Service Long March Tyres Limited ('SLM Tyres' or 'the Company') was incorporated on January 7th, 2020 in Pakistan under the Companies Act, 2017. Prior to its public offering, the Company operated as a private limited entity. SLM Tyres is Pakistan's first greenfield project to manufacture All-Steel Radial Tyres for Trucks and Buses. Pursuant to its listing on the Pakistan Stock Exchange, the Company has offered 5% of its total post-IPO paid-up capital — comprising 389,738,038 ordinary shares — to the general public.

SLM Tyres is a group company under Service Industries Limited (SIL), operating as part of the broader Servis Group — a leading industrial conglomerate in Pakistan with longstanding expertise in manufacturing, branding, and nationwide distribution. The Company was established as a strategic joint venture between SIL, Chaoyang Long March Tyre Company Limited (a globally recognized Chinese manufacturer specializing in All-Steel Radial Tyres), and Mr. Shabir Ahmad of Myco Corporation Pakistan (a well-established tyre distributor). The Joint Venture Agreement was executed on November 18, 2019. The project is located at Nooriabad Industrial Estate, Sindh, which has been accorded Sole Enterprise Special Economic Zone (SEZ) status by the Board of Investment, Government of Pakistan. Commercial production commenced on March 10, 2022.

SLM Tyres is Pakistan's first and only manufacturer of All-Steel Radial Tyres for Trucks and Buses, with its manufacturing facility situated at Nooriabad, Sindh. During FY25, the Company operated with an installed TBR tyre production capacity of 1.6 million tyres per annum and produced approximately 1.18 million tyres. Recently, the Company enhanced its installed production capacity by ~25% to 2.0 million tyres per annum. The expansion is expected to support growing domestic and export demand, strengthen the Company's market position, and drive future revenue growth. Beyond TBR, the Company has announced a dedicated Passenger Car Radial (PCR) tyre manufacturing facility with an estimated initial installed capacity of ~2.0 million tyres, expected to be operational by January 2028. The total estimated cost of the PCR project is PKR 22.6bln, partly funded through IPO proceeds. SLM Tyres has also made significant progress on its renewable energy portfolio, with a total installed solar capacity of 12 MW, and a 7.5 MW wind turbine is currently in transit for delivery and installation.

Following the IPO (5% public float of 389,738,038 shares), the post-IPO ownership structure is: Chaoyang Long March Tyre Company Limited (~40.44%), Service Industries Limited (~20.30%), Service Global Footwear Limited (~17.38%), Service Tyres (Private) Limited (~9.19%), Mr. Shabir Ahmad (~4.84%), Directors/Management (~2.84%), and General Public (~5.00%).

SLM Tyres' ownership structure is considered stable. Post Listing, there is no material change in the pattern of shareholding, and neither it is expected in the near future, as sponsor entities are contractually required to retain their entire shareholding for a minimum of twelve months from the close of the public subscription, with 25% of post-IPO paid-up capital to be held unencumbered for at least three years. A significant stake rests with entities of the Servis Group, providing strong strategic continuity.

The prime sponsors — Servis Group and Chaoyang Long March Tyre Co., Ltd. — are assessed to possess strong business acumen. Servis Group is a leading domestic industrial conglomerate operating across tyres, footwear manufacturing, and retail for several decades, with a strong presence in all four provinces of Pakistan. Chaoyang Long March Tyre Co., Ltd. is a leading multinational manufacturer of All-Steel Radial Tyres, with international distribution across more than 140 countries. The Company also benefits from Myco Corporation's established domestic distribution network. The JV structure has enabled a structured and comprehensive transfer of manufacturing technology, quality systems, and process engineering expertise from the Chinese partner.

As a group company within Servis Group, SLM Tyres has demonstrated a strong financial profile, supported by robust revenue growth and sustained profitability. Sponsors' capacity to provide financial support is considered adequate, given the Group's access to both domestic and international markets, its established banking relationships, and the strong cash-generative nature of SLM's operations. On Consolidated basis, the Servis Group has a consolidated asset base of ~PKR 122.3bln as of March,2026.

