Hub Power Holdings Limited ("HPHL" or "the Company") is incorporated as a public unlisted company under the Companies Act, 2017 (formerly Companies Ordinance, 1984). The Company is a wholly owned subsidiary of The Hub Power Company Limited ('HUBCO'), an established name in the energy sector. The Company operates under a hold co structure with sizeable holding in two coal-fired power generation plants: China Power Hub Generation Company Limited ("CPHG") at 47.5% shareholding and ThalNova Power Thar (Pvt.) Limited ("ThalNova Power") at 38.3% shareholding.

The Company's primary activity centers on strategic investments in energy infrastructure. Its flagship holding is a 1,320 MW coal-fired power generation facility operated by CPHG in Hub, Balochistan, complemented by an ancillary jetty for logistical support. The Company also incorporated China Power Hub Operating Company (Pvt.) Limited ("CPHO") under an operating agreement to oversee and maintain the plant, holding a ~49% joint venture stake. ThalNova Power's 330 MW mine-mouth coal-fired facility at Thar Block II, Sindh, leverages domestic coal for enhanced fuel security. Through a 50% stake in Prime International Oil & Gas Co. Ltd. (PIOG), the Company has extended its footprint into upstream oil and gas, following the acquisition of ENI Pakistan's assets. In FY25, HPHL further broadened its portfolio by increasing its stake in Ark Metals (Pvt.) Ltd. (a mining and quarrying entity) to 51.45%, establishing HUBCO Green (Pvt.) Ltd. as a wholly owned EV charging infrastructure subsidiary, and continuing to develop Mega Motor Company (Pvt.) Ltd. These initiatives underscore management's commitment to portfolio diversification across power generation, mining, and sustainable energy.

HPHL is wholly owned by HUBCO. The major shareholding in HUBCO is distributed across: Mega Conglomerate (19.5%), Associated Companies (20.36%), Financial Institutions (16.19%), Modarabas and Mutual Funds (9.47%), Insurance Companies (7.61%), Individual Investors (30.31%), and Others (15.96%). Executives hold a nominal 0.09% stake.

As a wholly-owned subsidiary of HUBCO, HPHL benefits from a stable and concentrated ownership structure. The parent company's deep association with the Mega Group, one of Pakistan's most prominent conglomerates, provides strong institutional backing and strategic continuity. This relationship is assessed as a significant credit positive, ensuring sustained access to capital, management expertise, and strategic guidance.

The sponsors bring extensive experience across diverse energy modalities: coal-fired, hydropower, natural gas, LNG, wind, solar, biomass, waste-to-energy, cogeneration, and mine-mouth coal projects. This multi-sector competence reduces execution risk for new ventures and lends credibility to HPHL's ongoing portfolio expansion.

As at FY25, HUBCO reported a consolidated asset base of approximately PKR 415 billion, supported by equity of approximately PKR 13 billion, and posted a net profit of approximately PKR 52 billion. The parent's proven track record in capital markets, demonstrated by multiple successful debt and equity issuances, provides a strong financial backstop for HPHL's operations.

The Company's Board of Directors comprises four members including the CEO, with all three Non-Executive Directors nominated by HUBCO. The governance framework, while operationally effective given HPHL's function as an investment holding vehicle, reflects limited independent oversight. The absence of independent directors and the current gender composition of the Board raise areas for improvement in terms of inclusivity and impartial decision-making.

Mr. Aly Khan, a senior director also serving on HUBCO's Board, chairs the Company. All Board members carry strong professional credentials and diversified sector experience, adding depth to strategic deliberations.

During FY25, the Board convened four times. Oversight of new investments and monitoring of existing assets is primarily conducted through HUBCO's Board, which has in place dedicated sub-committees and MIS systems for real-time monitoring. Key strategic decisions, including roadmaps for onshore and offshore ventures, are deliberated upon at the HUBCO Board level, ensuring a structured and informed approach to portfolio management. HPHL does not currently operate dedicated sub-committees at the holdco level.

The Company's external auditors, A.F. Ferguson & Co. Chartered Accountants, issued an unqualified opinion on HPHL's annual financial statements for FY25, affirming that the accounts present a true and fair view of the Company's financial position and performance in accordance with applicable financial reporting standards.

HPHL operates through three functional divisions: Human Resources, New Ventures, and Finance. Each function is led by a director or head of department reporting directly to the CEO, maintaining a lean and efficient organizational hierarchy appropriate to the Company's holdco nature.

Mr. Kamran Kamal serves as CEO, bringing deep expertise in energy technology and policy. Mr. Muhammad Saqib, CFO, brings over 27 years of financial management experience, supporting robust oversight of the Company's financial affairs and reporting standards.

Strategic decisions and investment monitoring are centralized at HUBCO, where detailed processes for investment appraisal, due diligence, and portfolio monitoring are institutionalized. The internal audit function, situated within HUBCO, plays a material role in governance, with certain support functions centralized to optimize synergies across the group.

The internal audit function, situated within HUBCO, plays a material role in governance, with certain support functions centralized to optimize synergies across the group.

HPHL functions as HUBCO's investment arm. Opportunities are assessed by HUBCO's Board with an objective to expand national power generation capacity leveraging domestic natural resources, thereby contributing to energy security. The Company's investment policy prioritizes value creation for shareholders, primarily through participation in capacity-payment-backed power projects, which offer guaranteed returns indexed quarterly to inflation, exchange rate movements, and interest rate changes.Hub Power Holding serves as HUBCO’s investment vehicle, with investment opportunities assessed by HUBCO’s Board to strategically expand generation capacity. This approach aligns with a broader objective to enhance national power output by leveraging domestic natural resources, supporting energy security and sustainability goals.

