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Element List	Explanation
Introduction	"With reference to the lawsuit filed against the Zakat, Tax and Customs Authority, which was previously disclosed in the Company’s Prospectus (prior to listing) and related to the collection of customs differences, and which was among the disclosed risks in the Prospectus, National Signage Industrial Co. announces that a preliminary decision was issued on 24-11-2025 canceling Collection Decision No. (1446/24827). It is worth noting that this decision is preliminary and subject to appeal by the Zakat, Tax and Customs Authority within 30 days from the date of receipt."
Lawsuit Opponent	Zakat, Tax and Customs Authority
Name of the Plaintiff	National Signage Industrial Co.
Type of the Lawsuit	Objection to a Collection Decision
Name and Location of the Competent Judicial Authority	General Secretariat of the Tax, Zakat and Customs Committees
Date of Submitting the Lawsuit	2025-04-17 Corresponding to 1446-10-19
Summery of the Lawsuit and its Reasons	The lawsuit relates to an objection against Collection Decision No. (1446/24827) dated 05-12-2024 issued by the Zakat, Tax and Customs Authority assessing customs differences on 73 import declarations totaling SAR 3,010,542.23, due to tariff code classification differences and undervaluation of freight charges. The case was filed on 17-04-2025 under number CF-2025-263711. On 24-11-2025, a preliminary decision was issued canceling the assessment relating to the tariff classification amounting to SAR 2,613,184.13. With respect to freight valuation, the Company informed the committee that it accepts this portion due to freight cost discrepancies, noting that 10% of related invoices are paid by bank transfer and the remainder under a documentary credit.
Expected Financial Impact Including the Claimed Sums, Fees and any other Charges	"Based on the preliminary decision issued by the First Customs Committee in Riyadh, the Committee has cancelled the assessment relating to the customs tariff dispute amounting to SAR 2,613,184.13. Accordingly, the Company will not incur this portion. However, the Company accepted the adjustment relating to freight differences, and will therefore record an expense of SAR 397,358.10 as customs differences. Therefore, the net financial impact on the Company’s financial statements is limited to SAR 397,358.10 instead of the previously-assessed amount of SAR 3,010,542.23. Financial statement impact: • Cancellation of SAR 2,613,184.13 previously assessed, which will not be recorded as an expense or provision • Recognition of SAR 397,358.10 as an expense in the income statement • No material cash flow impact beyond the accepted amount"
Any Substantial Legal, Regulatory, or Operational Risks that may Result from the Lawsuit, including the Results of such Impact on the Company's Financial, Legal or Operational Standing	The decision issued is preliminary and subject to appeal.
Measures Taken by the Company, including the Estimation of the Potential Liability Resulting from the Lawsuit	The Company obtained a customs exemption for the tariff classification under dispute pursuant to its industrial license.
Additional Information	The Company will not appeal the decision and will announce any future developments in this regard.

National Signage Industrial Co. Announces the Issuance of a Preliminary Decision in its Favor by the First Customs Committee in Riyadh in Case No. CF-2025-263711