Malik MIJ Chunxing Resources Recycling Co. Limited (MMC or 'the Company') is a public unlisted company. The registered office of the Company is situated at House No. 728, Sector X, Street No. 24, Phase III, DHA Lahore, Pakistan, and its plant is located at Faisalabad Industrial City Plot No. 50, Sahianwala Interchange, District Faisalabad, Punjab.

Malik MIJ Chunxing Resources (Pvt.) Limited was incorporated in Pakistan on August 05, 2014, as a private limited company under the Companies Ordinance, 1984 (subsequently repealed by the Companies Act, 2017). The Company was registered under Certificate of Incorporation No. 009145. Subsequently, on July 08, 2015, the Company was converted into a public limited company, marking an important milestone in its corporate development and formal participation in Pakistan’s secondary lead recycling industry.

The Company is principally engaged in the recycling and processing of used lead-acid batteries (ULABs), lead plates, lead paste, and lead powder, followed by the production and sale of bullion and refined lead. The Company has an installed production capacity of approximately 50,000 tons per annum for refined lead. As of June 2025, capacity utilization stood at around 54%, reflecting moderate operational throughput relative to installed capacity. The Company’s operations are conducted in accordance with environmental compliance standards, with processes designed to minimize emissions and ensure responsible waste handling. The recycling facility utilizes proprietary technology patented by Jiangsu New Chunxing Resource Recycling Co., enabling efficient recovery of lead from scrap batteries. The integrated plant incorporates advanced smelting and refining technologies, allowing the Company to produce high-purity refined lead of approximately 99.994%, commonly referred to as “Green Lead.” This technology-driven process enhances both operational efficiency and environmental sustainability while ensuring product quality that meets international industrial standards.

The Company is jointly ventured by Jiangsu New Chunxing Resource Recycling Co., MIJ International, and Mr.Babar Waheed Malik. Jiangsu New Chunxing Resource Recycling Co. having 45.82% of the share, is incorporatedoutside Pakistan and the company's registered address is "Circular Economy Industrial Park, Pizhou, Jiangsuprovince, China". MIJ International is also incorporated outside Pakistan and the company's registered address is"Unit No.2609 JBC5 Plot # JLT-PH2- WIA, Jumeirah Lakes Towers, Dubai-UAE" and has 18.67% shareholding. Theremaining 35.5% of the shareholding is divided equally among Mr. Babar Waheed Malik (CEO) and Mr. Saeed Rafiq.

The associated company ‘Jiangsu New Chunxing Resource Recycling Co., Ltd’ has experience of 3 decades inproducing and refining secondary lead. It comes under the umbrella of Jiangsu Chunxing Alloy Group Co., Ltd, acompany with over 40 years of experience in processing ULAB (Used Lead Acid Battery). The other sponsor is MIJInternational with a decade of experience in trading, processing, and producing ferrous and non-ferrous metals.

The sponsors of the Company possess substantial experience in global metal trading and the specialized field of secondary lead metallurgy. This synergy is driven by Jiangsu Chunxing Resources Recycling Company, one of China’s largest and most established lead recyclers with over four decades of operational history, providing the Company with cutting-edge, environmentally compliant smelting and refining technologies.

Jiangsu New Chunxing Resource Recycling Co., Ltd is a top-ranked recycling company in China with over 40 years of experience in processing ULAB (Used Lead Acid Battery). The present ULAB treatment capacity is 1 million MT/annum and the secondary lead output capacity is 600,000 MT/annum. MIJ International is a Dubai-based metal merchant specializing in trading, processing, and production of ferrous and non-ferrous metals. MMC has an equity base of PKR 4.8bln as of June-25.

The Company’s board consists of five members, including four non-executive directors. Mr. Babar Waheed servesas the chairman of the board. Board meetings are held as needed, and no committees have been formed. Additionally, there is no formal policy for recording board minutes. Voluntary compliance with the Code of Corporate Governance could provide additional benefits.

