| Element List | Explanation |
|---|---|
| Introduction | Raydan Food Company announces that its accumulated losses have reached 76.6% of its share capital, based on the preliminary financial results for the period ending on 31-12-2025, which were disclosed on the Tadawul website on 31-03-2026 |
| Date of Realization of the Loss | 2026-03-31 Corresponding to 1447-10-12 |
| Date of Notifying the Board of Directors with the Accumulated Loss | 2026-03-31 Corresponding to 1447-10-12 |
| Amount of the Accumulated Losses | 55,989,599 SAR |
| Percentage of the Accumulated Losses out of the Capital (%) | 76.6 % |
| Major Reasons Leading to the Losses | - Low sales. - Reduced revenues from contracts and franchises - There are no Hajj contracts this year - Depreciation expense on property and equipment - The company's share of the losses of the associate company - Assessment losses of the decline in investment in the associate company |
| Measures to be Taken by the Company in Regard to Such Losses | - Completing the restructuring procedures for the service and operational sectors. - Increasing branch sales by diversifying in-restaurant products and focusing on delivery services through a comprehensive marketing plan. - Focusing on the catering sector and enhancing revenues by signing long-term strategic agreements. - Restructuring the franchise model and expanding geographically, especially outside the Kingdom. |
| Last day for board of directors to publish the recommendation for the Accumulated Losses | 13-12-1447 corresponding 30-05-2026 |
| Last day for board of directors to publish the EGM invitation to consider the company’s continuation | 16-03-1448 corresponding 27-09-2026 |
| Application of the Procedures and Instructions | Procedures and Instructions Applicable on Companies Listed in Saudi Capital Market Whose Accumulated Losses Reach 20% or more out of the Capital Thereof will be Applied |
| Reference to additional procedures or instructions | The Board also recommended starting the required procedures and complying with the relevant laws and regulations with regard to companies whose losses exceeded 50% of the capital in terms of disclosure and preservation of shareholders' rights and interests. |
| Additional Information | The dates mentioned above are determined in accordance with Article 132 of the Companies Law, which states: "If a joint-stock company's losses reach half of its issued capital, the Board of Directors must disclose this and provide recommendations regarding those losses within (60) days from the date they become aware of the situation. Additionally, an extraordinary general assembly must be convened within (180) days from the date of awareness to consider the company’s continuation while taking any necessary actions to address the losses or to dissolve the company. |
