AVN | Avanceon Limited Transmission of Report for the Period Ended 30th September 2025

Nine Months Ended September 30, 2025

https://www.avanceon.ae

Table Of Content

Corporate Profile Company Information Interim Director's Report

. 02

. 04

Standalone Financial Statements

Condensed Interim Statement of Financial Position. 08

Condensed Interim Statement of Profit or Loss 09

Condensed Interim Statement of Comprehensive Income 10

Condensed Interim Statement of Cash Flows 11

Condensed Interim Statement of Changes in Equity 13

Notes to the Condensed Interim Financial Statements 14

Consolidated Financial Statements

Condensed Interim Statement of Financial Position 18

Condensed Interim Statement of Profit or Loss 20

Condensed Interim Statement of Comprehensive Income 21

Condensed Interim Statement of Cash Flows 22

Condensed Interim Statement of Changes in Equity 24

Notes to the Condensed Interim Financial Statements 25

Company Information

Directors

Khalid Hamid Wain Director / Chairman

Bakhtiar Hameed Wain Director / Chief Executive Officer Tanveer Karamat Director

Amir Wain Director

Bankers

Faysal Bank Limited, Pakistan

Habib Bank Limited, Pakistan & United Arab Emirates National Bank of Fujairah, United Arab Emirates Habib Bank AGA, Zurich, United Arab Emirates

Mohammad Shahid Mir Faaria Rehman Salahuddin

Director Director

Bank of Singapore, United Arab Emirates MCB Bank Limited, Pakistan

Selina Saadia Rashid Khan Director

United Bank Limited, Pakistan & United Arab Emirates National Bank of Pakistan Limited, Pakistan

Ahsan Khalil (ACA-FPFA)

Chief Financial Officer / Company Secretary

Standard Chartered Bank Limited, Pakistan JS Bank Limited, Pakistan

Audit Committee

Faaria Rehman Salahuddin Chairman Amir Wain Member

Khalid Hamid Wain Member

Human Resource & Remuneration Committee

Faaria Rehman Salahuddin Chairman Selina Saadia Rashid Khan Member Khalid Hamid Wain Member

Auditors

Crowe Hussain Chaudhury

& Co Chartered Accountants

Legal Advisor

Chima & Ibrahim Advocates & council

Web Presence

https://www.avanceon.ae

https://www.avanceon.qa | https://www.octopusdtl.com

Qatar International Islamic Bank QIIB Qatar Islamic Bank QIB, Qatar

Share Registrar

FAMCO Share Registration Services (Pvt) Limited 8-F, Near to Hotel Faran,

Nursery, Block-6, P.E.C.H.S, Shahra-e-Faisal, Karachi. Phone: +92 (21) 3438 0101-5

Fax No: +92 (21) 3438 0106

https://www..famcosrs.com

Registered Office

The Avanceon Building

19-KM , Main Multan Road, Lahore 54660, Punjab, Pakistan Phone: +92 (42) 111 940 940

Fax No: +92 (42) 375 151 28

Email: investors@avanceon.ae

Regional Headquarters -South Asia

Lahore, Punjab, Pakistan The Avanceon Building

19-KM , Main Multan Road, Lahore, 54660 Punjab, Pakistan

Phone: +92 (42) 111 940 940

Email: marketing@avanceon.ae Karachi, Sindh, Pakistan

MA Tabba Foundation Building, First Floor, Gizri Road Block 9, Clifton Karachi, Sindh 75600 Phone: +92 (21) 111 940 940

Email: support.sea@avanceon.ae Islamabad, Pakistan

Manzoor Plaza (The Hive Building), First Floor, Plot 14-E Fazal-e-Haq Road, G-6/2, Blue Area, Islamabad 44000 Phone: +92 51 573 3031

Email: marketing@avanceon.ae Phone: +92 51 573 3031

Regional Headquarters -Middle East

Avanceon FZE - Dubai, UAE FZS1 BD04 JAFZA P.O. Box 18590

Dubai, United Arab Emirates Phone: +971 4 88 60 277

Email: marketing@avanceon.ae Abu Dhabi, UAE

In Partnership with Ali & Sons

Ali &Sons Bldg., Zayed 2nd Street

P.O. Box 915

Abu Dhabi, U.A.E. Phone: +971 4 88 60 277

Email: support.mea@avanceon.ae Doha, Qatar

Avanceon Automation Control WLL Office No. 12, M Floor, Al-Jaber Engg. HO Building, P.O. Box 15976, Fox Hills, Lusail, Doha, Qatar.

