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Registered number: 11012549












POLY (UK) REAL ESTATE DEVELOPMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

CONTENTS



Page
Company information
 
1
Group strategic report
 
2 - 4
Directors' report
 
5
Directors' responsibilities statement
 
6
Independent auditor's report
 
7 - 10
Consolidated profit and loss account
 
11
Consolidated balance sheet
 
12
Company balance sheet
 
13
Consolidated statement of changes in equity
 
14
Company statement of changes in equity
 
15
Consolidated statement of cash flows
 
16
Notes to the financial statements
 
17 - 34


 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED
 
COMPANY INFORMATION


Directors
J He 
Q Ren 
Y Wang 
W Zhang 




Company secretary
Taylor Wessing Secretaries Limited



Registered number
11012549



Registered office
5 New Street Square

London

United Kingdom

EC4A 3TW




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report and financial statements for the year ended 31 December 2023. 
The principal activity of the group during the year continued to be that of property development. The principal activity of the company during the year continued to be that of a holding company.

Business review
 
The consolidated profit and loss account on page 11 of the financial statements provides a summary of the group's trading results for the year. The performance and results for the year are in line with the directors' expectations.
During the year, the group faced significant challenges due to turbulent market conditions and broader economic uncertainties. While the fundamental shortage of homes in the United Kingdom continues to support long-term demand, market volatility has impacted financial performance.
The group has had a decrease in turnover of 82% from £53.1m to £9.3m, primarily due to the timing of project completions and prevailing market conditions. Additionally, an impairment loss (£28.03m) was recognised during the year, reflecting adjustments to asset valuations in response to market fluctuations.
Despite these challenges, the group successfully sold residential units in London. However, due to the impairment and lower turnover, the company reported a loss for the year. The directors remain committed to strengthening the business, optimising project execution, and positioning the company for future recovery and sustainable growth.
The group's balance sheet reflects the impact of the impairment adjustments, with net liabilities of £22.90m as of 31 December 2023 (compared to net assets of £4.11m in 2022). The directors continue to focus on prudent financial management and strategic investments to support future development opportunities.
The directors continue to review the business and industry to minimise or mitigate the risks that are prevalent in a commercial environment. The group continues to monitor the market closely in order to make informed decisions on future phases of development.

Principal risks and uncertainties
 
The principal uncertainties our business face are macroeconomic uncertainties which revolve primarily around heightened inflationary pressures. Variables such as shifts in interest rates may exert consequential effects on employment, wage growth, house prices, and consumer spending and confidence. The Help to Buy: Equity Loan scheme for new reservations ended in October 2022 and the scheme ended in March 2023. There was a notable absence of further measures being announced by HM Government that would incentivise house building and therefore we consider the market will continue to be a challenge in the short term.
The Board will actively monitor and adapt to market and economic fluctuations. Despite these challenges, we are confident in our operational performance, robust forward order book, and strong balance sheet. This positions us favourably, endowing us with the resilience and adaptability required to respond effectively to evolving market conditions.
The financial instruments used by the group arise wholly and directly from its activities. The main financial instruments comprise debtors, cash at bank and creditors. The financial risks arising from these financial instruments are considered low. The mature financial stability of the business ensures the group maintains excellent terms with preferred suppliers and their credit partners.
Cash reserves have remained healthy over the year and the group continues to trade with the support of its parent undertakings. Working capital will continue to be monitored on a regular basis by the directors.
 
Page 2

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties (continued)
The directors have not delegated the responsibility of monitoring financial risk management and the group's finance department implements the policies set by the company's directors. The department has specific guidelines agreed by the directors to manage credit risk.
Liquidity and cash flow risk
The directors consider the group to have sufficient available funds for operations. The directors are presented with cashflow reporting on a monthly basis when future plans, opportunities and risks are discussed.
Price risk
Expenditure made by the group is authorised prior to it being made by management in order to ensure that goods and services are not obtained at a higher price than necessary.
Data and compliance risk
The group is aware of the increased risk of ransomware and other IT security issues. To mitigate this risk, the group ensures it is running the latest versions of all software and maintains a strict firewall discipline. Data is regularly backed up.

