Air Link Communication Limited (‘Airlink’ or ‘the Company’) is a public limited company, incorporated in January 2014 under the repealed Companies Ordinance 1984 (now the Companies Act, 2017). The Company has been listed on the Pakistan Stock Exchange (PSX) since September 2021. The registered office of the Company is located at 152/1-M, Quaid-e-Azam Industrial Estate, Kot Lakhpat, Lahore.

Air Link Communication Limited began operations in 2010 as an Association of Persons (AOP) engaged in the import, distribution and servicing of IT and mobile-phone products. In 2014, a private limited company (Air Link Communication Limited) was incorporated in Lahore to take over the business via acquisition of the AOP’s assets and liabilities in 2018. Then in 2019, the Company converted into an unlisted public limited company, and in 2021 it was listed on the Pakistan Stock Exchange (PSX). The Company operates import, distribution, wholesale, and retail of smartphones, tablets, laptops, and accessories. Later on, the Company developed its wholly-owned subsidiary, Select Technologies (Pvt.) Limited, by partnering up with Xiaomi Pakistan to assemble exclusively Xiaomi mobile phones and allied products as part of the “Made in Pakistan” initiative, having a manufacturing plant in Lahore.

Airlink’s core operations comprise the production of Tecno smartphones and the distribution of mobile phones and allied products for several leading global brands, including Xiaomi, Samsung, iPhone, Tecno, and Itel. The Company has further strengthened its market positioning through a partnership with Xiaomi, under which its wholly owned subsidiary, Select Technologies (Pvt.) Limited (STL), manufactures and distributes Xiaomi mobile phones and accessories in Pakistan. STL’s manufacturing facility spans 120,000 sq. ft. of closed area of which 60,000 sq. ft. is clean-room space and has an annual capacity of ~2.7 million units on a single-shift basis. In FY25, the Company assembled around 2 million devices, reflecting a capacity utilization rate of ~75%. Airlink is currently developing a new state-of-the-art manufacturing complex within the Sundar Green Special Economic Zone (SGSEZ) in Lahore. The project covers eight acres, with three acres owned by Airlink and five acres by STL, and includes 1.4mln sq. ft. of purpose-built infrastructure. The facility will incorporate a 1 MW solar power system, expected to reduce production costs, improve energy efficiency, and support long-term sustainability objectives. Operating within the SGSEZ framework will provide the Company with ten years of fiscal incentives, enhancing cost competitiveness and supporting future growth. Aligned with its broader strategic vision, the new facility is designed to enable the export of mobile phones, laptops, LED TVs, electronics, home appliances, and other high-tech products for international brands. This expansion underscores Airlink’s growing role in strengthening Pakistan’s manufacturing and export base.

The majority stake rests with the members of the sponsoring family, holding ~73.43% of shares. Additionally, ~12.93% is owned by the general public, ~0.06% is held by foreign companies, ~8.38% is held cumulatively by banks, development finance institutions, non-banking finance institutions, insurance companies, modarabas and mutual funds, ~2.27% is held by directors, their spouses and minor children whereas the remaining ~2.93% is owned by others.

The ownership structure of the Company is seen as stable as the majority stake of the Company is held by the members of the sponsoring family, and no significant changes are expected in the ownership structure of the Company in the foreseeable future.

Mr. Muzzaffar Hayat Piracha, the primary sponsor, has been at the helm of the Company since its inception. He is a seasoned professional with a deep understanding of the industry. His strong leadership capabilities are evidenced by the successful strategic partnerships the Company has cultivated over the years. His business acumen is thus considered strong.

Owners of the Company do not have any strategic stake in other companies. However, Mr. Muzaffar Hayat owns commercial and residential real estate. Financial strength is, therefore, considered adequate.

The Board of Directors (the Board) comprises seven members: two non-executive directors (including the chairman and a female director), two executive directors (including the CEO), and three independent directors.

Members of the Board are seasoned professionals and bring extensive multifunctional experience across multiple sectors. Mr. Aslam Hayat Piracha is the chairman of the Board and possesses over 5 decades of business experience with core specialty in imports and exports. He is keenly involved in overseeing the systems and controls of Airlink. Furthermore, the independent directors are well regarded business experts having bringing exposure from diverse sectors.

