Saudi Top shareholders approve SAR 5.7M reserve transfer

Saudi Top for Trading Co. said its shareholders approved on June 24 the transfer of the company's statutory reserve of SAR 5.7 million to retained earnings. The move reclassifies the amount within shareholders' equity, leaving net equity unchanged.

Statutory reserves in Saudi Arabia are required by corporate law. Companies must set aside a portion of annual net profit until the reserve reaches a certain threshold. Once transferred to retained earnings, the funds are no longer restricted and can be used for dividend payments, share buybacks, or general corporate purposes at the board's discretion.

The approval came at the company's ordinary general assembly meeting. Saudi Top for Trading Co., listed on the Saudi Exchange, did not disclose any immediate plans for the freed-up capital. The transfer is based on the company's 2025 financial statements, the filing said.

For shareholders, the move signals that the company has met its statutory reserve requirements and is now in a position to deploy that capital more flexibly. It does not, by itself, change the company's earnings outlook or cash position.