Al Battal Chemical Industries Company announces the latest developments regarding the company’s announcement that its accumulated losses have reached more than 50% of its capital, and the recommendations reached by the Board of Directors regarding the accumulated losses.

and with reference to Article (132) of the Companies Law and in compliance with Article Five of the Procedures and Instructions for Companies Listed on the Financial Market whose accumulated losses have reached 20% or more, which pertains to (the company's accumulated losses reaching 50% or more of its capital),

the company wishes to inform its shareholders of the Board of Directors' recommendations regarding the accumulated losses.

First: The Board has adopted a plan to address the losses, which will gradually improve the company's financial performance and enable it to overcome the losses in the coming period. This will be achieved by implementing the following measures:

• Improving operational performance and increasing sales.

• Collecting outstanding insurance compensation as per the loss adjuster's report.

• Rehabilitating and restarting the factory.

• Studying the addition of new products.

• Controlling costs and improving efficiency.

Second: The Board recommends to the Extraordinary General Assembly that the company continue its operations and activities despite losses exceeding half of its capital, in accordance with Article 132 of the Companies Law, given the company's improved performance during 2026.

The company will take the necessary steps to present this recommendation to the upcoming Extraordinary General Assembly for a vote, subject to shareholder approval.

The company will also announce any further developments in this regard as they occur.

The company would like to point out that it is in the process of completing the regulatory requirements for the items of the assembly, and will announce the invitation to the general assembly as soon as those requirements are completed.