Transmission of Half Yearly Report for the Period Ended 31st Dec, 2025

CONTENTS

Corporate Profile 2

Directors' Review 3

Independent Auditor's Report on Review of Condensed Interim Financial Information to the Members 6

Condensed Interim Statement of Financial Position 7

Condensed Interim Statement of Profit or Loss 8

Condensed Interim Statement of Comprehensive Income 9

Condensed Interim Statement of Changes in Equity 10

Condensed Interim Cash Flows Statement 11

Notes to the Condensed Interim Financial Statements 12

CORPORATE PROFILE

BOARD OF DIRECTORS

Mr. Abbas Sayeed - Chairman Non-Executive

Mr. Abid Sayeed

Dr. Asadullah Sayeed Mrs. Muleika Sayeed Mr. Mohsin Safdar

Ms. Aisha Fariel Salahuddin Mr. Khurram Aftab

- Chief Executive

NIT

Executive

Non-Executive Non-Executive

Independent Director Independent Director Director

AUDIT COMMITTEE

Ms. Aisha Fariel Salahuddin - Chairperson

Mr. Abbas Sayeed - Member

Dr. Asadullah Sayeed - Member

Mr. Khurram Aftab - Member

HR AND REMUNERATION COMMITTEE

Mr. Mohsin Safdar - Chairman

Mr. Abbas Sayeed - Member

Mrs. Muleika Sayeed - Member

MANAGEMENT COMMITTEE

Mr. Abbas Sayeed - Chairman

Mr. Abid Sayeed - Chief Executive

Mr. Muhammad Yusuf - Chief Financial Officer

CHIEF FINANCIAL OFFICER

Mr. Muhammad Yusuf

COMPANY SECRETARY

Mr. Dawood Ahmed Mapara

AUDITORS

Faruq Ali & Co.

Chartered Accountants

SHARE REGISTRAR

F.D.Registrar Services (SMC-Pvt) Ltd

BANKERS

Bank Al Habib Limited Habib Bank Limited National Bank of Pakistan Meezan Bank Limited

REGISTERED OFFICE AND FACTORY

D-58, Estate Avenue, S.I.T.E, Karachi. Website : https://www.pakpaper.com

Directors' Review

On behalf of the Board of Directors, we have pleasure n presenting a review of t e performan e together with the

li ited audit re iew accounts of the Company for the period ended December 31, 2025.

Your Company continued to perform well during the second quarter of the year. Half year re ults show a 5.81% increase in turnover which led to an increase in GP by 20.66%, Operating profit increased by 23.92% and NP before

tax and after tax increased b 41.16% and 82.05%.

The main reason behind the e positive figures has been a robust increase in Sales of Pro Labe s which went up by 2 .19%. We h d an increase in both monetary and volumetric sales and more importantly we had a good product

mix with some higher-margi 's labels contributing to the bulk of sales which led to an overall increase in m rgins.

This increase in sales and margins is p rticularly noteworthy due to the increase in competition in the market. Mashallah, our quality and superior ser ice continues to stand out which our customer base recognizes and

a preciates. There has been a notable increase in con umer spending in the eco omy which has led to the rise in

s les of labels. We are hopeful to continue this performance for the remaining two quarters as l remains stable along with the PKR and there are no external shocks.

Exercise Books continue to struggle with a 48.2% decline due to very low market sales. This ha

ng as the ec

led to anoth

nomy

r loss

in the segmen as we are unable to cover our fixed osts and this has impacted the overall profitability of the

Company. While our institut onal customer base is intact as we continue to receive good orders from them a d this is what we are now focusing on. In order to capture m rket sales, we even reduc d our prices to try and capture a

s are of the market that we lost but so far it has not had a positive impact. We are hoping that this situation will

improve in the next 2 quarters. Overall, we are hopeful to erase the loss in this segment by th end of the year as the institutional sales start to kick in.

On another positive note, financial charge have declined by 21.21% due to the reduction in interest rates and better

c sh flow man gement which has reduced our OD considerably. In addition, tha ks to the stability of the PKR we

h ve been able to avoid Exc ange Losses. We are also continuing to reduce our energy costs by installing another

LED system o our Flexo machines which consumes half the energy of the traditional UV system. At this point

three of our five machines have LED systems in them.