Phone: +974 4040 9835

Email: marketing@avanceon.ae Jeddah, Saudia Arabia

Jeddah, Saudia Arabia

Kuwait St. Faisaliyah District

P.O. Box 1298

Jeddah, KSA.

Phone: +966-12-6912204 x 127

Email: marketing@avanceon.ae Riyadh, Saudia Arabia

Avanceon Saudi for Energy Company 3141 Anas Ibn Malik-Al Malqa Dist.

Unit no. 718, Riyadh 13521 - 8292 Kingdom of Saudi Arabia Phone: +966-5674 16724

Email: marketing@avanceon.ae

Interim Director's Report

Directors of Avanceon Limited (the "Company") are pleased to present the Directors' Report for the nine months ended September 30, 2025.

For the nine months ended Sep 30, 2025 Sep 30, 2024

----- (Rupees in '000) -----

EARNINGS PER SHARE (CONSOLIDATED) FOR THE NINE MONTHS ENDED September 30, 2025

The basic earnings per share after tax is Rs. (0.36) (2024: Rs. 0.75 - restated)

EARNINGS PER SHARE (STANDALONE) FOR THE NINE MONTHS ENDED September 30, 2025

The basic earnings per share after tax is Rs. 0.32 (2024: Rs. 0.13 - restated)

We are pleased to report that the company's (Consolidated & Standalone) nine months ending September 30, 2025 results with the shareholders.

Avanceon Limited:

For the nine-month period ended September 2025, the Company reported revenues of Rs. 1.8 billion, reflecting a marginal decline of 7.1% compared to the corresponding period of 2024. However, the revenue for the third quarter of 2025 is more or less same as compared to the same quarter last year 2024.

The decrease in cumulative revenue is primarily attributable to timing delays in the execution and delivery of a few major projects currently in the pipeline. The management is confident that this gap will be covered in the final quarter of 2025, enabling to meet its annual revenue target.

Gross margin is reported at Rs. 476 million i.e., 26%, also showed a downward trend primarily also due to the timing lag in the execution of several large projects, as well as the presence of high margin projects in the comparable period last year.

Administrative expenses and selling expenses increased by 9% to Rs. 342 million, this increase is in line with the bandwidth of annual fixed cost increments and inflation.

During the nine months September 2025 reported, the Company's other operating expenses/income benefited from a favorable exchange gain, driven by currency fluctuations. However, a stability in USD to PKR rate the gain has decreased from the half year 2025. This resulted in bottom line operating profit increased to Rs. 133 million i.e., by 252% as compared to the corresponding reported nine months 2024.

Finance cost increased to Rs. 147 million, up by about 23%, mainly due to higher average borrowing rates. The Company is working to improve its funding structure to reduce the impact on profitability.

The net profit of the company closed at Rs. 133 million (2025: EPS Rs. 0.32) as compared to Rs. 53 million (2024: EPS Rs. 0.13 - restated) in the corresponding reported period 2024, with a support of low tax charge for the nine months thereby reporting an increase of 250%.

The Company remains focused on achieving its annual targets and is actively pursuing opportunities in key markets. The current order pipeline and ongoing projects are sufficient to meet the annual revenue goal. It is expected that we would enter the year 2026 with a huge opening back log of orders in hand. Management is confident that these efforts will lead to a strong operational and financial performance by year-end, contributing positively to profitability and shareholder value.

Avanceon Group:

Avanceon Limited consolidated financial results present below:

The group revenues showed a declined trend by almost 19% to Rs. 7.4 billion from Rs. 9.13 billion as compared to the corresponding reported nine months 2024. This drop is mainly due to the fact of low revenue recognition in the regions of Dubai and Qatar. Management is focused on these areas and remains optimistic about recovering the shortfall by the end of 2025.

The gross profit reported at Rs. 1.98 billion compared to Rs. 2.55 billion as compared to the corresponding reported nine months 2024, mainly because of low revenue recognition in Dubai and Qatar. However, the gross margin percentage remained almost intact. Management is confident of increasing overall revenue and gross margins in the final quarter to achieve the annual targets for 2025.

Administrative and selling expenses stood at Rs. 1.8 billion, remaining largely unchanged compared to the corresponding nine-month period of 2024. This stability reflects the Company's effective cost control and strict performance monitoring practices.

