Secure Logistics Trax Group Limited is a Listed Public limited Company incorporated in Pakistan. The Company obtained listing status on the Pakistan Stock Exchange in April 2024 following its initial public offering. Historically, the entity operated as Secure Logistics Group Limited and was previously known as Asia Capital Partners (Private) Limited. During CY25, the Company completed a strategic amalgamation with Trax Online (Private) Limited pursuant to a court approved scheme of amalgamation, following which the merged entity adopted the name Secure Logistics Trax Group Limited. The Company operates as the holding entity of an integrated logistics platform and owns interests in subsidiaries engaged in e-commerce logistics, warehousing, vehicle tracking, NBFC activities and security services. The Company has four subsidiaries having different Business Lines; (1) Trax Online Pvt.Ltd. - operating e-commerce and warehousing (2) LogiServe (Pvt) Ltd – asset tracking and NBFC operation, (3) FIST Security (Pvt) Limited – provides full range of security services and (4) Sky Guard (Pvt) Ltd – also engaged in executive closed protection solutions.

The Company commenced operations with a primary focus on security and logistics related services. Over time, management pursued a strategy of progressive diversification through a combination of organic expansion and strategic acquisitions. The business gradually evolved from conventional transportation and security operations into a broader logistics platform encompassing fleet management, vehicle tracking and technology enabled logistics solutions. A transformational milestone occurred through the acquisition and integration of Trax Online (Private) Limited, which significantly expanded the Company’s presence in e-commerce logistics and warehousing. The amalgamation strengthened the Company's technology capabilities and accelerated its evolution into a fully integrated logistics ecosystem. The Company's growth trajectory reflects management's focus on market expansion, technology adoption and business diversification while maintaining an integrated operational model.

The Company operates through six complementary business lines comprising 1) Logistics Operations (Long & Medium Haul Transportation) , 2) E- Commerce logistics / last mile, 3) Warehousing, 4) NBFC (Digital lending), 5) Iot Services (Asset Tracking) and 6) Security services. Its logistics platform offers end to end transportation services supported by a nationwide operating network. Through its logistics operations, the Company serves corporate clients across multiple industries including food and beverage, cement, steel, packaging, banking, insurance and leasing sectors. Currently, the Company has a fleet size of ~105 Prime Movers and Semi Trailers, Medium Haul Vehicles ~55, Last Mile Vehicles ~124 and Security Vehicles & bikes ~25. The acquisition of Trax Online expanded the Company's exposure to the rapidly growing e-commerce sector through last mile delivery and warehousing solutions. The Company utilizes technology enabled fleet management systems, real time vehicle tracking, route optimization tools and order fulfilment capabilities to improve efficiency and service delivery. Through LogiServe, the Company has expanded into tracking solutions and NBFC related activities that support clients through embedded financing solutions. This integrated model positions the Company across multiple stages of the logistics value chain while providing opportunities for cross selling and operational synergies. The Company's diversified service platform supports revenue stability and enhances its ability to respond to evolving customer requirements within the logistics sector.

The sponsoring family remains the ultimate controlling shareholder and exercises significant influence over strategic direction and business development initiatives. The latest shareholding structure comprises ~36% held by the sponsoring family, ~28% by Trax related shareholders, ~11% by KBP Limited Pakistan, ~2% by Karandaaz Pakistan and ~23% by the general public following the Company's listing. The diversified shareholder base combines sponsor influence with institutional participation, providing governance support and strategic oversight.

The ownership structure demonstrates stability supported by long standing sponsor involvement and increasing institutional participation. The successful integration of Trax Online demonstrates effective stakeholder alignment and supports the Company's strategic positioning, enhancing confidence in its long-term business outlook. The sponsors have demonstrated commitment through continuous expansion initiatives, capital raising efforts and stewardship of the Company's transformation into a technology enabled logistics platform.

