Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312024-12-3110truetruetruetruetruetruetruefalse2024-01-01false6 14818921 2024-01-01 2024-12-31 14818921 2023-04-21 2023-12-31 14818921 2024-12-31 14818921 2023-12-31 14818921 2023-04-21 14818921 1 2024-01-01 2024-12-31 14818921 1 2023-04-21 2023-12-31 14818921 1 2024-01-01 2024-12-31 14818921 e:Director1 2024-01-01 2024-12-31 14818921 e:Director2 2024-01-01 2024-12-31 14818921 e:Director2 2024-12-31 14818921 e:Director3 2024-01-01 2024-12-31 14818921 e:Director4 2024-01-01 2024-12-31 14818921 e:Director4 2024-12-31 14818921 e:RegisteredOffice 2024-01-01 2024-12-31 14818921 d:OfficeEquipment 2024-01-01 2024-12-31 14818921 d:OfficeEquipment 2024-12-31 14818921 d:OfficeEquipment 2023-12-31 14818921 d:OfficeEquipment d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 14818921 d:ComputerEquipment 2024-01-01 2024-12-31 14818921 d:ComputerEquipment 2024-12-31 14818921 d:ComputerEquipment 2023-12-31 14818921 d:ComputerEquipment d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 14818921 d:OtherPropertyPlantEquipment 2024-01-01 2024-12-31 14818921 d:OtherPropertyPlantEquipment 2024-12-31 14818921 d:OtherPropertyPlantEquipment 2023-12-31 14818921 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 14818921 d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 14818921 d:CurrentFinancialInstruments 2024-12-31 14818921 d:CurrentFinancialInstruments 2023-12-31 14818921 d:CurrentFinancialInstruments 1 2024-12-31 14818921 d:CurrentFinancialInstruments 1 2023-12-31 14818921 d:Non-currentFinancialInstruments 3 2024-12-31 14818921 d:Non-currentFinancialInstruments 3 2023-12-31 14818921 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-31 14818921 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 14818921 d:Non-currentFinancialInstruments d:AfterOneYear 2024-12-31 14818921 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 14818921 d:ShareCapital 2024-12-31 14818921 d:ShareCapital 2023-04-21 2023-12-31 14818921 d:ShareCapital 2023-12-31 14818921 d:ShareCapital 2023-04-21 14818921 d:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 14818921 d:RetainedEarningsAccumulatedLosses 2024-12-31 14818921 d:RetainedEarningsAccumulatedLosses 2023-04-21 2023-12-31 14818921 d:RetainedEarningsAccumulatedLosses 2023-12-31 14818921 d:RetainedEarningsAccumulatedLosses 2023-04-21 14818921 e:OrdinaryShareClass1 2024-01-01 2024-12-31 14818921 e:OrdinaryShareClass1 2024-12-31 14818921 e:OrdinaryShareClass1 2023-12-31 14818921 e:FRS101 2024-01-01 2024-12-31 14818921 e:Audited 2024-01-01 2024-12-31 14818921 e:FullAccounts 2024-01-01 2024-12-31 14818921 e:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 14818921 d:FinancialInstrumentsFairValueThroughProfitOrLoss 2024-01-01 2024-12-31 14818921 d:FinancialAssetsAmortisedCost 2024-01-01 2024-12-31 14818921 d:FinancialLiabilitiesAmortisedCost 2024-01-01 2024-12-31 14818921 d:FinancialInstrumentsDesignatedFairValueThroughProfitOrLoss 2024-01-01 2024-12-31 14818921 2 2024-01-01 2024-12-31 14818921 7 2024-01-01 2024-12-31 14818921 d:CurrentFinancialInstruments 7 2024-12-31 14818921 d:CurrentFinancialInstruments 7 2023-12-31 14818921 d:CurrentFinancialInstruments 8 2024-12-31 14818921 d:CurrentFinancialInstruments 8 2023-12-31 14818921 d:WithinOneYear 2024-12-31 14818921 d:WithinOneYear 2023-12-31 14818921 d:BetweenOneFiveYears 2024-12-31 14818921 d:BetweenOneFiveYears 2023-12-31 14818921 d:WithinOneYear d:ContractualUndiscountedValue 2024-12-31 14818921 d:WithinOneYear d:ContractualUndiscountedValue 2023-12-31 14818921 d:BetweenOneFiveYears d:ContractualUndiscountedValue 2024-12-31 14818921 d:BetweenOneFiveYears d:ContractualUndiscountedValue 2023-12-31 14818921 d:ContractualUndiscountedValue 2024-12-31 14818921 d:ContractualUndiscountedValue 2023-12-31 14818921 f:PoundSterling 2024-01-01 2024-12-31 iso4217:GBP xbrli:shares xbrli:pure


