IRIS Accounts Production v24.3.2.46 02487941 Board of Directors 1.6.23 31.5.24 31.5.24 the wholesale and retail of food distribution. true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh024879412023-05-31024879412024-05-31024879412023-06-012024-05-31024879412022-05-31024879412022-06-012023-05-31024879412023-05-3102487941ns15:EnglandWales2023-06-012024-05-3102487941ns14:PoundSterling2023-06-012024-05-3102487941ns10:Director12023-06-012024-05-3102487941ns10:PrivateLimitedCompanyLtd2023-06-012024-05-3102487941ns10:FRS1022023-06-012024-05-3102487941ns10:Audited2023-06-012024-05-3102487941ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-06-012024-05-3102487941ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-06-012024-05-3102487941ns10:FullAccounts2023-06-012024-05-3102487941ns10:OrdinaryShareClass12023-06-012024-05-3102487941ns10:Director22023-06-012024-05-3102487941ns10:CompanySecretary12023-06-012024-05-3102487941ns10:RegisteredOffice2023-06-012024-05-3102487941ns5:RetainedEarningsAccumulatedLosses2023-05-3102487941ns5:RetainedEarningsAccumulatedLosses2022-05-3102487941ns5:RetainedEarningsAccumulatedLosses2023-06-012024-05-3102487941ns5:RetainedEarningsAccumulatedLosses2022-06-012023-05-3102487941ns5:RetainedEarningsAccumulatedLosses2024-05-3102487941ns5:RetainedEarningsAccumulatedLosses2023-05-3102487941ns5:CurrentFinancialInstruments2024-05-3102487941ns5:CurrentFinancialInstruments2023-05-3102487941ns5:Non-currentFinancialInstruments2024-05-3102487941ns5:Non-currentFinancialInstruments2023-05-3102487941ns5:ShareCapital2024-05-3102487941ns5:ShareCapital2023-05-3102487941ns5:PlantMachinery2023-06-012024-05-3102487941ns5:FurnitureFittings2023-06-012024-05-3102487941ns5:MotorVehicles2023-06-012024-05-3102487941ns15:UnitedKingdom2023-06-012024-05-3102487941ns15:UnitedKingdom2022-06-012023-05-3102487941ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2023-06-012024-05-3102487941ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-06-012023-05-3102487941ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-06-012024-05-3102487941ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-06-012023-05-3102487941ns5:OwnedAssets2023-06-012024-05-3102487941ns5:OwnedAssets2022-06-012023-05-3102487941ns5:LeasedAssets2023-06-012024-05-3102487941ns5:LeasedAssets2022-06-012023-05-3102487941112023-06-012024-05-3102487941112022-06-012023-05-3102487941ns5:HirePurchaseContracts2023-06-012024-05-3102487941ns5:HirePurchaseContracts2022-06-012023-05-3102487941ns10:OrdinaryShareClass12022-06-012023-05-3102487941ns5:PlantMachinery2023-05-3102487941ns5:FurnitureFittings2023-05-3102487941ns5:MotorVehicles2023-05-3102487941ns5:PlantMachinery2024-05-3102487941ns5:FurnitureFittings2024-05-3102487941ns5:MotorVehicles2024-05-3102487941ns5:PlantMachinery2023-05-3102487941ns5:FurnitureFittings2023-05-3102487941ns5:MotorVehicles2023-05-3102487941ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-06-012024-05-3102487941ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2024-05-3102487941ns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-05-3102487941ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3102487941ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2024-05-3102487941ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-05-3102487941ns5:HirePurchaseContractsns5:WithinOneYear2024-05-3102487941ns5:HirePurchaseContractsns5:WithinOneYear2023-05-3102487941ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-05-3102487941ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-05-3102487941ns5:HirePurchaseContracts2024-05-3102487941ns5:HirePurchaseContracts2023-05-3102487941ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-05-3102487941ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3102487941ns5:WithinOneYear2024-05-3102487941ns5:WithinOneYear2023-05-3102487941ns5:BetweenOneFiveYears2024-05-3102487941ns5:BetweenOneFiveYears2023-05-3102487941ns5:AllPeriods2024-05-3102487941ns5:AllPeriods2023-05-3102487941ns5:Secured2024-05-3102487941ns5:Secured2023-05-3102487941ns5:DeferredTaxation2023-05-3102487941ns5:DeferredTaxation2023-06-012024-05-3102487941ns5:DeferredTaxation2024-05-3102487941ns10:OrdinaryShareClass12024-05-31024879411ns10:Director12023-05-31024879411ns10:Director12022-05-31024879411ns10:Director12023-06-012024-05-31024879411ns10:Director12022-06-012023-05-31024879411ns10:Director12024-05-31024879411ns10:Director12023-05-3102487941ns10:Director222023-05-3102487941ns10:Director222022-05-3102487941ns10:Director222023-06-012024-05-3102487941ns10:Director222022-06-012023-05-3102487941ns10:Director222024-05-3102487941ns10:Director222023-05-31
REGISTERED NUMBER: 02487941 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 May 2024