Overall, we have been happ with the performance of the Company in the last six months and are hopeful that the

c rrent economic and forex stability remains so that we can come out with better results by the end of the yea . Rest

a sured that t e managem nt is aware of all challenges and are doing all possible to tackle them in the best

p ssible mann r so that we can come out with better results at the end of the year.

The Board would like to th nk all our staff, stakehol ers includin the financial institutions for their continued

s pport. In addition, directors also record their sin ere appreciation for the cooperation received from the

Regulators i.e. Securities & Exchange Co mission of Pakistan (SEC ) and Pakistan Stock Exchange Limited.

IN TERMS OF THE REQUIREMENT STATED UNDER CORPORATE GOVERNANCE REGULATION 2017

Composition of Board

There are seven Board members including two female and five male directors, whereas the com osition of the Board is

a follows;

Executive Director 01

Non-Executive Director 04

Independent Director 02

Committees of the Board

The board has ormed an Audit Committee. It comprises four members of whom all are non-exec tive directors including the Chairman of the committ e. who is an independent director.

Ms. Aisha Fariel Salahuddin Mr. Abbas Sayeed Dr. Asadullah Sayeed Mr. Khurram Aftab

Chairperson Member Member Member

The board has also formed an HR and Re uneration Committee. It comprises thre members, of whom all are non-

e ecutive directors and the Chairman of the committee is an indepen ent director.

Mr. Mohsin Safdar Mrs. Muleika S yeed Mr. Abbas Sayeed

Chairperson Member Member

REMUNERATION POLICY OF NON- EXECUTIVE &

INDEPENDENT DIRECT RS

1. Company Policy

   • The B ard of Directors of the C mpany lays great emphases on addin and practicing good Corporate

     Gover ance practices with a view to achieve transparency in its operations to boost stakeh lders' confid nce.

   • The objective of this policy is to ensure that the Non- Executive Directors and Independent Director s) are

     governed by the criteria that is based on their the Company.

     aluable cont ibution made by them towards the success of

     
     
     

2. Significant Features

   • The criteria of making payments to Non-Executive and Independent Directors is decided by the Board.

   • No ot er remuneration whatsoever in any form apart from a director's meeting fee is paid o the

     Non-Executive an Independent Directors.

   • Non-Executive Directors and Independent Director(s) are paid only meeting / sitting fee as decided by the Board of Directors f r attending t e Board or Committee meetings in accordance with the provisions of the article of the Company.

   • No reti ement benefits in any form for Non-Executive and Independent Directors of the C mpany.

   • The C mpany has no stock optio s plans and o payment by way of pension, incentives in any form etc. to

     its Non-Executives and Independ nt Directors.

   • The B ard has the flexibility to enhance the director's fee / sitting fees up to the maximum limit allowed in accordance with the provisions of the article of the Company and by the A t, 2017 and Rules thereunder.

   • Non-Executive Directors and Independent Directors are reimbursed su h sums whi h may be p id for attending Directors Training Pro ram, which is the mandatory requirement for the b ard of Directors of listed companies to get certification under Directors' Training Program (DTP) offered by the SECP.

3. Amendments

The B ard is responsible for the administration, interpretation, application and revie of this policy and

bring necessary changes to this olicy, if required at any stage in compli nce with the prevailing laws and

provisions of the Articles of Association of the ompany. On be alf of the Board of Director

ABBAS SAYEED ABID SAYEED

Chair an Chief Executive

Karachi: 23rdFebruary 2026

Pakistan Paper Products Limited Condensed Interim Financial Statements

for the Half Year ended December 31, 2025

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of Pakistan Paper Products Limited

Report on Review of Condensed Interim Financial Statements Introduction

We have reviewed the accompanying condensed interim statement of financial position of Pakistan Paper Products Limited as at 31 December 2025 and the related condensed interim statement of profit or loss, the condensed interim statement of comprehensive income, condensed interim statement of changes in equity, and condeiised interim statement of cash flows, and notes to the condensed interim financial statements for the half year then ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other matters

The figures of the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income for the quarter ended 31 December 2025 and 31 December 2024 have not been reviewed, as we are required to review only the cumulative figures for the half year ended 31 December 2025.

