E-Vision Manufacturing Limited (E-Vision or “The Company”) is an unlisted, public limited concern incorporated in 2013.

E-Vision was incorporated in March 2013, as a private limited company and subsequently converted to public status in September 2015.

The Company is involved in the manufacturing and recycling of polyester staple fiber (PSF) using the waste of polyethylene terephthalate (PET) bottles or other waste material. E-Vision's r-PSF is mainly used in the manufacturing of yarn for woven & knitted fabric for the home textile & other garments industry. The Company’s production facility is located in Sundar Industrial Estate, Lahore, and consists of two units: a washing unit and a production unit. The Company has an annual capacity of producing 17,500 MT per year, with 50 MT capacity on a per day basis.

The Company’s shareholding is held through an offshore investment company, Marylebone Management Limited (MML), incorporated in the British Virgin Islands. MML is now wholly owned by IDL Investments, which holds a ~59.62% stake in E-Vision. The remaining 40.38% stake lies with Mr. Abdul Ghaffar (CEO). IDL Investments is 100% owned by Mr. Kashif Naseem Afzal, whose career has primarily focused on the natural resources sector, including base and precious metals mining. He has also built a diverse investment portfolio across power generation, energy transition, natural resources, and real estate.

The Company does have a succession plan. Marylebone Management Limited and E-Vision will be managed by other family members who have varied experience in business. Family includes Mr. Salim Ganny who is an investor and entrepreneur and his wife Mrs. Reema Ganny who has experience in corporate banking.

Mr. Salman Ganny, who previously held 100% ownership of Marylebone Management Limited (MML), continues to serve as Chairman and Director of E-Vision. He brings a wealth of experience across the real estate, steel, engineering, and textile sectors.

Mr. Salman Ganny's paternal family is Ganny Rangoonwala and his maternal family is Tabani. Both families are reputable business families based in Karachi for over six decades. Mr. Ganny and his family have the ability and willingness to support the business and for this purpose, various guarantees have been issued.

E-Vision’s Board of Directors comprises three members. The Board is Chaired by Mr. Ganny. Mr. Abdul Ghaffar (CEO) and Mr. Arif Siddiqui (company CFO), who represents MML, are also on the Board.

Mr. Salman Ganny, the Chairman of the company, is an accomplished investor and entrepreneur with a presence in both Pakistan and the UAE. He has previously held management roles in real estate and investment companies overseas.

Board meetings are held quarterly with full attendance of directors. Meeting packs are shared with directors beforehand which comprise relevant financial data for discussion. Meanwhile, quality of discussion disclosed in meeting minutes has room for improvement. There are no Board committees in place to assist the Board.

Hassan Farooq & Company are the external auditors of the company. The auditors are only QCR-rated. They have expressed an unqualified opinion on the financial statements of the company for the year ended December 31, 2025. The board has also set up an internal audit function.

E-Vision has a lean organizational structure divided into various functional departments, namely: i) Production, ii) Procurement, iii) Marketing, (iv)Human Resources and Administration, and v) Finance. The Manager Finance reports to the CFO – Mr. Arif Siddiqui – while all other departmental heads and managers are reporting to the CEO – Mr. Abdul Ghaffar

Mr. Abdul Ghaffar – company CEO – is a Chartered Accountant with over twenty two years of experience in various manufacturing concerns including glass, textile and industrial gases companies as well as experience in financial services sector. He is actively involved in day-to-day operations and decision making in the Company. The management team, though small in size, constitutes well-experienced, seasoned individuals.

The Company has formed four management committees to assist decision making. While the Audit Committee and Human Resource Committee convene on need basis, the Management Committee and Procurement Committee meet monthly. Meetings minutes are properly documented. All departmental leads meet with the CEO daily to discuss day-to-day developments and issues.

E-Vision implemented BMA Complete Solutions V 1.2 in 2014 as an ERP solution to streamline the flow of information from all departments. The software provided by M/S Soft Consult comprises modules for inventory management, financial accounting, HR management, sales support, and fixed assets management while the production management module is being developed.

Daily reports regarding the Company’s receivables and payables position, purchases and procurement, and bank position are prepared and submitted to higher management. The Company also has a lab on its premises for quality testing of fibers to ensure quality control. Furthermore, an international certification has been acquired by the Company: Global Recycled Standard. The company is also ISO 9001 certified.

