Daewoo Pakistan Express Bus Service Limited (‘DPEBSL’ or ‘the Company’) is an unlisted public limited company, incorporated in Pakistan on December 22, 1997, under the now-repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The Company’s registered office is located at 231-Ferozepur Road, Lahore.

Daewoo Pakistan Express Bus Service Limited (DPEBSL) is one of the pioneering and most recognized names in Pakistan’s organized intercity transportation sector. The Company was originally established as a subsidiary of Daewoo Corporation, South Korea, a global conglomerate renowned for its engineering, infrastructure development, and transportation expertise. Leveraging the parent company’s technical and operational proficiency, DPEBSL introduced Pakistan’s first structured and modern intercity bus service in the late 1990s, setting new benchmarks for safety, comfort, and punctuality in public transport. Following Daewoo Corporation’s global restructuring, the ownership of DPEBSL transitioned in 2007 to Sammi Corporation, South Korea, which continued to uphold the brand’s service discipline and quality orientation. A subsequent ownership change occurred in 2011, when Asia Pak Investments Limited, a BVI-registered entity with offices in Hong Kong, Dubai,  and Pakistan,  with a diversified portfolio in energy/power, infrastructure, mining, media, chemicals, and logistics, acquired the Company. Over the years, DPEBSL has maintained its position as a benchmark player in the transportation sector, supported by its established brand equity, modern infrastructure base, and long-standing institutional experience. The Company has strategically expanded from a single-service operator to a multi-vertical transport enterprise, while sustaining its reputation for compliance, operational discipline, and service standardization. Its evolution reflects a combination of technical legacy inherited from South Korean partners and strategic direction provided by local ownership.

Daewoo Pakistan Express Bus Service Limited (DPEBSL) commenced commercial operations in April 1998 and has evolved into one of Pakistan’s most established and vertically integrated transport operators. The Company maintains a sizeable operational base with an intercity fleet exceeding 400 buses deployed across its national network and more than 600 intracity buses deployed in various mass transit projects in the province of Punjab, KPK, and Sindh. In addition, DPEBSL operates a diversified logistics platform under Daewoo FastEx, comprising approximately 200 cargo trucks and more than 200 delivery centers, supporting a wide range of cargo and courier services. Over its twenty-seven years of operations, the Company has expanded its scope beyond core intercity passenger transport and developed a significant presence in regulated intracity public-sector transit systems. It presently manages several major mass transit projects, including the Lahore Feeder Bus System, Multan Metro Bus, Orange Line Lahore (shared operational scope), Peshawar BRT (Phase I & II), and Karachi BRT (Green Line and Orange Line corridors). Collectively, these engagements account for nearly 70% of the regulated mass transit projects awarded nationwide. The Company’s operational spectrum has further broadened with the establishment of the Daewoo Waste Management Division (DWMD) under the Suthra Punjab Initiative, undertaken in collaboration with the Punjab Solid Waste Management Company (PSWMC). The mandate spans 22 tehsils across Punjab, representing one of the province’s largest integrated municipal waste management deployments. The project incorporates technology-enabled oversight, including AI-based monitoring, real-time fleet visibility, digitalized workforce management, and data-driven operational controls. A KPI-linked monitoring and payment framework governs the engagement, supporting transparent service delivery and predictable revenue realization for the Company.

The majority of the Company's shares (95.47%) are owned by Liberty Daharki Power Ltd., which is ultimately controlled by Mr. Shaheryar Arshad Chishty (100%), through his wholly owned company, AsiaPak Investments Ltd. The minority shareholder includes Mr. Sohail Elahi (4.53%).

Since its inception, the ownership structure of the Company has undergone several changes. The most recent transaction occurred in 2011, when Asia Pak Investments Ltd. acquired the Company from Sammi Corporation, Korea. Since then, there have been no significant changes to the ownership structure. Currently, the Company's ownership is concentrated in the hands of Mr. Shaheryar Arshad Chishty, through his wholly owned entity. To further strengthen the stability of ownership, it would be beneficial to establish a formally documented succession plan.

