Mount Fuji Textile Limited (‘Mount Fuji’ or ‘the Company’) is a Public (unlisted) Limited Company. It was incorporated in Karachi, Pakistan on August 12, 1986.

Over the years, Mount Fuji has steadily expanded its operations, diversifying its expertise across multiple stages of the manufacturing process. With a strong foundation in production excellence, the Company has continuously evolved to meet market demands. As part of its growth strategy, Mount Fuji has successfully ventured into the garments segment, further strengthening its presence in the industry and broadening its portfolio of high-quality products.

The principal activity of the Company is the manufacturing and export of garments and home textile products distributed among its three units. The Company has five sectional warping machines of 1000 creels each with a warping capacity of approximately two million meters a month. The Company has a weaving facility of 138 Sulzer and 84 Airjet Looms with a weaving capacity of approximately 3.5mln picks a day. The Company has 15 knitting machines, 2 raising machines, 846 computerized sewing machines & 19 cutting machines. The energy requirement stands at 1.5 MW, primarily met through solar capacity and K-electric. The registered office is located at D-148 Sindh Industrial Estate (S.I.T.E) Karachi.

The ownership of the Company rests with Mr. Ashraf's family including his sons. The major shareholding is owned by Mr. Ahmed Ashraf (28.57%), while the remaining is equally distributed between his sons, Mr. Abdul Latif Ashraf, Mr. Muhammad Ashraf, and Mr. Shehzad Ashraf.

The Company was established to facilitate the transfer of technical and business expertise from the first generation to the second generation of the Ashraf family. It integrates the experience and guidance of the founding generation with the leadership of the next generation. While a formal succession plan has not yet been announced, the establishment of the formal family constitution will augment the ownership profile of the Company.

The directors and management possess extensive expertise and a wealth of experience in the textile industry, having successfully led the organization for 38 years. Committed to its core philosophy, the Company strives for sustainable growth while upholding operational excellence and adhering to industry best practices.

The sponsoring family has been involved in multiple businesses for more than 20 years. The family is involved in textile & garment manufacturing. This indicates sponsors’ ability to provide support if the need arises.

Mount Fuji’s board comprises four members, including the Chairman - Mr. Ahmed Ashraf, and the Chief Executive Officer (CEO) – Mr. Abdul Latif Ashraf. There are no independent directors on the board. The board is dominated by sponsor-family members and lacks independent oversight. The inclusion of independent oversight will enhance the governance profile of the Company.

Mr. Ahmed Ashraf, the Chairman of the Company, is a distinguished leader in the textile industry with over five decades of extensive experience. His journey in the sector began in the 1960s when he established Ashraf Trading Corporation, earning a reputation for reliability in textile exports. In 1986, he further demonstrated his strategic vision by founding Mount Fuji Textiles Limited, reinforcing his commitment to industry excellence and growth.

No formal board committees have been established by the Company. BOD meetings are held regularly in which discussion on various aspects is recorded in minutes and decisions or actions are referred to the CEO, Mr. Abdul Latif Ashraf. The establishment of sub-committees will augment the board's effectiveness.

BDO Ebrahim & Co, Chartered Accountants, is the external auditor of the Company. The auditors fall under the category' A' of SBP’s panel of auditors. The auditor has expressed an unqualified opinion on the financial reports for the year ending 30th June 2025.

Mount Fuji Textiles Limited follows a hierarchical structure with the Chairman at the top, followed by the CEO, Managing Director, and COO, ensuring centralized decision-making. Abdul Rasheed Vayani, CFO & Company Secretary, is a seasoned finance professional with over 44 years of experience in financial management, corporate governance, and compliance. A Fellow Cost and Management Accountant (FCMA), he has been associated with the Company since 1996 and has served in his current role for the past 13 years, reporting directly to the CEO. The Company is functionally divided into Marketing & Operations, Production, Weaving, and Hub Management, each led by a General Manager for specialized efficiency. Financial oversight is managed by the CFO, with key roles in Accounts, Treasury, Inventory Management, and Internal Audit, ensuring governance and risk control. A dedicated Procurement, Admin/HR, and Compliance function enhances regulatory adherence and resource management. The presence of Export and Import Managers indicates a focus on international trade. This structure fosters operational efficiency, clear responsibilities, and seamless coordination, making it well-suited for a large manufacturing enterprise.

Mr. Abdul Latif Ashraf – CEO – holds a Master’s degree and has been in the Textile business for the last two decades. He has been associated with the Company since 2001. Mr. Muhammad Ashraf – the managing director – holds a Master’s Degree from Karachi. He has been in the Textile Business for the last one and a half decades. He looks after all types of Procurement & Marketing and has been associated with the Company since 2007. Mr. Shehzad Ashraf – the executive director – holds a Master’s Degree from the U.K. He is looking at the Finance and Admin department. He has been in the Textile Business for the last five years.

Mount Fujii does not have established formal management committees. However, various reports pertaining to the Company's sales and inventory movements, as well as purchases and procurement activities, are prepared and submitted to senior management as required.

The Company has built an in-house ERP to cater to its business needs. The senior management monitors the business performance through certain key MIS reports.

Production is completely order driven, there is a rigorous quality check done on the end product by the QC department. The Company has obtained ISO 9001, ISO 14001, GSV, BICI, OEKO-TEX, WCA, Sedex, & & SQP certifications.

