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REGISTERED NUMBER: 03590257 (England and Wales)







Audited Financial Statements

for the Year Ended 31 December 2023

for

EasiYo Products (UK) Limited

EasiYo Products (UK) Limited (Registered number: 03590257)






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




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


EasiYo Products (UK) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTOR: Mr Z Li





REGISTERED OFFICE: 4th Floor
Capital House
85 King William Street
London
EC4N 7BL





REGISTERED NUMBER: 03590257 (England and Wales)





AUDITORS: Mabe Allen LLP
Chartered Accountants
Statutory Auditors
50 Osmaston Road
Derby
DE1 2HU

EasiYo Products (UK) Limited (Registered number: 03590257)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 5 105,320 284,307

CURRENT ASSETS
Stocks 6 1,116,726 1,177,225
Debtors 7 784,715 743,725
Cash at bank 236,278 299,911
2,137,719 2,220,861
CREDITORS
Amounts falling due within one year 8 2,954,883 2,289,514
NET CURRENT LIABILITIES (817,164 ) (68,653 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(711,844

)

215,654

PROVISIONS FOR LIABILITIES 16,222 49,826
NET (LIABILITIES)/ASSETS (728,066 ) 165,828

CAPITAL AND RESERVES
Called up share capital 9 1 1
Retained earnings 10 (728,067 ) 165,827
SHAREHOLDERS' FUNDS (728,066 ) 165,828

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 Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 20 September 2024 and were signed by:





Mr Z Li - Director


EasiYo Products (UK) Limited (Registered number: 03590257)

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

1. STATUTORY INFORMATION

EasiYo Products (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. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Going concern
The director considers that the current outlook presents a significant challenge in terms of whether future profits will be achieved. Given a loss in the current year of £927,137 (2022: £1,570,474), an expected post covid recovery in the previous and current year was impacted by the cost of living increases that impacted consumer confidence significantly. An increase in inputs, specifically an increase in milk prices, impacted profitability.

The director has concluded that the combination of these circumstances represents a material uncertainty that casts significant doubt upon the company's ability to continue as a going concern and that, therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business. Nevertheless, after making enquiries and considering the uncertainties described above, the director has a reasonable expectation that opportunities remain to continue to grow the business and return the business to a profitable position. The group have confirmed that they intend to provide financial support to allow the company to continue its operational activity and meet its financial obligations as and when they fall due for a period of at least twelve months from the date of the signing of these financial statements. For these reasons, the director continues to adopt the going concern basis of accounting in preparing the annual financial statements.

EasiYo Products (UK) Limited (Registered number: 03590257)

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

3. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The preparation of financial statements requires management to make judgments, estimates and assumption that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions of accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. The areas of significant estimates and judgments are as follows:

Stocks
The determination of the cost of stock is a significant area of estimation. The key area of estimation is:
-The determination of the net realisable value of stock.
-The level of provision for slow and obsolete stock.

Returns provision
Revenue recognition is based on the concept of recognising revenue for performance obligations only when they are satisfied and the control of goods are transferred. A right of return is not a separate performance obligation and the company is required to recognise revenue net of estimated returns. Significant assumptions have been made in regard to the estimation in respect of anticipated returns and the level of lost margin on those returns. A decision regarding the level of returns and level of lost margin gives rise to estimation uncertainty, especially in the context of changing economic and market forces and needs to be reviewed by management annually.

Depreciation of fixed assets
The company has recognised depreciation of fixed assets in its financial statements which require management to make judgements concerning the useful life of assets and residual values. The judgements are based on a combination of Group policies, historical experience and other reasonable factors.

Turnover
Revenue from the sales of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated cost and possible return of goods can be estimated reliably, the amount of revenue can be measured reliably and there is no continuing management involvement with the goods.

Transfers of risks and rewards vary depending on the individual terms of the contract of sale.

Buying Group Rebates
Consistent with standard industry practice, the company has agreements with customers whereby volume-related allowances, promotional and marketing allowances and various other fees and discounts are payable in connection with the sale of goods to those customers.

