Announcement by Naqi Water Company on the Completion of the Poultry Sector Expansion and Increase in Production Capacity

Element List	Explanation
Transaction Details	Naqi Water Company announces the signing of a contract for the purchase of machinery and equipment for the poultry sector, as a continuation of the 50% expansion plan recently initiated by the Company through the construction of two new production poultry houses. The Company had previously announced the signing of an addendum to the existing contract to complete the construction works for the poultry sector project, which included the construction of two additional poultry houses along with their infrastructure, structures, and buildings, resulting in a 50% increase in the project's production capacity.

Element List

Explanation

Transaction Details

Naqi Water Company announces the signing of a contract for the purchase of machinery and equipment for the poultry sector, as a continuation of the 50% expansion plan recently initiated by the Company through the construction of two new production poultry houses. The Company had previously announced the signing of an addendum to the existing contract to complete the construction works for the poultry sector project, which included the construction of two additional poultry houses along with their infrastructure, structures, and buildings, resulting in a 50% increase in the project's production capacity.

The purchase of the new machinery and equipment comes as part of the same expansion plan to achieve automation of the egg production cycle and product grading processes, enhance production efficiency, in line with the Company's expansion strategy and targeted growth, and to keep pace with the growing market demand. Transaction Amount EUR 1,125,000 Transaction Conditions Not applicable Parties of the Transaction Big Dutchman, Germany. Transaction Financing Method The contract will be self-financed by the Company without the need for any external financing. Date of Entering Into The Transaction 2026-06-14 Corresponding to 1447-12-28 Description of Activity of The Asset Subject of The Transaction Equipment for layer poultry production houses. Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction None Transaction reasons This transaction comes as part of the Company's plan to complete the phases of expansion in the poultry sector by providing the necessary equipment for the two new production poultry houses that had previously commenced implementation. This will contribute to operating them efficiently and increasing production capacity using the latest technologies in table egg breeding and production, in line with the Company's growth strategy and to meet the increasing demand in the market. Expected Impact of the Transaction on the Company and Its Operations The transaction is expected to contribute to completing the readiness of the two new poultry houses and increasing the production capacity of the poultry sector, as this phase forms part of the Company's plan to reach the targeted production capacity previously announced.

This expansion will also contribute to enhancing operational efficiency, increasing the ability to meet market needs, and supporting the Company's contribution to the food security sector in the Kingdom.

The financial impact is expected to appear during the first half of 2027 Related Parties There are no related parties involved in this transaction.

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.