The sponsors possess significant experience across logistics, finance, technology and corporate management disciplines. Management has consistently demonstrated the ability to identify growth opportunities and adapt business operations to changing market requirements. The strategic transition from traditional logistics toward a technology enabled logistics and fintech ecosystem illustrates a forward looking approach to value creation and business development. The integration of logistics, technology and financial services further reflects the sponsors' understanding of emerging opportunities within the sector.

The Company's financial strength is supported by a diversified shareholding base, healthy equity position and demonstrated access to capital markets. Shareholders have supported growth initiatives through equity injections and strategic transactions. Following the public listing and subsequent amalgamation, shareholders’ equity increased significantly and provides a strong capital foundation for future expansion. As at IHCY26, equity stood at PKR 8.2bln, reflecting substantial balance sheet strength.

The Board comprises nine members including executive, non executive and independent directors. The Board includes two executive directors, four non executive directors and three independent directors. The composition provides a blend of operational expertise, industry knowledge and independent oversight. Board responsibilities include strategic guidance, risk oversight, regulatory compliance and governance stewardship. The Board is supported through established governance mechanisms and committee structures that facilitate transparent decision making and accountability.

The Board of Directors (BoD) of SLG-Trax consists of a highly experienced team with a diverse blend of skills, backgrounds, and leadership across multiple industries. Mr. Pervaiz Khan, Executive Director, brings over ~40 years of wide-ranging experience in both the public and private sectors, with a strong focus on investment banking and the energy sector. He has served as the Chief Executive Officer of Uch Power I and II (Private) Limited. Additionally, he represented Pakistan as the Country Delegate for GDF Suez (the Group Holding Company) and was a member of International Power's Asia Executive Committee. Mr. Khan has also served on the boards of several key institutions, including the Privatization Commission, Pakistan State Oil (PSO), Government Power Holdings (Private) Limited, and the Ambassador Program for Pakistan at Columbia Business School. Following the merger with Trax Online (Private) Limited, SLG-Trax welcomed two new members to its Board of Directors_ Mr. Asad Abdulla holds a Bachelor of Arts in Economics from the University of Rochester and a Certificate in Management Information Systems from the Simon School of Business, New York. He has over ~20 years of leadership experience, including senior roles at Genesis Holdings and various executive positions at the IBL Group since 2002. He is a Certified Director from the Institute of Chartered Accountants of Pakistan (ICAP) and has served on the boards of International Brands Limited, United Distributors, FMC United, IBL Operations, The Searle Company, and Trax (Private) Limited. Mr. Ayaz Abdulla, the brother of Mr. Asad Abdulla, holds both a Bachelor of Science and a Master of Science in Mechanical Engineering from the University of Rochester, New York. He also has more than ~20 years of experience, particularly in corporate finance, strategy, and operations. Mr. Ayaz Abdulla has served as Chief Financial Officer, Chief Strategy & E-Commerce Officer at Khaadi, and as Group CFO at IBL, where he led major organizational transformation initiatives. He has also held the position of CEO at International Franchises (QSR) and served on the boards and audit committees of several publicly listed companies. He is a Certified Director from ICAP. Mr. Gulraiz Khan has been managing the operations of the Company since its inception. He holds a Master’s degree in Defense Management Studies from the National Defence University (NDU), Pakistan; a Master’s degree in Strategy from the Command and General Staff College, Fort Leavenworth, USA; and an MBA from the London Business School.

The effectiveness of the Board of Directors at SLG-Trax is rooted in its diverse composition, strategic oversight, and commitment to strong corporate governance. The Board brings together a wealth of experience across key sectors including investment banking, energy, logistics, technology, and consumer goods, enabling well-rounded and informed decision-making. Board members actively contribute to strategic planning, risk management, and performance monitoring, while ensuring compliance with regulatory and ethical standards. With several members holding internationally recognized certifications in directorship and governance, the Board fosters transparency, accountability, and long-term value creation. The addition of new directors following the merger has further strengthened the Board’s capacity to guide SLG-Trax through continued growth and transformation.

Current auditors RSM Avais Hyder Liaqat Nauman Chartered Accountants have expressed an unqualified audit report on Company's' financial statements as of CY25. The Company has also established internal audit function.

