Saudi Arabian Amiantit Co. Announces the Decrease of its Accumulated Losses to 22.91 % of the Capital

Element List	Explanation
Introduction	Following the announcement of the Saudi Arabian Amiantit Company on 28/03/2021G, where the Board of Directors has decided to fully use the statutory reserve, amounting to SAR (132,175,687), or only one hundred thirty-two million, one hundred seventy-five thousand, six hundred and eighty-seven Saudi Riyal, to amortize part of the company's accumulated losses amounting to SAR (205,498,799), or only two hundred and five million, four hundred and ninety-eight thousand, seven hundred and ninety-nine Saudi Riyals.

Element List

Explanation

Introduction

Following the announcement of the Saudi Arabian Amiantit Company on 28/03/2021G, where the Board of Directors has decided to fully use the statutory reserve, amounting to SAR (132,175,687), or only one hundred thirty-two million, one hundred seventy-five thousand, six hundred and eighty-seven Saudi Riyal, to amortize part of the company's accumulated losses amounting to SAR (205,498,799), or only two hundred and five million, four hundred and ninety-eight thousand, seven hundred and ninety-nine Saudi Riyals.

The company announces a decrease in its accumulated losses to SAR (73,323,112), or only seventy-three million, three hundred twenty-three thousand, one hundred and twelve Saudi riyals, representing a percentage of 22.91% of the share capital according to the attached auditor's report dated 10/04/2021G. Date of accumulated losses decrease 2021-04-10 Corresponding to 1442-08-28 Amount of the Accumulated Losses SAR (73,323,112) Measures Taken by the Company to Decrease Accumulated Losses Restructuring the shareholders' equity in the company by amortizing an amount of SAR (132,175,687) from the accumulated losses through the full usage of statutory reserve, thereby the losses to capital ratio decreased from 64.22% to 22.91%.

It is worth noting that the reduction of the statutory reserve will not have an impact on the cash accounts of the company, in addition to that there will be no impact on the net shareholders' equity and liabilities of the company. Auditor's Report showing the Financial Position of the Company after the Decrease of the Accumulated Losses Additional Information It is worth mentioning that the company announced on 25/03/2021G regarding the required procedures and its timelines after reaching their accumulated losses to 64.22% of the share capital, where the company fixed 180 days from the date on which the board of directors is aware of the losses (which ends on 21/09/2021AD), According to Royal Order No 15016 on 16/03/1442 H, regarding the holding of perusing some clauses of the Companies’ Law issued by Royal Decree No. (M/3) on 28/01/1437 H, the paragraph No2 of article No 150 of Companies’ Law dictates that in case on non-conveying the extraordinary assemble within 180 days from the date of it came to the knowledge of board of directors regarding the accumulated losses ( which will expire 21/09/2021), or in case the general assemble not resolved the subject matter, the company will be lapsed by the force of the law.

And based on the above-mentioned procedures, this announcement takes the company out of the implementation scope of Article 150 and does not oblige the company to follow what mentioned above, due to reducing its losses to less than 50% of the share capital.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.