TERE ACC

a h

The engagement partner on the review resulting in this independent auditor's report is Fasih uz Zaman

RTERED ACCO

CHA UNTANTS

Karachi

Place:

Date: 24th Feb 2026

UDIN: RR202510179xpJj4lazM

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at December 31, 2025

Note

(Un-audited) (Audited)

December June

2025 2025

Abbas Sayeed

Chairman

Abid Sayeed

Muhammad Yusuf

Chief Executive

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

For the Half Year ended December 31, 2025 (Un-audited)

Half Year Ended Quarter Ended

Note

December 2025

December 2024

December 2025

December 2024

----------- (Rupees) ----------- ----------- (Rupees) -----------

Muhammad Yusuf

The annexed notes form an integral part of these condensed interim financial statements.

Abbas Sayeed

Chairman

Abid Sayeed

Chief Executive

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the Half Year ended December 31, 2025 (Un-audited)

Half Year Ended Quarter Ended

December 2025

December 2024

December 2025

December 2024

----------- (Rupees) ----------- ----------- (Rupees) -----------

Profit for the period 54,485,178 29,928,942 24,316,446 17,211,467

Other comprehensive income -- -- -- --

Total comprehensive income for the period 54,485,178 29,928,942 24,316,446 17,211,467

The annexed notes form an integral part of these condensed interim financial statements.

Abbas Sayeed

Chairman

Abid Sayeed

Muhammad Yusuf

Chief Executive

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For the Half Year ended December 31, 2025 (Un-audited)

----------------------------------------------------- (Rupees) -----------------------------------------------------

he annexed notes form an integral part of these condensed interim financial statements.

Abbas Sayeed

Abid Sayeed

Muhammad Yusuf

Chairman Chief Executive

CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the Half Year ended December 31, 2025 (Un-audited)

December December

CASH FLOWS FROM OPERATING ACTIVITIES

Note

2025 2024

--------------- (Rupees) ---------------

Muhammad Yusuf

The annexed notes form an integral part of these condensed interim financial statements.

Abbas Sayeed

Chairman

Abid Sayeed

Chief Executive

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

For the Half Year ended December 31, 2025 (Un-audited)

1. STATUS AND NATURE OF BUSINESS

   The Company was incorporated and domiciled in Pakistan as a private limited company in July 1962. It was converted into public company and listed on the Karachi Stock Exchange (now Pakistan Stock Exchange) in July 1964. The main business activity of the Company is the production and sale of exercise books, prolabels and sensitized papers.

   The geographical location and address of Company's business units including plant is as under:

   • The registered office of the Company along with its plant is situated at D-58, SITE, Estate Avenue,

   • The Company also have a sales office in Lahore, Pakistan.

2. BASIS OF PREPARATION

   1. These condensed interim financial statements of the Company for the half year ended December 2025 have been prepared in accordance with the accounting and reporting standards 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 (the Act); and

      • Provisions of and directives issued under the Act.

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

   2. These condensed interim financial statements do not include all the information and disclosures required in the annual audited financial statements, and should be read in conjunction with the Company's annual audited financial statements for the year ended June 2025.

   3. The figures included in the condensed interim statement of profit or loss for the quarters ended 31 Deember 2025 and 2024 and in the notes forming part thereof have not been reviewed by the auditors of the Company, as they have reviewed the accumulated figures for the half years ended 31

3. MATERIAL ACCOUNTING POLICY INFORMATION

   The accounting policies and methods of computation adopted in the preparation of these condensed interim financial statements are consistent with those applied in the preparation of the annual audited financial statements for the year ended June 2025.

4. PROPERTY, PLANT AND EQUIPMENT

(Un-audited) (Audited)

Note December June

2025 2025

--------------- (Rupees) ---------------

Operating fixed assets 4.1 1,358,590,349 1,371,735,655

(Un-audited) (Audited)

Note December June

2025 2025

--------------- (Rupees) ---------------

(Un-audited) (Audited)

December June

2025 2025

--------------- (Rupees) ---------------

There are no significant change in the facilities and securities of short term borrowings as reported in note 20 to the annual audited financial statements of the Company for the year ended June 2025.