for

Chi Yip Group Limited

Chi Yip Group Limited (Registered number: 02487941)






Contents of the Financial Statements
for the Year Ended 31 May 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Income and Retained Earnings 9

Balance Sheet 10

Notes to the Financial Statements 11


Chi Yip Group Limited

Company Information
for the Year Ended 31 May 2024







DIRECTORS: J Yip
Mrs D Fong Ching Yip





SECRETARY: Mrs D Fong Ching Yip





REGISTERED OFFICE: Treasure House
Greenside Way
Greengate Industrial Park
Middleton
Greater Manchester
M24 1SW





REGISTERED NUMBER: 02487941 (England and Wales)





AUDITORS: Lucas Reis Ltd
Chartered Accountants
Lansdowne House
85 Buxton Road
Stockport
Cheshire
SK2 6LR

Chi Yip Group Limited (Registered number: 02487941)

Strategic Report
for the Year Ended 31 May 2024

The directors present their strategic report for the year ended 31 May 2024.

REVIEW OF BUSINESS
The results for the year and financial position of the company are shown in the annexed financial statements.

The principal activity of the company in the year under review was that of the wholesale and retail of food distribution.

During the year the turnover increased from £22.2m to £23.3m and the gross profit margin increased from 15.5% to 16.2%. High purchase costs of goods continue to put pressure on margins, but a continued focus on pricing policy has resulted in improved margins throughout the year and margins remain above 2020 levels.

The company made an operating profit of £761,265 (2023 £609,520). This is mainly due to the increase in gross profit percentage. The performance of both the wholesale and cash and carry businesses has been pleasing this year, given the cost of living and inflationary pressures being experienced throughout the year in the UK economy.

The directors consider the main risks for the following year to be the continuing recessionary and inflationary market pressures in the UK economy and, in particular, in the retail trade, together with increased competition from multiple retail and wholesale chains.

The directors remain satisfied that the company has sufficient resources, both financial and non-financial to exploit growth potential as it arises and deal with any uncertainty in the market.

ON BEHALF OF THE BOARD:





Mrs D Fong Ching Yip - Director


13 February 2025

Chi Yip Group Limited (Registered number: 02487941)

Report of the Directors
for the Year Ended 31 May 2024

The directors present their report with the financial statements of the company for the year ended 31 May 2024.

DIVIDENDS
Interim dividends per share were paid as follows:
£0.12 - 30 June 2023
£0.12 - 31 July 2023
£0.12 - 31 August 2023
£0.12 - 30 September 2023
£0.12 - 31 October 2023
£0.12 - 30 November 2023
£0.12 - 31 December 2023
£0.12 - 31 January 2024
£0.12 - 29 February 2024
£0.12 - 31 March 2024
£0.12 - 30 April 2024
£0.12 - 31 May 2024
£1.44

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 May 2024 will be £ 36,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report.