Other expenses decreased to Rs. 84 million from Rs. 111 million, while other income rose significantly to Rs. 124 million from Rs. 39 million in the same period last year, helping to reduce overall costs. Finance costs, however, increased by about 21% to Rs. 351 million compared to Rs. 290 million in 2024.

Lastly, taxation resulted in a lower incidence at the group level, however, there is a new corporate tax introduced in Dubai region during the year 2025. With all the above factors the group sustained a loss of Rs.

149 million as compared to Rs. 337 million profits for the nine months 2024. The loss is mainly due to a shortfall in top line revenue. Management views this as a temporary timing issue and remains confident of recovering the shortfall in the final quarter to achieve the annual targets.

COMMUNICATION

Communication with the shareholders is given a high priority. Financial reports are shared with shareholders within the time specified in the current Companies Act, 2017. The Company also has a website, https://www.avanceon.ae which contains up to date information on Company's activities and financial reports.

for and on behalf of the BOARD OF DIRECTORS

October, 27, 2025 Lahore, Pakistan

BAKHTIAR HAMEED WAIN

Chief Executive Officer

Tanveer Karamat

Director

Financial Statements 2025

Avanceon Limited Condensed Standalone Interim Financial Statements

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

7

AVANCEON LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2025

8

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat

AVANCEON LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

for the nine months ended for the quarter ended

Sep 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024

(Rupees in '000) (Rupees in '000)

The annexed notes from 1 to 7 form an integral part of these condensed financial statements.

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat

AVANCEON LIMITED

STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

for the nine months ended for the quarter ended

Sep 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024

(Rupees in '000) (Rupees in '000)

Profit /(loss) for the period 133,304 52,859 (2,476) 2,579

Other comprehensive income

Total comprehensive income / (loss) for the period 133,304 52,859 (2,476) 2,579

The annexed notes from 1 to 7 form an integral part of these condensed financial statements.

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat

AVANCEON LIMITED

CONDENSED INTERIM STATEMENT OF CASHFLOWS (UN-AUDITED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

for the nine months ended Sep 30, 2025 Sep 30, 2024

(Rupees in '000)

CASH FLOWS FROM OPERATING ACTIVITIES

Profit/(loss) before tax 128,652 94,579

Adjustments for:

Depreciation on property and equipment Employees' share option expense Unrealised exchange (gain) / loss

Gain on disposal of property and equipment Finance cost

Provision for expected credit losses - long term interest free receivables Provision for expected credit losses - contract asset

Provision for expected credit losses - trade debts Provision for expected credit losses - advances Profit on bank deposits

195,134 376,366

Profit before working capital changes 323,785 470,946

Effect on cash flow due to working capital changes: (Increase) / decrease in current assets

13,985

(443,809)

238,738

62,558

(20,185)

320,534

120,906

264

• Stock in trade

• Trade debts

• Contract assets

• Advances, deposits, prepayments and other receivables

Increase / (decrease) in current liabilities

AVANCEON LIMITED

CONDENSED INTERIM STATEMENT OF CASHFLOWS (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

for the nine months ended Sep 30, 2025 Sep 30, 2024

(Rupees in '000)

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat

AVANCEON LIMITED

CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

Employees'

Share Capital Share Premium Share

Compensation

Reserve

Surplus on

Revaluation of Property & Equipment

(Rupees in '000)

Balance as on January 01, 2024 3,762,978 451,420 168,683 330,636 3,113,645 7,827,362

Profit for the period

Other comprehensive income

(2,437) 541,533 539,096

Issuance of shares against ESOS

20% dividend for the period ended December 31, 2023 Employee share option reserve

10% bonus share issue for the period ended December 31, 2023

387,250 57,490 202,057

(1,131,881) (485,084)

Balance as on December 31, 2024 4,150,228 508,910 370,740 328,199 2,523,297 7,881,374

Profit for the period

Transfer from revaluation surplus on account of incremental dep.

Issuance of shares against ESOS Employee share option reserve

(1,157) 134,461 133,304

73,860 126,325 (19,459)

180,726

Balance as on September 30, 2025 4,224,089 635,235 351,280 327,042 2,657,758 8,195,404

The annexed notes from 1 to 7 form an integral part of these condensed financial statements.

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat 13

AVANCEON LIMITED

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM UNCONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

1. Legal Status and Nature of Business

   1. Avanceon Limited (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 the Companies Act, 2017). The Company is listed on Pakistan Stock Exchange Limited. The principal activity of the Company is to provide industrial automation, process control and systems integration solutions, to trade in products of automation and control equipment and provide related technical services.