The organizational structure of SLG-Trax is built around two core pillars: Business Lines and Support Functions, ensuring operational efficiency and strategic alignment across the Company. All operational activities, including day-to-day execution, service delivery, and business development, are overseen by Mr. Gulraiz Khan, who plays a central role in driving business performance and managing client-focused operations. The Support Functions are under the leadership of Mr. Pervaiz Khan, who is responsible for overseeing key corporate functions including Accounts & Finance, Human Resources, Administration & Procurement, Legal & Contracts, and Information Technology. His role ensures that all support departments operate in alignment with the Company's strategic goals, providing the necessary infrastructure, governance, and compliance frameworks to enable seamless operations.

The management team at SLG-Trax is a cornerstone of the Company’s success, comprising a diverse group of professionals with extensive expertise and a proven track record in logistics, finance, operations, and corporate governance. At the helm is Mr. Gulraiz Khan, the Chief Executive Officer, who is responsible for steering the Company’s overall operational strategy, business development, and day-to-day management. His leadership ensures that SLG-Trax remains agile, competitive, and focused on delivering exceptional value to its clients. Supporting him is Mr. Pervaiz Khan, the Executive Director overseeing Support Functions such as Finance, Human Resources, Administration, Legal, and Information Technology. Mr. Khan’s stewardship of these critical areas guarantees robust corporate governance, efficient resource management, and seamless organizational support,which are essential for sustaining growth and operational stability. The management structure is organized into three hierarchical levels: senior, middle, and junior management. This tiered framework facilitates clear lines of communication, accountability, and decision-making across the Company. Senior managers focus on strategic planning and major business initiatives, middle managers translate these strategies into operational plans, and junior managers oversee day-to-day activities and frontline supervision. Collectively, the management team combines deep industry knowledge with a strong commitment to excellence and innovation. Their collaborative approach fosters a culture of continuous improvement, employee engagement, and customer-centricity. This synergy has enabled SLG-Trax to adapt to market challenges, optimize operational efficiencies, and consistently achieve its growth objectives, thereby reinforcing its position as a leading player in the logistics sector.

SLG-Trax has established a comprehensive and robust internal control environment to ensure operational efficiency, financial accuracy, and compliance with regulatory standards. This framework is built on several key pillars, including detailed Standard Operating Procedures (SOPs), a structured financial approvals matrix, Management Information System (MIS) reporting packages, and clearly defined policies across all core business functions such as Human Resources, Administration, Procurement, and Information Technology. Together, these elements provide a strong foundation for governance, risk management, and accountability within the organization. The SOPs play a crucial role in guiding day-to-day operations by clearly documenting processes, responsibilities, and control mechanisms. They help maintain consistency in operations, minimize errors, and promote efficiency across departments. The financial approvals matrix further strengthens this environment by specifying authorization levels required for different types of financial transactions. This ensures proper oversight and segregation of duties, reducing the risk of errors or misuse of Company resources. In addition, the Company uses structured MIS reporting packages that provide accurate, timely, and relevant data to management. These reports support informed decision-making, allow for effective performance monitoring, and help identify risks and opportunities for improvement across the business. Supporting these systems are comprehensive policy documents that govern all key operational functions, ensuring compliance with internal standards and legal requirements. Furthermore, all of the Company’s critical assets are insured, ensuring protection against unexpected losses and contributing to overall business continuity planning. Recognizing the importance of continuous improvement in governance and controls, SLG-Trax is actively working to further enhance its internal control environment. In addition to the ERP implementation, SLG-Trax is appointing independent internal auditors. Their role will be to conduct objective assessments of the Company’s internal controls, identify any weaknesses, and recommend improvements to ensure robust governance and regulatory compliance. Moreover, the Company is currently updating all existing operational and functional manuals to reflect current practices and align them with the new ERP workflows. These updates are aimed at ensuring clarity, efficiency, and consistency in the execution of all business processes. Through these ongoing efforts, SLG-Trax demonstrates its strong commitment to maintaining high standards of corporate governance, operational excellence, and risk management, thereby positioning the Company for sustainable growth and long-term success.

