copy of this announcement and the full interim financial statements are available on the Company's website at https://www.steppecement.com/investors/rns-announcements/

Unaudited Interim Results

During the six-month period to 30 June 2026 ("H1 2026" or the "Period"), the Company sold 978,950 tonnes of cement, generating consolidated turnover of KZT29,588 million (approximately USD61.1 million), compared with 850,424 tonnes and KZT20,717 million (approximately USD40.9 million) in H1 2025. Sales volume increased by 15% and turnover in KZT increased by 43%. The Group recorded a profit after tax of USD9.0 million, compared with a loss of USD0.5 million in H1 2025.

	6 months ended 30 June 2026	6 months ended 30 June 2025	% change
Sales (Tonnes)	978,950	850,424	+15%
Consolidated Turnover (KZT million)	29,588	20,717	+43%
Consolidated Turnover (USD million)	61.1	40.9	+49%
Consolidated profit/(loss) after tax (USD million)	9.0	(0.5)	n/a
Earnings/(loss) per share (Cents)	4.1	(0.2)	n/a
June exchange rate (KZT/USD)	486	520	-7%

From the low of 550 KZT/USD in July 2025, the Kazakh Tenge has appreciated significantly against the USD. The effect on the accounts of Steppe Cement denominated in USD has been significant when compared to the accounts of the subsidiaries denominated in KZT.

The average delivered cement price for the Period was KZT30,224 per tonne (approximately USD62.1 per tonne), compared with KZT24,361 per tonne (approximately USD47.6 per tonne) in H1 2025. The ex-factory price was KZT27,747 per tonne (approximately USD57.1), compared with KZT21,126 per tonne (approximately USD41.3) in H1 2025. The average 5% appreciation of the KZT against the USD over the period contributed to the increase in the USD-denominated selling price.

Gross margin increased to 34% in H1 2026 from 21% in H1 2025, driven by higher selling prices and improved operating performance on bigger produced volumes. Selling expenses stayed constant in KZT but increased in USD terms by 7% to USD5.8 million, while administrative expenses increased by 14% to USD4.1 million. Transport and electricity costs continued to increase faster than inflation. The Company remained focused on markets close to the factory.

Profit from operations was USD11.8 million compared with USD0.01 million in H1 2025. Finance costs decreased to USD0.3 million from USD0.6 million. The Group recorded an income tax charge of USD2.5 million, resulting in profit after tax of USD9.0 million for the Period.

Production

·    Production levels in H1 2026 were maintained at levels comparable to H1 2025. Property, plant and equipment additions during H1 2026 were USD2.1 million, compared with USD0.7 million in H1 2025.

·    The production levels are maintained in July and August.

Capex

·    The Company continued its project to expand production capacity to 2.5 million tonnes. USD2 million was spent in H1 2026 on advance payments. All the project contracts have been signed. Major demolition and foundation works are nearing completion and structural works have started in most project areas, with more than 250 workers on site. Commissioning remains planned for summer 2027 after a 3-month shutdown of line 6.

·    The clay crusher bag filter, a significant ecological improvement, has been commissioned.

·    The line 6 back-end filter is expected to be completed in October.

·    The Company has signed a new agreement with the Ecological Department of the Government, committing to implementing BAT (best available technologies) over a period of ten years. This agreement involves investments of up to USD10 million over the period (2025 to 2035) but brings savings in ecological taxes of USD1.5 million per annum.

·    The USD35 million capacity expansion project and related ecological improvements is currently being financed from cash flow, rather than the debt financing originally envisaged. The Company intends to consider debt financing only in scenarios where the current project is expanded. As the project contracts are mostly denominated in USD, the Company is hedging most of the related currency exposure by keeping USD deposits.

·    Pictures of the progress on the site can be found in https://karcement.kz/project-l6-4500-2

Kazakh Cement Market Update

·    In H1 2026, the domestic Kazakh cement market remained broadly flat year-on-year, with exports and imports also remaining at approximately H1 2025 levels.

