Financial Results for the Quarter Ended 30 June 2025

AVANCEON GROUP

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2025

Un-Audited

Audited

Un-Audited

Audited

June 30, 2025

Dec. 31, 2024

June 30, 2025

Dec. 31, 2024

(Rupees in '000)

(Rupees in '000)

EQUITY AND LIABILITIES

ASSETS

SHARE CAPITAL AND RESERVES

Authorised capital 500,000,000 (2023: 500,000,000)

ordinary shares of Rs 10 each

5,000,000

5,000,000 NON CURRENT ASSETS

REVENUE RESERVES

Un-appropriated Profit

634,730

410,198

3,227

2,937,796

631,367

327,042

4,944,359

ISSUED, SUBSCRIBED AND PAID UP CAPITAL

417,571,424 (2024: 415,022,831)

ordinary shares of Rs. 10 each

Property and equipment

Capital Work in Progress

4,150,228 Intellectual Property

Goodwill

Investment in JV

508,405 Deferred Tax Assets

408,223 Long term deposits 3,227

2,639,098

631,367

328,199

1,367,282

528,965

4,913,308

221,810

387,861

33,005

75,522

7,527,754

1,274,588

402,884

4,840,528

221,810

379,669

32,697

82,205

7,234,381

CAPITAL RESERVES

Share premium

Employees' share compensation reserve

Statutory reserve

Exchange revaluation reserve

Gain on diluation of interest

Surplus on revaluation of property & equipment

5,467,536

14,587,609

694,420

15,282,029

5,306,198

13,974,945

686,608

14,661,553

NON CURRENT LIABILITIES

Long Term Loans

Liabilities against assets subject to finance lease

Deferred Liabilities

Diminishing Musharaka

85,454

131,501

354,420

100,414

671,790

96,241

115,274

333,149

112,382

657,046

Current portion of Long Term Loans

Current portion of Diminishing Musharaka

Current portion of lease liabilities

Finances under mark up arrangements

and other credit facilities - secured

Unclaimed Dividend

Creditors, accrued and other liabilities

Contract Liabilities

Taxation-Net

25,106

58,209

48,586

1,503,297

163,298

8,439,613

2,156,718

449,098

12,843,925

25,636

66,124

49,694

2,215,290

160,541

7,134,096

1,334,014

367,702

11,353,097

Stock in trade

Trade debts

Contract Assets

Advances, deposits, prepayments

and other receivables

Term deposits with banks

Investments in Stocks

Cash and bank balances

377,257

5,353,879

9,447,673

4,006,870

101,178

558

491,748

173,619

7,131,935

9,319,803

3,445,266

100,233

539

756,748

Chief Executive Officer

Bakhtiar Hameed Wain

Chief Financial Officer

Ahsan Khalil

Director

Tanveer Karamat

AVANCEON GROUP

CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE HALF YEAR ENDED JUNE 30, 2025

for the half year ended

June 30, 2025 June 30, 2024

for the quarter ended

June 30, 2025

June 30, 2024

(Rupees in '000)

(Rupees in '000)

Reclassification

Reclassification

Revenues

5,237,704

5,255,724

2,716,853

3,282,179

Cost of revenue

(3,621,015)

(3,651,369)

(2,078,120)

(2,374,125)

Gross Profit / (Loss)

1,616,689

1,604,355

638,733

908,054

Administrative and selling expenses

(1,317,960)

Other expenses

(39,668)

Other income

162,326

(1,252,843)

(100,565)

22,587

(757,395)

(37,464)

146,238

(752,346)

(62,691)

20,336

(1,195,302)

(1,330,820)

(648,621)

(794,700)

421,387

273,535

(9,889)

113,353

Finance costs

(255,048)

(212,675)

(108,358)

(91,924)

Profit / (Loss) before tax

166,339

60,860

(118,247)

21,430

Taxation

1,654

(32,979)

14,609

(4,120)

Profit / (Loss) for the period

167,993

27,881

(103,637)

17,310

Attributable to:

Equity holders of the Holding Company

Non-Controlling Interest

Profit / (Loss) from operations

Share of profit from a Joint Venture

160,181 4,646 (109,093) 25,839

7,812 23,235 5,456 (8,529)

167,993 27,881 (103,637) 17,310

Restated

0.01 (0.25)

Chief Executive Officer

Chief Financial Officer

Director

Bakhtiar Hameed Wain

Ahsan Khalil

Tanveer Karamat

AVANCEON GROUP

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

FOR THE HALF YEAR ENDED JUNE 30, 2025

for the half year ended

for the quarter ended

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

(Rupees in '000)

(Rupees in '000)

Profit / (Loss) for the period

Other comprehensive income

167,993

27,881

(103,637)

17,310

298,698

(143,111)

208,393

(104,894)

Total comprehensive income for the period

466,691

(115,230)

104,756

(87,584)

Attributable to:

Equity holders of the Holding Company

Non-Controlling Interest

458,879 (138,466) 99,300 (79,055)

