Avanceon Limited ("AVN" or "the Company) was incorporated in Pakistan on March 26, 2003, as a private limited Company, which was converted to a public Company on March 31, 2008, under the repealed Companies Ordinance, 1984 (now, Companies Act, 2017). The Company is listed on the Pakistan Stock Exchange Limited.

In 2003, the Company successfully implemented its first EMS project following the establishment and acquisition of Innovative Automation & Engineering (Pvt.) Limited by Engro from Innovative (Pvt.) Limited. Over the years, the Group gradually expanded its operational scope by entering international markets through the establishment of wholly owned subsidiaries and strategic partnerships in the Middle East. In 2017, the Company incorporated Octopus Digital Limited, along with another subsidiary, Avanceon Automation & Control LLC in Qatar. In 2020, the Company established a wholly owned subsidiary, Avanceon QFZ LLC, under the Companies Regulations of the Qatar Free Zones Authority (QFZA). In 2021, Avanceon FZE, based in Dubai, UAE, incorporated a wholly owned subsidiary in Riyadh, Kingdom of Saudi Arabia, under the name Avanceon Saudi for Energy Co., and launched the "Road to 100" plan. In 2022, the Company executed the acquisition of the Empiric AI Joint Venture Agreement with Zamil Operations & Maintenance Co. Limited. During 2023, the Company achieved a significant milestone by recording its highest-ever PO and revenue in the Pakistan region and secured several new, highly lucrative projects in the Middle East.

The principal activity of AL is to provide industrial automation, process control, and system-integrated solutions to trade in products of automation and control equipment, and provide the related technical services. The Company offers a wide range of industrial solutions, including Building Technologies, Process Manufacturing, Truck Loading Automation Systems (TLAS), SCADA &HMI, ESD & DCS, and Energy Monitoring Systems. Its digital industrial solutions portfolio includes OT-Cybersecurity, Smart City initiatives, and Industrial Digitization. The Company maintains a strong presence in the international market through its offices in Dubai (UAE), Doha, and Qatar, serving the broader Middle East region. In Pakistan, the Company's head office is located at 19 km Multan Road, Lahore, 54500. Regional offices are situated at The Hive, 1st Floor, M.A. Tabba Foundation Building, Girzi Road, Block 9, Clifton, Karachi, and The Hive, 6th Floor, ISE Towers, Jinnah Avenue, Blue Area, Islamabad.

Avanceon Limited is the holding Company of a leading industrial automation service provider, Avanceon Group. The Company's major shareholding of ~70.04% rests with the individuals, Mr. Bakhtiar Hameed Wain (~59.07%), Mr. Amir Wain (~10.40%), and Mr. Tanveer Karamat (~0.57%). The remaining stake of ~29.96% is vested with free float in public/institutions and others.

Over the years, the Company’s ownership structure has remained largely unchanged, and this stability is expected to continue in the foreseeable future, reflecting consistency and long-term commitment from its shareholders.

Since its inception in 1984, the Company has evolved into a comprehensive 360-degree solution provider, delivering automation, energy management, and maintenance services to leading blue-chip clients across Pakistan and the Middle East. This growth has been driven by the visionary leadership of its founding sponsors, who have guided the Company with a clear long-term focus. Despite facing strong competition in the international market, the Company maintained a steady growth in its financial performance and operations, supported by well-planned strategic expansions in business.

The Company’s financial strength is underpinned by its Holdco status, operating through seven subsidiaries: Avanceon Free Zone Establishment, UAE (AFZE); Avanceon Automation & Control W.L.L (AVAC); Avanceon Saudi Energy Company (AVSEC); Avanceon QFZ LLC (AVQFZ); and Octopus Digital Limited, along with its two subsidiaries: Empiric AI (Private) Limited and Octopus Digital FZ (ODFZ). 