·    The Company's market share reached approximately 15% in the first half, an increase of 2% from the prior year.

·    For the full year 2026, the Company anticipates sales of approximately 1.95 to 2 million tonnes of cement. This is slightly below 2025 levels, primarily due to the lower clinker inventory carried into the year.

·    The Company expects the total Kazakh cement market for 2026 to remain broadly in line with 2025.

Financial Update

·    Total finance costs for the period were USD0.3 million, including USD0.2 million of interest expense on borrowings.

·    Net cash generated from operating activities increased to USD9.6 million from USD2.2 million in H1 2025.

·    Total borrowings were USD2.1 million on 30 June 2026 and cash equivalents were USD18.8 million, resulting in a net cash position of approximately USD16.7 million.

·    Inventories were USD20.6 million as of 30 June 2026, compared with USD19.0 million on 31 December 2025.

·    The Group had USD6.2 million undrawn working capital facilities available under Halyk Bank JSC short-term loan facilities as of 30 June 2026.

Macroeconomic background

·    Inflationary pressures moderated slightly in H1 2026, with inflation at 10.3% compared with 11.8% in H1 2025. The National Bank of Kazakhstan base rate stood at 17%, compared with 16.5% at the same point in 2025 and 18% between October 2025 and early June 2026. The National Bank of Kazakhstan cut rates to 16.75% in July and further to 16.25% in September.

·    The KZT appreciated by approximately 7% against the USD from June 2025 to June 2026, from approximately KZT520/USD to KZT486/USD and KZT453/USD at the time of writing this update.  The appreciation of the KZT and the high interest has attracted foreign investors into the sovereign debt market. Non-residents held approximately 8% of outstanding government debt securities as of end June 2026, an all-time high.

Corporate

·    The Company completed the restructuring of the holding companies by closing the Netherlands based holding company and Mechanical and Electrical Sdn Bhd in Malaysia.

·    The Kazakh subsidiaries are now held directly by the Steppe Cement Sdn Bhd in Malaysia, itself owned 100% by the listed entity Steppe Cement Ltd in Labuan. Further improvements to the structure are still under consideration.

·    This structure allows the Company to pay a dividend with an effective withholding tax on dividends of 5% or 10% depending on the amount. Smaller dividends are subject to lower taxation in Kazakhstan.

·    The local subsidiary Karcement has issued a bond that is progressively being bought by the holding company, replacing a direct loan that has been outstanding from 2008. At the end of June 2026 USD15 million of bonds have been purchased. This is considered internal debt, so it does not appear at the consolidated level.

·    The Board of Directors has resolved that the Company will pay an interim dividend of 2p per ordinary share. The dividend will be paid in the month of October 2026.

·    The Company will give a presentation on the H1 unaudited results on 15 September 2026 at 10AM Londontime via InvestorMeet.

For further information, please contact:

Steppe Cement Ltd Javier del Ser Pérez, Executive Chairman	www.steppecement.com	Tel: +(603) 2166 0361
Strand Hanson Ltd (Nominated & Financial Adviser and Broker) James Spinney / Ritchie Balmer / Imogen Ellis	www.strandhanson.co.uk	Tel: [phone]

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)

			The Group						The Company
			6 months ended						6 months ended
			30 June 2026			30 June 2025			30 June 2026		30 June 2025
		Note	USD'000			USD'000			USD'000		USD'000
Revenue		7	61,056			40,948			611		871
Cost of sales			(40,359)			(32,355)			-		-
Gross profit			20,697			8,593			611		871
Other income			1,133			554			-		9
Selling expenses			(5,760)			(5,364)			-		-
Administrative expenses			(4,132)			(3,625)			(520)		(228)
Other expenses			(101)			(148)			4		-
Profit from operations Finance cost		8	11,837 (330)				10  (611)		95 -		652 -
Profit/(Loss) before tax			11,507			(601)			95		652
Tax (expense)/credit		9	(2,518)			125			-		-
Profit/(Loss) for the period			8,989			(476)			95		652
Attributable to shareholders
of the Company			8,989			(476)			95		652
Basic and diluted earnings
per ordinary share (cents)		10	4.1			(0.2)

