Raydan Food Co. Announces its accumulated loses reaching 66.8 % of its capital

2. Decrease in revenues from contracts and franchising.

3. Increase in selling and marketing expenses.

4. Impairment expense on right-of-use assets.

5. Impairment expense on land value (property and equipment impairment).

6. The company’s share in discontinued operations – a subsidiary under liquidation.

7. Impairment losses on investment in an associate.

8. The company’s share of losses from the associate.

9. Increase in cost of revenues.

2. Increasing branch sales by diversifying the products offered within restaurants and focusing on delivery services through a comprehensive marketing plan.

3. Emphasizing the catering sector and boosting revenue by signing strategic long-term agreements.

4. Reducing operational costs by consolidating warehouses, slaughterhouses, and the central kitchen.

5. Expanding geographically into currently uncovered areas through catering contracts, alongside opening branches to strengthen presence.

6. Restructuring franchise operations and expanding geographically, especially outside the Kingdom

If the losses of a joint stock company reach half of its issued capital, the Board of Directors must disclose this and its recommendations regarding such losses within sixty (60) days from the date it becomes aware of the situation, and must call for an Extraordinary General Assembly meeting within one hundred eighty (180) days from that date to consider whether the company should continue and take any necessary measures to address the losses, or to dissolve it.

• We would also like to draw the attention of our esteemed shareholders to the following steps taken by the company:

- On 29-05-2025, an announcement was made on the Tadawul website regarding the Board of Directors’ recommendation to reduce the company’s capital, followed by a capital increase through a rights issue, as part of the plan to address accumulated losses.

- On 07-08-2025, it was announced on Tadawul that the company had submitted a capital reduction request file to the Capital Market Authority, in preparation for completing the necessary regulatory procedures.

- On 18-09-2025, the Capital Market Authority announced on Tadawul its decision to approve Raydan Food Company’s request to reduce its capital from SAR 158,084,670 to SAR 73,136,030.

- On 03-11-2025, it was announced on Tadawul that the Extraordinary General Assembly held on 02-11-2025 had approved the capital reduction by a vote of 95%. The reduction became effective at the end of the second trading day following the Assembly meeting. The company will announce the results of this reduction at a later date.