7,812 23,235 5,456 (8,529)

466,691 (115,230) 104,756 (87,584)

Chief Executive Officer

Bakhtiar Hameed Wain

Chief Financial Officer

Ahsan Khalil

Director

Tanveer Karamat

- Exchange difference on translating

foreign operations

AVANCEON GROUP

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

FOR THE HALF YEAR ENDED JUNE 30, 2025

CAPITAL RESERVES

REVENUE

RESERVES

Share capital

Share premium reserve

Gain on diluation of interest

Employee share compensation reserve

Statutory Reserve

Exchange revaluation reserve

Surplus on Revaluation of Property, Plant and

Equipment

Unappropriated (loss) / profit

Non-Controlling Interest

TOTAL

(Rupees in '000)

620,608

13,089,717

-

13,357

214,890

82,829

(754,587)

(13,357)

-

(754,587)

(377,293)

(1,145,237)

13,357

(456,867)

328,199

5,306,198

686,608

14,661,553

147,445

82,829

-

230,274

631,367

408,223

3,227

2,639,098

9,956

377,293

57,490

-

387,250

57,490

4,150,228

508,405

Profit for the period

Other comprehensive income

(32,751)

(32,751)

(2,437)

(2,437)

2,008,811

2,437

2,011,248

52,643

52,643

2,061,454

(32,751)

2,028,702

Issuance of shares against ESOS

Adjustment of NCI

Employee share option reserve

20% dividend for the period ended December 31, 2023

10% bonus share issue for the period ended December

31, 2023

Profit for the period

Other comprehensive income

298,698

298,698

(1,157)

(1,157)

160,181

1,157

161,338

7,812

7,812

167,993

298,698

466,691

Issuance of shares against ESOS

Employee share option reserve

128,299

153,785

(126,325)

1,975

153,785

631,367

410,198

3,227

2,937,796

327,042

5,467,536

694,420

15,282,029

25,486

126,325

25,486

126,325

4,175,714

634,730

Chief Executive Officer

Bakhtiar Hameed Wain

Chief Financial Officer

Ahsan Khalil

Director

Tanveer Karamat

AVANCEON GROUP

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASHFLOWS (UN-AUDITED)

FOR THE HALF YEAR ENDED JUNE 30, 2025

for the half year ended

June 30, 2025

June 30, 2024

(Rupees in '000)

CASH FLOW FROM OPERATING ACTIVITIES

Profit/ (loss) before tax

Adjustments for:

Depreciation on property and equipment

Exchange gain

Exchange revaluation reserve

Amortization

Provision for gratuity

Finance costs

Employees' share option expense

Provision for ECL - contract assets

Provision for ECL - trade debts

Gain on disposal of fixed Assets

Income on bank deposits

101,715

(42,427)

298,698

28,255

57,750

255,048

130,647

(6,148)

30,039

(6,574)

(401)

846,602

91,957

74,191

(143,111)

11,115

59,484

212,675

65,353

13,839

8,009

(8,425)

(2,935)

382,151

Profit before working capital changes

(Increase) / decrease in current assets

- Stock in trade

- Trade debts

- Contract Assets

- Advances, deposits, prepayments and other receivables

(decrease) / Increase in current liabilities

- Creditors, accrued and other liabilities

- Contract Liabilities

(218,568)

838,629

35,942)

(27,660)

09,585)

465,442

(203,638)

1,793,980

(121,721)

(573,332)

(1,304,095)

(822,703)

(1,231,509)

(444,543)

2,216,536

(196,069)

(244,717)

(1,034,651)

99,061

395,618

Finance costs paid

Gratuity paid

Taxes paid

Net cash (used in) / generated from operating activities

(252,244) (2

(36,478)

(80,051) (1

(587,341)

for the half year ended

June 30, 2025

June 30, 2024

(Rupees in '000)

Purchase of property and equipment

Proceeds from disposal of property and equipment

Additions in intangible assets - capital work in progress

Additions in Intellectual property

Long term investments made

Decrease / (Increase) in short term investments

Profit on bank deposit

Net change in long term advances and deposits

Net cash (used in) / generated from investing activities

(194,409)

(126,081)

(101,035)

(965)

401

6,683

(415,406)

(133,654)

10,408

7,290

(106,586)

(87,525)

10,901

2,935

(12,328)

(308,559)

Dividend paid

Issuance of shares

Premium on issuance of shares

Long term loan (repaid)/ received

Finances under mark up arrangements and other credit facilities

Repayment of diminishing mosharka

Repayment of lease liabilities

Net cash (used in) / generated from financing activities

(2,757)

25,486

(10,257)

711,992

(4,052)

17,336

737,747

(746,255)

9,956

114

14,601

(231,059)

(18,356)

(970,997)

Net (decrease) / increase in cash and cash equivalents

(265,000)

(814,114)