The Board of Directors of Service Long March Tyres Limited comprises eleven members, including the Chairman, Mr. Jin Yongsheng, and the Chief Executive Officer, Mr. Omar Saeed. The Board comprises four representatives from Chaoyang Long March Tyre Co., Ltd. (Mr. Jin Yongsheng, Mr. Zhang Xingyou, Ms. Yu Haili, and Mr. Sun Xiaoguang), four representatives from the Servis Group (Mr. Omar Saeed, Mr. Arif Saeed, Mr. Hassan Javed, and Mr. Chaudhry Ahmed Javed), and three Independent Directors (Ms. He Xiaomei, Mr. Shahid Hafiz Kardar, and Mr. Nasir Mahmood Khan Khosa). The induction of three independent directors has strengthened the Company's governance framework and enhanced board independence in line with the requirements applicable to listed companies under the Listed Companies (Code of Corporate Governance) Regulations, 2019.

The Board comprises seasoned professionals with extensive experience across tyre manufacturing, industrial operations, finance, governance, public policy, and corporate management. The Chaoyang Long March nominees bring deep technical and commercial expertise in the All-Steel Radial tyre segment. Notably, Mr. Jin Yongsheng (Chairman) possesses more than three decades of senior management experience in large-scale industrial and tyre manufacturing operations and serves as Chairman and Chief Executive of Chaoyang Long March Tyre Co., Ltd. Mr. Zhang Xingyou brings over 25 years of experience in the tyre industry, having previously expanded the "Long March" brand into more than 140 countries as Head of the International Trading Department at Chaoyang. Ms. Yu Haili is a specialist in Chemical Technology with over 30 years of experience in tyre R&D and technical management, and is a recipient of the National "Ten Thousand Talents Project" award. Mr. Sun Xiaoguang brings over 20 years of experience in transportation, investment management, and industrial operations. Among the Servis Group nominees, Mr. Omar Saeed (CEO) is a graduate of Brown University with an MBA from Harvard Business School, with prior experience as CEO of Service Industries Limited (2011–2018), during which SIL received the PSX Top 25 Companies Award multiple times; he has recently been appointed Chairman of the Export Development Fund by the Government of Pakistan. Mr. Arif Saeed, a graduate of the University of Oxford, serves as Chairman of SGFL and CEO of SIL and STPL, and brings extensive experience in manufacturing, capital markets, and public sector governance. Mr. Hassan Javed brings over fifteen years of manufacturing and export leadership experience within Servis Group and was awarded the Tamgha-i-Imtiaz for being the largest footwear exporter in 2024. Mr. Chaudhry Ahmed Javed brings wide-ranging corporate and marketing experience, including service as Chairman of SIL (2011–2023). The three Independent Directors add material governance, regulatory, and technical depth: Ms. He Xiaomei brings over 30 years of tyre industry expertise in process engineering and EPC project execution and is a recipient of the National Science and Technology Progress Second Prize; Mr. Shahid Hafiz Kardar is a former Governor of the State Bank of Pakistan and former Minister for Finance, Planning & Development in the Government of Punjab; and Mr. Nasir Mahmood Khan Khosa is a distinguished retired civil servant who served as Principal Secretary to the Prime Minister, Chief Secretary of Punjab, and Executive Director at the World Bank (2013–2017), and currently serves as Chairman of Pakistan Tobacco Company Limited. Overall, the Board brings diversified professional backgrounds and substantial industry experience to provide effective strategic oversight.

The Board has established two formal Board committees. The Audit Committee comprises three members — Mr. Shahid Hafiz Kardar (Independent Director, Chairman), Ms. He Xiaomei (Non-Executive Director), and Mr. Hassan Javed (Non-Executive Director) — with an independent director serving as Chairman, in line with corporate governance best practices. The Ethics, Human Resource, Remuneration, and Nominations Committee comprises Mr. Nasir Mahmood Khan Khosa (Independent Director, Chairman), Mr. Jin Yongsheng (Non-Executive Director), and Mr. Arif Saeed (Non-Executive Director). An internal audit function reports directly to the Audit Committee, providing independent assurance on internal controls, risk management, and governance. Board meetings are held quarterly in compliance with applicable regulatory requirements, and minutes are formally documented and maintained.

A.F. Ferguson & Company (PwC Pakistan), an SBP Category 'A' auditor, is the statutory external auditor of the Company. The engagement partner is Mr. Syed Muhammad Hasnain. The auditors have issued an unqualified audit opinion on the financial statements of SLM Tyres for the year ended June 30, 2025.