The primary sponsor of the Company, Mr. Shaheryar Arshad Chishty, is a seasoned investment banker and entrepreneur. He has held senior leadership roles in several international organizations and has made substantial investments in a variety of sectors, including energy, transportation, logistics, and real estate. His successful investment ventures and leadership capabilities highlight his strong business acumen across multiple industries.

Mr. Shaheryar Arshad Chishty holds several strategic investments across various sectors through his wholly owned entity, Asia Pak Investments Ltd. His portfolio includes significant stakes in K-Electric, Thar Coal Block-1, multiple Independent Power Producers (IPPs), and Bol Network. This diversified portfolio of well-established business entities underscores his considerable financial strength, providing the Company with strong support should the need arise.

The Board of Directors (the Board) comprises of seven members, including four non-executive directors, one of whom is a female director, and three executive directors. Mr. Shaheryar Arshad Chishty, the primary sponsor, is among the executive directors and also serves as the Chairman of the Board.

All members of the Board are seasoned professionals, bringing extensive expertise and experience from diverse sectors. Notably, Mr. Shaheryar Arshad Chishty, the Chairman, graduated from Ohio Wesleyan University and is a seasoned investment banker and entrepreneur. He has held senior leadership positions with renowned international organizations, including Citigroup and Nomura International, before establishing his own investment portfolio. Additionally, Mr. Yong Hee Lee has served in various executive roles, including CEO, at Sammi Corporation, South Korea, for over three decades. Mr. Darin Daniel Baur, a graduate of Harvard Law School, is an experienced investment banker who has worked with leading investment banking firms in Canada, Hong Kong, and the USA.

The Board meets at least quarterly, following a pre-defined agenda, to oversee management’s performance and provide strategic direction. During each meeting, the management presents a detailed review of the performance of each business segment. The minutes of the meetings are accurately documented, and action points are communicated to the relevant stakeholders. Additionally, the Board has established two committees: i) the Audit Committee and ii) the Human Resource Committee. These committees support the Board in ensuring the development and implementation of effective risk assessment and mitigation strategies, and human resource policies.

M/S Yousuf Adil Chartered Accountants, a QCR-rated firm listed in the ‘A’ category on the SBP's panel of auditors, serves as the Company's external auditors. The auditors have issued an unqualified opinion on the Company's financial statements for the year ended December 31, 2024, indicating the Company’s compliance with applicable accounting policies and standards.

The Company’s organizational structure is divided into several functional departments, including Human Resources, Marketing, Finance, Investment and Planning, Protocol and Public Relations, and Supply Chain. Additionally, each operational segment is organized as a separate business division, such as Urban Transport and Regulatory Affairs, Express Bus Service, FastEx, Workshops, and Waste Management Division. Each department and division follows a multilayered hierarchy and is led by a qualified Head of Department with relevant experience. All department heads report to the CEO, who, in turn, reports to the Board of Directors. Currently, all the key positions are filled.

Syed Mazhar Iqbal is the CEO of DPEBSL. He is the fellow member of Institute of Chartered Accountants of Pakistan with diversified experience of more than 40 years in diverse industries. Prior to joining Daewoo he served as CEO of Pioneer Cement, Haleeb Foods and Executive Director at Fast Cables. Mr. Faisal Siddiqui is the Executive Chairman at DPEBSL. He is instrumental in leading Daewoo and is one of the key persons in decision-making to diversify the revenue base. He is responsible for leading and managing all business segments. He holds a Master’s degree in Business Administration from Columbia University, completed in 2010. Prior to his current role, he worked with Convoy Solutions LLC as a Consultant in Financial Modelling and Analysis and at Credit Suisse as a director of Fixed Income Structuring and Trading. Notably, Mr. Anwer Shamim, the CFO, is a qualified Chartered Accountant with the Institute of Chartered Accountants of Pakistan (ICAP) and brings extensive experience in financial management.

