Siddiqsons Tin Plate Limited ("STPL" or the "Company"), incorporated as a public listed company in 1996, is listed on the Pakistan Stock Exchange (PSX). Its registered office is in Karachi, with production facilities located in Karachi, Sindh, and Windhur, Balochistan.

The Company, established in collaboration with Sollac of France and Mitsubishi Corporation of Japan, commenced commercial operations in May 1999 and added a canning facility in Malir, Karachi, in 2009.

STPL manufactures and sells Electrolytic Tin Plates (ETP), cans, and other steel products, operating under a B2B model. Its tin plate plant has an installed capacity of 120,000 MT per annum, while the canning facility produces up to 4,015,000 cans annually.

The controlling stake in the Company is held by Rafi Family. The Family holds ~55% shares in the Company directly through individuals, whereas ~15% shares are held indirectly through Siddiqsons Limited, which is 100% owned by Rafi Family. The remaining 30% shareholding is held by individuals.

The Company’s controlling shareholding rests with Rafi Family since its inception. However, there is no formal succession plan in place.

The sponsor family has strong working knowledge as they are operating in the industry since 1996 and are the only manufacturer of tin plates in Pakistan.

The Rafi family has strong financial strength as reflected by a diverse portfolio of businesses. The sponsors have supported the Company in the past through right issue to fund Capex. It is expected that the sponsors will support the Company, if needed.

The Company has a seven members board comprising two independent directors, three non-executive directors and two executive directors (including the CEO). The board is chaired by Mr. Tariq Rafi. All directors, except independent directors, represent Rafi Family.

Mr. Tariq Rafi, Chairman of the Board, is also serving his responsibilities as the director on the Board of MCB Bank Limited, Centrak Depository Company, Siddiqsons Limited, Siddiqsons Energy Limited, & Canvas Company of Pakistan (Pvt) Limited. Mr. Rafi joined STPL since the inception of the Company. Mr. Munir Qureshi, Executive Director, is an engineer with a graduate degree in public administration from Harvard University. A certified director under the Code of Corporate Governance, he has been a member of STPL's Board since 2015. Mr.Ibrahim Shamsi, non-executive director, has vast experience of modern management and effective control management. He is the CEO of Aladin Water and Amusement Park, Karachi and Joyland, Lahore. He is also serving as the director of Adam Jee Insurance Company Limited, the largest insurance Company of Pakistan. Ms. Alia Sajjad, a non-executive director, joined the Board in 2018. She is the Executive Director of Siddiqsons Limited and serves as COO of Triple Tree Associates, overseeing the company's finance, marketing, and operational affairs. Mr. Abdul Wahab, Independent director, joined the Board in 2018 and has experience in business management. Mr. Muhamad Yousuf Adil, an independent director since 2023, brings 40 years of experience in assurance, taxation, and advisory services. He has supported the growth of prominent business groups including Sapphire, Nishat and Sitara.

The Board met four times during FY25, with most of the directors attending four or more meetings. The Board has constituted three sub-committees: (i) Audit Committee, (ii) Human Resource & Remuneration Committee, and (iii) Technical Committee. The Audit Committee is chaired by Mr. Muhammad Yousuf Adil, the Human Resource & Remuneration Committee by Mr. Abdul Wahab, and the Technical Committee by Mr. Tariq Rafi.

Muniff Ziauddin & Co., Chartered Accountants, are the external auditors of the Company. They have issued a unqualified opinion on the Company’s financial statements for the year ended June 30, 2025, and have also highlighted a material uncertainty related to going concern. An emphasis of matter paragraph has been included to highlight the contingent exposure related to ongoing litigation. The Board has established an internal audit department to strengthen internal controls and oversight.

The Company has established a well-defined management structure divided into functional departments with clear lines of responsibilities.

The management team is led by Mr. Naeem-ul-Hassan Mirza, Chief Executive Officer of the Company. An electrical engineer by profession, Mr. Mirza joined STPL in 1999 and has since held various senior management positions across key operational functions. With over 26 years of association with the Company, he was appointed Chief Executive Officer of Siddiqsons Tin Plate Limited in 2022. Mr. Rashid Khaleeque is currently serving as the Chief Financial Officer of the Company, having joined in August 2025.

The Company has established two management committees to coordinate its operations, namely, i) Technical Committee, and ii) Procurement Committee. Technical committee is the apex management committee. The committees meet on requirement basis.

The Company has implemented Sidat Hyder Financials suit to manage the financial information needs of management. Further, the Company has implemented in house developed softwares to manage stock and stores. The management is also running a separate payroll software to process payroll data.