A well-defined organizational structure exists in the Company, with all key functions reporting directly or indirectly to the CEO. The principal functional divisions are: (1) Sales & Marketing, (2) Operations, (3) Export Sales, (4) Supply Chain, (5) Technical, (6) Accounts & Finance, (7) Support Services, and (8) ERP & IT. Each division is headed by a qualified and experienced senior management professional.

Mr. Omar Saeed (CEO) is a graduate of Brown University with an MBA from Harvard Business School. He has been appointed Chairman of the Export Development Fund by the Government of Pakistan, and serves on the Boards of Nestlé Pakistan, Systems Limited, and Service Industries Limited, among others. Mr. Atif Aziz (CFO) is a qualified Chartered Accountant (ICAP) with over 15 years of experience in financial planning, ERP-based reporting, and governance across large-scale manufacturing groups. Mr. Tahir Maqsood (Company Secretary) is a Chartered Governance professional with over 15 years of experience in corporate governance, regulatory compliance, IPOs, and corporate transactions. Mr. Khizr Hayat (COO) brings over 16 years of experience in project management, production engineering, and supply chain, and served as Project Manager for SLM's greenfield facility from conceptualization to commercial operations. Mr. Zhang Xingyou (CMO) brings over 25 years of tyre industry experience, having built the "Long March" brand across 140+ countries. Mr. Xin Guoyi (CTO) holds a degree in Polymer and Materials Engineering and brings over 16 years of expertise in compound formulation, process optimization, and quality assurance across the full tyre manufacturing lifecycle. Mr. Khurram Anwar (GM Sales) holds an MBA from LSAS and brings over a decade of sales leadership experience in the tyre and consumer goods sectors. Mr. Hassan Shahid (GM HR) brings over 15 years of experience in HR strategy, organizational development, and governance across large-scale manufacturing environments. Mr. Muhammad Abid Aleem (Head of Supply Chain) is a PMP-certified professional and a UET Lahore graduate in Metallurgical Engineering with over 20 years of experience in strategic sourcing, international procurement, and supply chain management across energy, tyre manufacturing, and heavy engineering sectors.

With an experienced and multidisciplinary senior management team in place, SLM Tyres has demonstrated its ability to execute strategic initiatives through scaling production, expanding its domestic distribution network, and establishing a presence in export markets. The receipt of the Prime Minister's Excellence Award for Leading Exporter in January 2026 reflects management's efforts in implementing the Company's growth strategy. Functions are clearly defined and aligned to support the achievement of operational and strategic objectives.

The Company utilizes an ERP system supporting multiple operational modules to track daily and monthly reporting requirements, enabling effective management oversight and decision-making across all business functions.

SLM Tyres maintains an in-house internal audit function staffed by qualified professionals, responsible for independent assurance on the effectiveness of internal controls, risk management practices, and governance systems. The function reports directly to the Audit Committee. Risk identification, assessment, and reporting mechanisms are in place across all business operations.

The estimated market size of the Tyres Sector in FY25 stood at PKR~149.9bln (FY24: PKR~141.9bln), reflecting a YoY revenue growth of ~5.6%. Key players in the sector include Ghandhara Tyre and Rubber Company, Panther Tyres Ltd, Service Tyres (Pvt.) Ltd, and Service Long March Tyres (Pvt.) Ltd. Demand in the sector is broadly segmented into OEM and replacement markets, with the replacement market commanding an average share of ~80.0%, though this varies by tyre type. In the Trucks & Buses segment specifically, the replacement market accounts for ~73.2% of total demand, with OEM sales comprising the remaining ~26.8%. The Trucks & Buses segment recorded the strongest rebound among all automobile categories in FY25, with production rising ~96.8% YoY as per PAMA data, driven by improved macroeconomic conditions including a decline in inflation to ~4.5% (FY24: ~23.4%) and a reduction in the policy rate to ~11.0% (FY24: ~20.5%), which made auto financing more accessible. This momentum continued into 1QFY26, with Trucks & Buses production increasing a further ~115.0% YoY. Consequently, total estimated TBR tyre consumption (OEM + Replacement) rose significantly to ~117,000 units in FY25 (FY24: ~59,000 units), with 1QFY26 already recording ~79,000 units against ~38,000 units in the same period last year. The sector is experiencing a structural shift towards radial tyres in the Trucks & Buses segment on account of their superior load-bearing capacity, longer service life, better fuel efficiency, and improved road safety characteristics compared to conventional bias tyres. The major raw material used in tyre production is rubber — both natural and synthetic — largely imported from China, Malaysia, and Thailand, exposing the sector to international price volatility and exchange rate risk. During FY25, however, currency appreciation of ~1.4% YoY and easing international rubber prices resulted in a decline in average rubber import prices to PKR~149/kg (FY24: PKR~162/kg), providing some margin relief to sector participants. On the regulatory front, the government reduced duties on key raw materials for FY26 — most notably, total duties on Carbon Black (Rubber Grade) were halved from 20% to 10% — while simultaneously increasing duties on finished tyre imports, a measure expected to improve the competitiveness of local manufacturers going forward.

