Element List	Explanation
Introduction	The Saudi Printing and Packaging Company announces the Board of Directors’ recommendation to reduce the Company’s capital as follows:
Date of Board Meeting	2026-06-01 Corresponding to 1447-12-15
Capital before decrease	SAR 652,070,640
Capital after decrease	SAR 68,974,330
Percentage of Capital decrease	89.42 %
Number of Shares before Decrease	65207064
Number of Shares after Decrease	6897433
Reasons for the Capital Decrease	Restructuring the Company’s capital to offset an amount of SAR 583,096,305 of the accumulated losses.
Method of Capital Decrease	Cancellation of 58,309,631 shares, equivalent to 0.8942 share for every 1 share owned, so that the Company’s capital after the reduction becomes SAR 68,974,330.
Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company	There will be no material impact from the capital reduction on the Company’s obligations, operations, financial performance, operational performance, or organizational position as a result of the capital reduction.
Date of reduction	The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved
Approvals	The capital reduction is subject to obtaining the required approvals from the relevant official authorities and the Extraordinary General Assembly.
Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA	The appointment of Wasatah Capital as the financial advisor for the capital reduction process, and the Company will announce any updates upon submitting the capital reduction application file to the Capital Market Authority to obtain its approval.
Additional Information	The agreement signed with Wasatah Capital, in its capacity as the financial advisor, also includes studying the appropriate options and procedures for restructuring the Company’s capital in a manner that supports its financial position and enhances its stability, with the necessary recommendations to be submitted in due course. Any procedures that may be approved based on the results of this study will be subject to obtaining the required regulatory approvals.