   2. The Company is domiciled in Pakistan and its registered office is situated at 19 KM, Multan Road, Lahore 54500. Following are the business units of the Company along with their respective locations:

      BUSINESS UNIT LOCATION

      Head office

      REGIONAL OFFICES

      Karachi Islamabad

      The Avanceon Building, 19 KM, Multan Road, Lahore 54500.

      The Hive 1st Floor, MA Tabba Foundation Building, Girzi Road, Block 9 Clifton, Karachi.

      The Hive 6th Floor, ISE Towers Jinnah Avenue, Blue Area Islamabad.

   3. These are the unconsolidated financial statements of the Company in which investments in subsidiaries have been carried at cost, consolidated

      financial statements have been presented separately.

2. Basis of Prepration

   1. Separate financial statements

      These are the unconsolidated condensed interim financial statements of the Company in which investments in subsidiaries have been carried at cost, consolidated financial statements have been presented separately.

   2. Statement of compliance

      These unconsolidated condensed interim financial statements (un-audited) of the Company have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

      • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017

      • Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as notified under the Companies Act, 2017; and

      • Provisions of and directives issued under the Companies Act, 2017.

        Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   3. These condensed interim unconsolidated financial statements comprise the condensed interim unconsolidated statement of financial position (un-audited) of the Company as at June 30, 2025 and the related condensed interim unconsolidated statement of profit or loss (un-audited), the condensed interim unconsolidated statement of comprehensive income (un-audited), the condensed interim unconsolidated statement of changes in equity (un-audited) and the condensed interim unconsolidated statement of cash flows (un-audited) together with the notes forming part thereof.

      AVANCEON LIMITED

      NOTES TO AND FORMING PART OF THE CONDENSED INTERIM UNCONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)

      FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

   4. These condensed interim unconsolidated financial statements (un-audited) do not include all of the information contained in full annual financial statements and should be read in conjunction with the audited annual financial statements for the year ended December 31, 2024.

   5. The comparative statement of financial position presented in these condensed interim unconsolidated financial statements (un-audited) has been extracted from the audited annual financial statements of the Company for the year ended December 31, 2024, whereas the comparative condensed interim unconsolidated statement of profit or loss, the condensed interim unconsolidated statement of comprehensive income, the condensed interim unconsolidated statement of changes in equity and the condensed interim unconsolidated statement of cash flows have been extracted from the un-audited condensed interim unconsolidated financial statements for the six months period ended June 30, 2024.

   6. These condensed interim unconsolidated financial statements are unaudited and are being submitted to the shareholders as required under Section 237 of the Companies Act, 2017 ("the Act"); however, these are subject to limited scope review by external auditors as required by the Act and the Listed Companies (Code of Corporate Governance) Regulations, 2019 (the Regulations).

   7. Basis of measurement

      These condensed interim unconsolidated financial statements have been prepared under the historical cost convention except for freehold land and building on freehold land which are stated at revalued amounts.

   8. Functional and presentation currency

      These condensed interim unconsolidated financial statements have been prepared in Pak Rupee (Rs.), which is the functional and presentational currency of the Company. Figures have been rounded off to the nearest rupees in thousand unless stated otherwise.

3. Other Charges

   for the nine months ended Sep 30, 2025 Sep 30, 2024

   (Rupees in '000)

   Donations	7,260		5,429
   Exchange Loss			100,982
   Provison for ECL related parties			57,284
   Provison for ECL trade debts	17,975		443
   Late panelty charges	210		2
   	25,445		164,140

4. Other Income

   for the nine months ended Sep 30, 2025 Sep 30, 2024

   (Rupees in '000)

   Income on bank deposits	106		2,771
   Gain on disposal of property, plant and equipment	10,368		7,925
   Exchange gain	71,492
   Markup Income on Current Accounts	3,877		131
   Reversal of ECL Provision	6,148
   Others	75,466		3,799
   	167,458		14,626

   AVANCEON LIMITED

   NOTES TO AND FORMING PART OF THE CONDENSED INTERIM UNCONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)

   FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

5. Contingencies And Commitments

   1. Contingencies

      (i) There are no contingencies to report as at September 30, 2025 (2024: Nil)

   2. Commitments

      1. Bank guarantees issued amounting to Rs. 592.25 million (2024: Rs. 352.173 million) against the performance of various contracts.

