| Introduction | Al Kathiri Holding Company announces the Board of Directors' recommendation to reduce the Company's capital as follows: |
| Date of Board Meeting | 2026-07-01 Corresponding to 1448-01-16 |
| Capital before decrease | 113,022,000 SAR |
| Capital after decrease | 43,777,776 SAR |
| Percentage of Capital decrease | 61.27 % |
| Number of Shares before Decrease | 226044000 |
| Number of Shares after Decrease | 87555552 |
| Reasons for the Capital Decrease | To restructure the Company's capital to offset the accumulated losses. |
| Method of Capital Decrease | The Company will cancel 138,488,448 shares, representing the cancellation of 0.613 share for each share held. |
| Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company | The capital reduction will not have any material impact on the Company's obligations, operations, financial performance, operational performance, or regulatory status. |
| Date of reduction | The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved |
| Approvals | The Board of Directors' recommendation remains subject to obtaining the approvals of the Capital Market Authority, the relevant regulatory authorities, and the Extraordinary General Assembly. |
| Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA | The Company will announce in due course the appointment of a financial advisor, as well as the submission of the capital reduction application file to the Capital Market Authority to obtain its approval. |