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

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)

		The Group				The Company
		6 months ended				6 months ended
		30 June 2026		30 June 2025		30 June 2026		30 June 2025
		USD'000		USD'000		USD'000		USD'000
Profit/(Loss) for the period		8,989		(476)		95		652
Other comprehensive income:
Item that may not be reclassified subsequently to profit or loss
Exchange differences arising on translation of foreign operations		3,184		158		-		-
Total comprehensive income/(loss) for the period		12,173		(318)		95		652
Attributable to shareholders
of the Company		12,173		(318)		95		652

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

 

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2026 (UNAUDITED)

					The Group				The Company
					Unaudited		Audited		Unaudited		Audited
					30 June 2026		31 Dec 2025		30 June 2026		31 Dec 2025
				Note	USD'000		USD'000		USD'000		USD'000
Assets
Non-Current Assets
Property, plant and equipment				11	46,874		45,439		-		-
Right-of-use assets					554		15		-		-
Investment in subsidiary companies					-		-		36,218		36,152
Loan to subsidiary company					-		-		2,600		13,400
Other assets Investment in bond				12	269 -		252 -		- 15,000		- 10,000
Total Non-Current Assets					47,697		45,706		53,818		59,552
Current Assets
Inventories				13	20,562		19,046		-		-
Trade receivables Other receivables				14	328 10,148		129 4,482		- 4		- 4
Tax recoverable					427		928		-		-
Loans and advances to subsidiary companies					-		-		515		509
Cash and cash equivalents				15	18,781		11,433		5,970		267
Total Current Assets					50,246		36,018		6,489		780
Total Assets					97,943		81,724		60,307		60,332

(Cont'd)

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2026 (UNAUDITED)

			The Group				The Company
			Unaudited		Audited		Unaudited		Audited
			30 June 2026		31 Dec 2025		30 June 2026			31 Dec 2025
		Note	USD'000		USD'000		USD'000		USD'000
Equity and Liabilities
Capital and Reserves
Share capital			61,050		61,050		61,050		61,050
Asset revaluation reserve			3,368		3,368		-		-
Translation reserve			(128,400)		(131,584)		-		-
Retained earnings / (Accumulated losses)			134,472		125,483		(926)		(1,021)
Total Equity			70,490		58,317		60,124		60,029
Non-Current Liabilities
Borrowings		16	2,098		1,755		-		-
Deferred taxes			3,657		2,919		-		-
Deferred income Lease Payable			1,675 -		1,675 25		- -		- -
Provision for site restoration			37		36		-		-
Total Non-Current Liabilities			7,467		6,410		-		-
Current liabilities
Trade and payables Other payables			11,595 8,109		10,468 5,518		- 183		- 303
Borrowings		16	31		866		-		-
Lease liabilities			-		5		-		-
Deferred income			251		140		-		-
Total Current Liabilities			19,986		16,997		183		303
Total Liabilities			27,453		23,407		183		303
Total Equity and Liabilities			97,943		81,724		60,307		60,332

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

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)

			Non-distributable					Distributable
The Group	Share capital		Revaluation reserve		Translation reserve			Retained earnings			Total
	USD'000		USD'000		USD'000			USD'000			USD'000
As at 1 January 2026	61,050		3,368		(131,584)			125,483			58,317
Profit for the period Other comprehensive income	- -		- -		- 3,184				8,989 -		8,989 3,184
Total comprehensive income for the period Transfer of revaluation reserve relating to property, plant and equipment through use	- -		- -		3,184 -				8,989 -		12,173 -
As at 30 June 2026	61,050		3,368		(128,400)				134,472		70,490

(Cont'd)