1. CONTINGENCIES AND COMMITMENTS

   (Un-audited) (Audited)

   December June

   20252025

   Commitments under letter of credits 111,257,298 132,444,377

2. SALES - net

   Half Year Ended - (Un-audited)

   Quarter Ended - (Un-audited)

   December

   
   
   

   December 2025 December 2024

   2025

   December 2024

   ----------- (Rupees) ----------- ----------- (Rupees) -----------

   Gross sales 894,596,949 845,494,487 388,945,629 427,280,860

   Sales tax (122,248,784) (101,310,487) (55,736,054) (47,639,022)

   333,209,575

   379,641,838

   772,348,165 744,184,000

3. COST OF SALES

   Half Year Ended - (Un-audited)

   Quarter Ended - (Un-audited) December

   December 2025 December 2024

   2025

   December 2024

   ----------- (Rupees) ----------- ----------- (Rupees) -----------

   Raw material consumed	556,501,446		566,347,015		274,021,472		318,468,644
   Salaries, wages and other benefits	61,416,745		63,345,652		32,009,883		33,722,440
   Stores and spares consumed	25,423,258		19,372,606		12,867,431		11,692,486
   Depreciation	21,268,518		20,046,661		10,903,674		10,407,782
   Fuel and power	13,644,325		14,883,745		6,566,844		7,186,550
   Other manufacturing expenses	4,002,736		5,159,997		2,412,995		3,928,381
   Repairs and maintenance	7,694,959		7,036,236		3,229,995		3,073,418
   Insurance expenses	1,115,118		1,134,764		558,519		569,178
   Rent, rates and taxes	122,826		89,298		47,649		44,649
   Telephone charges	131,559		120,801		77,678		49,680
   Manufacturing cost	691,321,490		697,536,775		342,696,140		389,143,208
   Work in process - Opening	34,431,433		35,827,605		30,855,417		36,075,230
   Work in process - Closing	(47,252,641)		(44,792,940)		(47,252,641)		(44,792,940)
   	(12,821,208)		(8,965,335)		(16,397,224)		(8,717,710)
   Cost of goods manufactured	678,500,282		688,571,440		326,298,916		380,425,498
   Finished goods - Opening	23,490,112		23,437,154		14,624,875		28,492,275
   Finished goods - Closing	(73,173,015)		(86,778,140)		(73,173,015)		(86,778,140)
   	(49,682,903)		(63,340,986)		(58,548,140)		(58,285,865)
   	628,817,379		625,230,454		267,750,776		322,139,633

   P»kist»n P»perProducts Limited

4. CASH FLOWS FROM OPERATING ACTIVITIES

Condensed Interim Financial Statements for the Half Year ended December 31, 2025

(Un-audited) (Un-audited)

December December

2025 2024

(Rupees)

Profit before taxation

dcl/osfments for non-cash and other /fems:

73,087,392

51,774,791

17 TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS

The related parties and associated undertakings comprise local associated companies, staff retirement funds, directors and key management personnel. Transactions with related parties and associated undertakings, other than those which have been specifically disclosed elsewhere in these financial

(Un-auñted) (Un-audited)

Name of the relatea Relationship andpercentage Trans actions timing the December December of sharehol‹ rig peri°d 2025 2024

- (Rupees) -

M/s. Sayeed International A director ofthe Gorrpany is Purchases

Pakistan Paper Products Limited Employees'

the owner of the business.

Purchase ofFixed Asset

566,400

324,500

699,032

Provident Fund Trust Errployees Fund

Contribution

4,796,704

3,699,418

Pakistan Paper Products Limited

1. INFORMATION ABOUT BUSINESS SEGMENTS

   Exercise Books

   Prolabels

   Quarter Ended

   Others

   Half Year Ended				Quarter Ended Half Year Ended
   31 Dec 2025		31 Dec 2024		31 Dec 2025		31 Dec 2024	31 Dec 2025		31 Dec 2024
   ------------ (Rupees) ------------				------------ (Rupees) ------------			------------ (Rupees) ------------

