Methanol Chemicals Company (Chemanol) Announcement on the Latest Material Developments Related to the Board of Directors’ Recommendation to Reduce the Company’s Capital

and with reference to the Company’s announcement published on the Tadawul website on 11/11/2025 regarding the Interim Financial results for the period ending on 2025-09-30 (Nine Months);

The Company announces that its Board of Directors has issued a resolution dated 03/07/1447 H corresponding to 23/12/2025 to amend its previous recommendation and issue a new recommendation to the Extraordinary General Assembly to reduce the Company’s capital to address the accumulated losses, which amount to 85.7%, according to the financial results for the third quarter ending on 30/09/2025. By such reduction the Company will be able to restructure its capital to extinguish five hundred seventy-seven million, nine hundred ten thousand, seven hundred ninety-two (577,910,792) Saudi Riyals of accumulated losses by cancelling fifty-two million, four hundred fifty thousand, eight hundred sixty-three (52,450,863) ordinary shares, with a reduction rate of 77.8%, equivalent to cancelling 0.7776 ordinary share for every one (1) ordinary share.

Accordingly, an amount of fifty‑three million, four hundred two thousand, one hundred sixty‑two (53,402,162) Saudi Riyals will be utilized, and as a result, all accumulated losses of the Company will be extinguished following the capital reduction and the use of part of the statutory reserve.

- Restructuring the Company’s capital to extinguish an amount of five hundred seventy‑seven million, nine hundred ten thousand, seven hundred ninety‑two (577,910,792) Saudi Riyals of the accumulated losses, instead of five hundred thirty‑five million, five hundred forty‑seven thousand, eight hundred sixty‑eight (535,547,868) Saudi Riyals.

- The Company will utilize an amount of fifty‑three million, four hundred two thousand, one hundred sixty‑two (53,402,162) Saudi Riyals from the statutory reserve (which represents 59.9% of the total reserve) to cover the remaining portion of the accumulated losses, instead of eleven million, thirty-nine thousand, two hundred thirty-eight) 11,039,238( Saudi Riyals from the statutory reserve (which previously represented 12.4% of the total reserve).

The Company will announce an invitation to its esteemed shareholders to attend an Extraordinary General Assembly meeting to vote on the Board of Directors’ recommendation once all the necessary regulatory approvals have been obtained.

The Company will also announce any material developments that require disclosure in due course.

There is no change regarding the appointment of the financial advisor. as MEFIC Capital was appointed on 10/04/1447 H corresponding to 02/10/2025 as the financial advisor to manage the capital reduction file.

The Company will announce the submission of the capital reduction application to the Capital Market Authority (CMA) in due course, in addition to any other developments, in line with the CMA's regulations.