Correction announcement from the Eastern Development Company regarding its announcement of the annual financial results ending on 31-12-2025 (twelve months)

The intangible assets item included government grants of approximately SAR 171.31 million as of December 31, 2025 and 2024. The company's management did not conduct an impairment test on these assets to determine their impairment in accordance with the requirements of International Accounting Standard 36 – Impairment of Assets. Management estimated the recoverable amount of the intangible assets by preparing a feasibility study. However, this study did not consider the essential elements required when calculating the amount in use as per paragraphs 30 and 31 of the aforementioned standards. Furthermore, the main assumptions used in the study were not supported by sufficient and appropriate evidence, as required by the aforementioned standard. Consequently, we were unable to obtain sufficient and appropriate audit evidence to assess the recoverability of the carrying amount of these assets. Therefore, we were unable to determine whether it is necessary to recognize an impairment loss or related disclosures as of December 31, 2025, in the consolidated financial statements.