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AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2023
(All amounts are in Kuwaiti Dinars)

The Shareholders’ General Assembly of the Parent Company, held on August 3, 2023, had approved distributing dividends
as free bonus shares from the treasury shares at the rate of 2% to be distributed among the Shareholders registered in the
Parent Company’s shares’ registry as of the entitlement date, each according to his ownership interest. During the year
ended December 31, 2023, the effect of this distribution was recorded by reducing the Statutory reserve by an amount of
KD 508,405 based on the approval of the Capital Markets Authority, without any increase in either the Company’s share
capital or its issued shares on the entitlement date of such distributions.

The Parent Company’s Shareholders’ Ordinary and Extraordinary General Assembly meeting, held on October 5, 2023,
approved the reduction of the Parent Company’s authorized, issued and paid up capital from KD 62,955,982 to KD
48,474,817, with total reduction of KD 14,481,165, to set-off the full balance of the accumulated losses amounting to KD
24,245,118 as per the audited consolidated financial statements for the period ended June 30, 2023, as follows:
• Reducing the balance of statutory reserve by KD 937,755.
• Reducing the full balance of share premium by KD 8,826,198.
• Reducing the share capital by KD 14,481,165 through cancelling 144,811,650 shares with a par value of 100 fils
per share to set-off the remaining portion of the accumulated losses balance.

Those amendments were notarized in the commercial registry on October 16, 2023 and their effect was recorded in the
group’s consolidated financial statements at that date.

Subsequent to the date of the accompanying consolidated financial statements, and among the legal procedures
required to complete the merger of the Parent Company “Al Mazaya Holding Company - K.S.C.P. (Holding)” with "First
Dubai Real Estate Development Company - K.S.C.P. ", the Shareholders Extraordinary General Assembly of the Parent
Company held on January 4, 2024, had approved the merger contract as well as the merger through amalgamation
between Al Mazaya Holding Company K.S.C.P and First Dubai Real Estate Development Company K.S.C.P after
completing all relevant regulatory approvals. It also approved increasing the capital of Al Mazaya Holding Company -
K.S.C.P. from KD 48,474,817 to KD 52,556,117 distributed over 525,561,174 ordinary shares with total increase of KD
4,081,300 distributed over 40,813,008 shares. Such shares will be allocated to the non-controlling shareholders of First
Dubai Real Estate Development Company - K.S.C.P. that are registered in the shareholders registry of First Dubai Real
Estate Development Company - K.S.C.P. as on the record date. It also approved the amendments to the Memorandum
of Incorporation and the Articles of Association of the Company regarding the increase in the Company’s capital as a
result of the merger (Note 32)

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