The Board meets at least quarterly to oversee the management's performance and to ensure alignment of the Company with its strategic goals. During FY25, four meetings of the Board were held, and the attendance of directors remained strong. Minutes of the meetings are documented appropriately, and action points are communicated with the relevant stakeholders. The Board has also established two committees: i) Audit Committee, and ii) HR and Remuneration Committee. These committees further enhance the Board's effectiveness by enabling focused oversight and efficient decision making.

M/s BDO Ebrahim & Co. Chartered Accountants, a QCR-rated firm and also listed in the category ‘A’ on SBP’s approved panel of auditors, are the external auditors of the Company. They have expressed an unqualified opinion on the Company’s financial statements for the year ended June 30th, 2025.

The Company has a well-defined organizational structure segregated into eight functional departments including: Human Resources, Production, Retail, Operations, Internal Audit, Marketing, Distribution, and Accounts & Finance. All the departments are led by professional Heads of Departments who report directly to the CEO. Currently, all the key positions are filled.

Mr. Muzaffar Hayat Piracha leads the management team as the CEO of the Company. He has a Master's Degree in Business Administration and possesses over two decades of multifaceted leadership experience across diverse sectors with exposure to local and European markets. He is supported by a management team of seasoned professionals bringing extensive expertise and experience. Notably, Mr. Adnan Aftab, the CEO of Select Technologies (Pvt.) Ltd., has a Master's degree in Manufacturing Engineering and possesses over three decades of experience in manufacturing. Furthermore, Mr. Nusrat Mahmood, the CFO, is a distinguished Management Accountant and Chemical Engineer with over two decades of experience across multiple industries including textiles, fertilizers, and telecommunications.

There exists a multi-layered hierarchy within each functional department. The roles and responsibilities of each cadre are properly defined and documented which strengthens the effectiveness of the management. Furthermore, six management committees have been established namely, i) Credit Committee, ii) Risk Management Committee, iii) Sale Control Committee, iv) Cash Management Committee, v) Operational Control Committee, and vi) Business Plan Committee, which help in improving overall operational efficacy by enabling focused decision making and bridging inter-departmental gaps.

The Company has implemented SAP as its core ERP platform, which has materially enhanced the robustness of its information and reporting systems. The integration of key operational, financial, and compliance functions within a single digital architecture supports more accurate data capture, timely reporting, and improved visibility across business units.

An internal audit department is in place which reports directly to the Board’s audit committee. MIS reports for senior management are generated frequently and are detailed in nature. Many reports, including the following, are generated for each business unit: i) region-wise business partner report including adjustments, ii) daily stock report for all warehouses, and iii) product-wise report of region & corporate limits.

Pakistan’s cellular market has experienced rapid growth, with tele-density rising from ~6% in FY04 to ~80% in FY24. During FY24, currency devaluation against the USD and increased import duties had escalated mobile phone costs, impacting demand for high-end devices. During FY25, Pakistan’s mobile phone market exhibited mixed performance amid macroeconomic headwinds and a gradual recovery in consumer demand. Elevated inflation, high interest rates, and PKR depreciation constrained purchasing power, particularly in the mid-to-premium segment, driving a shift toward locally assembled, affordable models. On the supply side, improved foreign exchange availability and eased import restrictions supported a modest rebound in local manufacturing, aided by government-led localization initiatives. Due to which, local mobile phone production stood at around 22.78 million units in 9MCY25 (CY24: 31.38 million units; CY23: 21.28 million units), comprising roughly equal volumes of 2G devices (~11 million units) and smartphones (~12 million units), as reported by the Pakistan Telecommunication Authority (PTA). Meanwhile, mobile imports declined to about 1.5 million units in 9MCY25 (CY24: 1.71 million units), indicating an ongoing shift toward localized assembly and manufacturing. Airlink is among the top 10 mobile phone distributors in the country. The Company is working with the world’s top brands of mobile phones. Furthermore, the Company is the sole manufacturer of Xiaomi smartphones in the country and also manufactures Tecno smartphones, signifying the prominent position of the Company within the mobile phone manufacturing and distribution industry.

