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REGISTERED NUMBER: 09903581 (England and Wales)















Financial Statements for the Year Ended 31 December 2023

for

CITIC Construction (UK) Limited

CITIC Construction (UK) Limited (Registered number: 09903581)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Statement of Financial Position 2

Notes to the Financial Statements 3


CITIC Construction (UK) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Y Tao
B Piao
X Chen





REGISTERED OFFICE: 9th Floor
One Cananda Square
London
E14 5AB





REGISTERED NUMBER: 09903581 (England and Wales)





AUDITORS: Shinewing Wilson Accountancy Limited
Chartered Certified Accountants
and Statutory Auditors
9 St Clare Street
London
EC3N 1LQ

CITIC Construction (UK) Limited (Registered number: 09903581)

Statement of Financial Position
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 1,051 887

CURRENT ASSETS
Debtors: amounts falling due within one year 5 81,924 7,820,114
Cash at bank 57,844 103,320
139,768 7,923,434
CREDITORS
Amounts falling due within one year 6 6,005,672 8,579,109
NET CURRENT LIABILITIES (5,865,904 ) (655,675 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(5,864,853

)

(654,788

)

PROVISIONS FOR LIABILITIES 200 38
NET LIABILITIES (5,865,053 ) (654,826 )

CAPITAL AND RESERVES
Called up share capital 300,000 300,000
Retained earnings (6,165,053 ) (954,826 )
SHAREHOLDERS' FUNDS (5,865,053 ) (654,826 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





B Piao - Director


CITIC Construction (UK) Limited (Registered number: 09903581)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

CITIC Construction (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
During the company incurred a loss before tax of £5.2 million and had net current liabilities of £5.9 million as at the balance sheet date mainly due to the amount owed to the immediate parent company which no immediate repayment is instructed, furthermore the immediate parent company, CITICC International Investment Limited has confirmed that the financial support will remain available for at least 12 months from the date of signing these financial statements. Based on this, the directors have concluded that the company has adequate resources to continue in its operational existence. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Revenue
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of business. Turnover is shown net of value added tax, rebates and discounts.

(i) Turnover from construction contracts is recognized in accordance with the company's accounting policy on construction contracts.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognized by reference to the stage of completion of the contract activity at the reporting date, measured as the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer.

Where the outcome of the construction contract cannot be estimated reliably, contract revenue is recognized to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognized as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognized as an expense immediately.

(ii) Consultancy fees are recognised over the period of time during which the services are provided.

CITIC Construction (UK) Limited (Registered number: 09903581)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method:
Fixture and fitting - 25% on cost
Computer equipment- 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including trade and other payables, and loans from group undertakings, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest method.

Share capital
Financial instruments issued by the company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset.

The company's ordinary shares are classified as equity instruments.


CITIC Construction (UK) Limited (Registered number: 09903581)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 6 (2022 - 5 ) .

4. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 January 2023 732 3,655 4,387
Additions 486 114 600
At 31 December 2023 1,218 3,769 4,987
DEPRECIATION
At 1 January 2023 540 2,960 3,500
Charge for year 217 219 436
At 31 December 2023 757 3,179 3,936
NET BOOK VALUE
At 31 December 2023 461 590 1,051
At 31 December 2022 192 695 887

CITIC Construction (UK) Limited (Registered number: 09903581)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Amounts owed by group undertakings - 7,700,000
Other debtors 81,924 120,114
81,924 7,820,114

Amounts owed by group undertakings were unsecured, interest free and fully settled during the year.

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 5,514 68,941
Amounts owed to group undertakings 5,796,733 -
Other creditors 203,425 8,510,168
6,005,672 8,579,109

Amounts owed to group undertakings are unsecured and are repayable on demand with interest at 8% per annum. Interest of £202,012 (2022: Nil) was recognised in the profit or loss accounts during the year.

7. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Nijendra Dhungana (Senior Statutory Auditor)
for and on behalf of Shinewing Wilson Accountancy Limited

8. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

9. ULTIMATE CONTROLLING PARTY

The immediate parent company is CITICC International Investment Limited, a company registered in Hong Kong, by virtue of their shareholding.

The ultimate controlling party is the Ministry of Finance of the People's Republic of China.

The smallest and largest undertaking for which the company is a member and for which group financial statements are prepared is the company's intermediate parent company CITIC Limited, a company registered in Hong Kong and listed on the Hong Kong Stock Exchange. Copies of the consolidated financial statements can be obtained from their registered office, 32nd Floor, CITIC Tower, 1 Tim Mei Avenue, Central, Hong Kong or from their website: www.citic.com.