Financial key performance indicators
 
The key performance indicators used by the company include gross profit margin, which before impairment declined from 18.3% to 13.3%, primarily due to the impact of lower sales volume. Turnover also decreased significantly from £53.1m to £9.3m, reflecting market volatility and project completion timing.
Given the challenging market conditions and the necessary financial adjustments, the results for the year reflect the prudent approach taken by the company in assessing asset values and managing operational risks. The directors remain focused on stabilising financial performance and positioning the business for future recovery.

Other key performance indicators
 
The non-financial key performance indicators include ensuring that developments are built to the highest specification in line with modern construction designs.
The directors are mindful of environmental issues and have sought to minimise the impact of the group's activities on the environment.
Key performance indicators are maintained across all parts of the business to ensure we are constantly monitoring and challenging our results.

Future developments

The board recognises the long-term demand for housing in the UK and the potential for future growth in housebuilding. However, achieving sustainable growth will depend on broader economic conditions, including a stable mortgage framework that ensures access to competitive and affordable high loan-to-value mortgages. This also requires improved consumer confidence in employment prospects and overall economic stability.
Given the highly regulated and capital-intensive nature of the real estate sector, macroeconomic uncertainties and market volatility continue to pose significant challenges. The ability to scale operations effectively will depend on coordinated and consistent government policies at both the national and local levels, particularly in areas related to housing supply, planning regulations, and financial support mechanisms.
In light of these factors, the company is prioritising financial prudence and risk management while remaining focused on delivering high-value residential projects. Our strategy has been adjusted to reflect current market conditions, ensuring that new developments remain viable in a period of economic uncertainty. The directors remain committed to positioning the company for long-term recovery and growth while navigating the cyclical risks inherent in the industry.

Page 3

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Statement by the directors on performance of their statutory duties in accordance with S172 (1) Companies Act 2006
 
The board of directors of Poly (UK) Real Estate Development Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole in decisions taken during the year ended 31 December 2023. In particular:
 
Our long term objective is to build high quality developments which will positively contribute to the United Kingdom's housing supply. We firmly believe that providing modern designs at a fair and transparent price is the best strategy for growing the business over the long term.
 
Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer and the health, safety and well being of our employees and the employees on contractors is one of our primary considerations in the way we conduct business.
 
The satisfaction of our customers is one of the principal key performance indicators for the directors. Reports are made to the directors on prospective customers, feedback from customers and business development opportunities.
 
We work with our suppliers to help drive change in our organisation through promoting new ideas, whilst working with our suppliers to ensure that they reflect the same values and behaviours that we expect from our own people. The board has oversight of the procurement and contract management processes in place and receives regular updates on any matters of significance.
 
As well as customers and suppliers, we seek to build strong relationships with other key stakeholders in the areas in which we operate. Our directors take an active interest in these connections and participate where possible in building such relationships.
 
The directors recognise the importance of the company's role in managing social, economic and environmental issues in the course of running its business.
 
As the board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan The intention is to nurture our reputation, through both the construction and delivery of our plan, that reflects our responsible behaviour.
 
As the board of directors, our intention is to behave responsibly toward our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan.


This report was approved by the board and signed on its behalf.



W Zhang
Director

Date: 25 February 2025

Page 4

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Results and dividends

The loss for the year, after taxation, amounted to £27,010,009 (2022 - profit £5,515,771).

The directors do not recommend a dividend.

Directors

The directors who served during the year were:

J He 
Q Ren 
Y Wang 
W Zhang 

Streamlined Energy and Carbon Reporting (SECR)

The group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.

Matters covered in the Strategic report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the Group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditor is aware of that information.

This report was approved by the board and signed on its behalf.
 