J Yip
Mrs D Fong Ching Yip

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the 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 these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


Chi Yip Group Limited (Registered number: 02487941)

Report of the Directors
for the Year Ended 31 May 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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. They 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Lucas Reis Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mrs D Fong Ching Yip - Director


13 February 2025

Report of the Independent Auditors to the Members of
Chi Yip Group Limited

Opinion
We have audited the financial statements of Chi Yip Group Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Report of the Independent Auditors to the Members of
Chi Yip Group Limited


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Chi Yip Group Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company's industry and its control environment, and reviewed the company's policies and procedures relating to fraud and compliance with laws and regulations and enquired with management. We obtained an understanding of the legal and regulatory frameworks that the company operates in and identified key laws and regulations.

As a result of performing the above, we identified the greatest potential for fraud would result from the loss of stock or cash sales income and instances of non-compliance with health and safety regulations. Our procedures to address this are described below.

We obtained an understanding of the relevant controls the company has established for stock and cash, held discussions with management, undertook analytical procedures and performed substantive testing on sales income.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Chi Yip Group Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Sarah Reis FCA, ATII (Senior Statutory Auditor)
for and on behalf of Lucas Reis Ltd
Chartered Accountants
Lansdowne House
85 Buxton Road
Stockport
Cheshire
SK2 6LR

13 February 2025

Chi Yip Group Limited (Registered number: 02487941)

Statement of Income and Retained Earnings
for the Year Ended 31 May 2024

31.5.24 31.5.23
Notes £    £    £    £   

TURNOVER 3 23,273,397 22,211,814

Cost of sales 19,491,747 18,769,293
GROSS PROFIT 3,781,650 3,442,521

Distribution costs 10,411 27,323
Administrative expenses 3,170,699 2,865,678
3,181,110 2,893,001
600,540 549,520

Other operating income 160,725 60,000
OPERATING PROFIT 5 761,265 609,520


Interest payable and similar expenses 6 54,722 36,604
PROFIT BEFORE TAXATION 706,543 572,916

Tax on profit 7 219,247 83,914
PROFIT FOR THE FINANCIAL
YEAR

487,296

489,002

Retained earnings at beginning of year 2,724,731 2,271,729

Dividends 8 (36,000 ) (36,000 )

RETAINED EARNINGS AT END OF
YEAR

3,176,027

2,724,731

Chi Yip Group Limited (Registered number: 02487941)

Balance Sheet
31 May 2024

31.5.24 31.5.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 830,648 334,987

CURRENT ASSETS
Stocks 10 2,330,434 2,385,164
Debtors 11 5,285,066 4,719,882
Cash at bank and in hand 8,139 4,535
7,623,639 7,109,581
CREDITORS
Amounts falling due within one year 12 4,688,611 4,552,768
NET CURRENT ASSETS 2,935,028 2,556,813
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,765,676

2,891,800

CREDITORS
Amounts falling due after more than one
year

13

(356,997

)

(83,333

)

PROVISIONS FOR LIABILITIES 17 (207,652 ) (58,736 )
NET ASSETS 3,201,027 2,749,731

CAPITAL AND RESERVES
Called up share capital 18 25,000 25,000
Retained earnings 19 3,176,027 2,724,731
SHAREHOLDERS' FUNDS 3,201,027 2,749,731

The financial statements were approved by the Board of Directors and authorised for issue on 13 February 2025 and were signed on its behalf by:





Mrs D Fong Ching Yip - Director


Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements
for the Year Ended 31 May 2024

1. STATUTORY INFORMATION

Chi Yip Group 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.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
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.

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Key sources of estimation and uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below.

Assessing indicators of impairment
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.

Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance

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


Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued
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
Assets held under finance leases and hire purchase contracts are capitalised and depreciated over their useful economic lives. The finance charges are allocated over the primary period of the lease in proportion to the capital element outstanding.

