Hepsor AS consolidated unaudited interim report for Q4 2025 and twelve months

Financial Performance - The Group's consolidated revenue for Q4 2025 was 4.5 million euros, a decrease from 10.5 million euros in Q4 2024, while the total revenue for 2025 was 35.4 million euros compared to 38.4 million euros in 2024 [1] - The Group recorded a net loss of 0.5 million euros in Q4 2025, down from a net profit of 1.0 million euros in Q4 2024, with a total net profit for 2025 of 1.0 million euros, compared to 2.1 million euros in 2024 [2] - Profitability was impacted by a decrease in the number of apartments handed over, with 141 apartments delivered in 2025 compared to 194 in 2024, and a decline in profit margins from 17.8% in 2024 to 16.9% in 2025 [3] Marketing and Development Activities - Marketing expenses increased to 1.3 million euros in 2025 from 0.9 million euros in 2024, driven by more intensive sales and marketing activities due to a larger number of projects [3] - The Group expanded its development portfolio with three new plots of land, planning to include approximately 700 apartments and around 2,500 m² of commercial space [5] - The Group commenced construction on four new development projects in 2025, including residential projects in both Estonia and Latvia [9][10][11] Sales and Inventory - The Group concluded primary sales agreements for 185 homes in 2025, valued at 36.1 million euros, nearly double the 109 homes and 19.8 million euros in 2024 [6] - As of December 31, 2025, the Group had 10 residential development projects on sale, with 355 new homes completed and 92% sold [7] - The inventory of completed unsold apartments at the end of 2025 was 28 units, with 428 new homes under construction, representing a 223% increase from the previous year [8] Bond Offering - On November 21, 2025, the Group successfully completed a public offering of bonds, initially set at 6 million euros but increased to 8 million euros due to strong demand, with a fixed annual interest rate of 9.50% [4] Future Outlook - The Group plans to launch five new development projects in 2026, including two residential and one commercial project in Estonia, and one residential and one commercial project in Latvia [13]