EasiYo Products (UK) Limited (Registered number: 03590257)

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

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 10% on cost and 5% on cost
Tools & Equipment - 50% on cost and 12.5% on cost
Office Equipment - 20% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Intangible fixed assets
Intangible fixed assets under the capitalisation threshold of £124,168 (equivalent 250,000 NZD at 31 December 2023) are expensed to the profit and loss account, as per the group capital assets policy. The threshold is applied at an individual asset level.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred 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.

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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

EasiYo Products (UK) Limited (Registered number: 03590257)

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

3. ACCOUNTING POLICIES - continued

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.

Short-term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Comprehensive Income in administrative expenses.

Interest bearing loans and borrowings
All interest-bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable to the bank (including interest). After initial recognition they are measured at amortised cost using the effective interest rate method, less impairment. The effective interest rate amortisation is included in finance revenue in the Statement of Comprehensive Income.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

As a result of the current years review by the director, fixed assets under the de-minimis threshold of £199 (equivalent 400 NZD at 31 December 2023) are impaired and recognised in the profit and loss account, as per the group capital assets policy. The threshold is applied at an individual asset level. The director considers the application of the group capital assets policy gives a fairer presentation of the results and of the financial position. The change results in an impairment for the current year of £104,189.

Provisions
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2022 - 17 ) .

EasiYo Products (UK) Limited (Registered number: 03590257)

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

5. TANGIBLE FIXED ASSETS
Plant and Tools & Office
machinery Equipment Equipment Totals
£    £    £    £   
COST
At 1 January 2023 352,888 535,392 103,768 992,048
Additions - 16,336 2,252 18,588
Disposals (137,226 ) (461,331 ) (70,547 ) (669,104 )
At 31 December 2023 215,662 90,397 35,473 341,532
DEPRECIATION
At 1 January 2023 236,140 384,920 86,681 707,741
Charge for year 21,457 61,874 9,310 92,641
Eliminated on disposal (137,226 ) (460,586 ) (70,547 ) (668,359 )
Impairments - 104,189 - 104,189
At 31 December 2023 120,371 90,397 25,444 236,212
NET BOOK VALUE
At 31 December 2023 95,291 - 10,029 105,320
At 31 December 2022 116,748 150,472 17,087 284,307

6. STOCKS
2023 2022
£    £   
Finished goods 1,116,726 1,177,225

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 306,536 381,421
Amounts owed by group undertakings 350,145 194,617
Other debtors 53,129 38,700
Prepayments and accrued income 74,905 128,987
784,715 743,725

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 343,060 408,116
Amounts owed to group undertakings 2,268,376 1,454,135
Social security and other taxes 21,756 15,554
Other creditors 6,970 10,010
Accruals and deferred income 314,721 401,699
2,954,883 2,289,514

EasiYo Products (UK) Limited (Registered number: 03590257)

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

9. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1 Ordinary £1 1 1

10. RESERVES
Retained
earnings
£   

At 1 January 2023 165,827
Deficit for the year (893,894 )
At 31 December 2023 (728,067 )

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

The Report of the Auditors was unqualified.

Neil Higgins FCCA (Senior Statutory Auditor)
for and on behalf of Mabe Allen LLP

12. OTHER FINANCIAL COMMITMENTS

The company has operating lease commitments at the year end amounting to £143,042 (2022: £236,568).

13. RELATED PARTY DISCLOSURES

As the company is a wholly owned subsidiary of Easiyo Products Limited the company has taken advantage of the exemption contained within FRS102.33.1A and has therefore not disclosed transactions or balances with entities which form part of the group.

14. PARENT AND ULTIMATE PARENT COMPANY

Immediate Parent Company
The company's parent company is Easiyo Products Limited, a company incorporated in New Zealand.

Ultimate Parent Company
The company's ultimate holding company is the Inner Mongolia Yili Industrial Group Company Limited, a company incorporated in China.

Copies of group accounts for the financial year can be obtained from Inner Mongolia Yili Industrial Group Company Limited's registered office at No. 1 Jinshan Avenue, Jinshan Development Zone, HUHEHAOTE 010110, China.