   Half Year Ended Quarter Ended

   Total

   Half Year Ended Quarter Ended

   18.1 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2025 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024

   Condensed Interim Financial Statements

   for the Half Year ended December 31, 2025

   ------------ (Rupees) ------------

   ------------ (Rupees) ------------ ------------ (Rupees) ------------

   ------------ (Rupees) ------------ ------------ (Rupees) ------------

   Segment revenue 94,418,776 182,261,043 23,978,077 115,883,144 668,159,397 551,332,789 304,780,366 257,796,647 9,769,992 10,590,167 4,451,132 5,962,045 772,348,165 744,184,000 333,209,575 379,641,837

   Cost of sales (108,936,632) (178,369,708) (37,126,510) (111,335,345) (508,463,469) (436,638,731) (225,337,141) (205,775,760) (11,417,278) (10,222,014) (5,287,125) (5,028,528) (628,817,379) (625,230,453) (267,750,777) (322,139,633)

   Gross profit (14,517,856) 3,891,335 (13,148,433) 4,547,800 159,695,928 114,694,058 79,443,225 52,020,887 (1,647,286) 368,154 (835,993) 933,517 143,530,786 118,953,547 65,458,798 57,502,204

   Segment expenses

   822,834)

   183,625

   431,193)

   11,328

   150,815

   (67,464)

   377,645

   --

   --

   (1,581,887)

   (636,634)

   (1,227,267)

   --

   --

   (840,985)

   (328,708)

   (219,173)

   --

   --

   (9,412,716)

   (2,946,716)

   (6,742,866)

   (1,363,068)

   (519,299)

   (10,722,277)

   (3,340,292)

   (6,363,586)

   (1,724,851)

   (745,616)

   (15,794,290)

   (4,966,404)

   (13,058,428)

   (2,812,312)

   (1,068,678)

   (18,804,838)

   (5,739,867)

   (11,281,235)

   (3,923,703)

   (1,462,962)

   (16,115,871)

   (5,944,014)

   (9,686,693)

   (1,363,068)

   (522,809)

Administrative expenses

17

Selling and distribution expenses

Finance cost

Sindh Workers' Profit Participation Fund

Sindh Workers' Welfare Fund

(28,337,605) (27,026,731) (11,404,998) (11,565,041) (41,212,606) (37,700,112) (22,896,623) (20,984,664) (1,388,866) (3,445,789) 460,996 (1,059,074) (70,939,077) (68,172,632) (33,840,624) (33,632,455)

Operating profit (42,855,461) (23,135,396) (24,553,431) (7,017,242) 118,483,323 76,993,946 56,546,602 31,036,223 (3,036,153) (3,077,635) (374,997) 125,557) 72,591,709 50,780,914 31,618,174 23,869,748

Other income 495,682 993,879 408,374 985,482

Profit before taxation 73,087,391 51,774,792 32,026,548 24,855,228

Taxation - Net (18,602,214) (21,845,851) (7,710,102) (7,643,762)

Profit after taxation

Pakistan Paper Products Limited

Condensed Interim Financial Statements

for the Half Year ended December 31, 2025

1. CORRESPONDING FIGURES

   In order to comply with the requirements of International Accounting Standard 34 "Interim Financial Reporting", balance sheet has been compared with the balances of annual financial statements, whereas statement of profit or loss, statement of comprehensive income, cash flow statement and statement of changes in equity have been compared with the balances of comparable period of immediately preceding

2. DATE OF AUTHORISATION FOR ISSUE

   These condensed interim financial statements have been authorised for issue on by the Board of Directors of the Company.

   23rd February 2026

3. GENERAL

These condensed interim financial statements is presented in rupees and figures have been rounded off to nearest rupee.

Abbas Sayeed

Chairman

Abid Sayeed

Muhammad Yusuf

Chief Executive

Promoting Education,

Development, & Quality Products.

P Pro Labels - Self Adhesive labels in roll form.

& Exercise Books

& Photocopy Paper

& Plotter Paper

P Ammonia Sensitised Paper

Head Office & Factory:

Pokiston Paper Products Ltd.,

D / 5 8, S . I . T. E . E s I a I e A v e n u e , K a r a c h i - 7 5 7 0 0