Cash and cash equivalents at the beginning of year

756,748

1,131,258

Cash and cash equivalents at the end of period

491,748

317,144

Chief Executive Officer

Bakhtiar Hameed Wain

Chief Financial Officer

Ahsan Khalil

Director

Tanveer Karamat

500,000 (2024: 500,000) ordinary shares of Rs. 10 each

5,000,000

5,000,000

Issued, subscribed and paid up share capital

4,175,714

4,150,228

Share premium

635,235

508,910

Revenue reserves - unappropriated profits

2,660,233

2,523,297

Employees' share compensation reserve

351,281

370,740

Surplus on revaluation of property

327 042

328 199

Shareholders' equity

8,149,505

7,881,374

Non Current Liabilities

Long term diminishing musharaka

78, 94

99,�73

859,988 758,086

5,655,646 5,563,873

9,764 5,505

1,806,140 2,016,392

169,313 119,369

59,724 53,748

989,238 532,486

148,884 149,239

40,808 84 548

Revenue from contracts with customers - net

1,215,569

1,355,416

792,470

822,900

Cost of revenue

(940,797)

(827,983)

(656,221)

(537,676)

Gross Profit

274,772

527,433

136,249

285,224

Administrative and selling expenses

(236,408)

(225,018)

(146,030)

(134,991)

Other operating expenses

(21,225)

(155,237)

(19,058)

(125,097)

Other operating income

230,258

14,426

185,682

13,695

(27,375)

(365,829)

20,594

(246,393)

Operating Profit

247,397

161,604

156,843

38,831

Finance cost

(118,551)

(80,917)

(83,709)

(46,451)

Profit/ (Loss) before Levy and Taxation

128,846

80,687

73,134

(7,620)

Final tax / levies

6,933

(30,407)

2,276

(12,499)

Profit/ (Loss) before Taxation

135,779

50,280

75,410

(20,119)

Taxation

Net Profit/ (Loss) for the Period

135,779

50,280

75,410

(20,119)

Earnings/ (Loss) per share - in Rupees

- Basic

0.32

0.13

0.18

(0.05)

- Diluted

0.32

0.13

0.18

(0.05)

Particulars

Issued, Subscribed and Paid up Share

capital

capital Reserve

Revenue Reserve

Employees' Share Compensation Reserve

Surplus on Revaluation of Property

Total

Share Premium

Unappropriated Profits

Balance as at June 30, 2024 (unaudited)

4 150 228

508 910

2 032 830

165 920

329 850

7 187 738

Balance as at December 31, 2024 (audited)

4,150,228

508,910

2,523,297

370,740

328,199

7,881,374

Net profit for the period

135,779

Other comprehensive income for the period

Total comprehensive income for the period

135,779

135,779

Transfer from revaluation surplus on account of incremental depreciation

1,157

(1,157)

Transaction with Owners

Issuance of shares against employee share option scheme

25,486

126,325

(126,325)

25,486

Employee share option reserve

106,866

106,866

Profit before Levy and Taxation

Adjustments for:

128,846

80,687

Depreciation on property and equipment

56,891

52,026

Employees' share option compensation

42,454

30,509

Trade debts written off

25

Allowance for expected credit losses - trade debts

17,975

59,339

Allowance for expected credit losses - contract assets

(6,148)

(11,192)

Allowance for expected credit losses - long term loans

61,565

Provision for expected credit losses - advances

(51,983)

Exchange loss/ (gain)

(138,087)

94,261

Gain on disposal of property and equipment

(6,574)

(8,425)

Finance cost

118,551

80,917

Profit on bank deposits

Markup income on intercompany current account

(106)

(3,877)

(2,500)

81,104

304,517

Operating profit before working capital changes

(Increase)/ decrease in current assets

209,950

385,204

Stock in trade

(16,773)

(37,758)

Trade debts

(272,258)

207,791

Contract assets

155,107

133,074

Advances, deposits, prepayments and other receivables

84,043

29,289

Increase/ (decrease) in current liabilities

Creditors, accrued and other liabilities

(270,260)

298,453

Contract liabilities

Increase in long term deposits and loans

(4,059)

10,430

Cash (Used in)/ Generated from Operations

(274,256)

641,279

Finance cost paid

(58,542)

(89,846)

Final taxes/ levies

(35,196)

(121,123)

Net Cash (Used in)/ Generated from Operating Activities

(158,044)

815,514

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment

(160,542)

(74,067)

Proceeds from disposal of property and equipment

8,323

10,408

Profit on bank deposits

106

2,500

Long term investment

(1,001)

Net Cash Used in Investing Activities

(152,113)

(62,160)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid

(355)

(746,025)

Issuance of shares

25,486

9,956

Short term borrowings - net

456,752

(39,637)

Premium on issuance of shares

114

Long term diminishing musharaka - net

(15,503)

(1,671)

Net Cash Generated from/ (Used in) Financing Activities

466,380

(777,263)

Net Increase / (Decrease) in Cash and Cash Equivalents

156,223

(23,909)

Cash and cash equivalents at the beginning of the period

19,351

84,586

Cash and Cash Equivalents at the End of the Period

175,574

60,677