Reon Energy Limited (“Reon” or “the Company”) was incorporated on September 15, 2014, as a public unlisted company to carry out the trading and construction of renewable energy projects, mainly solar, for commercial and industrial consumers. The Company’s registered office is situated at 3rd Floor, Dawood Centre, M.T. Khan Road, Karachi.

Reon was established as a wholly owned subsidiary of Dawood Lawrencepur Limited (DLL), part of the Dawood Hercules Group, to carry forward the Group’s vision of sustainable, reliable, and affordable energy. The Group had entered the renewable energy sector in 2008 through DLL, and Reon was created to further this initiative by developing clean energy technologies aimed at long-term energy abundance. From inception, Reon has operated independently across a diverse range of projects in the Commercial and Industrial (C&I) space. Early projects included a bioenergy plant at Nestlé Farms, solar tube wells in Sharaqpur, a telecom solar solution in Kallar Kahar, and a 125kW solar PV installation at Wah Nobel Limited. To support performance and reliability, Reon developed SPARK™, a localized energy analytics platform, alongside a Network Operations Center for real-time system monitoring and customer support. A key milestone was Pakistan’s first corporate Power Purchase Agreement (PPA), signed with Sindh Engro Coal Mining Company (SECMC) for a 5 MW solar project in Tharparkar. In 2023, Reon launched its first Reflex™ Energy Storage System at Gatron Industries, followed by Pakistan’s largest Reflex™ Battery Energy Storage Project — a 20.7 MW / 22.7 MWh system for Lucky Cement — designed to stabilize a hybrid microgrid of 28.8 MW gas engine capacity and 30 MW of solar while improving engine efficiency. Reon has also expanded into wind energy development as part of its broader renewable strategy. On March 22, 2023, DLL approved the sale of its entire stake in Reon to Juniper International FZ LLC, fully owned by Mr. Kashif Naseem Afzal. The transaction was ratified by DLL’s shareholders on May 30, 2023, and concluded on October 8, 2024, since which Reon has been a wholly owned subsidiary of RMH International DMCC, the energy arm of Mr. Afzal’s business ventures.

Reon’s core operations span two major segments: Commercial & Industrial (C&I) and Telecom. In the C&I segment, Reon offers turnkey solar PV solutions and intelligent renewable microgrids tailored to energy-intensive industries such as cement, textile, FMCG, automotive, and dairy. In the Telecom segment, the Company provides solar-powered infrastructure for telecom towers, reducing diesel dependence, enhancing uptime, and lowering operational costs. Reon has also developed in-house technologies including SPARK™, a hardware-agnostic energy asset management platform, and REFLEX™, a lithium-ion energy storage system optimized for long-term reliability and microgrid integration. To date, Reon has deployed over 500 MW of solar PV and 90 MWh of energy storage capacity, including projects across more than 7,500 telecom sites. Notable commercial clients include Bestway Cement, Fauji Cement, Unilever Pakistan, and Friesland Campina Engro. Beyond Pakistan, Reon has executed projects in Qatar, UAE, Yemen, Mauritius, Kenya, and Nigeria.

The Company is a wholly owned subsidiary of RMH International DMCC, a UAE-based private company specializing in high and very high voltage dry-insulated technologies for power utilities.

Following a change in ownership initiated in 2023 and concluded in 2024, Reon transitioned from being a subsidiary of DLL to becoming part of RMH International DMCC. The Company now operates under the leadership of Mr. Kashif Naseem Afzal, a seasoned businessman with a diversified investment portfolio spanning power generation, natural resources, energy transition, and real estate. RMH International maintains an established presence in smart energy solutions across several countries, including Qatar, South Africa, Saudi Arabia, and the UAE, reflecting its global operational capabilities. While the ownership transition marked a significant shift for Reon, bringing with it a new phase of strategic direction and growth, the Company has demonstrated strong continuity and operational stability under the new ownership.

Mr. Kashif Naseem Afzal is a seasoned entrepreneur and investor with deep expertise in the natural resources sector, particularly base and precious metals mining. As founder and director of Juniper Group, a global investment advisory and principal investment firm, he has led high-impact ventures across mining, energy, and real estate. His track record includes originating and executing complex transactions, managing global advisory mandates for major players such as Barrick Gold and Denham Capital, and establishing strategic partnerships across Australia, Canada, the Middle East, and Pakistan. With a strong academic background and international experience, Mr. Afzal combines technical insight with strategic foresight, positioning him as a key driver of long-term value and innovation.

