Reon Energy Limited (“Reon or the Company”) was incorporated on September 15, 2014 as a public unlisted company to carry out the business of trading and construction of renewable energy projects, mainly solar, to commercial and industrial consumers. The registered office of the company is situated at the 3rd Floor, Dawood Centre, M.T. Khan Road, Karachi.

Reon was established as a wholly owned subsidiary of Dawood Lawrencepur Limited (DLL) part of the Dawood Hercules Group to carry forward the Group’s vision of sustainable, reliable, and affordable energy. The Group had entered the renewable energy sector in 2008 through DLL, and Reon was created to further this initiative by developing clean energy technologies to ensure long-term energy abundance. From its inception, Reon operated independently, undertaking a diverse range of projects in the Commercial & Industrial (C&I) space. Key early projects included a bioenergy plant at Nestlé Farms, solar tube wells in Sharaqpur, a telecom solar solution in Kallar Kahar, and a 125 KW solar PV installation at Wah Nobel Limited. To support performance and reliability, Reon developed SPARK™, a localized energy analytics platform, along with a Network Operations Center to offer real-time system monitoring and customer support. A major milestone was achieved with the signing of Pakistan’s first corporate Power Purchase Agreement (PPA) with Sindh Engro Coal Mining Company (SECMC) for a 5 MW solar project in Tharparkar.

In 2023, Reon launched its first Reflex™ Energy Storage System at Gatron Industries to address intermittency issues and enhance power reliability. This was followed in 2024 by Pakistan’s largest Reflex™ Battery Energy Storage Project—a 20.7 MW / 22.7 MWh system for Lucky Cement, designed to stabilize a hybrid microgrid of 28.8 MW and 30 MW solar, while improving gas engine efficiency. Reon also expanded into wind energy development as part of its broader strategy to offer integrated renewable energy solutions.

On March 22, 2023, Dawood Lawrencepur Limited (DLL) approved the sale of its entire stake in Reon to Juniper International FZ LLC, fully owned by Mr. Kashif Naseem Afzal. The transaction was ratified by DLL’s shareholders on May 30, 2023, and concluded on October 8, 2024. Reon is now a wholly owned subsidiary of RMH International DMCC, the energy arm of Mr. Afzal’s business ventures.

Reon core business operations span two major segments: Commercial & Industrial (C&I) and Telecom. In the C&I sector, Reon offers turnkey solar PV solutions, intelligent renewable microgrids tailored for energy-intensive industries such as cement, textile, FMCG, automotive, and dairy. In the Telecom segment, the company provides solar-powered infrastructure for telecom towers, enabling operators to reduce diesel dependence, enhance uptime, and cut operational costs. Reon has also developed in-house technologies like SPARK™, a hardware-agnostic energy asset management platform for real-time performance monitoring, and REFLEX™, a lithium-ion energy storage system optimized for long-term reliability and microgrid integration. To date, Reon has deployed over 500 MW of solar PV and 90 MWh of  energy storage capacity, including projects at over 7,500  telecom sites. Its notable commercial projects include large-scale installations for Bestway Cement, Fauji Cement, Unilever Pakistan, and Friesland Campina Engro. Beyond Pakistan, Reon has executed projects in countries such as Qatar, UAE, Yemen, Mauritius, Kenya, and Nigeria.

The Company is a wholly owned subsidiary of RMH International DMCC, a private company based in the UAE that specializes in high and very high voltage dry-insulated technologies for power utilities. RMH is owned by the Company's leadership team, which has depicted strong cohesiveness.

Following a change in ownership initiated in 2023 and concluded in 2024, Reon transitioned from being a subsidiary of DLL to becoming part of RMH International DMCC. The Company now operates under the leadership of Mr. Kashif Naseem Afzal, a seasoned businessman with a diversified investment portfolio spanning power generation, natural resources, energy transition, and real estate. RMH International has an established presence in smart energy solutions across several countries, including Qatar, South Africa, Saudi Arabia, and the UAE, reflecting its global operational capabilities. The transition in ownership marked a significant shift for Reon, bringing with it a new phase of strategic direction and growth. Despite the change, the Company has demonstrated strong continuity and operational stability under the new ownership.

Mr. Kashif Naseem Afzal is a seasoned entrepreneur and investor with deep expertise in the natural resources sector, particularly in base and precious metals mining. As the founder and director of Juniper Group, a global investment advisory and principal investment firm, he has successfully led high-impact ventures across mining, energy, and real estate. His business acumen is reflected in his track record of originating and executing complex transactions, managing global advisory mandates for major players like Barrick Gold and Denham Capital, and establishing strategic partnerships across Australia, Canada, the Middle East, and Pakistan. With a strong academic background and international experience, Mr. Afzal combines technical insight with strategic foresight, making him a key driver of long-term value and innovation.