W Zhang
Director

Date: 25 February 2025

Page 5

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLY (UK) REAL ESTATE DEVELOPMENT LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion


We have audited the financial statements of Poly (UK) Real Estate Development Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the consolidated profit and loss account, the consolidated balance sheet, the company balance sheet, the consolidated statement of changes in equity, the company statement of changes in equity, the consolidated statement of cash flows and the notes to the financial statements, including significant accounting policiesThe 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 Group's and of the parent company's affairs as at 31 December 2023 and of the Group's loss 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.


Page 7

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLY (UK) REAL ESTATE DEVELOPMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Other information


The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual reportOur 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. 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 course of 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.


Opinion 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 group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the group strategic report and the directors' report 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 Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 directors' responsibilities statement set out on page 6, 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 is 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 Group's and the parent 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 Group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 8

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLY (UK) REAL ESTATE DEVELOPMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor's 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 an auditor's report 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the group and parent company through discussions with directors and other management, and from our commercial knowledge and experience of the group's and parent company's sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and parent company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the group's and parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Page 9

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLY (UK) REAL ESTATE DEVELOPMENT LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor's responsibilities for the audit of the financial statements (continued)
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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 auditor's report.


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 2006Our 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 an auditor's report 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.





Heather Powell (senior statutory auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
25 February 2025
Page 10

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
9,338,443
53,105,444

Cost of sales
  
(36,130,379)
(43,406,443)

Gross (loss)/profit
  
(26,791,936)
9,699,001

Selling costs
  
(264,724)
(1,355,748)

Administrative expenses
  
(1,005,914)
(1,898,799)

Other operating income
 5 
-
420,345

Operating (loss)/profit
 6 
(28,062,574)
6,864,799

Interest receivable and similar income
 9 
11,974
7,481

Interest payable and similar expenses
 10 
(585)
(90,345)

(Loss)/profit before taxation
  
(28,051,185)
6,781,935

Tax on (loss)/profit
 11 
1,041,176
(1,266,164)

(Loss)/profit for the financial year
  
(27,010,009)
5,515,771

(Loss)/profit for the year attributable to:
  

Owners of the parent
  
(27,010,009)
5,515,771

  
(27,010,009)
5,515,771

There are no items of other comprehensive income for either the year or the prior year other than the loss for the year and profit for the prior year. Accordingly, no statement of other comprehensive income has been presented.

Page 11


 
REGISTERED NUMBER: 11933185
POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
-
38,903

Tangible assets
 13 
-
9,846

  
-
48,749

Current assets
  

Stocks
 15 
53,837,266
87,697,840

Debtors: amounts falling due within one year
 16 
547,536
899,124

Cash at bank and in hand
 17 
47,792
2,501,617

  
54,432,594
91,098,581

Creditors: amounts falling due within one year
 18 
(77,329,979)
(87,032,835)

Net current (liabilities)/assets
  
 
 
(22,897,385)
 
 
4,065,746

Total assets less current liabilities
  
(22,897,385)
4,114,495

Provisions for liabilities
  

Deferred taxation
 19 
-
(1,871)

  
 
 
-
 
 
(1,871)

Net (liabilities)/assets
  
(22,897,385)
4,112,624


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account
 21 
(22,897,485)
4,112,524

Equity attributable to owners of the parent company
  
(22,897,385)
4,112,624

Total equity
  
(22,897,385)
4,112,624


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




W Zhang
Director

Date: 25 February 2025

The notes on pages 17 to 34 form part of these financial statements.

Page 12


 
REGISTERED NUMBER: 11933185
POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 14 
200
200

Current assets
  

Debtors: amounts falling due within one year
 16 
53,406,425
82,651,675

Cash at bank and in hand
 17 
10,869
2,008,791

  
53,417,294
84,660,466

Creditors: amounts falling due within one year
 18 
(76,310,343)
(84,808,330)

Net current liabilities
  
 
 
(22,893,049)
 
 
(147,864)

Total assets less current liabilities
  
(22,892,849)
(147,664)

  

  

Net liabilities
  
(22,892,849)
(147,664)


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account brought forward
 21 
(147,764)
(114,069)

Loss for the year

  

(22,745,185)
(33,695)

Profit and loss account carried forward
  
(22,892,949)
(147,764)

Total equity
  
(22,892,849)
(147,664)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


W Zhang
Director

Date: 25 February 2025

The notes on pages 17 to 34 form part of these financial statements.