The Company has implemented a comprehensive Management Information System (MIS) reporting framework, with reports prepared and presented on a weekly, bi-monthly, monthly, and quarterly basis by all business units and support functions. This structured reporting approach enables effective performance monitoring, timely decision-making, and organizational alignment. Furthermore, the ongoing implementation of the ERP system (SAP Business One) is expected to significantly enhance the accuracy, consistency, and timeliness of MIS reporting, contributing to improved operational efficiency and strategic planning. Secure Logistics group’s transformation from a traditional logistics operator into a technology-enabled logistics and FinTech platform, the merged entity is well-positioned to command higher valuation multiples. This transformation reflects several key drivers of value creation. Firstly, there has been a fundamental platform shift, as the Company transitions from traditional operations to a technology-led 3PL/4PL model. This positions the business within a more dynamic and higher-growth segment of the logistics industry. Secondly, the Company has achieved full-stack ecosystem ownership through vertical integration. By controlling the entire value chain—from logistics and technology to financial services—it can capture greater value and operate with enhanced efficiency. Thirdly, the integration of data and digital capabilities has unlocked a new layer of technological value. These capabilities not only support smarter decision-making and operational agility but also align the Company with tech-based valuation metrics. Fourthly, the business has introduced a diversified margin stack through its supply chain lending offering, creating additional revenue streams and improving overall profitability. Finally, this strategic transformation allows for a repositioning of the Company within a new peer group consisting of tech-enabled logistics and FinTech players. As a result, the Company stands to benefit from a potential rerating in line with its new positioning and the value it brings to shareholders.

SLG-Trax has implemented a comprehensive and effective internal control system designed to ensure operational efficiency, financial accuracy, and compliance with regulatory requirements. At the core of this system are clearly defined lines of responsibility and authorization, which provide a structured framework for decision-making and accountability across all departments. Each functional area operates with established authority levels, ensuring that critical processes are subject to appropriate oversight and control. This governance structure is further reinforced by a strong technological infrastructure that supports both the Company’s manufacturing operations and its various support functions. The use of advanced systems and digital tools enables real-time monitoring, process automation, and data integrity, thereby minimizing risks related to manual errors, fraud, or inefficiencies. These systems are integrated across departments, allowing for seamless communication, efficient resource allocation, and centralized reporting. By combining clear organizational accountability with robust technological capabilities, SLG-Trax ensures that its internal control environment remains resilient, adaptive, and aligned withthe Company’s strategic objectives. This integrated approach not only supports operational excellence but also strengthens stakeholder confidence in the Company’s governance and risk management practices.

