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Communication Limited ('Airlink' or 'the Company') is a public limited company, incorporated in January 2014 under the repealed Companies Ordinance 1984, now the Companies Act, 2017.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. Its registered office is located at 152/1-M, Quaid-e-Azam Industrial Estate, Kot-Lakhpat, Lahore. Airlink began as a partnership firm in 2010, engaged in the import and distribution of IT products, particularly mobile phones and related products. In 2014, a new private company was incorporated to take over the partnership's business, and the entire industry was transferred to the company's books in 2018. Subsequently, Airlink converted its status to a Public Unlisted Company in April 2019 and was eventually listed on the PSX in September 2021. Airlink's core operations include the production of Tecno smartphones and the distribution of mobile phones and allied products from leading brands such as Xiaomi, Tecno, Samsung, iPhone, and Itel. Furthermore, Airlink has partnered with Xiaomi to manufacture and distribute Xiaomi mobile phones and accessories in Pakistan through its wholly-owned subsidiary, Select Technologies (Private) Limited.

The majority stake in the Company is held by the sponsoring family, with approximately 73.43% of the shares. The general public owns approximately 8.07%, foreign companies hold about 5.75%, and collectively, banks, development finance institutions, non-banking finance institutions, insurance companies, modarabas, and mutual funds own around 5.91%. Directors, their spouses, and minor children hold about 2%, while others own the remaining 4.83%. The ownership structure of Airlink is considered stable, given the significant majority stake held by the sponsoring family. No major changes in the ownership structure are anticipated in the near future. Mr. Muzzaffar Hayat Piracha, the primary sponsor, has led the Company since its inception. With extensive industry experience and a deep understanding of the market, his strong leadership is evident through the successful strategic partnerships the Company has established. His business acumen is highly regarded. The owners of the Company do not hold any strategic stakes in other companies. However, Mr. Muzzaffar Hayat owns commercial and residential real estate, contributing to the overall financial strength, which is deemed adequate.

The Board of Directors comprises seven members: two non-executive directors (including the chairman and a female director), two executive directors (including the CEO), and three independent directors. The Board members are seasoned professionals with extensive, multifunctional experience across multiple sectors. Mr. Aslam Hayat Piracha, the Chairman, possesses over five decades of business experience with a core specialty in imports and exports. He is actively involved in overseeing Airlink's systems and controls. The independent directors are highly regarded business experts, bringing exposure from diverse sectors. The Board meets at least quarterly to oversee management's performance and ensure alignment with the Company’s strategic goals. In 9MFY25, four Board meetings were held with strong attendance from the directors. Meeting minutes are appropriately documented, and action points are communicated to the relevant stakeholders. The Board has established two committees: the Audit Committee and the HR and Remuneration Committee, which enhance the Board's effectiveness by enabling focused oversight and efficient decision-making. M/S BDO Ebrahim & Co. Chartered Accountants, listed in the category 'A' on SBP's panel of auditors, serve as the Company's external auditors. They have expressed an unqualified opinion on the Company’s financial statements for the year ended June 30, 2024.

Airlink has a well-defined organizational structure, divided into eight functional departments: Human Resources, Production, Retail, Operations, Internal Audit, Marketing, Distribution, and Accounts & Finance. Each department is led by a professional Head who reports directly to the CEO. Currently, all key positions are filled. Mr. Muzaffar Hayat Piracha, the CEO, holds a Master's Degree in Business Administration and has over two decades of multifaceted leadership experience across various sectors. He is supported by a seasoned management team with extensive expertise. Notably, Mr. Adnan Aftab, the CEO of Select Technologies (Pvt.) Ltd., holds a Master's Degree in Manufacturing Engineering and has over three decades of experience in manufacturing. Additionally, 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. Each functional department has a multi-layered hierarchy with well-defined and documented roles and responsibilities, strengthening management effectiveness. Furthermore, six management committees have been established: the Credit Committee, Risk Management Committee, Sales Control Committee, Cash Management Committee, Operational Control Committee, and Business Plan Committee. These committees enhance overall operational efficacy by enabling focused decision-making and bridging inter-departmental gaps. The Company has implemented SAP, an ERP solution, to maintain a robust reporting system. The internal audit department, which reports directly to the Board’s audit committee, ensures oversight. Detailed MIS reports for senior management are frequently generated for each business unit, including region-wise business partner reports with adjustments, daily stock reports for all warehouses, and product-wise reports of region and corporate limits.