The management has a strong control environment. There exists an established internal audit function which includes three members including the Head of Internal Audit. The head of Internal audit reports directly to the audit committee.

The packaging industry comprises paper, plastic, and tinplate segments. STPL operates within the tinplate segment, encompassing both local manufacturing and competition from commercial imports. Currently, the Company is exposed to elevated business risk, primarily stemming from (i) sales tax exemptions in the FATA/PATA regions, (ii) import duty dynamics, and (iii) substitution risk arising from the increased use of Galvalume. The National Tariff Commission (NTC) has imposed anti-dumping duties on tinplate imports from China, South Africa, the EU, and the USA, which has provided Siddiqsons with some level of protection against unfairly priced imports. The imports of CRC (Cold Rolled Coil) have been volatile in previous periods. Since FY21, the imports have dropped from USD~140.7Mn to USD~69.1Mn in FY24. However, during FY25 the imports increased to USD~86.3Mn, a YoY increase of ~24.9%. CRC imports in Pakistan increased in FY25 due to weaker local production, strong demand from the packaging sector, reliance on imported CRC for certain grades, and constrained domestic capacity for flat steel. (Source: PACRA Research)

The Company is the only tin plate manufacturer in Pakistan and as per management representation holds ~40% share of the total market. The other competitors are various small commercial importers of tin plates.

The Company’s revenue declined by ~50% during FY25, reaching ~PKR 2.0bln (FY24: PKR 4.0bln, 3MFY26: 639mln). This drop is mainly due to lower sales volumes, driven by reduced demand from the edible oil sector and increased use of alternative packaging materials. Volatility in raw material prices and subdued market conditions also impacted order flows.

In FY25, the Company’s profitability improved significantly compared to FY24. The gross profit margin turned postive at 11.0% (FY24: -1.4%, 3MFY26: 14.1%), while the operating margin also increased to 4.7% (FY24: -5.2%, 3MFY26: 11.4%). This increase was mainly due to increase in sales volumes. The net profit margin stands at -12.6% (FY24: -50.5%, 3MFY26: 1.4%). The Company reported a net loss of ~PKR 255 million in FY25, compared to a net loss of ~PKR 2 billion in FY24. Company received a profit of PKR 9 million during 3MFY26.

Siddiqsons Tinplate is undertaking a backward integration project through the development of a Cold Rolled Coil (CRC) steel complex with a planned capacity of ~200,000 MT. The project initially faced delays due to the original supplier’s failure to meet delivery timelines, which led to legal claims and counterclaims. However, the matter has now been settled through litigation.

STPL’s operational outlook for FY 2025-26 is cautiously optimistic, supported by stabilized raw material supply, improved local material quality, and a recovery in domestic demand following import restrictions. Strategic focus on exports, coupled with regulatory developments and easing finance costs, positions the Company to strengthen both domestic and international market presence. In FY25, the Company’s working capital position improved notably. Inventory days reduced to ~40 days (FY24: ~52 days, 3MFY26: ~29 days), mainly due to better inventory planning and improved raw material availability. Trade receivable days increase to ~21 days (FY24: ~10 days, 3MFY26: ~28 days), while trade payable days increased to ~49 days (FY24: ~24 days, 3MFY26: ~40 days). The net working capital days dropped significantly to 11 days at the end of FY25 (FY24: 39 days, 3MFY26: ~18 days ), indicating improved working capital management.

In FY25, the Company’s EBITDA stands at ~PKR 118 million, primarily due to a little increase in profitability. The EBITDA-to-finance cost coverage ratio 0.4x (FY24: -1.7x, 3MFY26: 0.3x), reflecting the stable operating performance. Finance cost stand at ~PKR 383million in FY25 (FY24: ~PKR 596 million, 3MFY26: ~PKR 64 million). As a result, the FCFO-to-finance cost ratio stay at 0.2x in FY25 (FY24: -1.8x, 3MFY26: 0.3x), indicating release the pressure on the Company’s ability to cover debt-related outflows from its core operations.

Siddiqsons Tinplate Limited’s gearing ratio increased to ~72.8% at the end of FY25 (FY24: ~64.8%, 3MFY26: 73.3%), primarily due to a reduction in equity. Total borrowings remained relatively decrease, recorded at ~PKR 1,049 million in FY25 (FY24: ~PKR 1,710 million, 3MFY26: ~PKR 1,076 million). However, short-term borrowings decreased to ~PKR 969 million in FY25 (FY24: ~PKR 1,490 million, 3MFY26: ~PKR 995 million), reflecting low reliance on working capital financing. In FY25, short-term borrowings accounted for approximately 92% of total borrowings