Pakistan's logistics industry continues to evolve from a fragmented transportation sector into a technology enabled supply chain ecosystem supported by e- commerce expansion, digital payments adoption, infrastructure investment and growing demand for integrated logistics solutions. The sector remains strategically important to domestic trade, manufacturing activity and cross border commerce. Road transport continues to dominate freight movement, accounting for the overwhelming majority of cargo transportation across the country, although policymakers continue to pursue initiatives aimed at improving multimodal connectivity and logistics efficiency. The industry's growth trajectory is increasingly linked to the development of Pakistan's digital economy. Recent policy initiatives, including the Government's e Commerce Policy 2025 to 2030, aim to accelerate digital trade, improve logistics efficiency, strengthen payment infrastructure and expand e commerce participation across the country. These developments are expected to support sustained growth in parcel volumes, warehousing demand, fulfillment services and last mile delivery networks. The rapid expansion of online retail has become a major structural driver for logistics operators. Industry sources indicate continued growth in Pakistan's e commerce market during 2025 and 2026, resulting in increasing demand for courier services, warehousing infrastructure, technology platforms, reverse logistics capabilities and nationwide delivery coverage. Cash on delivery remains a dominant payment mechanism, although the share of digital payments continues to rise. This creates opportunities for logistics providers capable of integrating fulfillment, payment processing and financing solutions into their operational platforms. From a competitive perspective, the industry remains highly fragmented with a large unorganized segment alongside established operators such as TCS, Leopards, M&P, DHL, NLC and technology enabled logistics providers. Industry consolidation remains gradually increasing as larger operators invest in technology, warehouse automation, route optimization and data analytics to improve service quality and operational efficiency. Barriers to entry have risen in organized logistics due to the growing importance of technology platforms, nationwide infrastructure, regulatory compliance and customer service standards. Technology adoption is increasingly shaping the competitive landscape. Artificial intelligence driven route planning, real time shipment visibility, warehouse management systems, digital customer portals and data analytics have become important differentiators. Customer expectations continue to shift toward faster delivery timelines, shipment transparency, integrated returns management and seamless payment experiences. Logistics providers that successfully combine physical infrastructure with digital capabilities are expected to benefit from stronger customer retention and improved operating margins. For IHCY26, industry conditions remained broadly favorable for organized logistics operators despite macroeconomic uncertainties. Increasing e commerce penetration, growing demand for outsourced supply chain solutions, rising parcel volumes and continued digitalization trends supported business activity across the logistics value chain. These dynamics particularly favored technology enabled operators capable of providing integrated logistics, warehousing, tracking and financial services solutions. The key credit risk factors inherent in the sector include fuel cost volatility, economic slowdown leading to lower freight demand, customer concentration risk, infrastructure bottlenecks and working capital pressures arising from cash on delivery settlement cycles. However, companies with diversified customer portfolios, scalable technology platforms, strong liquidity and integrated service offerings remain comparatively better positioned to navigate these risks.

SLG-Trax is currently the only Company listed on the Pakistan Stock Exchange (PSX) that operates within the organized segment of the logistics, vehicle fleet management, asset tracking, and security services industry. The Company is undergoing a strategic transformation, moving from traditional logistics practices toward a technology-driven, digitally enabled operating model. This transition has been significantly accelerated by the merger of Secure Logistics Group (SLG) with Trax Online Private Limited, a tech-led logistics and e-commerce solutions provider. The merger combines SLG’s strong legacy in secure transportation and logistics with Trax’s technology capabilities, last-mile delivery infrastructure, and digital ecosystem. Together, the merged entity offers a vertically integrated, full-stack logistics and FinTech platform, uniquely positioned to capitalize on emerging opportunities in the organized sector. The broader logistics sector in Pakistan remains highly fragmented, with approximately ~80% of operations falling within the unorganized sector and only around ~20% in the organized space. This organized segment is dominated by a few key players, including National Logistics Cell (NLC), Bashir Siddiq Logistics (BSL),  Allied Logistics Services, DHL, and TCS. These companies distinguish themselves through scale, operational discipline, and the use of formal systems and compliance frameworks. Within this competitive landscape, SLG-Trax has firmly established its position, particularly in the dry containerized and bulk cargo segments. Its diverse and high-profile client portfolio reflects the Company’s reliability, infrastructure capabilities, and reputation for delivering secure and efficient logistics solutions. As a merged entity with Trax, SLG-Trax is now uniquely equipped to offer end-to-end logistics services—from line-haul and fleet management to last-mile delivery and supply chain financing—enabling it to address a wider market and unlock new growth avenues through technology integration and service innovation.

The Company's revenue profile continued to strengthen, driven by continued expansion of integrated logistics services, increasing contribution from technology enabled business lines, higher e-commerce related volumes and improved utilization of logistics infrastructure. The Company's diversified revenue streams across freight logistics, warehousing, e-commerce fulfillment, tracking solutions and security services continue to support earnings stability and reduce dependence on any single business segment. During CY25, revenue stood at PKR 2,938mln compared to PKR 2,518mln during CY24, reflecting YoY growth of ~16.7%. The successful integration of Trax Online (Private) Limited enhanced the Company's ability to provide first mile, middle mile and last mile logistics services under a unified platform, strengthening customer retention and improving cross selling opportunities. Revenue quality remains supported by long term engagements with clientele operating across food and beverages, cement, steel, packaging, banking, insurance and other commercial sectors. Nevertheless, the Company's core logistics platform continues to demonstrate organic growth supported by growing demand for integrated logistics and e commerce solutions. During IHCY26, the Company's revenue stood at PKR 1,541mln, registering moderate growth in the backdrop of a challenging economic environment. Nevertheless, management expects business momentum to strengthen over the remaining quarters, supporting a gradual recovery in topline performance.

