Raydan Food Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months )

Decreased revenue from contracts and franchises .

- Decreased revenue from contracts and franchises .

- The company's share of the losses of the associate company .

- Lower revenue costs

- Reduced selling and marketing expenses

- Reduced administrative and general expenses

-Increased share of the company's losses from the associate company .

We would like to draw attention to Note (19) to the financial statements, which indicates that the Company’s total accumulated losses as of March 31, 2026 amounted to SAR 62,101,186 representing 84.9% of capital (December 31, 2025: SAR 55,989,599, representing 76.6% of capital). The Company’s current liabilities also exceeded its current assets, resulting in a working capital deficit of SAR 56,716,477 (December 31, 2025: SAR 60,040,163). These matters, together with the matters described in Note (19), indicate the existence of significant doubt about the Company’s ability to continue as a going concern. Nevertheless, the Company primarily relies on the implementation of its business plans to generate sufficient cash flows to enable it to meet its obligations as they fall due and continue its operations. Accordingly, the financial statements of the Company have been prepared on a going concern basis. Our conclusion has not been modified in respect of this matter.

Balances and disclosures are consistent with their presentation in the current period, ensuring the comparability of financial information.

-However, some figures in the preliminary condensed statement of profit or loss and other comprehensive income for the three-month period ended 31-03-2025 have been reclassified within the financial statements for the period ended 31-03-2026 . ( Reclassification of losses from the disposal of property amounting to -45,000 riyals and other net income amounting to 577,750 riyals, which affected the comparative operating loss from an operating loss in March 2025 of -5,983,823 riyals to -6,516,573 riyals ) It has no effect on net loss.

-The total loss during the current quarter amounted to (1,390,131) riyals, compared to a total loss of (726,554) Riyals for the same quarter of the previous year, with a total loss of (663,577) riyals, representing an increase of 91.33% .

-The operating loss during the current quarter amounted to (3,525,365) riyals, compared to an operating loss of (6,516,573) riyals. Riyals for the same quarter of the previous year, a decrease A loss of (2,991,208) riyals, representing -45.90% .

-The net loss after zakat and tax for the current quarter amounted to (6,103,532) SAR, compared to a net loss of (7,841,498) SAR for the same quarter of the previous year, reflecting a decrease A loss of SAR 1,737,966 , representing -22.16% , compared to a net loss of SAR 6,103,532 for the current quarter . The net loss for the previous quarter was (10,046,871) riyals , with a decrease in net loss of (3,943,339) riyals, representing a percentage of -39.25% .

- The total loss from comprehensive income during the current quarter amounted to (6,111,587) Riyals. Against a loss from comprehensive income (7,842,236) Riyals for the same quarter of the previous year, with a decrease A loss of SAR 1,730,649, representing -22.07% , compared to a loss in comprehensive income . For the current quarter (6,111,587) riyals and for the previous quarter (10,063,417) riyals, the total loss from other comprehensive income is a decrease of (3,951,830 ) riyals, or -39.27% .

-The loss per share during the current period amounted to (0.80) Riyals. In return for a loss per share, the amount is... (0.50) Riyals for the same period of the previous year.

-Total shareholders' equity (excluding minority interests) for the current period ( first quarter) amounted to 31-03-2026 ) 11,034,844 riyals, compared to 73,136,021 riyals for the same period of the previous year ( first quarter ) 31-03-2026 ) . This is due to a decrease in capacity . -62,101,177.00 riyals, representing -84.91% .

-Accumulated losses at the end of the current period amounted to (62,101,186) riyals and at a rate of -84.91% From the capital.

Announcement of accumulated losses

Redan Food Company announces that its accumulated losses have reached 84.91% of its capital, based on the quarterly financial results ending on March 31, 2026, which were announced on the Tadawul website on 12-05-2026.

The date the losses were reached is 12-10-1447 AH, corresponding to 31-03-2026 AD.

The amount of accumulated losses is 62,101,186 riyals.

The ratio of accumulated losses to capital is 84.91%.

The main reasons that led to these losses

Sales decline

Decreased revenue from contracts and franchises

No Hajj contracts this year

Expense for impairment of property and equipment

The company's share of the associate company's losses

Losses from the impairment assessment of the investment in the associate company

What measures will the company take regarding these losses?

- Completing the procedures for restructuring the service and operational sectors.

- Increase branch sales by diversifying products within restaurants and focusing on delivery services through a comprehensive marketing plan.

- Focusing on the food sector and boosting revenues through the signing of long-term strategic agreements.

- Restructuring the franchise and geographical expansion, especially outside the Kingdom.

Implementing procedures and instructions

The procedures and instructions specific to companies listed on the Saudi Stock Exchange whose accumulated losses have reached 20% or more of their capital will be applied.

Reference to any other regulations or instructions

The Board of Directors recommended initiating the required procedures and adhering to the relevant regulations and bylaws regarding companies whose losses exceed 50% of the capital, in terms of disclosure and preserving the rights and interests of shareholders.

The last day on which the Board of Directors can disclose its recommendations regarding accumulated losses

13-12-1447 corresponding to 2026-05-30

The last day on which the Board of Directors may convene an Extraordinary General Meeting to consider the continuation of the company

16-03-1448 corresponding to 2026-09-27

Additional information

The above dates are determined in accordance with the provisions of Article 132 of the Companies Law, which states that “If the losses of a joint-stock company reach half of the issued capital, the Board of Directors must disclose this and the recommendations it has reached regarding those losses within (60) days from the date it becomes aware that they have reached this amount, and call for an Extraordinary General Assembly to meet within (180) days from the date it becomes aware of this to consider the continuation of the company while taking any of the necessary measures to address those losses, or to dissolve it.”

Other :

The company's share of the associate company's losses amounted to (1,533,772) riyals in the first quarter . 2026 AD. Compared to a share of losses in the same quarter of the previous year amounting to ( 963,414 ) riyals .