Page 13

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent company
Total equity

£
£
£
£


At 1 January 2022 (as previously stated)
100
(1,249,036)
(1,248,936)
(1,248,936)

Prior year adjustment - correction of error
-
(154,211)
(154,211)
(154,211)


At 1 January 2022 (as restated)
100
(1,403,247)
(1,403,147)
(1,403,147)


Comprehensive income for the year

Profit for the financial year
-
5,515,771
5,515,771
5,515,771



At 1 January 2023 (as previously stated)
100
4,463,979
4,464,079
4,464,079

Prior year adjustment - correction of error
-
(351,455)
(351,455)
(351,455)


At 1 January 2023 (as restated)
100
4,112,524
4,112,624
4,112,624


Comprehensive income for the year

Loss for the financial year
-
(27,010,009)
(27,010,009)
(27,010,009)


At 31 December 2023
100
(22,897,485)
(22,897,385)
(22,897,385)


The notes on pages 17 to 34 form part of these financial statements.

Page 14

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
100
(114,069)
(113,969)


Comprehensive income for the year

Loss for the financial year
-
(33,695)
(33,695)



At 1 January 2023
100
(147,764)
(147,664)


Comprehensive income for the year

Loss for the financial year
-
(22,745,185)
(22,745,185)


At 31 December 2023
100
(22,892,949)
(22,892,849)


The notes on pages 17 to 34 form part of these financial statements.

Page 15

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(27,010,009)
5,515,771

Adjustments for:

Amortisation of intangible assets
18,532
18,521

Depreciation of tangible assets
3,866
7,170

Intangible assets written off
26,351
56,038

Interest paid
585
90,345

Interest received
(11,974)
(7,481)

Taxation charge
(1,041,176)
1,266,164

Decrease in stocks
33,860,574
39,014,486

Increase in debtors
351,588
(218,703)

(Decrease) in creditors
(179,524)
(1,037,181)

Decrease in amounts owed to parent undertakings
(8,484,027)
(42,714,005)

Net cash generated from operating activities

(2,465,214)
1,991,125


Cash flows from investing activities

Interest received
11,974
7,481

Net cash from investing activities

11,974
7,481

Cash flows from financing activities

Interest paid
(585)
(90,345)

Net cash used in financing activities
(585)
(90,345)

Net (decrease)/increase in cash and cash equivalents
(2,453,825)
1,908,261

Cash and cash equivalents at beginning of year
2,501,617
593,356

Cash and cash equivalents at the end of year
47,792
2,501,617


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
47,792
2,501,617

47,792
2,501,617


Page 16

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Poly (UK) Real Estate Development Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is 5 New Street Square, London, United Kingdom, EC4A 3TW.
The group consists of Poly (UK) Real Estate Development Limited and all of its subsidiaries.
The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. 

2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgment in applying the group's accounting policies (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements. 
Poly (UK) Real Estate Development Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken the advantage of the following disclosure exemptions available to it in respect of its separate financial statements:
 
Section 3 'Financial Statement Presentation' - Inclusion of statement cash flows;
Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;
Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income; and
Section 33 'Related Party Disclosures' - Compensation for key management personnel.
 
