• Kobe auction in December 2025 sold 64,435 pearls at an average price of $80/piece
• Total revenue of $5.1 million
• Average Index Point per pearl sold was 30, with an average $/index point of $2.61

Atlas Pearls Ltd (ASX: ATP) ('Atlas Pearls' or 'the Company') has provided an update on an auction held in Kobe, Japan on 10-11 December 2025. The auction sold 64,435 pearls at an average price of $80/piece, generating total revenue of $5.1 million. The average Index Point per pearl sold was 30, with an average $/index point of $2.61, down from $3.56 in the previous auction. The company employs an internal Index Point system to assess the quality of pearls based on shape, grade, size, and colour, enabling consistent comparison of auction results. The composition of goods offered at each auction varies, and the December 2025 auction had a higher average index per piece compared to the September 2025 auction. The event delivered a sell-through rate of 76%, with the volume of stock withheld from sale due to bids not meeting the company's pricing expectations. These pearls will be directed into the company's value-add sales channel, where they expect to realise higher returns. The CEO, Michael Ricci, commented that the auction results were satisfactory, reflecting the higher quality of pearls presented, but the lower value per Index Point was due to slightly softer demand from customers in recent months. The company continues to sell and expand its sales into wholesale, value-added, and a small but growing retail channel.

The company expects the quality of its pearls to improve in the near term as it harvests a higher proportion of pearls from its better-performing farm locations. However, the softer market demand and lower quality have influenced the company's private sale customers, with several customers reducing their recent spending compared to prior years due to slower downstream demand and elevated stock holdings.