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)

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

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)

 

The Company	Share capital		Accumulated losses			Total
	USD'000		USD'000			USD'000
As at 1 January 2026	61,050			(1,021)			60,029
Total comprehensive income for the period	-			95			95
As at 30 June 2026	61,050			(926)			60,124

As at 1 January 2025	65,400			(2,065)		63,335
Total comprehensive income for the period	-			652		652
As at 30 June 2025	65,400			(1,413)		63,987

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2026 (UNAUDITED)

				The Group								The Company
				6 months ended								6 months ended
				30 June 2026					30 June 2025			30 June 2026			30 June 2025
				USD'000					USD'000			USD'000			USD'000
OPERATING ACTIVITIES
Profit/(Loss) before income tax				11,507					(601)			95			652
Adjustments for:
Depreciation of property,  plant and equipment				2,859					2,833			-			-
Depreciation of right-of-use  Assets Capital reduction				1 -					3 -			- -			- -
Other non-cash items				227					896			(65)			(603)
Operating Profit Before Working Capital Changes				14,594					3,131			30			49
(Increase)/Decrease in:
Inventories				(1,516)					1,056			-			-
Trade and other receivables, advances and prepaid expenses				(5,921)					(3,353)			-			(11)
Loans and advances to subsidiary companies				-					-			(6)			(98)
Increase/(Decrease) in:
Trade and other payables, accrued and other liabilities				4,536					2,171			(121)			10
Cash Generated From/(Used In) Operations				11,693					3,005			(97)			(50)
Income tax paid				(1,982)					(661)			-			-
Interest paid				(85)					(173)			-			-
Net Cash Generated From/(Used In) Operating Activities				9,626					2,171			(97)			(50)
(Cont'd)
					The Group						The Company
					6 months ended						6 months ended
					30 June 2026			30 June  2025			30 June 2026			30 June 2025
					USD'000			USD'000			USD'000			USD'000
INVESTING ACTIVITIES
Purchase of property, plant and equipment					(2,082)			(668)			-			-
Purchase of other assets					(34)			(28)			-			-
Interest received Acquisition of bond Repayment from subsidiary					187 - -			271 - -			- (5,000) 10,800			- - -
Net Cash (Used In)/Generated From Investing Activities					(1,929)			(425)			5,800			-
FINANCING ACTIVITIES
Proceeds from borrowings					-			1,306			-			-
Repayment of borrowings					(530)			(2,034)			-			-
Net Cash (Used In) Financing Activities					(530)			(728)			-			-
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS					7,167			1,018			5,703			(50)
EFFECTS OF FOREIGN EXCHANGE RATE CHANGES					181			185			-			-
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD					11,433			6,064			267			117
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD (NOTE 15)					18,781			7,267			5,970			67

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

STEPPE CEMENT LTD

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

AND ITS SUBSIDIARY COMPANIES

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

1.         GENERAL INFORMATION

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

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

2.         BASIS OF PREPARATION OF CONDENSED INTERIM FINANCIAL STATEMENT

           

Basis of presentation

                

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

The condensed interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the audited financial statements for the year ended 31 December 2025. 

The condensed interim financial statements of the Group and the Company were authorised for issue by the Board of Directors on 4 September 2026.

Use of estimates and assumptions

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

3.         SIGNIFICANT ACCOUNTING POLICIES

                               

            Basis of Accounting

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

The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2025, except for the adoption of new standards effective as of 1 January 2026.

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

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

		USD
1 Pound Sterling		1.3230
1 Ringgit Malaysia		0.2457
1 Euro Dollar		1.1394
1 Kazakhstan Tenge ("KZT")		0.0021

		KZT
1 US Dollar		485.82

4.         REVIEW OF RESULTS FOR THE PERIOD

During the six-month period ended 30 June 2026, the Group posted revenue of USD61.1 million, an increase of 49% from USD40.9 million in the corresponding period of 2025. The growth in revenue was mainly attributable to an 15% increase in sales volume, particularly in regions nearer to the plant. 