The Board is chaired by Mr. Babar Waheed (CEO), who brings over 34 years of diversified business experience. The Board comprises a blend of seasoned professionals with extensive exposure to the global business and recycling industry. Mr. Saeed Rafiq (Non-Executive Director) possesses around 27 years of business experience, while Mr. Mohamed Ibrahim (Non-Executive Director) brings over 32 years of professional experience across various business domains. Mr. Yang Chunming (Non-Executive Director) holds the most extensive tenure, with approximately 42 years of experience in the business sector, contributing valuable industry insight. Additionally, Mr. Huang Kefei (Non-Executive Director) is an MBA-qualified professional with around 22 years of business experience, further strengthening the Board’s collective expertise and strategic oversight.

The Board of Malik MIJ Chunxing Resources exhibits a predominantly advisory character, supported by the extensive experience of its members, who collectively possess around three decades of industry and business expertise on average. Although the Board has not established formal committees, all members actively participate in deliberations and contribute to the Company’s strategic decision-making process. The Board has demonstrated strong continuity and stability, with all five members maintaining their association with the Company for approximately nine years, reflecting a consistent governance framework. However, they do lag an independent oversight in their board. Overall, the level of participation and engagement among Board members remains satisfactory, ensuring effective oversight and strategic guidance for the Company.

Sarwars Chartered Accountants are the external auditors of the Company. The firm is listed on the State Bank of Pakistan (SBP) Panel of Auditors under Category “C” and is Quality Control Review (QCR) rated by the Institute of Chartered Accountants of Pakistan (ICAP). The auditors have expressed an unqualified opinion on the Company’s financial statements for the year ended June 30, 2025, reflecting that the financial statements present a true and fair view of the Company’s financial position in accordance with the applicable financial reporting framework.

The Company maintains an adequate organizational structure, with operations primarily organized under the direct oversight of the Chief Executive Officer (CEO). The functional hierarchy is broadly divided into two key domains: (i) Accounts, Taxation, and Finance, supervised by Mr. Haider Abbas (Chief Financial Officer), and (ii) Production and Operations, managed by Mr. Guo (General Manager – Operations). This structure facilitates clear segregation of financial management and operational responsibilities while ensuring effective oversight and coordination across core business functions.

The management of Malik Mij Chunxing Resources is led by Mr. Babar Waheed (CEO), who brings 34 years of professional experience and has been instrumental in the Company’s growth during his nine-year tenure. The leadership team comprises experienced professionals, including Mr. Haider Abbas (CFO) with 12 years of experience, nine of which have been with the group; Mr. GUO Qiangyong (GM Plant), a technical expert with 32 years of industry experience and nine years in his current role; and Mr. Mohammad Saleem (Finance Manager), who has 10 years of overall experience, including three years with the group. The senior management demonstrates considerable stability, with the majority of key executives serving in their current positions for nearly a decade, providing continuity in strategic and operational oversight.

The Company does not have formal management committees in place; however, senior management convenes on a daily basis to review ongoing operational issues and strategic plans. This informal yet consistent engagement facilitates timely decision-making and ensures effective coordination across key functions.

The Company has implemented an information management system comprising two software platforms: a SQL-based web application and a Chinese software solution, which can operate in two languages simultaneously. These systems support operational monitoring, reporting, and decision-making, enhancing management’s ability to track performance and coordinate across functions.

The management has a strong control environment within the Company supplemented by a robust quality control system for its production processes. Additionally, the Company has technical collaboration agreements with international firms to ensure that quality standards are adhered to.

