Saudi Chemical Company Holding Announces the Latest Developments Related to the Signing of a Contract with Bosnia's TRB Company.

Element List	Explanation
Introduction	With reference to the Company's announcement published on the Saudi Exchange (Tadawul) website on 06/02/2024 regarding the signing of a contract with Bosnia's TRB Company for the transfer of know-how and localization of the manufacturing of mechanical fuzes for 155 mm and 105 mm ammunition and mortar rounds, the Company would like to disclose through its subsidiary Saudi Chemical Company Limited the latest developments related to the implementation of the agreement.
Previous Announcement	Saudi Chemical Company Holding Announces the Signing of a Contract with Bosnia's TRB Company.
Date of Previous Announcement on Saudi Exchange’s Website	2024-02-06 Corresponding to 1445-07-25
Hyperlink to the Previous Announcement on the Saudi Exchange Website	Click Here
Latest Developments Of The Announced Event	The agreement remains in effect, and the company continues to work on completing the relevant regulatory requirements, including obtaining the necessary licenses, completing field trials, and fulfilling end-user requirements in preparation for product qualification and approval. The company also continues to coordinate with the relevant authorities to complete the procedures required for the transfer and localization of the product’s technology. The company expects this contract to have a positive financial impact once the product qualification process is completed and commercial production begins, which will be announced at a later date.
Reasons For The Delay on The Date of The Event Previously Announced	The incomplete implementation of the agreement to date is attributable to the fact that certain implementation stages remain subject to the completion of the relevant regulatory requirements, including the following: 1. Obtaining a license to import mechanical fuzes, which is required to import the samples necessary for conducting field trials with the end user in compliance with the applicable regulatory requirements and licensing procedures. 2. Continuing coordination and engagement with the relevant authorities to commence field trials within the Kingdom, in preparation for the qualification and approval of the product by the end user, followed by the transfer and localization of the technologies associated with this product.
The costs associated with the event, and if they have changed or not with indication of the reasons.	There is no change in the costs associated with the agreement compared to what was previously announced. The company will disclose any material developments in due course.
Delay consequences on the Company’s financial results	The company expects this contract to have a positive financial impact once the product qualification process is completed and commercial production begins.
Additional Information	None.