The average sales price in tenge was USD62 (KZT30,224) per tonne compared with  USD48 (KZT24,361) per tonne in the same period of 2025.

The gross margin improved to 34% in the six-month period to 30 June 2026, compared with 21% in the same period last year, driven by higher volumes, increased selling prices and production efficiencies despite higher costs.  Selling expenses increased by USD0.4 million or 7% to USD5.8 million, while general and administration expenses increased by 14% (USD0.5 million) to USD4.1 million.

As a result, the Group recorded a higher net profit of USD9.0 million, compared with a loss after tax of USD0.5 million in the same period of 2025.

5.         SEASONAL OR CYCLICAL FACTORS

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

6.         SEGMENTAL REPORTING

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

7.         REVENUE

	The Group					The Company
	6 months ended					6 months ended
	30 June 2026		30 June 2025			30 June 2026		30 June 2025
	USD'000		USD'000			USD'000		USD'000

Sales of manufactured goods	61,044		40,944		-		-
Transmission and distribution of electricity	12		4		-		-
Net interest income	-		-		611		871
Total	61,056		40,948		611		871

8.         FINANCE COSTS

	The Group
	6 months ended
	30 June 2026		30 June 2025
	USD'000		USD'000

Interest expense on borrowings	218		533
Other finance costs	112		78
Total	330		611

9.         INCOME TAX EXPENSE

	The Group				The Company
	6 months ended				6 months ended
	30 June 2026		30 June 2025		30 June 2026		30 June 2025
	USD'000		USD'000		USD'000		USD'000

Income tax expense	(1,859)		-		-		-
Deferred tax (expense)/credit	(659)		125		-		-
	(2,518)		125		-		-

10.       EARNINGS PER SHARE

	The Group
	6 months ended			6 months ended
	30 June 2026			30 June 2025
	USD'000			USD'000
Profit/(Loss) attributable to ordinary shareholders	8,989		(476)

	6 months ended		6 months ended
	30 June 2026		30 June 2025
	'000		'000
Number of ordinary shares in issue at beginning and at end of period	219,000		219,000
Weighted average number of ordinary shares at beginning and at end of period	219,000		219,000
Earnings per share, basic and diluted (cents)	4.1		(0.2)

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

There are no dilutive instruments in issue as at 30 June 2026 and 30 June 2025.

11.      PROPERTY, PLANT AND EQUIPMENT, NET

The Group	Freehold land and land improvement			Buildings			Machinery and equipment		Railway Wagons		Other assets		Stand-by equipment and major spare parts		Construction in progress		Total
	USD'000			USD'000			USD'000		USD'000		USD'000		USD'000		USD'000		USD'000
Cost
At 1 January 2026	1,882			6,110			70,358		6,864		11,041		7,036		1,690		104,980
Additions	-			-			930		-		71		224		856		2,082
Transfers	-			167			504		35		84		(23)		(768)		-
Disposals	-			-			(5)		-		(60)		(150)		-		(216)
Reclassification from inventories	-			-			364		-		80		(744)		1,243		943
Exchange differences	70			68			3,871		236		126		128		60		4,559
At 30 June 2026	1,952			6,345			76,022		7,135		11,342		6,471		3,081		112,348
Accumulated depreciation
At 1 January 2026		-			384		49,532		3,253		6,372		-		-		59,541
Charge for the period		-			170		2,057		219		412		-		-		2,859
Disposals		-			-		(2)		-		(60)		-		1		(61)
Exchange differences		-			14		3,154		112		(144)		-		-		3,136
At 30 June 2026		-			568		54,741		3,584		6,580		-		1		65,474
Net Book Value
At 30 June 2026		1,952			5,777		21,281		3,551		4,762		6,471		3,080		46,874
At 31 December 2025		1,882			5,725		20,826		3,611		4,669		7,036		1,690		45,439