Mr. Kashif Naseem Afzal possesses significant financial strength, backed by a diversified portfolio of active and passive investments across multiple sectors and geographies. His holdings include substantial property investments in the UK as well as other high-value assets, reflecting a strong capital base and investment capacity. Through Juniper Group, he maintains principal stakes in mining, energy, and renewable projects globally, further underscoring his financial reach and strategic positioning in key industries. However, as Reon has only recently been acquired under his ownership, the extent and nature of financial support that may be extended to the Company, if needed, remains to be seen and has yet to be demonstrated.

Reon is governed by a three-members board, comprising exclusively Executive Directors. The Board includes the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and the Chief Commercial and Strategy Officer, reflecting a management-driven governance structure.

Mr. Mujtaba Haider khan -CEO is a seasoned leader with a remarkable career spanning strategy, technology, and entrepreneurship. He brings a wealth of experience from his tenure as the Head of Strategy at Dawood Hercules Corporation Limited (DHCL), Pakistan's largest industrial conglomerate. Prior to DHCL, Mujtaba spearheaded strategy and transformation initiatives at British Telecom (BT) in London, while also holding various commercial roles. Mujtaba's educational background further strengthens his capabilities. He holds a BS in Computer Systems Engineering, providing him with a strong technical foundation, while his MBA from Cranfield School of Management equips him with the strategic acumen to navigate complex business environments. Beyond his corporate experience, Mujtaba is a serial entrepreneur, having played a founding role in several startups across technology, security, and financial services. He has been associated with Reon since its inception and has played an instrumental role in its growth, contributing significantly to its strategic direction, project execution, and market expansion.

Mr. Mudasar- holds a Bachelor of Science degree in Electrical and Computer Engineering from Oklahoma State University, USA. With over two decades of experience in the telecom industry, Mudasar has held key positions at leading organizations, including Huawei Technologies and Telenor. His responsibilities at Reon include: Leadership in Solar and Energy Management: Mudasar has been instrumental in integrating telecom and energy management solutions, helping Reon revolutionize the energy landscape through sustainable, customer-centric innovations.

Mr. Waleed-CFO is a Chartered Accountant from the Institute of Chartered Accountants of Pakistan, with over a decade of experience in finance and strategic management roles at prominent companies, including KPMG, Pepsi, and Zong. At Reon Mr. Waleed plays a pivotal role in steering the organization’s strategic direction and financial operations. His responsibilities include: Financial Leadership, Banking and Investor Relations, Strategic Planning and Business Valuation and align financial strategies with corporate goals.

The Company has yet to establish formal board committees, which presents an opportunity for further enhancement in its governance structure. The Board meets on an annual basis, though formal minutes of the meetings are not documented.

The External Auditors of the Company M/S A.F Ferguson & Co., Chartered Accountants a QCR-rated firmexpressed an unqualified opinion of Financial Statements for the period ended Dec’24. The Firm is Category ‘A’ on SBP panel.

The Company’s organization is structured around the effective functioning of eight major departments. Each department is headed by an experienced professional, reporting directly to the CEO. The departments comprise: a) Finance, b) HR & Admin, c) Technical, d) Sales & Commercial, e) Product Development, f) Transformational & QHSE, g) Asset Performance Management, h) Marketing.

The management team is led by Mr. Mujtaba Haider Khan, the CEO, and is supported by a group of experienced professionals, each heading key functional departments to ensure efficient operations and strategic growth. Mr. Waleed-CFO is a Chartered Accountant from the Institute of Chartered Accountants of Pakistan, with over a decade of experience in finance and strategic management roles at prominent companies, including KPMG, Pepsi, and Zong. At Reon Mr. Waleed plays a pivotal role in steering the organization’s strategic direction and financial operations. His responsibilities include: Financial Leadership, Banking and Investor Relations, Strategic Planning and Business Valuation and align financial strategies with corporate goals. The senior management team also includes key leadership members: Mr. Mudasar Hussain, Chief Commercial Officer; Mr. Syed Saqib Ahmed Zaidi, Chief Operating Officer; Mr. Muhammad Zohaib, Chief Technology Officer; and Mr. Salman Saeed Khalili. Together, they bring deep industry expertise and strategic oversight across commercial operations, technology, and project execution, playing a critical role in driving Reon’s continued growth and innovation in the energy sector.

There are currently no formal management committees in place. However, the management team holds monthly meetings to ensure operational efficiency and effectiveness across the Company. As the Board of Directors and the management team comprise the same individuals, there is strong alignment between strategic oversight and execution, enabling agile decision-making and cohesive direction for the Company’s growth.

Company has installed ORACLE as its Enterprise Resources Planning (ERP) Software specifically the FICO (Finance Module) for maintaining its financial database.

