Avanceon Limited ("AVN" or "the Company) was incorporated in Pakistan on March 26, 2003, as a private limited Company, which was converted to a public Company on March 31, 2008, under the repealed Companies Ordinance, 1984 (now, Companies Act, 2017). The Company is listed on the Pakistan Stock Exchange Limited.

In 2003, the Company successfully implemented its first EMS project following the establishment and acquisition of Innovative Automation & Engineering (Pvt.) Limited by Engro from Innovative (Pvt.) Limited. Over the years, the Group gradually expanded its operational scope by entering international markets through the establishment of wholly owned subsidiaries and strategic partnerships in the Middle East. In 2017, the Company incorporated Octopus Digital Limited, along with another subsidiary, Avanceon Automation & Control LLC in Qatar. In 2020, the Company established a wholly owned subsidiary, Avanceon QFZ LLC, under the Companies Regulations of the Qatar Free Zones Authority (QFZA). In 2021, Avanceon FZE, based in Dubai, UAE, incorporated a wholly owned subsidiary in Riyadh, Kingdom of Saudi Arabia, under the name Avanceon Saudi for Energy Co., and launched the "Road to 100" plan. In 2022, the Company executed the acquisition of the Empiric AI Joint Venture Agreement with Zamil Operations & Maintenance Co. Limited. During 2023, the Company achieved a significant milestone by recording its highest-ever PO and revenue in the Pakistan region and secured several new, highly lucrative projects in the Middle East.

The principal activity of AL is to provide industrial automation, process control, and system-integrated solutions to trade in products of automation and control equipment, and provide the related technical services. The Company offers a wide range of industrial solutions, including Building Technologies, Process Manufacturing, Truck Loading Automation Systems (TLAS), SCADA &HMI, ESD & DCS, and Energy Monitoring Systems. Its digital industrial solutions portfolio includes OT-Cybersecurity, Smart City initiatives, and Industrial Digitization. The Company maintains a strong presence in the international market through its offices in Dubai (UAE), Doha, and Qatar, serving the broader Middle East region. In Pakistan, the Company's head office is located at 19 km Multan Road, Lahore, 54500. Regional offices are situated at The Hive, 1st Floor, M.A. Tabba Foundation Building, Girzi Road, Block 9, Clifton, Karachi, and The Hive, 6th Floor, ISE Towers, Jinnah Avenue, Blue Area, Islamabad.

Avanceon Limited is the holding Company of a leading industrial automation service provider, Avanceon Group. The Company's major shareholding of ~70.04% rests with the individuals, Mr. Bakhtiar Hameed Wain (~59.07%), Mr. Amir Wain (~10.40%), and Mr. Tanveer Karamat (~0.57%). The remaining stake of ~29.96% is vested with free float in public/institutions and others.

Over the years, the Company’s ownership structure has remained largely unchanged, and this stability is expected to continue in the foreseeable future, reflecting consistency and long-term commitment from its shareholders.

Since its inception in 1984, the Company has evolved into a comprehensive 360-degree solution provider, delivering automation, energy management, and maintenance services to leading blue-chip clients across Pakistan and the Middle East. This growth has been driven by the visionary leadership of its founding sponsors, who have guided the Company with a clear long-term focus. Despite facing strong competition in the international market, the Company maintained a steady growth in its financial performance and operations, supported by well-planned strategic expansions in business.

The Company’s financial strength is underpinned by its Holdco status, operating through seven subsidiaries: Avanceon Free Zone Establishment, UAE (AFZE); Avanceon Automation & Control W.L.L (AVAC); Avanceon Saudi Energy Company (AVSEC); Avanceon QFZ LLC (AVQFZ); and Octopus Digital Limited, along with its two subsidiaries: Empiric AI (Private) Limited and Octopus Digital FZ (ODFZ). On a consolidated basis, the Company reported a robust equity base of PKR 14.6bln and achieved a topline of PKR 16.1bln, indicative of its strong operational performance and financial stability.

