LUYE PHARMA LTD

Company Registration Number:
11567378 (England and Wales)

Unaudited statutory accounts for the year ended 31 December 2021

Period of accounts

Start date: 1 January 2021

End date: 31 December 2021

LUYE PHARMA LTD

Contents of the Financial Statements

for the Period Ended 31 December 2021

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

LUYE PHARMA LTD

Directors' report period ended 31 December 2021

The directors present their report with the financial statements of the company for the period ended 31 December 2021

Principal activities of the company

Principal activitiesThe principal activities of the Company are trading and sales of pharmaceutical drugs during the year. There were no significant changes in the nature of the Company’s principal activities during the year.

Additional information

Results and Dividends:The profit for the year after taxation amounted to £47,826 (2020: £31,377). The directors do not recommend the payment of any dividend in respect of the year. Shares issued:There were no movements in the Company’s share capital during the year.Statement of directors’ responsibilities:The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 ‘Reduced Disclosure Framework’, and applicable law).Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:select suitable accounting policies and then apply them consistently;state whether applicable United Kingdom Accounting Standards, comprising FRS 101 have been followed, subject to any material departures disclosed and explained in the financial statements;make judgements and accounting estimates that are reasonable and prudent; andprepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.Directors’ interests:At no time during the year was the Company or any of its holding companies, subsidiaries or fellow subsidiaries a party to any arrangement to enable the Company’s director to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.Directors’ interests in transactions, arrangements or contracts:No director had a material interest, either directly or indirectly, in any transactions, arrangements or contracts of significance to the business of the Company to which any of the Company’s holding companies, subsidiaries or fellow subsidiaries was a party during the year.Disclosure of information to auditors:The directors of the company who held office at the date of approval of this directors’ report confirm that:so far as they are aware, there is no relevant audit information needed by the company’s auditors in connection with preparing their report of which the company's auditors are unaware; andthey have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.Going concern:The company meets its day-to-day working capital requirements through its cash reserves. The current economic conditions continue to create uncertainty, particularly over the level of demand for the company’s products. The company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current cash reserves. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of twelve months from the date of approval of these financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.With the completion of transfer Marketing Authorization Holder for Gulf Cooperation Council (GCC) market in 2021, the Directors expect sustainable revenue to grow during 2022, with long term nature of the distributors’ contracts.The Company is satisfied it can meet its day to day working capital requirements through its cash generation and has no debt or banking covenants in place. In the unlikely event that the Company required it, it could request working capital support from its parent company.The Directors have considered the consequences of COVID19, Ukraine Russia War and other trading events and conditions it can predict now, and in the future, and it has determined that these factors do not create a material uncertainty that cast significant doubt upon the Company’s ability to continue as a going concern.The Directors therefore have a reasonable expectation that the Company has adequate resources to continue in operation for a period of twelve months from the date of approval of these financial statements and so it considers it appropriate for the 2021 financial account to be prepared on a going concern basis.Independent auditors:The auditors, Ernst & Young, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.The Company is entitled to exemption from preparing a Strategic Report and preparing the Directors Report in accordance with the small companies’ regime.



Directors

The directors shown below have held office during the whole of the period from
1 January 2021 to 31 December 2021

Delie Bruno
JIANG Hua
ZHANG Yehong


Secretary Mukundan Bharathan

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
26 August 2022

And signed on behalf of the board by:
Name: Delie Bruno
Status: Director

LUYE PHARMA LTD

Profit And Loss Account

for the Period Ended 31 December 2021

2021 2020


£

£
Turnover: 2,732,618 1,067,003
Cost of sales: ( 324,708 ) ( 158,423 )
Gross profit(or loss): 2,407,910 908,580
Distribution costs: ( 21,035 ) 0
Administrative expenses: ( 2,325,639 ) ( 881,905 )
Other operating income: 0 13,061
Operating profit(or loss): 61,236 39,736
Interest receivable and similar income: 0 0
Interest payable and similar charges: ( 2,191 ) ( 999 )
Profit(or loss) before tax: 59,045 38,737
Tax: ( 11,219 ) ( 7,360 )
Profit(or loss) for the financial year: 47,826 31,377

LUYE PHARMA LTD

Balance sheet

As at 31 December 2021

Notes 2021 2020


£

£
Called up share capital not paid: 0 0
Fixed assets
Intangible assets: 3 6,463 10,420
Tangible assets:   0 0
Investments:   0 0
Total fixed assets: 6,463 10,420
Current assets
Stocks: 4 272,963 238,179
Debtors: 5 733,205 738,892
Cash at bank and in hand: 1,431,520 388,679
Investments:   0 0
Total current assets: 2,437,688 1,365,750
Prepayments and accrued income: 0 0
Creditors: amounts falling due within one year: 6 ( 2,364,947 ) ( 1,340,761 )
Net current assets (liabilities): 72,741 24,989
Total assets less current liabilities: 79,204 35,409
Creditors: amounts falling due after more than one year: 7 0 ( 4,031 )
Provision for liabilities: 0 0
Accruals and deferred income: 0 0
Total net assets (liabilities): 79,204 31,378
Capital and reserves
Called up share capital: 1 1
Profit and loss account: 79,203 31,377
Total Shareholders' funds: 79,204 31,378

