Naqi Water Company announces the latest developments related to the contract for the implementation of the Company's factory construction project in Riyadh City, with a value of SAR 16,524,473, to support operational expansions and increase the factory's production capacity.

Naqi Water Company signed a SAR 1,225,000 contract addendum for additional construction and electrical works at its new factory in Riyadh, expanding the original project scope valued at SAR 16,524,473.
The addendum includes increasing the mezzanine floor area for packaging equipment and upgrading electrical breakers to support higher production capacities and operational efficiency.
The expected project delivery and the commencement of its financial impact have been moved to the first half of 2027, following delays in material supplies and the inclusion of the additional works.
The contract constitutes a related-party transaction with Advanced Architect Company, which is linked to a major shareholder of Naqi Water Company.

Element List	Explanation
Introduction	With reference to Naqi Water Company's previous announcement regarding the signing of a contract for the construction of its new factory in Riyadh City, the Company announces to its valued shareholders the latest developments related to the project. The Company has signed an addendum to the existing contract, which includes the execution of additional construction and electrical works aimed at enhancing the factory's operational readiness and aligning it with the Company's expansion plans.
Previous Announcement	Naqi Water Company announces the signing of a contract for the implementation of the Company's factory construction project in Riyadh City for a value of SAR 16,524,473.
Date of Previous Announcement on Saudi Exchange’s Website	2025-10-22 Corresponding to 1447-04-30
Hyperlink to the Previous Announcement on the Saudi Exchange Website	Click Here
Latest Developments Of The Announced Event	The additional works include increasing the factory's operational areas, including expanding the mezzanine floor area designated for the installation of packaging equipment, thereby accommodating greater production capacities and enhancing the efficiency of operational processes. The works also include increasing the factory's electrical capacity by upgrading the main electrical breaker and increasing the available electrical power, which supports the operation of current and future equipment and production lines with greater efficiency. These developments come within the framework of the Company's commitment to developing the infrastructure of the new factory and enhancing its operational capabilities in line with future growth and expansion plans.
Reasons For The Delay on The Date of The Event Previously Announced	he change in the timeline is attributable to several factors, including delays in the supply of certain materials required for the implementation of the project due to logistical circumstances related to supply conditions and the associated procedures, in addition to the time required to execute the additional works in the project. This resulted in an extension of the timeline for completing the works in accordance with the project's technical requirements. The Company confirms that work is continuing to complete the implementation of the works according to the approved plans, ensuring the project's readiness and achieving the targeted operational efficiency. The expected delivery date is the first half of 2027.
The costs associated with the event, and if they have changed or not with indication of the reasons.	The additional costs associated with the project resulted from signing an addendum to the existing contract to execute additional works within the new factory construction project in Riyadh City, as part of completing the project's requirements, enhancing its operational efficiency, and increasing its readiness to accommodate future expansions, thereby supporting the Company's growth objectives and increasing the factory's operational and production capacity. The value of the additional contract addendum amounts to SAR 1,225,000 (excluding Value Added Tax). The costs stated in this announcement are limited to the value of the contract addendum referred to above.
Delay consequences on the Company’s financial results	The delay is attributable to the implementation of additional development works aimed at enhancing the factory's infrastructure and increasing its operational efficiency and production capacity, resulting in a change in the expected commencement date of the project's financial impact to the first half of 2027.
Additional Information	his contract constitutes a related-party transaction, as one of the major shareholders of Advanced Architect Company owns a 50% stake in its capital, and also owns a 50% stake in Saqa United Group Company, which in turn owns 35% of the shares of Naqi Water Company. The transaction was approved in accordance with the Company's approved policies and related-party procedures that comply with the relevant laws, regulations, and market rules. This disclosure is made in compliance with the rules of the Capital Market Authority and the Rules on the Offer of Securities and Continuing Obligations relating to related-party transactions.