The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between the group companies are therefore eliminated in full.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

Page 17

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on a going concern basis.
The directors have considered future financial forecasts. These forecasts indicate the group is expected to return positive cash flows.
The directors have considered future financial forecasts and the ability of the group to provide ongoing support. In making their going concern assessment, the directors have obtained written confirmation from their immediate parent company that it will provide financial support to the company and group for a period of at least twelve months from the date of approval of the financial statements to assist in meeting the company and group's liabilities as and when they fall due to the extent that it is not available from its existing resources. The directors are not aware of any reasons why this support would be withdrawn in the foreseeable future.
The directors have made enquiries as to the financial position and performance of Hengfu (Hong Kong) Developments Limited. As disclosed in the most recent financial statements, Hengfu (Hong Kong) Developments Limited has a solvent balance sheet and has sufficient cash reserves to finance the company and group. After making enquiries of the directors of Hengfu (Hong Kong) Developments Limited, the directors have a reasonable expectation that the company and group have adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 
2.4

Revenue

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable from the sale of properties, stated net of discounts and gross of any costs of sale. 
The group recognises revenue when the amount of revenue can be reliably measured; when it is probable that future economic benefits will flow to the entity; and when specific criteria have been met for each of the group's activities. This usually occurs upon the completion of property contracts.

  
2.5

Foreign currency translation

Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 18

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 19

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Software
-
5
years

 
2.11

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.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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.

Depreciation is provided on the following basis:

Office equipment
-
20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 20

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.13

Stocks

Stocks represent work in progress and finished properties relating to property development and are stated at the lower of cost and net realisable value. The cost of work in progress comprises land, buildings, design costs, construction costs including raw materials, direct labour, and other direct costs incurred in bringing the property stocks to their present condition. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

  
2.14

Financial instruments

The group has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the group becomes party to the contractual provisions of the instrument. 
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 group after deducting all of its liabilities.
The group’s policies for its major classes of financial assets and financial liabilities are set out below. 
Financial assets
Basic financial assets, including other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including other creditors and loans from fellow group companies 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
 
Page 21

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

(continued)
 
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the group would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 22

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

  
2.17

Share capital

Ordinary shares are classified as equity.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions 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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Carrying value of stock
The most critical estimates and assumptions for stock relate to the determination of carrying value at the lower of cost and net realisable value. During the year the group has conducted reviews of the net realisable value of its development sites. During these reviews the estimated net realisable value of the sites were found to be higher than their current carrying value and so the group has not impaired the stock valuation.
The key estimates in these reviews are those used to estimate the realisable value of a developed site, which is determined by forecast sales rates, expected sales prices and estimated costs to complete.
Inventory recognised to cost of sales on a percentage basis
The initial costs of acquiring the land and the expenditure incurred in developing the properties are initially recognised within stock on the balance sheet. Upon the completion of sales contracts of the properties, the group releases the cost recognised within stock to cost of sales on a percentage basis. This basis is calculated as a proportion of Gross Development Value (GDV) compared to total expected sales revenue.

Page 23

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

The whole of the turnover is attributable to the principal activities of the group's residential property development.
All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
-
411,965

Sundry income
-
8,380

-
420,345


Other operating income represents net deposits forfeited by customers unable to complete on the purchase of properties.


6.


Operating (loss)/profit

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

2023
2022
£
£

Defined contribution pension costs
13,640
56,627

Operating lease charges
-
81,068

Fees payable to the company's auditor for the audit of the consolidated and parent company's financial statements
13,300
17,000

Fees payable to the company's auditor for the audit of the company's subsidiaries pursuant to legislation
31,800
40,550

Fees payable to the company's auditor for non-audit services in relation to the consolidated and parent company's financial statements
4,400
4,200

Fees payable to the company's auditor for non-audit services in relation to the company's subsidiaries
12,200
11,700

Depreciation of tangible fixed assets
3,866
7,170

Amortisation of intangible fixed assets
18,532
18,521

Intangible assets written off
26,351
56,038
Page 24

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£
£


Wages and salaries
361,720
1,109,061

Social security costs
43,895
159,423

Cost of defined contribution scheme
13,640
56,627

419,255
1,325,111


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Employees
6
10
4
4


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
143,416
138,073

Group contributions to defined contribution pension schemes
2,978
10,755

146,394
148,828


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £143,416 (2022 - £138,073).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £2,978 (2022 - £10,755).


9.