      2. Letters of credit includes Rs. 274.56 million (2024: 121.588 million) which relates to import acceptance bills.

6. Date Of Authorization For Issue

   The condensed interim consolidated financial information was authorised for issue on October, 27, 2025 by the Board of Directors of the Holding Company.

7. General

Figures have been rounded off to the nearest thousand rupees.

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karam1a6t

Financial Statements 2025

Avanceon Limited Condensed Consolidated Interim Financial Statements

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

17

Un-Audited Audited

Sep 30, 2025 Dec 31, 2024

(Rupees in '000)

AVANCEON GROUP

CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

for the nine months ended Note Sep 30, 2025 Sep 30, 2024

(Rupees in '000)

for the quarter ended Sep 30, 2025 Sep 30, 2024

(Rupees in '000)

Reclassification Reclassification

The annexed notes 1 to 7 form an integral part of these consolidated condensed financial statements.

AVANCEON GROUP

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

for the nine months ended for the quarter ended

Sep 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024

(Rupees in '000) (Rupees in '000)

Profit / (Loss) for the period (149,147) 336,964 (317,140) 309,082

Other comprehensive income

- Exchange difference on translating

The annexed notes 1 to 7 form an integral part of these consolidated condensed financial statements.

AVANCEON GROUP

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASHFLOWS (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

for the nine months ended

Sep 30, 2025 Sep 30, 2024

(Rupees in '000)

CASH FLOW FROM OPERATING ACTIVITIES

AVANCEON GROUP

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASHFLOWS (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

for the nine months ended

Sep 30, 2025 Sep 30, 2024

(Rupees in '000)

The annexed notes 1 to 7 form an integral part of these consolidated condensed financial statements.

AVANCEON GROUP

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat 24

AVANCEON LIMITED

NOTES TO THE CONSOLIDATED CONDENCED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

1. Legal Status and Nature of Business

   1. Legal status and operations

      The Group comprises: Note #

      • Avanceon limited (AVL)

      • Avanceon Free Zone Establishment, UAE (AVFZE) 1

      • Avanceon Automation and Control W.L.L (AVAC) 1

      • Avanceon Saudi Energy Company (AVSEC) 2

      • Octopus Digital limited (ODL) 2

      • Avanceon QFZ LLC (AVQFZ) 2

      • Empiric AI (Private) Limited (EAL) 2

      • Octopus Digital FZ (ODFZ) 2

        Status within the Group

        Holding Company Subsidiary of AVL Subsidiary of AVL Subsidiary of AVL Subsidiary of AVL Subsidiary of AVL Subsidiary of ODL Subsidiary of ODL

   2. Avanceon Limited (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 the Companies Act, 2017). The Company is listed on Pakistan Stock Exchange Limited. The principal activity of the Company is to provide industrial automation, process control and systems integration solutions, to trade in products of automation and control equipment and provide related technical services. Following are the business units of the holding Company along with their respective locations:

      BUSINESS UNIT LOCATION

      Head office

      REGIONAL OFFICES

      Karachi Islamabad

      The Avanceon Building, 19 KM, Multan Road, Lahore

      The Hive 1st Floor, MA Tabba Foundation Building, Girzi Road, Block 9 Clifton, Karachi.

      The Hive 6th Floor, ISE Towers Jinnah Avenue, Blue Area Islamabad.

   3. AVFZEisa Free Zone Establishment with limited liability formed pursuant to Law No. 9 of 1992 of H.H. Sheikh Maktoum Bin Rashid Al Maktoum, Ruler of Dubai and Implementing Regulations issued thereunder by the Jebel Ali Free Zone Authority and was registered with the Jebel Ali Free Zone Authority under Registration No. 816 on February 28, 2004. Its registered office is situated in the Jebel Ali Free Zone, Dubai, United Arab Emirates. The principal activities of AFZE are to provide industrial automation, process control and systems integration solutions, to trade in products of automation and control equipment and provide related technical services. The Establishment is wholly owned subsidiary of the Group.

   4. AVAC is an Establishment with limited liability registered under the Ministry of Commerce and Industry, state of Qatar on May 22, 2017 with Registration No. 99027. Its registered office is situated in Al Jaber Engg. HO Building, PO Box: 15976, Fox Hills, Lusail, Doha - Qatar. The principal activities of AVAC are to provide industrial automation, process control and systems integration solutions, to trade in products of automation and control equipment and provide related technical services. The Group owns 49% equity shares of AVAC. However, based on an agreement signed between the holding Company and other shareholders, the Group has control over its financials and operating decision making of AVAC.