Profitability indicators strengthened considerably during IHCY26. Gross profit amounted to PKR 558mln. Profitability continues to remain healthy and reflective of the Company's transition toward a diversified logistics and technology platform. Net profit margin improved to ~36% from ~29% in CY25, highlighting stronger earnings generation and the benefit of non operating income streams.  The Company's cost structure remains largely influenced by fuel consumption, fleet related expenses, personnel costs, maintenance expenditure and technology investments, though Company is managing well the rising feul costs. Increasing contribution from technology enabled offerings and financial service initiatives is also expected to support margin sustainability over the long term. 

SLG-Trax is undertaking a strategic transformation to become a technology-driven logistics and financial services provider. The Company plans to shift from traditional operations to a tech-led 4PL model, which will improve efficiency and scalability. It aims to achieve full-stack ecosystem ownership through vertical integration, capturing greater value across the supply chain and unlocking premium margins. SLG-Trax also intends to leverage data and digital technologies to enhance analytics and automation, unlocking technology-driven growth opportunities. Additionally, the Company plans to diversify its revenue streams by expanding into supply chain lending, which will strengthen its margin profile. As part of this strategy, SLG-Trax is preparing to acquire Finova Technologies (Pvt)Ltd, a Singapore-based supply chain finance Company. The Board of Directors has approved entering good-faith negotiations to acquire Finova’s FinTech intellectual property, with the possibility of assuming operational controlof the Company. The FinTech platform will be deployed across SLG-Trax’s extensive network, which includes around ~9,000 retail clients and ~300 corporate e-commerce clients. This integration will enable the developmentof a merchant-centric digital platform for deliveries, embedded with lending and financial processing solutions, further enhancing Company’s digital capabilities.

As at IHCY26, the Company's working capital cycle remained adequate, although extended relative to prior periods due to increasing business volumes and expansion of receivables. Gross working capital days increased to ~135 days compared to ~89 days at CY25. Net working capital days increased to ~118 days compared to ~78 days in CY25. This movement primarily reflects growth in trade receivables and operating scale following the integration of business lines. Trade receivables increased to PKR 1.2bln as at IHCY26 from PKR 1bln in CY25. The increase is in line with business expansion and revenue growth. Receivables continue to be supported by relationships with established corporate counterparties, mitigating collection risk to some extent. The current ratio stood at ~2.3x compared with ~2.0x at CY25. The liquidity position remains satisfactory and indicates adequate short term resources to meet operational obligations.

Coverage indicators remain a key strength of the financial profile. During IHCY26, Free Cash Flow from Operations amounted to PKR 356mln compared with PKR 540mln in CY25. The FCFO to finance cost ratio improved significantly to ~10.3x during IHCY26 compared to ~6.0 x during CY25. Cash flow coverage of total debt servicing remained strong at ~6.7x compared to ~5.1x at CY25, demonstrating continued ability to meet obligations through internal cash generation. EBITDA amounted to PKR 370mln during IHCY26. EBITDA coverage stood at ~10.7x compared with ~6.9x in CY25. During IHCY26, debt payback remained favorable at ~1.2x compared with ~0.6 at CY25. Coverage metrics continue to benefit from conservative leverage levels and recurring operating cash generation.

The Company's capitalization profile remains very strong and is characterized by low leverage and substantial equity support. As at IHCY26, total assets increased to PKR 10.5bln compared with PKR 9.9bln at CY25.  Shareholders' equity increased to PKR 8.20bln as at IHCY26 from PKR 7.6bln at CY25. The substantial growth in equity reflects retained profitability, capital expansion and strengthening of the Company's overall balance sheet. Equity continues to represent the dominant source of funding, providing a significant cushion against operational and financial risks.