12.       OTHER ASSETS

	The Group				The Company
	As at		As at		As at		As at
	30 June 2026		31 Dec 2025		30 June 2026		31 Dec 2025
	USD'000		USD'000		USD'000		USD'000

Site restoration fund	263		222		-		-
Others	6		30		-		-
Total	269		252		-		-

13.       INVENTORIES

	The Group				The Company
	As at		As at		As at		As at
	30 June 2026		31 Dec 2025		30 June 2026		31 Dec 2025
	USD'000		USD'000		USD'000		USD'000

Finished goods	3,322		3,089		-		-
Spare parts	10,049		6,794		-		-
Work in progress	1,140		654		-		-
Raw materials	3,178		2,939		-		-
Other materials	3,495		6,210		-		-
Packing materials	214		169		-		-
Total	21,398		19,855		-		-
Less: Provision for obsolete inventories	(836)		(809)		-		-
Net	20,562		19,046		-		-

No additional provision for obsolete inventories is necessary based on current conditions as at 30 June 2026.

14.       TRADE RECEIVABLES

	The Group				The Company
	As at	As at			As at		As at
	30 June 2026		31 Dec 2025		30 June 2026		31 Dec 2025
	USD'000		USD'000		USD'000		USD'000

Trade Receivables	1,159		932		-		-
Less: Loss allowances	(831)		(803)		-		-
	328		129		-		-

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

The recoverability of trade accounts receivable depends to a large extent on the Group's customers' ability to meet their obligations and other factors which are beyond the Group's control. The recoverability of the Group's trade accounts receivable is determined based on conditions prevailing and information available as at reporting date. The Directors have reviewed the trade receivables and considered no further loss allowances for trade receivables is necessary, based on conditions prevailing and available information as at 30 June 2026.

15.       CASH AND CASH EQUIVALENTS

		The Group
		As at		As at
		30 June 2026		31 Dec 2025
		USD'000		USD'000

Cash in hand and at banks		93		479
Short-term deposit		18,688		10,954
Total		18,781		11,433

16.       BORROWINGS

		The Group
		As at		As at
		30 June 2026		31 Dec 2025
		USD'000		USD'000

Current portion:
Bank loans			31		866
Non-current portion:
Bank loans			2,098		1,755
Total borrowings			2,129		2,621

Undrawn loan amounts

As at 30 June 2026, the Group has USD6.2 million in working capital facilities available for drawdown under the Halyk Bank JSC short-term loan facilities.

17.       RELATED PARTIES

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

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

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

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

	The Group                  Purchase of services
	30 June 2026		30 June 2025
	USD'000		USD'000
Other related party
Office rental	-		-

	Payable to related parties
	30 June 2026		30 June 2025
	USD'000		USD'000
Other related party
Office rental	-		-

Compensation of key management personnel

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

	The Group				The Company
	30 June 2026		30 June 2025		30 June 2026		30 June 2025
	USD'000		USD'000		USD'000		USD'000

Short-term benefits	406		415		154		75

The remuneration of Directors and Key Executives is determined by the Remuneration Committee of the Company and subsidiary companies having regard to the performance of individuals and market trends.

18.       FINANCIAL INSTRUMENTS

Financial Risk Management Objectives and Policies

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

The condensed interim financial statements of the Group do not include all financial risk management information and disclosures required in the annual financial statements. There has been no change in the financial risk management objectives and policies since the previous financial year ended 31 December 2025. The Group continuously manages its exposures to risks and/or costs associated with the financing, investing and operating activities of the Group.

Fair Value of Financial Assets and Financial Liabilities

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

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

Cash and cash equivalents

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

Trade and other receivables and payables and accrued and other liabilities

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

Borrowings

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

As at 30 June 2026 and 2025, the fair values of financial assets and short-term financial liabilities approximate their carrying values.

19.       CONTINGENCIES

There are no significant changes in the contingencies since the financial year ended 31 December 2025.

 

END