A well-defined organizational structure with clear responsibilities and reporting lines enhances the effectiveness of management. The Company has also established an Operational Committee, consisting of all department heads, which further strengthens management effectiveness. This committee facilitates focused and efficient operational decision-making by bridging gaps between departments, ensuring smoother coordination and execution.

The Company has implemented Oracle as its primary Enterprise Resource Planning (ERP) software, significantly improving the quality of transactional record-keeping and reporting. Additionally, the Company has established a dedicated e-ticketing platform to enhance customer convenience and facilitate seamless ticket purchasing.

The Company has established a robust mechanism to assess, report, and mitigate risks arising from its business operations. Additionally, a dedicated in-house internal audit department is responsible for evaluating the effectiveness of risk management and mitigation procedures, ensuring their proper implementation, and recommending improvements to enhance their efficacy. The internal audit department reports directly to the Board’s Audit Committee, ensuring both objectivity and independence in its operations.

Pakistan’s transport sector is a key component of the broader services sector, contributing approximately 52.9% to the country's Gross Domestic Product (GDP) in FY24. The intercity bus transit segment is characterized by a mix of a few large, organized players operating fleets of around 50 to 500 vehicles, and many small, unorganized players with fleets of 1 to 50 vehicles and limited geographical reach. This segment faces intense competition due to low barriers to entry, requiring affordable pricing and high-quality services to sustain growth. Similarly, in the logistics services sector, consumers are increasingly gravitating toward providers that offer competitive pricing, reliable services, and technology-driven solutions such as real-time tracking of consignments. Notable players in the intercity bus transit segment include DPEBSL, Faisal Movers, Bilal Travels, and Niazi Express, among others. However, competition in the regulated segment, specifically in the provision of operations and maintenance services for government-owned mass transit projects, is limited, with only a few players possessing the capacity and expertise to manage such projects. Key players in this segment include DPEBSL and Veda Transit Solutions (Pvt.) Ltd.

Daewoo Pakistan has steadily expanded its presence across all the business segments in which it operates, establishing itself as one of the leading players in the road transport sector. The Company operates a fleet of over 400 buses on intercity routes, serving approximately 6.5 million passengers annually. Additionally, Daewoo Pakistan is the third-largest provider of logistics services, with a dedicated fleet of more than 200 cargo trucks. In the regulated segment, DPEBSL holds a dominant market share of around 70%, having secured operations and maintenance contracts for seven of the ten mass transit projects currently operational in Pakistan. These include BRT Peshawar 1 & 2, Orange Line Lahore, Green Line and Orange Line Karachi, Multan Metro Bus Service, and Lahore Feeder Routes. Additionally, Daewoo has recently secured a major waste management contract, further strengthening its diversified operational footprint. The Company now stands as the single largest private operator in the Suthra Punjab segment, holding responsibility for 22 out of 112 tehsils awarded under the provincial framework.

During 9MCY25, the Company reported revenues of approximately ~PKR 30,775mln, reflecting a strong YoY growth of ~57.4%, compared to ~PKR 26,065mln in CY24. This notable topline expansion was supported by continued tariff rationalization across intercity, intracity, and regulated routes, alongside the scaling-up of newly secured service contracts. The healthy revenue transition indicates strong demand recovery in passenger mobility and stabilization in ancillary business lines. A key operational driver was the Company’s ability to pass on inflationary cost pressures, particularly fuel, energy, and maintenance, through fare adjustments, while maintaining healthy passenger retention. Growth in revenue is not just because of these sectors, combined with waste management revenue, it contributed to 57% revenue. A visible shift in revenue composition was observed over the period. In 9MCY25, intercity transport contributed ~31.0%, intracity ~26.6%, cargo services ~6.3%, and waste management operations ~36.1% of total revenue. In comparison, in CY24, intercity accounted for ~42.2%, intracity ~48.4%, cargo services ~8.4%, and waste management only ~1.0% of revenue. The relative contribution of intercity and intracity segments softened in 9MCY25 due to an exceptional surge in contractual and municipal operations, particularly under the Punjab Solid Waste Management project. This diversification reduced reliance on passenger transport revenue, strengthening earnings resilience. Cargo revenues remained stable, in line with observed freight flow trends. Overall, the shift in revenue mix highlights the Company’s successful strategic expansion into less cyclical, contract-based income streams, enhancing revenue predictability and long-term sustainability.