   5. AVSEC is a Single Person Mixed Limited Liability Company registered in Kingdom of Saudi Arabia and operating under Commercial Registration No. 1010676690 dated 12/05/1442 hijra, corresponding to 27/12/2021. AVSEC is engaged in repairs and maintenance of power and control stations, installation of control equipment for industrial operation, design and programming of special projects, registering for providing cloud services and management of energy efficiency projects.The registered office of AVSEC is in Riyadh, Saudi Arabia. AVSEC is the wholly owned subsidiary of the Group.

      AVANCEON LIMITED

      NOTES TO THE CONSOLIDATED CONDENCED INTERIM FINANCIAL STATEMENTS

      FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

   6. ODL was incorporated in Pakistan on December 29, 2017 as a private limited company under the Companies Act, 2017, which was converted into a public Company on November 11, 2020. ODL is a subsidiary of the Group and is listed on Pakistan Stock Exchange Limited. The prime business of ODL is to carry out Information Technology enabled services which include but are not limited to online data / information storage, online monitoring and review of employees efficiency, online monitoring of cost and production efficiency, online monitoring and maintenance of plant and machinery, sale and trade of related softwares and equipment etc. The Group owns 74.32% equity shares of ODL.

   7. AVQFZ is incorporated as a limited liability Company under the Companies regulations of Qatar Free Zone Authority under FZA License No. FZA 194 obtained on November 05, 2020. The registered office of the Company is at Zone No. PA-WH-04, Area-Ras Bufontas Free Zone, Street No. PO Box: 45976, Doha-Qatar. The primary objective is to manufacturing of measuring, testing, navigating and control equipment. AVQFZ is the wholly owned subsidiary of the Group.

   8. EAI is incorporated as a private limited company under the Companies Act, 2017 of Pakistan on May 19, 2020. The registered office of the Company is located in Pakistan. The primary objective of the Company is to analyze potential opportunities and to provide digital and technology services and products both within Pakistan and internationally. EAI is the wholly owned subsidiary of ODL. The Group owns 74.32% equity shares of ODL.

   9. ODFZ is a Limited Liability Company incorporated pursuant to the regulations of the Dubai Development Authority, Government of Dubai, United Arab Emirates, and was issued Commercial License No. 103074 on June 16, 2023. Its registered office is located at DMC-BLD05-VD-G00-792, Ground Floor, DMC5 Building, Dubai Media City, Dubai, United Arab Emirates. The principal activities of the Entity are to provide software consultancy, software customer service, software development, software solutions, and software support services. The management of the Entity is vested with its Director, Mr. Bakhtiar Hameed Wain, a Pakistani national. ODFZ is the wholly owned subsidiary of ODL. The Group owns 74.32% equity shares of ODL.

2. Basis of Preparation

   1. Statement of compliance

      These consolidated financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of :

      • International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

      • Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act, 2017; and

      • Provisions of and directives issued under the Companies Act, 2017.

        Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS standards and IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.

3. Other Expenses

   for the nine months ended

   Sep 30, 2025 Sep 30, 2024

   (Rupees in '000)

   Donations	7,700	6,691
   Exchange Loss	51,075	95,420
   Provision for expected credit losses - contract assets	534	244
   Provision for expected credit losses - trade debts	18,583	1,714
   Balances written off	3,428	7,672
   Penalty Charges	2,142
   Zakat	50	79
   	83,947	111,821

   AVANCEON LIMITED

   NOTES TO THE CONSOLIDATED CONDENCED INTERIM FINANCIAL STATEMENTS

   FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

4. Other Income

   for the nine months ended

   Sep 30, 2025 Sep 30, 2024

   (Rupees in '000)

   Profit on bank deposits	415	3,235
   Gain on disposal of property, plant and equipment	10,475	7,925
   Reversal of provisions for ECL	6,148
   Other Income	107,366	27,987
   	124,405	39,146

5. Contingencies And Commitments

   1. Commitments

      1. Bank guarantees issued amounting to Rs. 651.80 million (2024: Rs. 352.173 million) against the performance of various contracts.

      2. Letters of credit includes Rs. 460.29 million (2024: 121.588) which relates to import acceptance bills.

6. Date Of Authorization For Issue

   The condensed interim consolidated financial information was authorised for issue on October, 27, 2025 by the Board of Directors of the Holding Company.

7. General

Figures have been rounded off to the nearest thousand rupees.

27

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat

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