Hub Power Holding Limited (“Hub Power Holding” or “the Company”), is incorporated as a public unlisted Company under the repealed Companies ordinance of 1984.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 holdco structure with sizeable holding in two coal-fired power generation plants: China Power Hub Generation Company Limited ("China Power Hub") - 47.5% shareholding and ThalNova Power Thar (Pvt.) Limited ("ThalNova Power") -38.3% shareholding.

The Company’s primary activity centers on strategic investments in energy infrastructure, notably through significant stakes in major power and resource projects across Pakistan. This includes a substantial interest in China Power Hub, a 1,320 MW power generation facility in Hub, Baluchistan, complemented by an ancillary jetty to support logistical efficiency. The Company incorporated China Power Hub Operating Company (Pvt.) Limited (CPHO) under an operating agreement to oversee and maintain the plant. Additionally, the Company holds an interest in ThalNova Power’s 330 MW mine-mouth coal-fired plant located at Thar Block II, Sindh, leveraging local coal resources for fuel security. In a further diversification move, the Company acquired a 50% stake in Prime International Oil & Gas through an agreement with EBO Group (Employees of ENI Pakistan), extending its portfolio to upstream oil and gas.

Hub Power Holding is the wholly owned by HUBCO. Major shareholding of HUBCO resides with Mega Conglomerate (19.5%), while the other major shareholding of HUBCO resides with Modarabas and Mutual Funds (9.47%), Financial Institutions (16.19%), Executives ( 0.09%), Associated Companies (20.36%) and Insurance companies (7.61%), individuals (30.31%) and other (15.96%)

As a wholly owned subsidiary of HUBCO, the Company benefits from a stable ownership structure, underpinned by its parent’s established standing and strong backing within Pakistan. Moreover, parent company's association with very strong conglomerates of Pakistan (Mega Group) ensure stability of the ownership structure.

Sponsors have significant experience development and operation of power projects, including coal-fired, hydro, natural gas, and various of renewable energies such as thermal, hydro, LNG, wind, solar, biomass, waste-to- energy, cogeneration, mine-mouth coal project (with integrated production of coal and power) and so on.

Hub Power Holdings' parent company, HUBCO has proven track record of raising capital (debt and equity) in Pakistan. As at FY24, HUBCO had a consolidated asset base of ~ PKR 452bln, supported by an equity of PKR ~13bln. HUBCO posted a net profit of PKR ~75bln.

The Company's Board consists of four members, including the CEO, with all three Non-Executive Directors nominated by HUBCO. The governance structure reflects a lack of independent oversight and is notably limited in terms of gender diversity, raising potential concerns regarding board independence and inclusivity in corporate decision-making.

Mr. Aly Khan, who is also on the Board of Hub Power Company, heads the Company's Board as the Chairman . All Board members have strong professional profile along with diversified experience.

In FY24, the Board held four meetings; however, it operates without dedicated sub-committees. Oversight of new investments and performance evaluation of existing assets is primarily undertaken by HUBCO’s Board. Key challenges are routinely assessed, and strategic direction is defined, with regular deliberations on the outcomes and roadmaps of ongoing and prospective onshore and offshore projects to facilitate informed decision-making. 

The Company's external auditors, A.F. Ferguson Chartered Accountants, expressed an unqualified opinion on the annual financial statements of FY24. This indicates that the financial statements present a true and fair view of the Company’s financial position, performance, and cash flows in accordance with applicable financial reporting standards, thereby reinforcing transparency and sound financial reporting practices.

The Company operates through three functions: HR, New Ventures and Finance. Each function is monitored by the respective director or head of department, who reports to the CEO.

Mr. Kamran Kamal, CEO, is an energy technology and policy specialist. He is accompanied by a team of experienced individuals. Mr. Muhammad Saqib, CFO, has an overall experience of more than 27 years.

Strategic decisions are made and monitored by HUBCO . There, detailed processes are in place for investment decision making and monitoring performance of underlying investments.

Internal audit function is placed at HUBCO and plays a significant role in empowering the organization. Certain functions are centralized to ensure effectiveness and leverage synergies.

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.

Strategic decisions are made and monitored by HUBCO. HUBCO has in place an efficient MIS reporting system for its operations. 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 FY24, 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 FY24, the Company’s investment portfolio comprised one subsidiary, two associates, and two 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, and 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 79% of the total. ThalNova Power accounts for 7%, while China Power Hub Operating Company and Prime International Oil and Gas contribute 0.03% and 13%, respectively. This revenue composition highlights a substantial concentration in China Power Hub Generation, with limited diversification across other investments. In FY24, the Company received dividend income of PKR 19 billion from China Power Hub Generation. Additionally, during 9MFY25, the Company recorded dividend inflows of PKR 48 million from its associate companies.

The Company demonstrated a substantial improvement in coverage metrics, with the FY24 ratio of 8.7x contrasting sharply with the weak 0.1x in FY23. This improvement is primarily driven by significantly enhanced cash flow generation, which increased to PKR 18 billion in FY24 from a modest PKR 143 million in the prior year. Furthermore, the Company's liquidity profile has undergone a notable positive shift year-over-year, as evidenced by the considerable improvement in the debt payback ratio, which stood at a robust 0.6x in FY24 compared to a stretched 7.4x in FY23. This strengthened debt payback capacity indicates a markedly enhanced ability to service and reduce its debt obligations. these positive developments suggest a materially improved financial flexibility and a reduced vulnerability to refinancing risks. The stronger cash flow generation provides a solid foundation for debt servicing, while the improved debt payback ratio underscores the accelerated pace at which the Company can deleverage its balance sheet.

The company maintains a low-leverage capital structure, which has further strengthened over the past fiscal year. The leverage ratio has significantly declined to 4.1% in FY24 from 11.6% in FY23. This notable reduction in leverage is attributable to a combination of factors: a substantial increase in the Company's equity base to PKR 115 billion in FY24 from PKR 84 billion in FY23, coupled with a considerable decrease in debt levels to PKR 1.5 billion in FY24 from PKR 4.9 billion in the previous year. This conservative capital structure provides the Company with a significant financial cushion and enhances its resilience to potential economic downturns or operational challenges. The increased equity base strengthens the Company's ability to absorb losses, while the lower debt burden reduces its financial obligations and interest expense. This deleveraging trend and the maintenance of a low-leverage profile as credit positive. It indicates a disciplined approach to financial management and provides the Company with greater financial flexibility to pursue growth opportunities or navigate unforeseen circumstances. The stronger equity position also enhances the Company's overall financial stability.

The Company derives financial strength from its main holding company, HUBCO, associated companies and its subsidiary.