The overall control of the Company is vested in a seven-member Board of Directors. The Board comprises three non-executive directors, two executive directors, and two independent directors, reflecting a balanced governance structure and adherence to sound corporate governance practices. The Board is chaired by Mr. Khalid Hamid Wain

Mr. Khalid Hamid Wain is the Chairman, Co-founding Partner, and Director of Innovative Private Limited. He holds a degree in Electrical Engineering from the University of Engineering and Technology, Lahore. With over 40 years of international experience, he specializes in cost engineering, project management, and business strategy. Mr. Bakhtiar Hameed Wain, the CEO and Founder of the Company, graduated with a Bachelor's degree in Mechanical Engineering from the University of Engineering and Technology, Lahore. He brings 30 years of professional experience, including leadership roles at global organizations such as Exxon Chemicals, Fauji Fertilizer, and ICT Limited. Mr. Amir Wain, Founder and CEO of i2c, graduated from the University of Texas with a Computer Science and Engineering degree, Amir founded Innovative Private Limited in 1987.He possesses 27 years of international experience in the information technology and payment industries. He earned his degree in Computer Science and Engineering from the University of Texas. Mr. Tanveer Karamat has over 20 years of experience in selling automation solutions to the oil and gas sector and has been associated with Avanceon since 2003. He holds a Bachelor's degree in Chemical Engineering from the University of Pakistan. Mr. Mohammad Shahid Mir graduated with a BA (Hons) in Economics from the University of Sussex, Brighton, England. He further enhanced his qualifications by becoming a Certified Credit Risk Professional from American Express Bank. He brings 32 years of extensive experience in corporate and commercial banking, risk management, credit administration, and trade finance. Ms.Selina Saadia Rashid Khan brings with her around 17 years of experience. She serves as President of PREDA Pakistan, a pioneering association supporting professionals in PR, digital media, activations, and event management. Additionally, she is a Board Member at International Industries Limited and Zaman Foundation, where she contributes to strategic governance helping companies achieve sustainable growth and transformation. Ms. Faaria Rehman Salahuddin has a distinguished professional career spanning over 26 years. She is an expert in delivering organizational turnarounds through strategic realignment of business lines. She has worked with several leading financial institutions, including ANZ Grindlays, Standard Chartered Bank, HBL, and Bank Alfalah.

In line with best corporate governance practices, the Company has constituted two Board committees: the Audit Committee and the HR & Remuneration Committee, both chaired by Ms. Faaria Rehman Salahuddin. During CY25, the Board of Directors (BOD) convened four meetings, with active participation from all members, reflecting their strong commitment to effective oversight and governance. The Board deliberated on key strategic matters, including the Company's financial performance, business strategy, operational progress, and achievement of corporate objectives. Minutes of all Board meetings were formally documented. Additionally, the Audit Committee held five meetings, while the HR & Remuneration Committee convened three meetings during the year, demonstrating strong member participation.

The Company has appointed Crowe Hussain Chaudhury & Co., Chartered Accountants, as its external auditors. The audit firm is classified in Category 'A' on the State Bank of Pakistan's panel of auditors, reflecting the Company's commitment to maintaining high standards of financial reporting and transparency. The external auditors issued an unqualified opinion on the Company's financial statements for the year ended December 31, 2025. Furthermore, the Company has established an in-house internal audit function comprising three members, operating under the oversight of the Audit Committee.

The Group has established a robust and well-defined organizational layout to efficiently manage its operations across multiple regions. At the executive level, Mr. Bakhtiar Hameed Wain serves as the Founder and Chief Executive Officer (CEO), providing strategic leadership and overseeing the Company's global direction. Reporting directly to Mr. Wain are key regional and functional leaders, including Mr. Sarmad Mahmood Qureshi, President – Middle East & Africa; Mr. Junaid Mushtaq Paracha, President – Southeast Asia; and Mr. Shahid Mir, Chief Financial and Risk Officer (CHFRO). Each of these executives is responsible for driving performance and ensuring operational excellence within their respective domains. Mr. Bakhtiar Hameed Wain reports to the Board of Directors and ensures alignment with the Company’s vision and long-term objectives.