Pakistan’s cellular market has experienced rapid growth, with tele-density rising from ~6% in FY04 to ~80% in FY24. However, currency devaluation against the USD and increased import duties have escalated mobile phone costs, impacting demand for high-end devices. In CY24, local mobile production reached ~31.38 million units (CY23: ~21.28 million units), comprising around 13 million 2G devices and ~19 million smartphones as per the Pakistan Telecommunication Authority (PTA). Similarly, imports also increased to ~1.71 million units from ~1.58 million units in CY24. Currently, four major distributors dominate the market, with Airlink leading at a 20% market share, as per the management. The Company partners with top global mobile brands in the distribution segment, with major contributors by volume being Xiaomi, Tecno, and Samsung. Airlink also exclusively manufactures Xiaomi smartphones in Pakistan and produces Tecno smartphones, solidifying its strong industry position. During 9MFY25, Airlink’s consolidated revenue was recorded at ~PKR 85.552bln (FY24: PKR 129.742bln), driven by the issues of CKD imports, which reduced mobile phone assembly volumes. In 3QFY25, sales declined by ~12.1% year-over-year due to reduced demand stemming from price increases linked to new taxes. However, the gross profit margin increased from ~7.6% in FY24 to ~9.8% in 9MFY25. However, the net profit margin decreased to ~3.3% in 9MFY25 from ~3.6% in FY24. 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 assembling MIKI Smartwatches and Xiaomi smart TVs, further enhancing its growth prospects.

Airlink's working capital requirements are primarily driven by the need to fund its inventory in the assembly and distribution segments. During 9MFY25, the average gross working capital days increased to ~44 days from 30 days in FY24. Consequently, the average net working capital days also increased to ~35 days in 9MFY25 from 18 days in FY24 due to inventory build-up to meet the demand from Xiaomi Pakistan (Pvt.) Ltd. In FY25, the recently imposed sales tax has raised the Company's working capital requirements in the distribution segment. Free cash flow from operations (FCFO) reduced to ~PKR 6,476mln in 9MFY25 from ~PKR 8,578mln in FY24, driven by an increase in sales tax. Consequently, the interest coverage ratio also decreased and reached 2.6x in 9MFY25 (FY24: 3.3x). Debt payment capacity remained stable, reflected by a debt payback ratio of  0.4 times in 9MFY25 compared to 0.5 times in FY24. Airlink's total debt increased during the review period, reaching ~PKR 28,718mln as of March 2025 (FY24: PKR 16,419mln; FY23: PKR 8,302mln). The Company maintains a leveraged capital structure, with a leverage ratio of ~65.2% as of March 2025 (FY24: 52.1%; FY23: 40.4%; FY22: 40.8%). The debt portfolio is predominantly composed of short-term loans, constituting ~93.3% of the total debt, which are utilized to fund growing working capital needs.

Airlink has issued its sixth rated, secured, privately-placed, short-term Sukuk-VI, marking a strategic financial move for the Company. The Sukuk carries a markup of 6MK+1.75%, with a tenor of six months. 

The claims of Sukuk holders will rank superior to the claims of ordinary shareholders.

The underlying instrument is secured by a ranking charge over the Company’s current assets. The Issuer shall maintain and efficiently manage Debt Payment Account (“DPA”) under lien of the Investment Agent whereby the payment equivalent to PKR 1,000 million shall be made on or before 50 days before the maturity date, and subsequently 1/3rd of the remaining amount to be deposited every 15 days thereafter, such that amount equivalent to full issue amount is available in the DPA 05 days before the maturity date.