The global lead market remains stable with refined lead output projected to reach ~13.47 million MT in CY26, though prices face a marginal contraction to approximately USD 1,962/MT due to a global surplus. In Pakistan, the industry’s consumption at full capacity is estimated at ~240,000 MT per annum. While FY25 saw a 15.7% YoY increase in imports (USD ~122.3 million) and a 17.6% rise in exports (USD ~48.0 million), the local segment faced margin compression, with net margins weakening to ~2.3% as raw material costs surged to ~93.9% of direct expenses. Despite these cost pressures, a sector-wide revival is underway, driven by a recovering automobile industry where improved localization and stabilized PKR-USD rates have boosted volumetric sales. This demand is further amplified by the entry of emerging players such as Alaska and the expansion of existing manufacturers into the maintenance-free segment. Simultaneously, the solar energy boom has catalyzed a massive surge in backup battery demand. Recent net metering policy shifts, which favor hybrid energy systems and local storage, have opened significant market space for deep-cycle lead-acid batteries. While Lithium-ion technology is gaining traction in high-end portable and EV applications due to superior energy density, lead-acid batteries continue to dominate the domestic energy storage and automotive replacement markets due to their established recycling infrastructure and cost-effectiveness.

The organized lead smelting and recycling sector in Pakistan is highly concentrated, with Malik MIJ Chunxing (MMC) positioned as the second-largest player after International Metal Industries (Pvt.) Ltd (IMI), which maintains the largest sector footprint with an installed recycling capacity of 86,400 MT per annum. MMC has a robust capacity of 50,000 MT per annum, leveraging its proprietary “Green Lead” refining technology, while Raaziq Industrial Enterprise (Pvt.) Ltd operates as a significant Tier-2 player with an installed capacity of approximately 18,000 MT per annum, catering to specialized segments of the domestic battery and industrial markets. The dominance of IMI and MMC provides critical stability to the formal domestic supply chain. 

During FY25, the Company recorded a topline of PKR 18,602 million, marking a decline of approximately 25.9% YoY (FY24: PKR 25,098 million; FY23: PKR 20,307 million). The decrease was primarily attributable to lower sales volumes, partially mitigated by price adjustments. Exports accounted for around 36% of total revenue, providing a partial hedge against exchange rate volatility and supporting overall revenue stability.

The Company’s gross margin improved to ~8.3% in FY25 (FY24: ~8.0%, FY23: ~6.8%), supported by better cost efficiencies. Net margin sustained at ~3.1% (FY24: ~3.2%, FY23: ~1.4%). Net profit stood at PKR 579 mln in FY25 (FY24: PKR 808 mln, FY23: PKR 289 mln).

The company has a strong clientele in Pakistan as well as a wide network of resources and clientage through its associated companies' strong positions in leading markets all around the world. Moving forward MMC also has an expansion plan to enhance its capacities from 50,000MT to 75,000 over the period of three years.

In FY25, MMC’s working capital cycle expanded as inventory days increased to 144 days (FY24: 124 days; FY23: 135 days) and trade receivable days lengthened to 210 days (FY24: 158 days), resulting in a gross working capital cycle of 354 days, up from 282 days in the prior year. Despite this elongation, the net working capital cycle remained manageable at 86 days, supported by favorable credit terms from suppliers. Short-term trade leverage increased to 18.2% (FY24: 12.3%), reflecting higher reliance on trade credit to finance the operational cycle.

In FY25, MMC generated a Free Cash Flow from Operations (FCFO) of PKR 1,158 million (FY24: PKR 1,474 million; FY23: PKR 1,368 million), reflecting a moderation in line with the topline contraction. Despite the decline in absolute cash flows, debt servicing capacity remained resilient; interest coverage (EBITDA/Finance Cost) stood at 3.2x (FY24: 3.3x), while the FCFO-to-finance cost ratio was recorded at 2.7x (FY24: 2.8x), indicating a stable ability to meet financial obligations from core operational earnings.

MMC maintained a disciplined capital structure as the total borrowings-to-equity ratio improved to 34.6% in FY25 (FY24: 35.6%; FY23: 41.7%), continuing a three-year deleveraging trend. The debt profile remains heavily skewed toward operational financing, with short-term borrowings accounting for ~99.6% of the total debt portfolio, amounting to PKR 2,543 million (FY24: PKR 2,324 million). This high concentration of short-term debt reflects the Company’s strategy of utilizing revolving credit lines primarily to fund working capital requirements.