Mr. Kashif Naseem Afzal possesses significant financial strength, backed by a diversified portfolio of active and passive investments across multiple sectors and geographies, including substantial property holdings in the UK and other high-value assets, reflecting a strong capital base and investment capacity. Through Juniper Group, he maintains principal stakes in mining, energy, and renewable projects globally, further underscoring his financial reach and strategic positioning across key industries. The established track record of backing his ventures with substantial resources provides a meaningful indicator of the long-term commitment and financial backing available to the Company.

Reon is governed by a three-member board, comprising exclusively Executive Directors, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and the Chief Commercial and Strategy Officer, reflecting a management-driven governance structure.

Mr. Mujtaba Haider Khan – CEO, is a seasoned leader with a career spanning strategy, technology, and entrepreneurship. He brings experience from his tenure as Head of Strategy at Dawood Hercules Corporation Limited (DHCL), Pakistan’s largest industrial conglomerate, and prior strategy and transformation roles at British Telecom (BT) in London. He holds a BS in Computer Systems Engineering and an MBA from Cranfield School of Management. A serial entrepreneur, Mr. Khan has played a founding role in several startups across technology, security, and financial services, and has been associated with Reon since inception, contributing significantly to its strategic direction, project execution, and market expansion. Mr. Mudasar Hussain holds a Bachelor of Science degree in Electrical and Computer Engineering from Oklahoma State University, USA, and brings over two decades of experience in the telecom industry, having held key positions at Huawei Technologies and Telenor. At Reon, his responsibilities include leadership in solar and energy management integration, helping the Company revolutionize the energy landscape through customer-centric innovation. Mr. Waleed Bukhari – CFO, is a Chartered Accountant from the Institute of Chartered Accountants of Pakistan with over a decade of experience in finance and strategic management roles at prominent organisations including KPMG, Pepsi, and Zong. At Reon, he plays a pivotal role in steering the organisation’s strategic direction and financial operations, with responsibilities spanning financial leadership, banking and investor relations, strategic planning, and business valuation, aligning financial strategies with corporate goals.

The Board of Directors currently holds its meetings on an annual basis, providing oversight of the Company's operations and strategic initiatives. The formation of board committees and the formal documentation of meeting outcomes present avenues for further strengthening the Company's governance structure.

The Company’s external auditors, M/S A.F. Ferguson & Co., Chartered Accountants, a QCR-rated firm carrying a Category ‘A’ rating on the SBP panel, expressed an unqualified opinion on the financial statements for the period ended December 2025.

The Company’s organization is structured around eight major departments, each headed by an experienced professional reporting directly to the CEO: a) Finance, b) HR & Admin, c) Technical, d) Sales & Commercial, e) Product Development, f) Transformational & QHSE, g) Asset Performance Management, and h) Marketing.

The management team is led by Mr. Mujtaba Haider Khan, CEO, and supported by a group of experienced professionals heading key functional departments to ensure efficient operations and strategic growth. Mr. Waleed Bukhari, CFO, is a Chartered Accountant with prior experience at KPMG, Pepsi, and Zong, overseeing financial management, banking and investor relations, strategic planning, and business valuation, and aligning financial strategy with corporate objectives. The senior management team also includes key leadership members: Mr. Mudasar Hussain, Chief Commercial Officer; Mr. Syed Saqib Ahmed Zaidi, Chief Operating Officer; Mr. Muhammad Zohaib, Chief Technology Officer. Together, they bring deep industry expertise and strategic oversight across commercial operations, technology, and project execution, playing a critical role in driving Reon’s continued growth and innovation in the energy sector.

There are currently no formal management committees in place; however, the management team holds monthly meetings to ensure operational efficiency and effectiveness across the Company. As the Board of Directors and the management team comprise the same individuals, there is strong alignment between strategic oversight and execution, enabling cohesive direction for the Company’s growth.

The Company has installed ORACLE as its Enterprise Resource Planning (ERP) software, specifically the FICO (Finance) module, for maintaining its financial database.

The control environment at Reon is adequate, built on a foundation of clear policies and procedures. The Company emphasizes transparency, accountability, and ethical standards in its operations, reinforced by a well-structured management team. Regular monitoring and effective internal controls support operational efficiency, risk mitigation, and compliance with relevant laws and regulations. Additionally, the Company leverages decent IT solutions, enhancing performance across various fronts.