The overall control of the board is vested with seven members. The board composition includes three independent directors, three non-executive directors, one executive and one female director, depicting the essence of a sound governance framework. The Company's board is chaired by Mr. Khalid Hamid Wain.

Mr. Khalid Hamid Wain is the Chairman, Co-founding Partner, and Director of Innovative Private Limited. He holds a degree in Electrical Engineering from the University of Engineering and Technology, Lahore. With over 40 years of international experience, he specializes in cost engineering, project management, and business strategy. Mr. Bakhtiar Hameed Wain, the CEO and Founder of the Company, graduated with a Bachelor's degree in Mechanical Engineering from the University of Engineering and Technology, Lahore. He brings 30 years of professional experience, including leadership roles at global organizations such as Exxon Chemicals, Fauji Fertilizer, and ICT Limited. Mr. Amir Wain, Founder and CEO of i2c, possesses 27 years of international experience in the information technology and payment industries. He earned his degree in Computer Science and Engineering from the University of Texas. Mr. Tanveer Karamat has over 20 years of experience in selling automation solutions to the oil and gas sector and has been associated with Avanceon since 2003. He holds a Bachelor's degree in Chemical Engineering from the University of Pakistan. Mr. Mohammad Shahid Mir graduated with a BA (Hons) in Economics from the University of Sussex, Brighton, England. He further enhanced his qualifications by becoming a Certified Credit Risk Professional from American Express Bank. He brings 32 years of extensive experience in corporate and commercial banking, risk management, credit administration, and trade finance. Mr. Omer Iqbal Khan holds a Bachelor's degree from the London School of Economics and a Master's degree from Oxford University. With 20 years of expertise in consulting and the financial industry, his focus areas include corporate finance and business strategy. Ms. Faaria Rehman Salahuddin has a distinguished professional career spanning over 26 years. She is an expert in delivering organizational turnarounds through strategic realignment of business lines. She has worked with several leading financial institutions, including ANZ Grindlays, Standard Chartered Bank, HBL, and Bank Alfalah.

In line with best corporate governance practices, the Company has established two board committees: the Audit Committee and the HR & Remuneration Committee, both chaired by Ms. Faaria Rehman Salahuddin. During CY24, four meetings of the Board of Directors (BOD) were convened, with high attendance by all board members, reflecting their strong commitment. Key matters discussed included the Company's financial performance, strategic direction, and progress toward set targets. The minutes of all BOD meetings were formally documented. Additionally, four meetings each of the Audit Committee and the HR & Remuneration Committee were held during the year, both demonstrating strong member participation.

The Company has appointed Crowe Hussain Chaudhury & Co., Chartered Accountants, as its external auditors. The firm is rated in Category 'A' by the State Bank of Pakistan's panel of auditors, reflecting the Company’s commitment to high standards of financial transparency. The auditors expressed an unqualified opinion on the financial statements of the Company for the period ended December 2024.  The Company has an established in-house internal audit department, with the Audit Committee providing oversight to ensure effective internal controls and full compliance with financial and regulatory standards.

The Group has established a robust and well-defined organizational layout to efficiently manage its operations across multiple regions. At the executive level, Mr. Bakhtiar Hameed Wain serves as the Founder and Chief Executive Officer (CEO), providing strategic leadership and overseeing the Company's global direction. Reporting directly to Mr. Wain are key regional and functional leaders, including Mr. Sarmad Mahmood Qureshi, President – Middle East & Africa; Mr. Junaid Mushtaq Paracha, President – Southeast Asia; and Mr. Shahid Mir, Chief Financial and Risk Officer (CHFRO). Each of these executives is responsible for driving performance and ensuring operational excellence within their respective domains. Mr. Bakhtiar Hameed Wain reports to the Board of Directors and ensures alignment with the Company’s vision and long-term objectives.