The notes form part of these financial statements

LUYE PHARMA LTD

Balance sheet statements

For the year ending 31 December 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 26 August 2022
and signed on behalf of the board by:

Name: Delie Bruno
Status: Director

The notes form part of these financial statements

LUYE PHARMA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2021

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 101

    Turnover policy

    The Company receives revenue for supply of goods to external customer against order received. The majority of contracts that the Company enters into relate to sales order containing single performance obligations for the delivery pharmaceutical products. Sales of pharmaceutical product is recognized when control of the goods is passed to the customer. The point at which control passes is determined by each customer arrangement, but generally occurs on delivery to the customer. Sales of pharmaceutical product represent net invoice value included fixed and variable consideration. Variable consideration arises on the sales of goods as a result of accrual for estimated future sales rebate. Revenue is not recognized in full until it is highly probable that a significant reversal in the amount of cumulative revenue recognize will not occur. The methodology and assumptions used to estimate rebate and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, and projected market conditions. Once the uncertainty associated with rebate is resolved, revenue is adjusted accordingly. Value added tax and other sales taxes are excluded from revenue.

    Intangible fixed assets amortisation policy

    The Company leases corporate office space. Rental contracts are typically made for 60 days calculated from the date of lease and thereafter from month to month on a rolling basis. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:fixed payments (including in-substance fixed payments), less any lease incentives receivable;variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date;payments of penalties for terminating the lease, if the lease term reflects the company exercising that option.amounts expected to be payable by the company under residual value guarantees; and the exercise price of a purchase option if the company is reasonably certain to exercise that optionLease payments to be made under reasonably certain extension options are also included in the measurement of the liability.The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the company, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. The company is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.Right-of-use assets are measured at cost comprising the following:the amount of the initial measurement of lease liability;any lease payments made at or before the commencement date less any lease incentives received; andany initial direct costs.To determine the incremental borrowing rate, the company:where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received;uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the company, which does not have recent third-party financing, andmakes adjustments specific to the lease, e.g. term, currency and security.If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the company uses that rate as a starting point to determine the incremental borrowing rate.The company is exposed to potential future increases in variable lease payments based on a rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on a rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the company is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.

    Other accounting policies

    Impairment of receivable:For trade receivables, the company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables, see note 2.5.Inventories:Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first in, first out (FIFO) method. Costs comprise purchase costs, cost of conversion and other costs incurred in bringing the inventory to its present location and condition and are determined on the weighted average basis. Net realisable value is the estimated selling price in the ordinary course of business, less any estimated cost to be incurred to completion and disposal.Trade and other receivables:Trade and other receivables are amounts due from customers for pharmaceutical drugs in the ordinary course of business.Trade receivables are recognised initially at the amount of consideration that is unconditional, when they are recognised at fair value. The company holds the trade receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.The company applies the IFRS 9 simplified approach to measuring expected credit losses (ECL) which uses a lifetime expected loss allowance for trade receivables. To measure the ECL, trade receivables is grouped based on shared credit risk characteristics and the days past due. The company has therefore concluded that the expected loss rate for trade receivable are a reasonable approximation of the loss rate.Cash and cash equivalents:Cash and cash equivalents comprise cash at bank. Share capital:Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.Trade Payables and other payables :Trade Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.Trade Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.Trade Payables and other payable are presented as amounts falling due within one year unless payment is not due within 12 months after the reporting period.Current tax:The tax expense for the period comprises current tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.Provisions:A provision is recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations is small.Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as finance cost.

LUYE PHARMA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2021

  • 2. Employees

    2021 2020
    Average number of employees during the period 0 0

LUYE PHARMA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2021

3. Intangible assets

Goodwill Other Total
Cost £ £ £
At 1 January 2021 0 10,420 10,420
Additions 0 2,458 2,458
Disposals 0 0 0
Revaluations 0 0 0
Transfers 0 0 0
At 31 December 2021 0 12,878 12,878
Amortisation
At 1 January 2021 0 0 0
Charge for year 0 6,415 6,415
On disposals 0 0 0
Other adjustments 0 0 0
At 31 December 2021 0 6,415 6,415
Net book value
At 31 December 2021 0 6,463 6,463
At 31 December 2020 0 10,420 10,420

LUYE PHARMA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2021

4. Stocks

2021 2020
£ £
Stocks 272,963 238,179
Payments on account 0 0
Total 272,963 238,179

LUYE PHARMA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2021

5. Debtors

2021 2020
£ £
Trade debtors 673,100 697,299
Prepayments and accrued income 24,960 6,550
Other debtors 35,145 35,043
Total 733,205 738,892

LUYE PHARMA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2021

6. Creditors: amounts falling due within one year note

2021 2020
£ £
Bank loans and overdrafts 0 0
Amounts due under finance leases and hire purchase contracts 6,649 6,659
Trade creditors 1,806,681 761,592
Taxation and social security 0 0
Accruals and deferred income 263,369 292,794
Other creditors 288,248 279,716
Total 2,364,947 1,340,761

LUYE PHARMA LTD

Notes to the Financial Statements

for the Period Ended 31 December 2021

7. Creditors: amounts falling due after more than one year note

2021 2020
£ £
Bank loans and overdrafts 0 0
Amounts due under finance leases and hire purchase contracts 0 4,031
Other creditors 0 0
Total 0 4,031