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Element List	Explanation
Announcement Detail	Saudi Industrial Development Company (“SIDC”) announces the correction of an accounting treatment related to the transfer, during the financial year ended 31 December 2023, of the balance of the fair value reserve of financial assets measured at fair value through other comprehensive income, pertaining to its invested share in Arab Industrial Fibers Company (“Ibn Rushd”), amounting at the date of transfer to SAR 132.9 million, to the accumulated losses account prior to the derecognition of the related asset. This has been carried out by reversing the accounting entry for the transfer that was recorded at the end of the 2023 financial year, by reinstating the fair value reserve of financial assets through other comprehensive income within equity, and by restating the comparative financial statements for the years 2023 and 2024 upon preparing the financial statements for the year ending 31 December 2025, with disclosure of the nature and impact of the correction in accordance with the requirements of International Financial Reporting Standards (IFRS). The financial impact of correcting the accounting treatment is limited to the reclassification of items within equity, whereby an amount of SAR 132.9 million will be reallocated from the accumulated losses account to the fair value reserve of financial assets measured at fair value through other comprehensive income and There is no impact on operating activities, cash flows, assets, or liabilities. Furthermore, the resulting impact on retained earnings is not available for cash distributions, as it represents a reclassification arising from the correction of an accounting treatment, rather than realized operating profits, and does not alter the Company’s operational performance results. The Company affirms that this correction does not represent any change in accounting policies or accounting estimates, and that it ensures full compliance with the relevant laws and regulations, that reinforces the principles of transparency and disclosure, and reflects the Company’s commitment to the Authority’s directives and its efforts to develop and enhance the capital market.

Element List

Explanation

Announcement Detail

Saudi Industrial Development Company (“SIDC”) announces the correction of an accounting treatment related to the transfer, during the financial year ended 31 December 2023, of the balance of the fair value reserve of financial assets measured at fair value through other comprehensive income, pertaining to its invested share in Arab Industrial Fibers Company (“Ibn Rushd”), amounting at the date of transfer to SAR 132.9 million, to the accumulated losses account prior to the derecognition of the related asset.

This has been carried out by reversing the accounting entry for the transfer that was recorded at the end of the 2023 financial year, by reinstating the fair value reserve of financial assets through other comprehensive income within equity, and by restating the comparative financial statements for the years 2023 and 2024 upon preparing the financial statements for the year ending 31 December 2025, with disclosure of the nature and impact of the correction in accordance with the requirements of International Financial Reporting Standards (IFRS).

The financial impact of correcting the accounting treatment is limited to the reclassification of items within equity, whereby an amount of SAR 132.9 million will be reallocated from the accumulated losses account to the fair value reserve of financial assets measured at fair value through other comprehensive income and There is no impact on operating activities, cash flows, assets, or liabilities. Furthermore, the resulting impact on retained earnings is not available for cash distributions, as it represents a reclassification arising from the correction of an accounting treatment, rather than realized operating profits, and does not alter the Company’s operational performance results.

The Company affirms that this correction does not represent any change in accounting policies or accounting estimates, and that it ensures full compliance with the relevant laws and regulations, that reinforces the principles of transparency and disclosure, and reflects the Company’s commitment to the Authority’s directives and its efforts to develop and enhance the capital market.