Naqi Water Company announces the latest developments related to the contract for the purchase, supply, and installation of machinery for the development of one of the existing production lines at the main factory, with a value of EUR 900,000, through the signing of an addendum to the contract that includes the implementation of additional works and technical upgrades.

Naqi Water signed a contract addendum for EUR 114,600 for technical upgrades to a production line at its Qassim factory, adding to the initial EUR 900,000 contract with Middle East Machinery Factory Company Limited (MEMCO).
The upgrades are designed to improve operational efficiency and reduce raw material consumption by decreasing the plastic weight used in produced containers.
The expected completion date for supply, installation, and commercial operation has been moved to the first half of 2027 to accommodate the additional technical modifications.
The contract addendum involves a related party, as a major shareholder of MEMCO also holds an indirect 35% stake in Naqi Water Company through Saqa Company.

Element List	Explanation
Introduction	With reference to Naqi Water Company's previous announcement regarding the signing of a contract for the purchase, supply, and installation of machinery with Middle East Machinery Factory Company Limited ("MEMCO") for the development of one of the existing production lines at the Company's main factory in the Qassim region.
Previous Announcement	Naqi Water Company announces the signing of a contract for the purchase, supply, and installation of machinery for the development of one of the existing production lines at the main factory, with a value of EUR 900,000.
Date of Previous Announcement on Saudi Exchange’s Website	2025-09-02 Corresponding to 1447-03-10
Hyperlink to the Previous Announcement on the Saudi Exchange Website	Click Here
Latest Developments Of The Announced Event	Naqi Water Company announces the signing of an addendum to the previously announced contract, which includes carrying out certain technical upgrades to the machinery and production line, contributing to improving operational efficiency and reducing raw material consumption by reducing the weight of plastic used in the produced containers, thereby supporting the Company's direction toward enhancing resource utilization efficiency and reducing plastic consumption.
Reasons For The Delay on The Date of The Event Previously Announced	The reason for the change in the timeline is the addition of the works and technical modifications stipulated in the contract addendum and the additional time required for implementation and operation works. Accordingly, the expected date for completion of supply, installation, and commercial operation has become during the first half of 2027.
The costs associated with the event, and if they have changed or not with indication of the reasons.	The additional costs associated with the event relate to the signing of an addendum to the existing contract, which includes the implementation of additional works and technical upgrades to the machinery and production line, aimed at enhancing operational efficiency, improving the use of raw materials, and reducing plastic consumption, in line with the Company's plans to develop its production operations. The value of the additional contract addendum amounts to EUR 114,600 in consideration for the implementation of the additional works and technical modifications stipulated in the contract addendum.
Delay consequences on the Company’s financial results	The delay is attributable to the implementation of the additional works and technical modifications stipulated in the contract addendum, which resulted in changing the expected commencement date of the financial and operational impact of the line to the first half of 2027.
Additional Information	The contract addendum is with a related party, as one of the major shareholders of Middle East Machinery Factory Company Limited owns 50% of its capital and also owns 50% of Saqa Company, which in turn owns 35% of the shares of Naqi Water Company. The transaction was approved in accordance with the Company’s approved policies and related-party procedures that comply with the relevant laws, regulations, and market rules. This disclosure is made in compliance with the rules of the Capital Market Authority and the Rules on the Offer of Securities and Continuing Obligations relating to related-party transactions.