Mr. Bakhtiar Hameed Wain, the Founder and Chief Executive Officer (CEO), holds a Bachelor's degree in Mechanical Engineering from the University of Engineering and Technology (UET), Lahore. He brings with him over 30 years of diverse professional experience, having held senior leadership roles at globally recognized organizations such as Exxon Chemicals, Fauji Fertilizer, and ICT Limited. Mr. Mohammad Shahid Mir, the Chief Financial and Risk Officer (CHFRO), holds a BA (Hons) in Economics from the University of Sussex, Brighton, England. He further strengthened his professional credentials by becoming a Certified Credit Risk Professional through American Express Bank. With 32 years of extensive experience in corporate and commercial banking, risk management, credit administration, and trade finance, Mr. Mir plays a pivotal role in the Company’s financial governance and risk oversight. He is supported by a team of highly skilled and experienced professionals across all key departments.

AVN’s management team comprises well-qualified and experienced professionals who operate with a high degree of strategic and operational discretion. Their leadership has been instrumental in driving organizational efficiency, timely decision-making, and long-term strategic planning. This has positively influenced the Company’s overall management effectiveness and supported the execution of its growth objectives.  

The Company has transitioned from a traditional on-premises infrastructure to a hybrid IT environment, leveraging Microsoft Azure cloud services. Key business applications are currently operated in a virtualized environment (VMware/Hyper-V) with clustering and failover capabilities, significantly reducing system downtime and enhancing disaster recovery (DR) readiness. A comprehensive backup and DR solution has been implemented, utilizing cloud-based replication and real-time synchronization. Critical systems have been replicated off-site with automated backup schedules and routine disaster recovery drills to ensure business continuity. The Enterprise Resource Planning (ERP) platform has been upgraded to streamline core functions, remaining closely aligned with departmental KPIs to support performance monitoring and strategic decision-making. Customer engagement and service management have been centralized through a modern Customer Relationship Management (CRM) system. Additionally, the integration of Power BI dashboards has enabled real-time analytics and data visualization across all major departments.

A Security Information and Event Management (SIEM) system has been deployed to monitor, analyze, and respond to security threats in real-time across the entire IT environment. The Company has implemented a comprehensive cybersecurity framework that includes Next-Generation Antivirus (NGAV), Endpoint Detection and Response (EDR), and Multi-Factor Authentication (MFA) to ensure data security and compliance with international cybersecurity standards. Firewalls and routers are equipped with Intrusion Detection and Prevention Systems (IDPS) to further enhance network protection. Performance reporting is conducted at multiple organizational levels to ensure transparency and accountability. Departmental Performance Reports are reviewed monthly by the CEO, COO, and Department Heads. Project Delivery and Resource Utilization Reports are reviewed biweekly by the CEO, PMO, and Engineering Leads. Sales Pipeline and Revenue Forecasting Reports are reviewed on a weekly/monthly basis by the CEO, Sales Director, and Head of Business Development. Avanceon is a certified member of the select group of Control System Integrators Association and it is also listed on the Control Engineering Magazine’s System Integrator Hall of Fame.

The global technology sector continues to demonstrate strong growth, supported by sustained investments in digital transformation, industrial automation, cloud computing, artificial intelligence, and cybersecurity. The industry's expansion is being driven by increasing demand for technology-enabled solutions, automation, and digital infrastructure across both developed and emerging economies. In Pakistan, the technology sector has maintained its growth momentum, underpinned by a steadily expanding IT and IT-enabled services (ITeS) industry, a growing pool of skilled professionals, and supportive government initiatives aimed at promoting digitalization and exports. The sector benefits from a well-diversified base of software development, business process outsourcing (BPO), fintech, cloud services, and enterprise technology providers. Export performance has remained encouraging, supported by growing demand from key international markets, particularly North America, the Middle East, and Europe. Going forward, continued investment in digital infrastructure, technological innovation, human capital development, and the increasing adoption of automation and artificial intelligence are expected to sustain the sector's long-term growth prospects, although challenges relating to global economic conditions, talent retention, and cybersecurity risks remain key considerations.