The industry operates within a largely import-parity pricing environment, limiting local producers' pricing power. Although domestic PSF prices remain broadly aligned with imported material, recent tariff rationalization measures have enhanced the competitiveness of foreign suppliers. Reductions in customs duties on PSF and PTA, alongside the removal of certain additional levies, have lowered import costs and accelerated market penetration by overseas producers. Consequently, imports increased to approximately 134,000 MT in 1QFY26, significantly outpacing domestic production of around 94,000 MT. The market continues to face pressure from low-cost suppliers in China, Indonesia, and Bangladesh, whose products remain competitive despite the presence of anti-dumping duties and other import-related charges. Concurrently, the rPSF segment is emerging as a high-growth niche within the broader polyester value chain, supported by rising sustainability requirements and increasing utilization of post-consumer PET waste. While still at an early stage of development, the industry has established a meaningful production base, with E-Vision, Pinnacle Fibre, Lasani, and Khalis Fibre collectively accounting for installed capacity of approximately 82,125 MTPA in FY25. The business model offers an inherent feedstock advantage by substituting virgin petrochemical inputs with recycled PET bottles, reducing exposure to PTA and MEG price volatility. However, operational economics remain sensitive to energy costs, as bottle collection, washing, sorting, and processing are electricity-intensive activities. Over the medium to long term, growth in rPSF is expected to be underpinned by expanding sustainability mandates from global apparel brands, increasing demand for recycled textile inputs, and gradual improvements in Pakistan's recycling ecosystem. As environmental compliance becomes a more prominent purchasing criterion across export-oriented textile markets, rPSF producers are well-positioned to benefit from the industry's ongoing shift toward circular and sustainable manufacturing practices.

E-Vision is one of the leading players in Pakistan’s recycled polyester staple fiber (rPSF) industry, operating alongside key competitors such as Lasani Fiber, Khalis Fiber, and Pinnacle Fiber. In FY25, the industry’s combined installed capacity stands at approximately 82,125 MTPA. Among peers, E-Vision and Pinnacle Fiber collectively hold the largest installed capacity at ~21,900 MTPA, marginally ahead of Lasani’s ~20,075 MTPA, while Khalis accounts for ~18,250 MTPA.

The Company’s topline declined significantly in CY25, falling to PKR 1,117 million from PKR 1,438 million in CY24, reflecting an overall contraction of ~22% YoY. This decline was broad-based across both domestic and export segments, indicating weakening demand rather than isolated segmental pressure. Export revenue dropped sharply by ~37%, from PKR 87 million to PKR 56.4 million, suggesting reduced international demand or potential loss of export markets/competitiveness. Similarly, local sales, which remain the primary revenue driver, declined from PKR 1.59 billion to PKR 1.25 billion. This contraction in the core business is more concerning, as it indicates sustained pressure on domestic volumes or pricing. Overall, the revenue trend reflects weakening business momentum in CY25, with both export and domestic markets contributing to the downside, pointing toward structural or demand-side challenges rather than one-off fluctuations.

Margins showed a mild deterioration in CY25, though overall profitability remained relatively stable. Gross margin declined slightly to 17.2% in CY25 compared to 18.8% in CY24, indicating some pressure at the cost level, likely driven by either higher input costs or less favorable product mix. Operating margin also contracted from 13.5% in CY24 to 11.5% in CY25, reflecting the impact of lower gross profitability along with possible fixed cost absorption pressure amid declining revenues. Despite this, net profit remained broadly stable in absolute terms, with PAT at PKR 31 million versus PKR 38 million last year. Interestingly, net margin improved slightly to 2.8% in CY25 from 2.6% in CY24, suggesting better below-the-line efficiency, potentially due to lower finance costs, tax adjustments, or other non-operating items cushioning the decline at the operating level. Overall, while core operating profitability came under pressure, the bottom line remained resilient, indicating some offsetting efficiencies outside the operating segment.

The Company's primary export countries are China and Turkey but during the period exports of the company heavily declined due to low polyester price rates. Additionally, the company's management is considering the installation of a solar power system with a capacity of ~50 kilo watt within the next few months to reduce the power and energy costs to ~25% approx.

The net cash cycle extended further to ~276 days in CY25 from ~196 days in CY24 and ~154 days in CY23. This was driven by a rise in inventory days to ~381 in CY25 from ~226 and ~155 in preceding years. Trade payables remained elevated at ~135 days in CY25 versus ~79 days in CY24 and ~47 days in CY23, leading to gross working capital days rising to ~411 in CY25 from ~275 and ~201

FCFO declined materially to PKR 90mn in CY25 from PKR 221mn in CY24, reflecting a notable weakening in operating cash generation. Although finance costs eased to PKR 86mn (CY24: PKR 131mn), the decline in cash flow outpaced the reduction in financial charges. As a result, FCFO/finance cost coverage compressed to 1.1x in CY25 versus 1.7x in CY24, indicating a tighter liquidity buffer and reduced capacity to service debt from core operating cash flows.

The capital structure remained leveraged with a gearing ratio of ~47.1% in CY25 (CY24: 46.9%). Borrowings continued to be concentrated in short term making up 82.3%  of total borrowigs from 95.5% SPLY.