Mr. Bakhtiar Hameed Wain, the Founder and Chief Executive Officer (CEO), holds a Bachelor's degree in Mechanical Engineering from the University of Engineering and Technology (UET), Lahore. He brings with him over 30 years of diverse professional experience, having held senior leadership roles at globally recognized organizations such as Exxon Chemicals, Fauji Fertilizer, and ICT Limited. Mr. Mohammad Shahid Mir, the Chief Financial and Risk Officer (CHFRO), holds a BA (Hons) in Economics from the University of Sussex, Brighton, England. He further strengthened his professional credentials by becoming a Certified Credit Risk Professional through American Express Bank. With 32 years of extensive experience in corporate and commercial banking, risk management, credit administration, and trade finance, Mr. Mir plays a pivotal role in the Company’s financial governance and risk oversight. He is supported by a team of highly skilled and experienced professionals across all key departments.

AVN’s management team comprises well-qualified and experienced professionals who operate with a high degree of strategic and operational discretion. Their leadership has been instrumental in driving organizational efficiency, timely decision-making, and long-term strategic planning. This has positively influenced the Company’s overall management effectiveness and supported the execution of its growth objectives.

The Company has transitioned from a traditional on-premises infrastructure to a hybrid IT environment, leveraging Microsoft Azure cloud services. Key business applications are currently operated in a virtualized environment (VMware/Hyper-V) with clustering and failover capabilities, significantly reducing system downtime and enhancing disaster recovery (DR) readiness. A comprehensive backup and DR solution has been implemented, utilizing cloud-based replication and real-time synchronization. Critical systems have been replicated off-site with automated backup schedules and routine disaster recovery drills to ensure business continuity. The Enterprise Resource Planning (ERP) platform has been upgraded to streamline core functions, remaining closely aligned with departmental KPIs to support performance monitoring and strategic decision-making. Customer engagement and service management have been centralized through a modern Customer Relationship Management (CRM) system. Additionally, the integration of Power BI dashboards has enabled real-time analytics and data visualization across all major departments.

A Security Information and Event Management (SIEM) system has been deployed to monitor, analyze, and respond to security threats in real-time across the entire IT environment. The Company has implemented a comprehensive cybersecurity framework that includes Next-Generation Antivirus (NGAV), Endpoint Detection and Response (EDR), and Multi-Factor Authentication (MFA) to ensure data security and compliance with international cybersecurity standards. Firewalls and routers are equipped with Intrusion Detection and Prevention Systems (IDPS) to further enhance network protection. Performance reporting is conducted at multiple organizational levels to ensure transparency and accountability. Departmental Performance Reports are reviewed monthly by the CEO, COO, and Department Heads. Project Delivery and Resource Utilization Reports are reviewed biweekly by the CEO, PMO, and Engineering Leads. Sales Pipeline and Revenue Forecasting Reports are reviewed on a weekly/monthly basis by the CEO, Sales Director, and Head of Business Development. Avanceon is a certified member of the select group of Control System Integrators Association and it is also listed on the Control Engineering Magazine’s System Integrator Hall of Fame.

The global technology sector, including hardware, software, services, and telecommunications, recorded research and development (R&D) spending of approximately USD 5.1trn in CY24, reflecting a year-on-year growth of around 14.0%. The sector is projected to grow at an annual rate of approximately 9.8%, with total market size expected to reach around USD 5.6trn by CY25. Pakistan’s technology sector contributed approximately 1.6% to the national GDP in FY24, slightly down from 1.7% in the same period last year. The sector’s market size was recorded at around PKR 1,753bln in FY24, reflecting a robust year-on-year growth of ~32.8%. During 9MFY25, the sector continued its growth trajectory, registering a YoY increase of ~6.6%. As of FY24, Pakistan’s technology sector comprised over 30,000 IT and IT-enabled Services (ITeS) companies, operating across diverse segments including customized software development and Business Process Outsourcing (BPO). During the same period, the number of active IT professionals was estimated at approximately 600,000, while around 25,000 IT graduates entered the workforce annually, supporting the sector’s human capital base. During 9MFY25, Pakistan’s technology exports reached approximately USD 2,825 mln, reflecting a significant year-on-year increase of ~23.7% (9MFY24: USD 2,284 mln). The United States remained the largest export destination, with export earnings amounting to around USD 1,610 mln—up ~37.3% YoY (9MFY24: USD 1,172mln). The United Arab Emirates ranked second, with exports valued at approximately USD 276mln, registering a robust growth of ~53.3% YoY. The United Kingdom stood as the third largest market, with export receipts totaling around USD 217 mln, reflecting a modest year-on-year growth of ~3.1%.