Avanceon is a leading player in the industrial automation industry, holding a dominant position in the domestic market. This strong market presence enables the Company to command a significant share of the local industry, reflecting its established reputation and competitive advantage.

The Company's revenue base is predominantly driven by project revenue across a diversified portfolio of sectors, including oil & gas, water & wastewater, infrastructure, transportation, food & beverages, sugar & ethanol, and chemicals & fertilizers. On a consolidated basis, the Company has maintained a strong growth trajectory, recording a 3-year CAGR of ~25% from CY23 to CY25, with the topline reaching PKR 15.8bln in CY25. Geographically, the United Arab Emirates and Qatar remained the principal revenue contributors, accounting for approximately 40% and 36% of total revenue. This was followed by Pakistan (13%) and the Kingdom of Saudi Arabia (11%). The Company's well-established after market support segment continued to provide a stable and recurring revenue stream, strengthening earnings visibility and partially mitigating the cyclicality associated with project-based revenues. The positive growth momentum continued into 1QCY26, with the topline increasing to PKR 3.7bln from PKR 2.5bln in 1QCY25. The improvement was primarily attributable to an increase in revenue contribution from contracts in the Middle East and Pakistan, reflecting the Company's expanding regional footprint and healthy project pipeline.

In CY25, the Company's core operating performance remained largely stable, with the gross profit margin sustaining at 26.2% compared to 26.4% in CY24, reflecting the resilience of its underlying operations. Dividend income from subsidiaries continue to provide support to the profitability matrix, partially offsetting the impact of higher operating and finance costs. Consequently, the PBIT margin declined to 8.4% in CY25 from 12.0% in CY24. The Company achieved a net profitability of PKR 655mln in CY25 (CY24: PKR 2.0bln), translating into a net profit margin of 4.1% compared to 12.8% in the previous year. During 1QCY26, the Company's gross profit margin and net profit margin stood at 23.8% and 1.5%, respectively.

The Company's future growth prospects are supported by the successful completion of Saudi Aramco's vendor qualification and cybersecurity compliance requirements, strengthening its eligibility to participate in large-scale projects within the Kingdom of Saudi Arabia. Furthermore, the Company has entered into a strategic collaboration with Zamil Operations & Maintenance (O&M) to jointly pursue opportunities with key clients, including Saudi Aramco, Saudi Electricity Company (SEC), Marafiq, and the Royal Commission for Jubail and Yanbu (RCJY). Management remains focused on expanding its regional footprint across the Middle East through a well-diversified project pipeline spanning Digital Factory Solutions & PRD, Avanceon Fuelling Solutions, Industrial Systems, Building Technologies, and Business Development. These strategic initiatives are expected to strengthen business visibility, diversify revenue streams, and support the Company's long-term growth trajectory.

The Company meets its working capital requirements through a combination of internally generated cash flows and short-term conventional borrowings. Owing to the inherently elongated receivables and payables cycle associated with its business model, the Company's working capital cycle remained elevated during 1QCY26. A significant portion of the outstanding trade receivables pertains to group companies. As represented by the management, these receivables are expected to be gradually converted into equity, which is anticipated to ease working capital pressure over time.

In 1QCY26, the Company's free cash flows from operations (FCFO) stood at PKR 141mln (CY25: PKR 1.7bln), reflecting relatively lower cash generation compared to the previous year. Nevertheless, the Company's cash flow generation remained adequate to support its operational requirements with limited reliance on external funding sources. Consequently, the EBITDA-to-finance cost and FCFO to finance cost moderated to 4.9x (CY25: 7.8x) and 1.9x (CY25: 4.9x), respectively. Despite this decrease, theCompany's coverage metrics remained within a comfortable range.

The Company maintains a low-leveraged capital structure, with the total leverage ratio clocking at 20.5% in 1QCY26 from 23.3% in CY25, reflecting a low reliance on external debt financing. The debt profile continues to be dominated by short-term borrowings comprising 53.6% of the total borrowings. The Company's equity base continued its upward trajectory, increasing to PKR 15.7bln in 1QCY26, supported by the accumulation of retained earnings.