The Company’s margin profile showed a mixed trend during 9MCY25. The gross profit margin stood at ~15.9%, marginally lower than ~17.1% in CY24, primarily due to elevated salary expenses and higher operational overheads during the period. Despite this slight contraction at the gross level, the Company’s operating profit margin improved to ~12.2% (CY24: ~10.4%), supported by scale efficiencies, administrative cost discipline, and higher absorption of fixed costs on a growing revenue base. Similarly, the net profit margin improved to ~6.7% in 9MCY25, up from ~5.6% in CY24, despite an increase in finance cost. The Company delivered a net profit of ~PKR 2,052mln during 9MCY25, compared to ~PKR 1,449mln in CY24, indicating strengthened profitability from core operations. Non-operating income also contributed positively, though to a lesser extent compared to last year. Margin enhancement at the operating and net levels signifies the Company’s improved operational efficiency and stronger earnings capacity, even in the face of rising cost components.

The Company is well-positioned to capitalize on its already established strong standing in the regulated business segment. However, a focused medium-term strategy will be essential to foster volumetric growth within the intercity bus transit segment.

The Company continued to manage a lean working capital cycle, though with some increase compared to last year. Net Working Capital Days rose to ~24 days in 9MCY25, compared to ~12 days in CY24. The increase is primarily attributable to a substantial rise in trade receivables (~PKR 6,575mln vs. ~PKR 3,070mln last year), reflecting higher invoicing under long-term service contracts and timing-related recovery from the Government. On the liability side, trade payables remained stable at ~18 days (CY24: ~19 days), indicating continued timely supplier payments. The short-term trade leverage increased significantly to ~64.9% in 9MCY25, up from ~28.8% in CY24, mainly due to growth in current liabilities relative to the expanded revenue base. Despite the increase, the Company’s liquidity profile remains manageable, supported by strong operating cash flows and adequate banking lines.

Coverage metrics strengthened notably on the back of improved earnings. The Company’s EBITDA rose to ~PKR 4,861mln in 9MCY25, compared to ~PKR 4,036mln in CY24. Despite an increase in total finance costs to ~PKR 968mln (CY24: ~PKR 932mln), the EBITDA-to-finance cost coverage improved to ~6.2x from ~5.4x last year. The Company generated strong Free Cash Flows from Operations (FCFO) of ~PKR 4,158mln in 9MCY25, significantly higher than ~PKR 3,099mln in CY24, reflecting stronger cash conversion from earnings. Consequently, the FCFO-to-finance cost ratio increased to ~5.3x, up from ~4.2x previously. The Debt Payback Ratio improved to ~2.0x in 9MCY25 (CY24: ~2.8x), indicating improved debt-servicing ability due to higher operating cash flows. The Company’s liquidity coverage remains sound, supported by robust cash generation and a sufficient buffer against short-term obligations.

The Company maintains a moderately leveraged capital structure. Total borrowings increased to ~PKR 8,129mln in 9MCY25, compared to ~PKR 5,021mln in CY24, primarily driven by higher long-term financing to support fleet modernization and expansion. As a result, the leveraging ratio increased to ~41.6%, from ~38.4% in CY24. Long-term borrowings stood at ~PKR 7,099mln, while current maturities amounted to ~PKR 588mln. Short-term borrowings remained small relative to the debt profile, reflecting limited reliance on working capital lines. The Company’s equity base strengthened to ~PKR 13,182mln (CY24: ~PKR 10,957mln), driven by profit retention. Related-party borrowings declined to ~PKR 1,264mln (CY24: ~PKR 1,822mln), reducing pressure on financial flexibility. Although leverage has increased due to expansion-led debt drawdowns, the Company’s strong equity base, improving profitability, and healthy cash flow coverage provide comfort to the capitalization profile.