Aqaseem Factory for Chemicals and Plastics Company announced that it has signed a memorandum of understanding with Leader Express Car Service Company to acquire 40% of the capital of Leader Express Car Service Company.

• Leader Express Car Service Company has not appointed a financial consultant during this phase.

• Completing this transaction requires obtaining the approval of the General Assembly of Shareholders for dealings with related parties. This approval must be obtained before the transfer of ownership is finalized, in compliance with the requirements of the relevant laws and regulations.

• Existing shareholders will not directly or indirectly own any shares or operate any competing businesses in the sector of business of the company in which they acquire a minority stake, either in the Kingdom of Saudi Arabia or in the GCC countries. Furthermore, none of their direct or indirect family members will have any competing businesses for a period of five years from the closing date.

Mr. Faisal Khatem Awad Al-Zahrani - Vice Chairman of the Board and Chief Executive Officer

• Obtain approval from the Board of Directors of Aqasim Chemical and Plastics Manufacturing Company.

• Obtain approval from the General Assembly for dealing with related parties.

• Obtain any other necessary approvals from regulatory authorities.

The financial impact of the acquisition is expected to be positive and tangible in the medium and long term for Aqasim Chemical and Plastics Manufacturing Company, given Leader Express Automotive Services' strong operational performance and rapid growth.

Leader Express has achieved significant growth rates in both revenue and profit margins over the past period, supported by the expansion of its service center network, which now exceeds sixty-seven (67) specialized centers across the Kingdom. The company continues to implement ambitious expansion plans aimed at increasing market share, strengthening its customer base, and improving operating margins, reflecting the robustness of its business model and the sustainability of its growth. This acquisition is expected to diversify Aqasim's revenue streams by entering a promising service sector characterized by continuous growth and high demand, thereby enhancing the stability of the company's future cash flows. The acquisition is also expected to support higher financial and operational returns in the medium and long term, thanks to the target company's growing performance, expansion potential, and ability to achieve increasing profit margins.

Further details regarding the financial and operational impact of the transaction will be disclosed upon completion of the procedures.

Reason for the Transaction: This transaction aligns with Aqasim Chemical and Plastics Manufacturing Company's strategy to diversify its investments and enhance its revenue streams by entering high-growth, stable-return operational sectors. The automotive services sector is a promising sector in the Saudi market, experiencing continuous expansion and increasing demand for maintenance and repair services. Given the rapid growth and widespread presence of Leader Express Automotive Services across the Kingdom, this acquisition represents a strategic move for Aqasim to capitalize on expansion opportunities and achieve a rewarding long-term return on investment. It will also strengthen the company's financial position and diversify its investment portfolio, thus supporting its sustainable future growth.

• Financing Method: The transaction will be financed from Aqasim Chemical and Plastics Manufacturing Company's own financial resources and cash flow.

• Aqaseem Factory for Chemicals and Plastics Company will announce any material developments regarding the transaction in due course.