Transmission of Quarterly Report for the Period Ended 30 June 2025

https://www.avanceon.ae

Corporate Profile Company Information Interim Director's Report

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Standalone Financial Statements

Condensed Interim Statement of Financial Position. 09

Condensed Interim Statement of Profit or Loss 10

Condensed Interim Statement of Comprehensive Income 11

Condensed Interim Statement of Cash Flows 12

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 30

Condensed Interim Statement of Profit or Loss 31

Condensed Interim Statement of Comprehensive Income 32

Condensed Interim Statement of Cash Flows 33

Condensed Interim Statement of Changes in Equity 35

Notes to the Condensed Interim Financial Statements 36

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 & Renumeration 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.famco.com.pk

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 half year ended June 30, 2025.

For the half year ended Jun. 30, 2025 Jun. 30, 2024

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

EARNINGS PER SHARE (CONSOLIDATED) FOR THE HALF YEAR ENDED JUNE 30, 2025

The basic earnings per share after tax is Rs. 0.38 (2024: Rs. 0.01 - restated)

EARNINGS PER SHARE (STANDALONE) FOR THE HALF YEAR ENDED JUNE 30, 2025

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

We are pleased to report that the company's (Consolidated & Standalone) half year ending June 30, 2025 results with the shareholders.

AVANCEON LIMITED:

For the period reported half year 2025, the company's revenues stood at Rs. 1.215 billion, slipped by 10% compared to the corresponding period of 2024. Gross margin is reported at Rs. 274 million, also showed a downward trend primarily 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 5% to Rs. 236 million, this slight increase reflects control over fixed cost despite of inflationary pressure resulted a controlled pattern. The Company continues to exercise prudent financial discipline across its administrative functions to support overall operational efficiency.

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During the half year reported, the Company's other operating expenses/income benefited from a favorable exchange gain, driven by currency fluctuations. This resulted in bottom line operating profit increased to Rs. 247 million i.e., by 53% as compared to the corresponding reported half year 2024.

Finance cost rose to Rs. 118 million nearly by 47% which is mainly due to higher average borrowing cost. Despite the increase, the finance cost remains within manageable limits, and the Company continues to optimize its funding structure to minimize the impact on profitability.

Finally, after a lower tax incidence the net profit of the company closed at Rs. 135 million (2025: EPS Rs. 0.32) as compared to Rs. 50 million (2024: EPS Rs. 0.13) in the corresponding reported half year 2024 thereby an increase of 272%.

The company's order generation stand at USD 10M, with a healthy pipeline to meet our year-end target and revenues for the upcoming period are intact as per road to 100 plan and the company expecting growth in the comping periods. The Company remains focused on achieving its annual targets and continues to pursue opportunities actively across key markets. A healthy pipeline of orders is currently in process, with several at advanced stages of negotiation and execution. Management remains confident that these efforts will translate into a strong operational and financial close to the year, contributing positively to profitability and shareholder value.

AVANCEON GROUP:

Avanceon Limited consolidated financial results present below:

Revenues reported showed a marginal down by 0.3% to Rs. 5.24 billion from Rs. 5.26 billion as compared to the corresponding reported half year 2024. The top-line remains in tact and as per the corporate plan, reflects smooth business momentum with a short timing lag in the middle east region.

The cost of sales decreased by 0.8% to Rs. 3.62 billion, resulting a gross profit to a slight increase up to Rs.

1.62 billion versus Rs. 1.60 billion in the corresponding half year 2024. The major contributors are from Dubai and KSA however the Pakistan and Qatar regions showed a timing lag to catch up. The gross margin remained intact at Rs. 1.6 billion depicting 31%, which the management of the company foresee to improve at the year end.

Administrative and selling expenses surged slightly by 5.2% to Rs. 1.32 billion, The increase is in inline with the group corporate plan. This impact was reduced by a fall in other expenses, which fell to Rs. 40 million from Rs. 100 million (60%), and a significant rise in other income to Rs. 162 million from Rs. 23 million, attributed by currency exchange gain thus adding in the operating profit reported at Rs. 421 million as compared to Rs. 273 million of the corresponding half year 2024 up by 54%.

The finance costs rose by almost 20% to Rs. 255 million as against Rs. 212 million. Despite of this the group performance depicted a Profit before tax of Rs. 166 million as compared to Rs. 61 million in the corresponding half year 2024.

Lastly taxation resulted in a lower incidence at the group level thus adding in the profit after tax to the tune of Rs. 168 million (2025: EPS Rs 0.38) as compared to Rs. 28 million (2024: EPS Rs. 0.01) in the corresponding half year 2024. The earnings rebound are primarily driven by cost gross margin intact, reduced non-operat-ing charges, and upward other income.

The management of the company is confident to achieve its target for the year 2025, the current order generation stands at USD 32 million with a healthy pipeline to secure orders to meet the annual target

which will translate into a strong operational and financial close to the year, contributing positively to profitability and shareholder value.

COMMUNICATION

Communication with the shareholders is given a high priority. Financial reports are shared with shareholders within the time specified in the current Companies Ordinance. 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

August 29, 2025 Lahore, Pakistan

BAKHTIAR HAMEED WAIN

Chief Executive Officer

Tanveer Karamat

Director

Financial Statements 2025

Avanceon Limited Condensed Standalone Interim Financial Statements

for the half year ended June 30, 2025

7

Financial Statements 2025

8

June 30,

2025

June 30,

2024

Note (Un audited) (Un audited)

----Rupees in Thousands----

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat 9

Chief Executive Officer Chief Financial Officer Director

Bakhtiar Hameed Wain Ahsan Khalil Tanveer Karamat

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