Hub Power Holdings has a policy to invest in business opportunities to maximize shareholders wealth. The current investments are mainly in the power sector for which guaranteed returns are received in the form of capacity payments. Furthermore, during the life of project operations, adjustments/indexations for local inflation, foreign inflation, exchange rate variations, and interest rate variations are made on quarterly basis.

HPHL functions as HUBCO's investment arm. Opportunities are assessed by HUBCO's Board with an objective to expand national power generation capacity leveraging domestic natural resources, thereby contributing to energy security. The Company's investment policy prioritizes value creation for shareholders, primarily through participation in capacity-payment-backed power projects, which offer guaranteed returns indexed quarterly to inflation, exchange rate movements, and interest rate changes. The system generates real-time plant production data, enabling efficient monitoring and timely decision making.

The diversity of Hub Power Holdings’ (HPHL) portfolio is reflected in its asset and sectoral exposure. During FY25, the Company continued to expand its footprint through strategic investments in associates and joint ventures. Key associate investments include China Power Hub Generation Company (Pvt.) Limited and ThalNova Power Thar (Pvt.) Limited, while joint venture interests include China Power Hub Operating Company (Pvt.) Limited. Additionally, HPHL holds a controlling stake in its subsidiary, Mega Motor Company (Pvt.) Limited. During 6MFY24, HPHL entered into a shareholders’ agreement with MCPL and MMCL, agreeing to offer a 50% equity stake in MCPL to MMCL upon the next share issuance. The Company also acquired a 50% stake in Ark Metals (Pvt.) Ltd., focused on mining and quarrying operations. HPHL further diversified its investments by incorporating HUBCO Green (Pvt.) Limited, a wholly owned subsidiary focused on electric vehicle (EV) charging infrastructure. These initiatives underscore HPHL’s commitment to portfolio diversification across power generation, mining, and sustainable energy sectors.

In FY25, the Company’s investment portfolio comprised two subsidiaries, two associates, and three joint ventures, including four privately held entities and one unlisted public company—demonstrating a strategic emphasis on private market opportunities. Notably, ThalNova Power’s 330 MW coal-fired power plant achieved Commercial Operations Date (COD) in February 2023 and has entered into a Power Purchase Agreement (PPA) with the Central Power Purchasing Agency Guarantee Limited (CPPA-G). Additionally, Prime International completed the acquisition of ENI’s upstream operations and renewable energy assets in Pakistan, while the Company established China Power Hub Operating Company (CPHO) to provide operational services to China Power Hub Generation Company. In 6MFY25, the Company further expanded its portfolio through a 50% equity acquisition in Ark Metals (Pvt.) Limited, which is engaged in mining and allied activities. During the year, the Holding Company increased the shareholding to 51.45% (initially 50.1 %) AMPL at the year end at a total consideration of Rs 353 million. The incorporation of HUBCO Green (Pvt.) Limited, a wholly owned subsidiary dedicated to the development and operation of electric vehicle (EV) charging infrastructure. These developments reflect HPHL’s strategic commitment to diversification across power generation, mining, and sustainable energy sectors.

The Company’s revenue is primarily derived from profit shares associated with its portfolio investments, with China Power Hub Generation Company (Pvt.) Limited contributing approximately 84% of the total. ThalNova Power accounts for 11%, while China Power Hub Operating Company and Prime International Oil and Gas contribute 0.57% and 5% respectively. Mega contributes around 0.001%. This revenue composition highlights a substantial concentration in China Power Hub Generation, with limited diversification across other investments. In FY25, the Company did not receive any dividend income from China Power Hub Generation (FY24: PKR 19 billion). Whereas, during Dec'25, dividend from CPHGC was reported at PKR 36 billion.

The sharp contraction in TCF during FY25 — from PKR 18,614 million to PKR 407 million — was primarily a function of timing, driven by the non-receipt of dividends from CPHG rather than any structural deterioration in earning capacity. While the TCF-to-Finance Cost ratio temporarily weakened to 0.4x (FY24: 8.7x), the underlying investee portfolio continued to perform. This compression proved transient: in just the first half of FY26 (Dec-25), TCF rebounded strongly to PKR 39,141 million, effectively reversing the entire FY25 shortfall and reaffirming the Company's robust cash generation profile. With the balance sheet now fully debt-free, conventional coverage ratios are no longer a binding constraint, eliminating refinancing risk and interest burden entirely, and positioning HPHL with exceptional financial flexibility heading into FY26.

The Company achieved a fully debt-free balance sheet during the year, having fully retired all outstanding Sukuk obligations ahead of scheduled maturity and extinguished long-term borrowings utilizing PKR 36 billion in HUBCO settlement proceeds during 6MFY25. The leverage ratio declined sharply from 4.1% in FY24 to 2.2% at FY25 (and further to 0.0% by Dec-25), reflecting the complete elimination of debt. Total equity expanded from PKR 115,901 million (FY24) to PKR 146,285 million (FY25), representing 26.2% year-on-year growth, driven by the Company's share of profits from associate entities. Shareholders' equity grew further to PKR 151,135 million as of December 2025, reinforcing the Company's financial resilience. Total assets reached PKR 199,295 million. The balance sheet remains debt-free, providing exceptional financial flexibility and significant headroom for future capital deployment. The absence of interest-bearing obligations eliminates refinancing risk and interest rate exposure, placing HPHL on a highly stable financial footing.

HPHL's financial strength is further reinforced by its position within the HUBCO group. Access to the parent's financial resources, strong institutional relationships, and HUBCO's established capital market presence provide a robust support mechanism in stress scenarios.