As one of Pakistan’s largest mobile phone distributors, Airlink has fortified its market position through partnerships with globally recognized brands. In 2022, the Company began assembling and distributing Xiaomi phones and recently signed an agreement with Acer Inc. to produce Acer laptops and tablets. This year, Airlink started its assembling of IMIKI Smartwatches and Xiaomi smart TVs, further enhancing its growth prospects. The macroeconomic environment has shown signs of improvement since the second half of FY25, contributing to a recovery in demand and supporting higher sales volumes. Concurrently, Airlink is progressing with the development of a new manufacturing facility within the Sundar Green Special Economic Zone (SGSEZ), which is expected to enhance production capacity, expand operational scale, and provide notable tax advantages. As a result of these expansionary initiatives and rising business activity, the Company is experiencing elevated working capital requirements.

During FY25, Airlink’s consolidated revenue recorded at ~PKR 104.379bln (FY24: PKR 129.742bln), reflecting a decline primarily driven by the imposition of higher taxes, elevated device prices, and reduced mobile phone assembly volumes amid subdued market demand. The slowdown in consumer purchasing power, coupled with a shift toward lower-priced models, further constrained topline growth. In 1QFY26, sales modestly declined by ~6.5% year-over-year, primarily due to the timing of new model launches in September, with the related revenue expected to materialize in the following quarter. Industry-wide demand has also softened, as reflected in PTA statistics for 9MCY25, which indicate a slight reduction in overall production levels.

The Company’s profitability improved notably in FY25, supported by effective cost management and operational efficiencies. Gross profit margin increased to ~10.6% (FY24: ~7.5%), while operating margin strengthened to ~9.1% (FY24: ~6.5%). Consequently, the net profit margin also rose to ~4.5% (FY24: ~3.6%). The positive trajectory continued in 1QFY26, with gross, operating, and net margins recorded at ~13.9%, ~12.3%, and ~5.7%, respectively, reflecting sustained cost discipline and improved production efficiency despite a softer revenue base.

Airlink is among the largest distributors of mobile phone and related devices in the country. Over the years, the Company has steadily strengthened its business profile by cultivating partnerships with globally renowned brands to ensure growth and sustainability. In 2022, Airlink joined hands with Xiaomi Pakistan to assemble and distribute its mobile phones. Recently, the Company has finalized an agreement with Acer Inc. for the production of Acer laptops and tablets. Additionally, Airlink is expanding its product portfolio through the assembly of Xiaomi Smart TVs, further diversifying revenue streams. The Company is also establishing a new facility at Sundar Greens to tap into export opportunities, which is expected to enhance its manufacturing footprint and strengthen its market position in the years ahead.

Airlink’s working capital requirements are largely driven by inventory needs across its assembly and distribution operations. During FY25, the Company’s average gross working capital days increased to ~67 days (FY24: ~30 days), while net working capital days rose to ~46 days (FY24: ~18 days). The increase primarily reflected inventory buildup to meet demand from Xiaomi Pakistan (Private) Limited. In 1QFY26, working capital intensity further increased, with gross and net working capital days extending to 92 and 73 days, respectively, owing to stock accumulation in anticipation of new model launches.

Free cash flow from operations (FCFO) improved to ~PKR 8,839mln in FY25 from PKR 8,578mln in FY24, supported by improved profitability. However, the interest coverage ratio moderated to 2.7x (FY24: 3.3x) due to higher finance costs amid an elevated interest rate environment. The Company’s debt repayment capacity remained sound, as reflected by a debt payback ratio of 0.5x in both FY25 and FY24. In 1QFY26, FCFO stood at ~PKR 3,526mln, while interest coverage improved to 3.9x, indicating strengthened cash flow generation and improved capacity to service financial obligations.

During FY25, Airlink’s total debt increased to ~PKR 32.2bln (FY24: ~PKR 16.4bln; FY23: ~PKR 8.3bln), reflecting higher short-term borrowings to support expanding working capital requirements. Consequently, the Company’s leverage ratio rose to ~65.1% as of June 2025 (FY24: ~52.1%; FY23: ~40.4%), indicating a continued reliance on debt financing. The debt mix remains predominantly short-term in nature, accounting for nearly 91.8% of total borrowings. In 1QFY26, total debt slightly declined to ~PKR 27.8bln, with the leverage ratio easing to ~62.3% by September 2025, supported by partial debt repayments and improved internal cash generation.