Pakistan's power sector is undergoing a structural shift toward renewable energy, driven by persistently high electricity tariffs, grid unreliability, and the compelling economics of solar, with the country's solar share in generation tripling to 14% in 2025. The market is estimated to have grown to 7.95 GW of installed capacity in 2026 and is forecast to reach 18 GW by 2031, with the Commercial & Industrial (C&I) segment accounting for over half of installed solar capacity in 2025. A significant regulatory development occurred in February 2026 when NEPRA replaced the net-metering framework with a "net billing" mechanism, compensating exports at PKR 9-11 per unit versus the previous PKR ~25.9 retail-linked rate. This primarily affects grid-exporting residential installations, while Reon's core C&I and telecom microgrid model—structured around behind-the-meter self-consumption and corporate PPAs—offers relative insulation from the revision. Growing daytime solar saturation is reinforcing demand for battery storage paired with PV, a segment aligned with Reon's REFLEX offering, though competitive intensity continues to build as both established players and new entrants like K-Solar expand their presence in the C&I space.

Reon continues to hold a prominent position within Pakistan’s C&I renewable energy segment as one of the early movers, with an established track record of executing large-scale solar and hybrid energy projects across industries including cement, textile, telecom, and FMCG. The Company’s growing capabilities in lithium-ion battery energy storage further support its positioning as a comprehensive energy solutions provider. Revenue for CY25 declined marginally by 3.5% to PKR 9,037mn (CY24: PKR 9,366mn), reflecting normalization after the prior year’s sharp 29.4% growth.Despite this modest decline, the Company's diversified segment mix, recurring O&M income, and healthy project pipeline continue to underpin its market position, even as competitive pressures within the sector increases.

The Company’s revenue model remains contract-based, derived from three key segments: (i) Commercial & Industrial, (ii) Telecommunications, and (iii) Operations & Maintenance (O&M) services. Total revenue for CY25 stood at PKR 9,037mn. In the sales mix, C&I customers continue to represent the largest share, with meaningful contribution from the Telecom segment, while the O&M segment, though smaller, provides a steady and recurring income stream. Sustained execution of the Company’s project pipeline remains central to revenue performance prospectively, given the inherently project-based nature of the business.

The Company’s gross margin moderated to 14.2% in CY25 (CY24: 15.1%), with stable revenue generation offset by competitive pricing pressure. Net margin declined to 4.1% (CY24: 7.9%), largely reflecting the normalization of bottom-line performance following the one-time write-back of a previously received loan from DLL recorded in CY24, which had lifted the prior year’s net result. Going forward, margins are expected to remain broadly stable, supported by a healthy addition of new projects to the Company’s portfolio.

Reon continues to demonstrate sustainability in both its business model and operations, rooted in its focus on solar, hybrid systems, and advanced lithium-ion battery storage, aligned with global energy transition trends. Recurring income from O&M services, a diversified customer base, and continued investment in proprietary technology (SPARK and REFLEX) support the Company’s long-term operational sustainability, while its microgrid solutions continue to drive customers toward reduced carbon intensity in their energy mix.

Reon’s working capital cycle remains closely aligned with its project-based business model, beginning with advance payments from clients backed by insurance-backed performance guarantees, with trade receivables booked against the stage of completion. As of Dec-25, trade receivables average days rose to 76 days (Dec-24: 37 days), inventory days improved to 38 days (Dec-24: 42 days), and trade payables days extended to 116 days (Dec-24: 46 days), resulting in gross working capital days of 114 (Dec-24: 80) and a marginally negative net working capital cycle of (2) days (Dec-24: 34 days). The current ratio improved to 1.4x (Dec-24: 1.2x). To bridge working capital gaps between project execution and milestone-based receivables, and to diversify its funding base, the Company, for the first time, raised liquidity through a rated, privately placed, secured short-term Sukuk in December 2025 of PKR 400mn. The instrument carried a six-month tenor. The Sukuk matured on June 2, 2026, and has since been redeemed in line with its scheduled repayment terms.

Coverage metrics strengthened markedly during CY25, driven entirely by a sharp reduction in finance cost (PKR 121 million in CY24 to PKR 35 million in CY25), with EBITDA/Finance Cost improving to 33.2x (CY24: 5.6x) and FCFO/Finance Cost rising to 24.2x (CY24: 4.0x). The debt payback ratio improved to 0.9x (CY24: 1.0x), reflecting the Company's enhanced ability to meet financial obligations through internally generated cash flows.

As of Dec-25, Reon’s leverage , Total Borrowings/(Total Borrowings + Equity), increased to 40.6% (Dec-24: 24.5%), as the Company introduced short-term borrowings comprising the PKR 400mn Sukuk and a PKR 300mn facility from Bank of Khyber, taking short-term borrowings to PKR 700mn (Dec-24: nil) and total borrowings to PKR 1,053mn (Dec-24: PKR 380mn). The equity base, however, strengthened further to PKR 1,540 million (Dec-24: PKR 1,172 million), as the Company's accumulated profit grew to PKR 514 million (Dec-24: PKR 146 million) on the back of the year's net profitability.