Naqi Water Company announces the establishment of a plant for manufacturing bottled water caps and the signing of a contract to purchase and install specialized machinery for manufacturing bottled water caps to enhancein -house manufacturing and boost operational efficiency, with a total value of SAR 17,575,000.

Element List	Explanation
Transaction Details	Naqi Water Company announces the signing of a contract for the purchase and installation of specialized machines for manufacturing bottled water caps at the Company's main factory. The purpose is to manufacture bottled water caps within the Company's facilities, thereby enhancing integration across its production process, eliminating reliance on external suppliers, and reducing costs.
Transaction Amount	SAR 17,575,000, excluding Value Added Tax (VAT).
Transaction Conditions	Not applicable
Parties of the Transaction	1. SACMI Imola Società Cooperativa Meccanici (Italy). 2. Naqi Water Company.
Transaction Financing Method	The transaction will be financed through the Company's internal resources, without the need for external financing.
Date of Entering Into The Transaction	2026-06-14 Corresponding to 1447-12-28
Description of Activity of The Asset Subject of The Transaction	Specialized machines for manufacturing bottled water caps.
Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction	Not applicable.
Transaction reasons	The acquisition of the asset is part of the Company's strategy to strengthen industrial integration and enhance its operational activities by manufacturing one of the key components of bottled water packaging within its own facilities instead of relying on external manufacturing. This will contribute to improving operational efficiency, enhancing supply chain flexibility, and increasing control over product quality.
Expected Impact of the Transaction on the Company and Its Operations	The transaction is expected to enhance operational integration and develop the Company's supply chain by internally providing part of its requirements for bottled water caps. This will improve operational efficiency, strengthen control over the quality of packaging components, enhance production process flexibility, and support the sustainability of the Company's operations and the development of its industrial capabilities. Furthermore, the financial impact of this asset is anticipated to begin during the second quarter of 2027.
Related Parties	There are no related parties involved in this transaction.