Amounts payable under operating leases are charged to the profit and loss account in the period in which they are incurred.

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.

Grants received
Grants received relating to tangible fixed assets are treated as a deferred credit and are released to the profit and loss account in equal instalments over the estimated useful economic life of the assets concerned. Other grants are credited to the profit and loss account as the related expenditure is incurred.

Going concern
The company's financial statements for the year ended 31 May 2024 have been prepared on a going concern basis as, after making appropriate enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.5.24 31.5.23
£    £   
United Kingdom 23,273,397 22,211,814
23,273,397 22,211,814

4. EMPLOYEES AND DIRECTORS
31.5.24 31.5.23
£    £   
Wages and salaries 1,997,876 1,945,410
Social security costs 176,108 168,092
Other pension costs 58,366 56,169
2,232,350 2,169,671

The average number of employees during the year was as follows:
31.5.24 31.5.23

Selling and administrative 75 72

31.5.24 31.5.23
£    £   
Directors' remuneration 87,600 85,600

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.5.24 31.5.23
£    £   
Hire of plant and machinery 26,274 29,209
Depreciation - owned assets 99,236 69,002
Depreciation - assets on hire purchase contracts 31,635 -
Profit on disposal of fixed assets (5,000 ) -
Auditors' remuneration 27,955 25,834
Deferred Grant Released - (53,593 )

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.5.24 31.5.23
£    £   
Bank interest 35,943 9,065
Bank loan interest 17,576 27,539
Hire purchase 1,203 -
54,722 36,604

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.5.24 31.5.23
£    £   
Current tax:
UK corporation tax 70,331 64,038

Deferred tax 148,916 19,876
Tax on profit 219,247 83,914

8. DIVIDENDS
31.5.24 31.5.23
£    £   
Ordinary shares of £1 each
Interim 36,000 36,000

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 June 2023 789,829 1,086,447 291,162 2,167,438
Additions - - 626,532 626,532
At 31 May 2024 789,829 1,086,447 917,694 2,793,970
DEPRECIATION
At 1 June 2023 751,363 1,025,911 55,177 1,832,451
Charge for year 7,693 12,107 111,071 130,871
At 31 May 2024 759,056 1,038,018 166,248 1,963,322
NET BOOK VALUE
At 31 May 2024 30,773 48,429 751,446 830,648
At 31 May 2023 38,466 60,536 235,985 334,987

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
Additions 506,162
At 31 May 2024 506,162
DEPRECIATION
Charge for year 31,635
At 31 May 2024 31,635
NET BOOK VALUE
At 31 May 2024 474,527

10. STOCKS
31.5.24 31.5.23
£    £   
Finished goods 2,330,434 2,385,164

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

11. DEBTORS
31.5.24 31.5.23
£    £   
Amounts falling due within one year:
Trade debtors 1,177,704 634,685
Other debtors - 5,475
VAT 68,493 -
Prepayments and accrued income 97,687 145,068
1,343,884 785,228

Amounts falling due after more than one year:
Amounts owed by group undertakings 1,896,782 1,937,854
Other debtors 2,044,400 1,996,800
3,941,182 3,934,654

Aggregate amounts 5,285,066 4,719,882

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.24 31.5.23
£    £   
Bank loans and overdrafts (see note 14) 1,051,909 647,258
Hire purchase contracts (see note 15) 91,152 -
Trade creditors 1,975,424 2,187,987
Amounts owed to group undertakings 827,174 775,174
Tax 70,331 64,038
Social security and other taxes 43,282 89,942
VAT - 10,745
Other creditors 243,913 257,938
Directors' current accounts 308,250 457,952
Accruals and deferred income 77,176 61,734
4,688,611 4,552,768

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
31.5.24 31.5.23
£    £   
Bank loans (see note 14) - 83,333
Hire purchase contracts (see note 15) 356,997 -
356,997 83,333