Avanceon is a leading player in the industrial automation industry, holding a dominant position in the domestic market. This strong market presence enables the Company to command a significant share of the local industry, reflecting its established reputation and competitive advantage.

A predominant portion of the Company's revenue is derived from project revenue across diverse sectors, including oil & gas, water & wastewater, infrastructure, transportation, food & beverages, sugar & ethanol, and chemicals & fertilizers. In CY24, the Company reported a consolidated revenue of PKR 16.1bln, compared to PKR 17.7bln in CY23. From a geographical perspective, the United Arab Emirates and Qatar were the leading revenue contributors with PKR 5.6bln and PKR 4.8bln. Revenue from Pakistan and the Kingdom of Saudi Arabia was relatively balanced, contributing PKR 2.7bln and PKR 2.9bln respectively. The After-Market Support (AMS) segment remains a stable and recurring revenue stream, managed through the Company’s subsidiary, Octopus Digital Limited. In 1QCY25, the Company's total turnover was reported at PKR 2.5bln.

In CY24, the Company's business from core operations experienced a slight reduction compared to the same corresponding period, while the gross profit margin remained stable at 26.4% (CY23: 31.5%). The share of profit from the joint venture between Avanceon Saudi Energy Company and Zamil Operations and Maintenance Company stood at PKR 179.5mln CY23: (PKR 110.3mln). Despite relatively lower taxation, the Company's bottom line was reported a PKR 2.0bln (CY23: PKR 2.6bln), reflecting a marginal decrease at 12.8% (CY23: 14.7%). In 1QCY25, the Company's gross profit margin and net profit margin clocked at 38.8% and 10.8% respectively.

The management remains committed to achieving the milestone of USD 100mln in annual sales by 2028. For 2025, the Company has an opening project backlog of approximately USD 75mln, complemented by an anticipated order pipeline of around USD 88mln, reflecting strong business visibility and sustained demand for its services. AVN maintains joint venture partnerships with global leaders in the automation industry, who also serve as key suppliers for project execution. Aligned with Saudi Arabia’s Vision 2030, the Company anticipates significant growth opportunities in the Kingdom, particularly in the energy and water management sectors. To strengthen its regional presence and operational capacity, AVN has established a staging and testing facility in Dammam, KSA, aimed at improving project execution and service delivery.

The Company meets its working capital requirements through a combination of internal cash generation and short-term conventional debt. Owing to an elongated trade receivables and payables cycle inherent to its business model, the Company’s working capital cycle remained elevated in 1QCY25. A significant portion of the outstanding receivables pertains to group companies, and as per the Company management representation, these receivables are expected to be gradually converted into equity.

In 1QCY25, the Company's free cash flows from operations (FCFO) stood at PKR 479mln (CY24: PKR 2.1bln), indicating an adequate operational performance and limited dependence on external funding sources. The Company's EBITDA/Finance cost and Core operating coverage clocked at 8.8x (CY24: 12.9x) and 5.1x (CY24: 6.7x), remaining in a comfortable range. This benefited the Company following a relatively lower debt repayment horizon.

The Company has maintained a favorable capital structure with a total leverage ratio of 14.6% (CY24: 15.5%). The debt profile of the Company is dominated by short-term conventional debt and related party borrowings. The equity base demonstrated a consistent growth over the past few years reaching PKR 15.0bln in 1QCY25 compared to PKR 14.6bln supplemented by an unappropriated of PKR 5.5bln (CY24: PKR 5.3bln).