Interest receivable

2023
2022
£
£


Bank interest receivable
11,974
7,481

Page 25

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest payable

2023
2022
£
£


Other interest payable
585
90,345


11.


Taxation


As restated
2023
2022
£
£



Current tax on profits for the year
-
1,039,305

Adjustments in respect of previous periods
(1,039,305)
-


(1,039,305)
1,039,305


Total current tax
(1,039,305)
1,039,305

Deferred tax


Origination and reversal of timing differences
(1,871)
226,859

Total deferred tax
(1,871)
226,859


Tax on (loss)/profit
(1,041,176)
1,266,164
Page 26

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

As restated
2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(28,051,185)
6,781,935


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(6,597,639)
1,288,568

Effects of:


Expenses not deductible for tax purposes
918
-

Unrelieved tax losses carried forward
5,637,351
-

Other differences leading to an increase (decrease) in the tax charge
-
(22,404)

Difference in tax rates
(81,806)
-

Total tax charge for the year
(1,041,176)
1,266,164


Factors that may affect future tax charges

From 1 April 2023 the corporation tax rate increased to 25% for companies with profits of over £250,000. Deferred taxes and unrelieved tax losses carried forward at the balance sheet date have been measured using these tax rates.

Page 27

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Intangible assets

Group





Computer software

£



Cost


At 1 January 2023
96,463


Disposals
(96,463)



At 31 December 2023

-



Amortisation


At 1 January 2023
57,560


Charge for the year
18,532


On disposals
(76,092)



At 31 December 2023

-



Net book value



At 31 December 2023
-



At 31 December 2022
38,903

The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.



Page 28

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets

Group






Office equipment

£



Cost


At 1 January 2023
40,306


Disposals
(40,306)



At 31 December 2023

-



Depreciation


At 1 January 2023
30,460


Charge for the year
3,866


Disposals
(34,326)



At 31 December 2023

-



Net book value



At 31 December 2023
-



At 31 December 2022
9,846

The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.


14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 January 2023
200



At 31 December 2023
200




Page 29

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Poly (UK) Real Estate Management Limited
5 New Street Square, London, United Kingdom, EC4A 3TW
Property management
Ordinary
100%
Kingston 048 Limited
5 New Street Square, London, United Kingdom, EC4A 3TW
Property development
Ordinary
100%
MBP Property Management Limited
One, Fleet Place, London, United Kingdom, EC4M 7WS
Dormant
Limited by guarantee
100%
MBP Affordable Limited
One, Fleet Place, London, United Kingdom, EC4M 7WS
Dormant
Ordinary
100%
MBP Commercial and Retail Limited
One, Fleet Place, London, United Kingdom, EC4M 7WS
Dormant
Ordinary
100%
MBP Private Residential Limited
One, Fleet Place, London, United Kingdom, EC4M 7WS
Dormant
Ordinary
100%


15.


Stocks

Group
As restated Group
2023
2022
£
£

Properties in the course of construction
37,788,554
64,234,118

Properties available for sale
16,048,712
23,463,722

53,837,266
87,697,840


There is no significant difference between the replacement cost of the stock and its carrying amount.
Stocks are stated after provisions for impairment of £28,036,056 (2022: £Nil).

Page 30

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Amounts owed by group undertakings
-
-
53,397,033
82,647,753

Other debtors
547,536
786,614
9,392
3,922

Prepayments and accrued income
-
112,510
-
-

547,536
899,124
53,406,425
82,651,675


Amounts owed by group and fellow group undertakings are interest free, have no fixed repayment date and are repayable on demand.


17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
47,792
2,501,617
10,869
2,008,791



18.


Creditors: Amounts falling due within one year

Group
As restated Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts owed to parent undertakings
76,290,053
84,774,080
76,282,893
84,774,080

Corporation tax
-
1,039,305
-
-

Other taxation and social security
6,284
17,582
-
-

Other creditors
924
1,820
-
-

Accruals and deferred income
1,032,718
1,200,048
27,450
34,250

77,329,979
87,032,835
76,310,343
84,808,330


Amounts owed to parent undertakings are interest free, have no fixed repayment date and are repayable on demand.