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

14. LOANS

An analysis of the maturity of loans is given below:

31.5.24 31.5.23
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 968,576 447,258
Bank loans - less than 1 yr 83,333 200,000
1,051,909 647,258

Amounts falling due between one and two years:
Bank loans - 1-2 years - 83,333

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.5.24 31.5.23
£    £   
Gross obligations repayable:
Within one year 105,588 -
Between one and five years 413,553 -
519,141 -

Finance charges repayable:
Within one year 14,436 -
Between one and five years 56,556 -
70,992 -

Net obligations repayable:
Within one year 91,152 -
Between one and five years 356,997 -
448,149 -

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

15. LEASING AGREEMENTS - continued

Non-cancellable operating leases
31.5.24 31.5.23
£    £   
Within one year 30,472 29,387
Between one and five years 62,756 48,531
93,228 77,918

16. SECURED DEBTS

The following secured debts are included within creditors:

31.5.24 31.5.23
£    £   
Bank overdrafts 968,576 447,258
Bank loans 83,333 283,333
1,051,909 730,591

The bank overdraft and loan is secured by a mortgage debenture and a legal mortgage over the land and buildings owned by the immediate parent undertaking.

Bank loans and overdrafts are secured by fixed and floating charges over the company's assets.

17. PROVISIONS FOR LIABILITIES
31.5.24 31.5.23
£    £   
Deferred tax 207,652 58,736

Deferred
tax
£   
Balance at 1 June 2023 58,736
Provided during year 148,916
Balance at 31 May 2024 207,652

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.5.24 31.5.23
value: £    £   
25,000 Ordinary £1 25,000 25,000

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

19. RESERVES
Retained
earnings
£   

At 1 June 2023 2,724,731
Profit for the year 487,296
Dividends (36,000 )
At 31 May 2024 3,176,027

20. ULTIMATE PARENT COMPANY

The company's ultimate parent undertaking at the balance sheet date was Yip & Sons Limited, a company incorporated and registered in England and Wales. Copies of the financial statements of Yip and Sons Limited can be obtained from Treasure House Greengate Industrial Park, Greenside Way, Middleton, Manchester, M24 1SW.

The company's parent undertaking at the balance sheet date was Chi Yip Holdings Limited, a company incorporated and registered in England and Wales. Copies of the financial statements of Chi Yip Holdings Limited can be obtained from Treasure House Greengate Industrial Park, Greenside Way, Middleton, Manchester, M24 1SW.

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 May 2024 and 31 May 2023:

31.5.24 31.5.23
£    £   
Mrs D Fong Ching Yip
Balance outstanding at start of year (457,952 ) (597,970 )
Amounts advanced 149,701 140,018
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (308,251 ) (457,952 )

J Yip
Balance outstanding at start of year (1 ) -
Amounts advanced 1 1,334
Amounts repaid - (1,335 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - (1 )

Chi Yip Group Limited (Registered number: 02487941)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

22. RELATED PARTY DISCLOSURES

Chi Land Limited
A company in which the holding company has an 80% interest.
The company has advanced loans of £1,363,836 (2023 £1,413,836) to Chi Land Limited. These loans are repayable on demand and are included in amounts owed by group undertakings.

Hello Oriental (Oxford Road) Limited
A company in which the holding company has a 50% interest.
The company has advanced loans of £1,400,000 (2023 £1,402,400) to Hello Oriental (Oxford Road) Limited . This loan is repayable on demand and is included in other debtors.

OT Restaurant Limited
A company which is owned by Mrs DFC Yip's son.
The company has received loans of £234,676 (2023 £250,000) from OT Restaurant Limited. This loan is repayable on demand and is included in other creditors.

Chi Yip (Altrincham) Limited
A company which is owned by Mrs DFC Yip's son.
The company has advanced loans of £600,000 (2023 £550,000) to Chi Yip (Altrincham) Limited. This loan is repayable on demand and is included in other debtors.