Element List	Explanation
Introduction	Saudi Company for Hardware (SACO) announces that, on 2 August 2026, it received a Statement of Claim in commercial arbitration proceedings filed by Astra Food Company Limited, in connection with an ongoing arbitration dispute between the two parties relating to a Franchise Rights License Agreement.
Lawsuit Opponent	Astra Food Company Limited.
Name of the Plaintiff	Astra Food Company Limited (Claimant).
Type of the Lawsuit	Commercial Arbitration.
Name and Location of the Competent Judicial Authority	The Arbitral Tribunal constituted to resolve the arbitration dispute between Astra Food Company Limited and Saudi Company for Hardware (SACO), pursuant to the arbitration agreement executed between the parties.
Date of Submitting the Lawsuit	2026-08-02 Corresponding to 1448-02-19
Summery of the Lawsuit and its Reasons	According to the Statement of Claim, the Claimant (Astra Food Company Limited) alleges the existence of a dispute concerning the duration and termination of the franchise agreement and the resulting financial consequences, including matters relating to the bank guarantee, inventory, and certain compensation claims. SACO confirms that all facts and claims contained in the Statement of Claim represent allegations made by the Claimant only and do not constitute any admission by SACO as to their validity or the entitlement to any of the amounts claimed. SACO reserves all of its legal rights and defenses and will submit its response, defense, and counterclaims before the Arbitral Tribunal in accordance with the applicable legal procedures.
Expected Financial Impact Including the Claimed Sums, Fees and any other Charges	According to the Statement of Claim, the Claimant seeks an order requiring SACO to pay a total amount of SAR 41,333,654.30, in addition to legal fees amounting to 5% of the claimed amount and future arbitration costs. At this stage, it is not possible to determine the potential financial impact with reasonable certainty, as the arbitration proceedings are still at an early stage and no final award or decision has been issued. SACO will disclose any material developments in due course in accordance with the applicable laws and regulations.
Any Substantial Legal, Regulatory, or Operational Risks that may Result from the Lawsuit, including the Results of such Impact on the Company's Financial, Legal or Operational Standing	At the present time, it is not possible to reliably assess the potential legal, regulatory or financial risks arising from this claim, as the arbitration proceedings remain at an early stage and no final award or decision has been rendered. The Company will disclose any material developments as they occur in accordance with the applicable laws and regulations. At this stage, SACO does not believe that this dispute will have any material operational impact on its business or operations.
Measures Taken by the Company, including the Estimation of the Potential Liability Resulting from the Lawsuit	SACO has appointed specialized legal counsel to represent the Company in the arbitration proceedings and to undertake all necessary legal actions to protect its rights and interests, including preparing and submitting its response to the Statement of Claim. SACO also intends to submit counterclaims in accordance with the applicable legal procedures. At this stage, it is not possible to estimate the potential liability that may arise from these proceedings, as the arbitration remains at an early stage. SACO will disclose any material developments in due course in accordance with the applicable laws and regulations.
Additional Information	SACO will disclose any material developments in due course in accordance with the applicable laws and regulations.