Page 31

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(1,871)
223,643


Charged to profit or loss
1,871
(225,514)



At end of year
-
(1,871)

Group
Group
2023
2022
£
£

Accelerated capital allowances
-
1,871

-
1,871


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1 each
100
100

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.



21.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

22.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

2,501,617

(2,453,825)

47,792


Page 32

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Prior year adjustment

A prior year adjustment has been recognised within Kingston 048 Limited (i) to recognise development costs incurred that solely relate to specific phases of development, whereas previously they were spread across all developments; and (ii) to recognise the cost of purchasing the land by land area, whereas they were previously recognised by DVA %.
Accordingly, £154,212 of additional cost has been released to Cost of sales in 2021, consisting of additional development costs of £1,001,954 and a decrease in the value of the land released of £847,743. Further to this, £380,042 of cost has been reclassed within Stock from Work in progress to Finished goods, in relation to unsold stock which is subject to the same adjustment and is held within stock at 31 December 2021. This adjustment is reflected in the restated opening reserves for 2022 in the Statement of Changes in Equity.
in 2022, an additional £243,511 of cost was released from Stock to Cost of sales, consisting of additional development costs of £1,167,760 and a decrease in the value of the land released of £924,249. Further to this, £136,531 of cost has been reclassed within Stock from Work in progress to Finished goods, in relation to unsold stock which is subject to the same adjustment. This adjustment has had a net impact on the profit and loss for the year of £197,243, consisting of the £243,511 adjustment in relation to stock and a subsequent reduction in the tax charge of £46,267.
The comparative amounts in the prior period presented have therefore been restated as detailed below:



As previously reported
Adjustment
As restated

£
£
£

Stock
 
 
 

As previously stated
 88,095,562
 -
 88,095,562

Effect of release of additional development costs
 -
 (2,169,714)
 (2,169,714)

Adjustment to land values
 -
 1,771,992
 1,771,992

 88,095,562
 (397,722)
 87,697,840

Corporation tax
 
 
 

As previously stated
 1,085,572
 -
 1,085,572

Impact on taxation from adjustment to stock
 -
 (46,267)
 (46,267)

 1,085,572
 (46,267)
 1,039,305

 89,181,134
 (443,989)
 88,737,145

Page 33

 

POLY (UK) REAL ESTATE DEVELOPMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.

Prior year adjustment (continued)


1 January 2022
31 December 2022

£
£

Retained earnings as previously reported
 (8,135,285)
 (1,249,036)

Adjustments to prior year
 
 

Effect of release of additional development costs
 (1,001,954)
 (2,169,714)

Adjustment to land values
 847,743
 1,771,992

Impact on taxation from adjustment to stock
 -
 46,267

 
 

 (8,289,496)
 (1,600,491)


Reconciliation of changes in profit for the previous financial period:


2022

£

Profit as previously stated
 5,713,015

Adjustments to prior year
 

Effect of release of additional development costs
 (1,167,760)

Adjustment to land values
 924,249

Impact on taxation from adjustment to stock
 46,267

 

 5,515,771


24.


Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.


25.


Controlling party

The immediate parent entity of Poly (UK) Real Estate Development Limited is Hengfu (Hong Kong) Developments Limited. These results are included in the financial statements of Hengfu (Hong Kong) Developments Limited (Address: Unit 2301, 23/F Mira Place Tower A 132, Nathan Road, Tsimshatshui, Hong Kong) which is the smallest group for which group financial statements are prepared.
Poly Developments and Holdings Group Co. Limited (Address: 30-33F North Tower Poly International Square Guangzhou, 510308 China) is the ultimate parent entity by virtue of its holding 100% of the share capital of Hengfu (Hong Kong) Developments Limited and is the largest group for which group financial statements are prepared.
In the opinion of the directors, there is no ultimate controlling party.

 
Page 34