Pakistan’s textile exports rose to USD ~17.9bln in FY25, recording a ~7.4% YoY growth, driven predominantly by value-added segments. Knitwear (USD ~5.0bln), readymade garments (USD ~4.1bln), and bedwear (USD ~3.1bln) collectively contributed over two-thirds of total exports, while cotton yarn and cotton cloth exports continued to decline, reflecting structural inefficiencies and high energy costs. During 5MFY26, export momentum moderated, with ~2.7% YoY growth, led by garments and knitwear. On the supply side, domestic cotton production fell sharply by ~30.7% YoY in FY25, resulting in a ~54.9% YoY surge in textile imports to USD ~4.2bln, primarily due to raw cotton. Import reliance eased in 5MFY26, with raw cotton imports declining by ~31.4% YoY, supported by improved arrivals and the withdrawal of sales tax exemption on imported cotton under the Finance Act 2025. Profitability dynamics weakened following the shift from the Final Tax Regime to the Normal Tax Regime, exposing exporters to a 29% corporate tax and super tax of up to 10%. However, the sharp decline in policy rates to ~10.5% by Dec’25, alongside subsidized export financing, has begun to stabilize margins and improve financial metrics, as reflected in the profitability rebound during 1QFY26. Overall, value-added exports and easing monetary conditions are partially offsetting persistent cost and policy pressures, supporting a cautiously stable industry outlook.

The Company has five sectional warping machines of 1000 creels each with a warping capacity of approximately two million meters a month. The company has also a weaving facility of 138 Sulzer and 84 air jet looms with weaving capacity of approximately 3.5 million picks a day. The Company has 15 knitting machines, 2 raising machines, 846 computerized sewing machines & 19 cutting machines. Considering this, the relative position of the Company is considered a low to mid-tier textile player in the overall textile sector.

During ~6MFY26, the Company's revenue stood at ~PKR5.9bln, compared with ~PKR5.7bln in ~6MFY25. In FY25, the Company's revenue stood at ~PKR10.3bln. A significant portion of the revenue continues to be generated from export sales, which stood at ~PKR3.5bln during ~6MFY26. Meanwhile, local sales stood at ~PKR2.3bln during ~6MFY26. The Company maintains a diversified product portfolio, offering home textile products such as curtains, bedsheets, and comforters, along with woven and knitted garments. The Company’s export-oriented operations remain a key driver of its revenue base.

During ~6MFY26, the Company reported a gross profit of ~PKR888mln, compared with ~PKR1.1bln in ~6MFY25. In FY25, gross profit stood at ~PKR1.7bln. Consequently, the gross profit margin stood at ~15.1% during ~6MFY26, compared with ~19.0% in ~6MFY25, while it stood at ~16.0% in FY25. The operating profit margin stood at ~6.6% during ~6MFY26, compared with ~8.4% in ~6MFY25. In FY25, the operating profit margin stood at ~5.9%. The finance cost of the Company stood at ~PKR143mln during ~6MFY26, compared with ~PKR192mln in ~6MFY25, while it stood at ~PKR388mln in FY25. Thus, the Company’s net profit clocked at ~PKR42mln during ~6MFY26, compared with ~PKR73mln in ~6MFY25. In FY25, net profit stood at ~PKR116mln, while the net profit margin stood at ~0.7% during ~6MFY26, compared with ~1.3% in ~6MFY25 and ~1.1% in FY25, reflecting relatively lower profitability during the current period.

In line with improving the business environment and mitigating the risk of escalating energy costs, the Company has installed ~1MW of solar capacity. The Company’s energy cost-to-sales ratio stood at ~6.3% (FY25: ~6.3%), which is expected to improve going forward. The rating team further noted that the Company intends to add a dyeing facility to enhance operational efficiency and strengthen its product value chain.

During ~6MFY26, the Company’s net working capital days stood at ~112 days, compared with ~90 days in ~6MFY25. In FY25, net working capital days stood at ~108 days. The inventory days stood at ~82 days during ~6MFY26, compared with ~99 days in ~6MFY25. The receivables days stood at ~66 days during ~6MFY26, compared with ~53 days in ~6MFY25. On the other hand, the Company’s short-term trade leverage stood at ~-6.3% during ~6MFY26, compared with ~13.1% in ~6MFY25. In FY25, short-term trade leverage stood at ~17.2%, reflecting changes in the working capital structure during the period.

In ~6MFY26, the FCFO of the Company stood at ~PKR373mln, compared with ~PKR144mln in ~6MFY25. In FY25, FCFO stood at ~PKR158mln, supported by operating cash generation. Consequently, the interest coverage ratio improved to ~3.3x during ~6MFY26, compared with ~0.8x in ~6MFY25, while it stood at ~0.4x in FY25. The debt coverage ratio strengthened to ~2.8x during ~6MFY26, compared with ~0.8x in ~6MFY25, while it stood at ~0.3x in FY25. The finance cost of the Company stood at ~PKR143mln during ~6MFY26, compared with ~PKR192mln in ~6MFY25 and ~PKR388mln in FY25.

During ~6MFY26, the Company’s leverage stood at ~36.4%, compared with ~29.1% in ~6MFY25. In FY25, leverage stood at ~40.2%. Short-term borrowings constituted ~82.3% of total borrowings during ~6MFY26, compared with ~77.3% in ~6MFY25, and stood at ~PKR3.9bln, compared with ~PKR2.7bln in ~6MFY25. In FY25, short-term borrowings stood at ~PKR3.3bln. The overall borrowings of the Company stood at ~PKR4.7bln during ~6MFY26, compared with ~PKR3.4bln in ~6MFY25, while they stood at ~PKR4.3bln in FY25. Meanwhile, the equity base of the Company stood at ~PKR8.4bln during ~6MFY26, compared with ~PKR8.6bln in ~6MFY25, while it stood at ~PKR6.8bln in FY25.