Title :

Dividend Distribution policy

Content :

This policy document is approved in accordance with the Circular no. (3/2025) concerning Dividend Distribution Policy issued by the Muscat Stock Exchange (MSX). This policy aims to distribute annual cash dividends to shareholders, subject to the company’s performance, financial position, and the necessary regulatory and shareholder approvals. The main provisions of the policy are as follows:

 

Dividend to shareholder intent: In principle, the company intends to pay dividend to shareholders, subject to provisions of this policy.

 

Interval: Annual, in principle. However, the Board of Directors can recommend to the shareholders the distribution of interim dividend, subject to provisions of this policy.

 

Dividend Distribution Strategy: to reward the shareholders by distributing an optimal amount of profits earned during the year either in cash, by bonus shares or by DRIP (Dividend Re-Investment Plan) or its combination, subject to provisions of this policy.

 

Company’s Financial Position: The company’s distribution of dividend is based on net profit after taxes, legal reserves and free reserves, if any and / or retained earnings.

 

Growth Strategy and Industry Update: While the company intended to distribute dividend to its shareholders, the recommendation of the Board of Directors takes into consideration (1) the prioritization of maintaining a robust and stable financial position, (2) ensuring cash availability requirements for company operations, (3) investments and future growth plans of the company, (4) overall business environment, macroeconomics, and competitive advantage updates.

 

Dividend Distribution Plan: The disclosure of the dividend announcement proposal will include the date qualifying for registered shareholders for dividend and the amount of dividend per share on the paid-up capital.

 

Dividend Announcement Placement Plan: The company will publish all announcements related to dividend distributions via the official website of Muscat Stock Exchange and the company’s website https://muscatthreads.com/ in accordance with the regulatory requirements.

 

Dividend approval: The Board of Directors would recommend the dividend proposal for the approval of the shareholders in annual general meeting.

 

Policy Rationale: The company, in principle, intends to adopt the distribution of annual cash dividend to its shareholders, from net profits or retained earnings, subject to the consideration of the growth strategy and industry update as forming part of this policy, and after obtaining necessary approvals from shareholders and in accordance with the laws and regulations in force in the Sultanate of Oman.

 

Prohibition of Distribution:

Profits may not be distributed to the shareholders in the following cases:

1. If the distribution affects the company's ability to pay its debts and fulfil its financial obligations on their due dates.

2. If the company incurs losses, which are not covered in full.

No distribution may be made except from net profits after applicable taxes, transfer to legal and free reserves, if any and from retained earnings.  

 

Amendments: The company reserves its full right to amend or update the dividend distribution policy whenever necessary, in accordance with regulatory developments or changes in the company’s financial or strategic circumstances. The company is committed to informing to its shareholders and stakeholders of any material changes to the distribution plan by announcing them through approved official channels, including submitting required disclosures to Muscat Stock Exchange and publishing on the company’s website https://muscatthreads.com/. This measure is part of the company’s disclosure and transparency policy, ensuring shareholders are kept informed in a timely manner of all relevant developments, and strengthening confidence in its financial and administrative policies.

 

Disclaimer: This statement serves as a guiding framework for the company’s approved dividend distribution policy and aims to clarify the general principles guiding the annual distribution process. However, this statement does not constitute a final commitment or absolute guarantee regarding future dividend distributions, as these depend on the review of annual financial results, regulatory changes, market conditions, and the company’s financial strategy each year. The Board of Directors retains full rights and discretionary authority to propose or announce dividend distributions as deemed appropriate as per prevailing circumstances, whether in terms of amount or timing of distribution. The Board may also amend, update, or make exceptions to this policy if material changes occur in the company’s regulatory, financial, or strategic environment, as required for the company’s and shareholders’ best interests in the long term. The company is committed to clearly and transparently notifying shareholders of any amendments or exceptions to the dividend distribution policy through approved official channels, ensuring shareholder participation in all related decisions and achieving the highest levels of transparency and credibility.

 

Contact Information:

Manish Rachh - Investor Relations Officer

Email: [email protected]

Phone +968 2444 6806