The control environment at Reon is adequate, built on a foundation of clear policies and procedures. The Company emphasizes transparency, accountability, and ethical standards in its operations, reinforced by a well-structured management team. Regular monitoring and effective internal controls ensure operational efficiency, risk mitigation, and compliance with relevant laws and regulations. Additionally, the Company leverages decent IT solutions, enhancing performance across various fronts.

The power sector in Pakistan is undergoing significant transformation, with increasing emphasis on renewable energy to address rising costs of electricity generation. The government and private sector have actively promoted sustainable energy solutions, leading to a notable rise in solar rooftop installations. During FY23 and FY24, there has been substantial growth in solar rooftop adoption, driven by rising electricity costs, greater awareness of clean energy, and supportive policies, including net metering. These installations have gained momentum, particularly in the commercial and industrial sectors, as businesses seek to reduce energy expenses and enhance energy security. The trend is also supported by advancements in solar technology and financing options, making solar energy a more viable and attractive choice for consumers across Pakistan.

Reon holds a prominent position in Pakistan’s renewable energy sector, particularly in the Commercial and Industrial (C&I) segment. As one of the early movers in this space, Reon has established itself as a leading provider of solar EPC and smart energy solutions. The Company has a strong track record of executing large-scale solar and hybrid energy projects across various industries, including cement, textile, telecom, and FMCG, earning a reputation for technical expertise, innovation, and dependable project delivery. In addition to solar and hybrid systems, Reon is also actively engaged in the deployment of advanced lithium-ion battery energy storage solutions. These systems play a critical role in enhancing energy reliability, optimizing load management, and supporting off-grid and backup applications—particularly for telecom and industrial clients. This capability further strengthens Reon’s position as a comprehensive energy solutions provider in Pakistan’s evolving energy landscape.

The Company's revenue model is contract-based and largely depends on the volume and execution of projects in hand. It derives its revenue from three key segments: (i) Commercial & Industrial, (ii) Telecommunication (Telcos), and (iii) Operations & Maintenance Services. During CY24, the Company recorded a notable year-on-year increase in total revenue compared to the previous year. In the sales mix, a significant portion of revenue was generated from Commercial & Industrial customers, alongside meaningful contributions from the Telco segment. The Company's project pipeline remains strong, with several major upcoming projects targeted, positioning it for sustained and potentially improved—revenue performance in the future. Additionally, the O&M services segment, though contributing a smaller share, provides a steady and recurring stream of income, enhancing overall revenue stability.

The Company’s gross margin saw a modest decline during CY24 compared to the prior year, yet remained healthy, supported by stable revenue generation despite competitive pricing pressures. Operating margin mirrored this trend. Conversely, the net margin improved markedly over the same period, reflecting enhanced bottom-line performance. This notable increase was primarily driven by a one-time adjustment related to the write-back of a loan previously received from DLL, which positively impacted profitability. Going forward, margins are expected to remain stable, supported by a healthy addition of new projects to the Company’s portfolio.

Reon demonstrates strong sustainability both in its business model and operations, rooted in its focus on clean and renewable energy solutions. The Company's emphasis on solar, hybrid systems, and advanced lithium battery energy storage aligns with global energy transition goals. Its recurring income from O&M services, a robust project pipeline, and a diversified customer base further contribute to long-term financial and operational sustainability. Reon’s continued investment in innovation and energy efficiency positions it well to support Pakistan’s shift toward a greener and more resilient energy future.

Reon’s working capital cycle is closely aligned with its project-based business model. It begins when a project is secured, with a portion of the contract value typically received in advance from clients. These advance payments are made against insurance-backed performance guarantees provided by Reon to its clients—an integral component of its operating structure. As projects progress, trade receivables are booked based on the stage of completion, effectively linking receivables to the execution timeline of each project. On the payables side, the Company generally makes advance payments for the procurement of imported equipment such as solar panels and inverters, often backed by letters of credit (LCs). For local inputs like civil works and cabling, Reon follows a defined credit policy, enabling it to manage payment timelines efficiently. As of CY24, trade receivables rose compared to the previous year, mainly driven by the expansion in the Company’s project portfolio. Despite this increase, the Company has been meeting its operational funding needs through internal cash generation. Reon has minimal reliance on short-term borrowings, decent financial profile. However, it does utilize unfunded facilities (such as LCs and guarantees), depending on procurement frequency and project requirements.

During CY24, free cash flows from operations experienced a slight decrease compared to the prior year. Nonetheless, a significant drop in interest expenses improved the Company’s financial flexibility. As a result, interest and debt coverage ratios strengthened notably, reflecting a greater ability to meet financial obligations through operational cash generation.

As of CY24, Reon’s leverage position improved markedly compared to the previous year, with its debt entirely consisting of long-term borrowings aligned to its renewable energy operations. The equity base strengthened, largely supported by better profitability. Supported by stable contractual cash flows, the Company plans to raise funds through Commercial Paper (CP), reflecting its proactive approach to diversifying funding sources.