Service Long March Tyres Limited is Pakistan's first and only manufacturer of All-Steel Radial Truck and Bus Tyres, operating from a greenfield facility established with a complete transfer of technology from Chaoyang Long March Tyre Co., Ltd. As per Management representation, the Company has captured a market share of ~43% in the domestic TBR segment as of FY25, in addition to meaningful export volumes — including an initial shipment to the United States in 2023, for which it received the Prime Minister's Excellence Award for Leading Exporter in January 2026. SLM has also been accorded Sole Enterprise Special Economic Zone status at its Nooriabad facility, conferring fiscal and regulatory advantages. The Company's recent capacity expansion to 2.0 million TBR tyres, coupled with the planned PCR facility (targeting ~2.0 million tyres by FY2028), is expected to materially enhance its revenue base and competitive positioning in the domestic and export markets, given the significant vacuum available in the local TBR market and the high import dependency (~90%) in the passenger car radial segment.

The Company maintained its growth momentum during 6MFY26, recording a topline growth of 34.8% (annualized basis) over the corresponding period last year. This follows FY25 performance, where revenues increased to PKR 49,840mln from PKR 37,948mln in FY24, reflecting a 31.3% YoY increase. Growth continued to be driven by higher production and sales volumes, supported by the Company’s presence in both domestic and export markets.

Profitability indicators remained favorable during 6MFY26, with the gross margin improving to 25.0% compared to 21.6% in FY25 and 24.7% in FY24, reflecting improved cost absorption and operational efficiencies. Net profitability remained adequate, with the net margin recorded at 19.4% (FY25: 20.1%; FY24: 14.1%), supported by operational performance and controlled finance costs.

The radial tyre market in Pakistan remains competitive due to the presence of imported tyres and inflows through grey channels. The Company is expected to further strengthen its market presence through capacity optimization and continued expansion of its distribution network. The strategic partnership with Chaoyang Long March Tyre Company provides ongoing support in the areas of technology, product development, and export market access. Going forward, the Company aims to enhance its footprint in international markets while capitalizing on opportunities within the Passenger Car Radial (PCR) segment. The planned entry into PCR tyres is supported by the growing domestic automobile industry and the sizeable replacement tyre market, which offers significant long-term growth potential. 

The Company’s working capital cycle remained manageable during 6MFY26. Gross working capital days stood at 95 days, broadly in line with FY25 (96 days) and FY24 (100 days). Net working capital days increased to 76 days from 72 days in FY25 and 78 days in FY24, primarily due to lower payable days. Inventory days improved to 57 days (FY25: 60 days; FY24: 67 days), while receivable days increased to 38 days (FY25: 36 days; FY24: 33 days).

Cash flow generation remained adequate during 6MFY26, with FCFO reported at PKR 7,272mln. Coverage indicators improved, with EBITDA coverage increasing to 24.3x (FY25: 9.1x; FY24: 8.2x), while core debt coverage increased to 7.0x compared to 3.1x in FY25 and 3.4x in FY24.

The capital structure remained sound during 6MFY26. The debt-to-equity ratio improved to 39.9% from 42.8% in FY25 and remained broadly aligned with FY24 (39.7%). The Company’s leverage profile continued to be supported by profitability, cash flow generation, and adequate capitalization.