Noting that the company's losses exceeded half of the issued capital as of March 27, 2024, as announced to the market on March 31, 2024, and after the board recommended reducing the company's capital on March 31, 2024 and approved a program to sell non-core brands to address the accumulated losses, a substantial new transaction emerged involving the merger of several commercial agencies on August 19, 2024. In light of these developments, which will impact the company’s financial situation, and in accordance with the interests of the shareholders, and after reviewing Article 132 of the Companies Law issued on 01/12/1443 AH (corresponding to June 30, 2022 ), which does not require companies to reduce their capital if losses exceed half of the issued capital but mandates taking necessary actions to address the losses.

Accordingly, the following decisions have been taken:

1. Amending the Board's previous recommendation to shareholders regarding accumulated losses in light of the above mentioned .

2. Recommending not to reduce the company’s capital and to continue the company with the following actions:

- Implement a cost control and performance improvement program.

- Continue with the program of selling non-core brands.

- Evaluate the financial impact expected from the potential significant developments of the transaction.