Registered number: 14818921












GUOTAI JUNAN SECURITIES (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

CONTENTS



Page
Company information
 
1
Directors' report
 
2
Directors' responsibilities statement
 
3
Independent auditor's report
 
4 - 7
Income statement
 
8
Statement of financial position
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 21


 

GUOTAI JUNAN SECURITIES (UK) LIMITED
 
COMPANY INFORMATION


Directors
J Hu 
Y Liu 
H Zhuo 




Registered number
14818921



Registered office
18th Floor,
100 Bishopsgate Bishopsgate

London

United Kingdom

EC2N 4AG




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Principal activity

The principal activity of the company continued to be that of financial investment activities and trading.

Directors

The directors who served during the year were:

J Hu 
J Chen (resigned 3 June 2024)
Y Liu 
H Zhuo (appointed 12 November 2024)

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'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's auditor is aware of that information.

Auditor

The auditor, Blick Rothenberg Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

MiFIDPRU Disclousre
The company is required to make at least an annual "MiFIDRPU Public Disclosure" based on its audited financial statements for each financial year.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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





J Hu
Director

Date: 10 April 2025

Page 2

 

GUOTAI JUNAN SECURITIES (UK) LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors are responsible for preparing the directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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;

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 company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GUOTAI JUNAN SECURITIES (UK) LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2024

Opinion


We have audited the financial statements of Guotai Junan Securities (UK) Limited (the 'company') for the year ended 31 December 2024, which comprise the income statement, the statement of financial position, the statement of changes in equity and the related notes, including a summary of 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 101 ‘Reduced Disclosure Framework’ (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 December 2024 and of its 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 company 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 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 4

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GUOTAI JUNAN SECURITIES (UK) LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has 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 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, 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; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 3, 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 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.


Page 5

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GUOTAI JUNAN SECURITIES (UK) LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the company 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 company, including the Companies Act 2006, the Financial Services and Markets Act 2000, taxation legislation and data protection;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; 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 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 a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; 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;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HM Revenue and Customs.
Page 6

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GUOTAI JUNAN SECURITIES (UK) LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Another focus area was non-compliance with the rules of the Financial Conduct Authority ("the FCA"). The company was authorised and regulated by the FCA from 7 December 2023. Our procedures to respond to risks identified included the following: reviewing correspondence between the company and the FCA, performing bank reviews to detect receipts of client money and remaining alert to the possibility of accidental receipt of client monies; and discussion of regulatory matters with the appointed officers of the company.
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. 
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.





Nicholas Winters (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: 
10 April 2025
Page 7

 

GUOTAI JUNAN SECURITIES (UK) LIMITED
 
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

Year ended
31 December
Period ended
31 December
2024
2023
£
£

  

Turnover
  
900,400
-

Cost of sales
  
(23,026)
-

Gross profit
  
877,374
-

Administrative expenses
  
(1,322,990)
(704,013)

Operating loss
  
(445,616)
(704,013)

Interest receivable and similar income
  
211,652
93,673

Interest payable and similar expenses
  
(66,851)
(6,232)

Loss before tax
  
(300,815)
(616,572)

Tax on loss
 5 
-
-

Loss for the financial year
  
(300,815)
(616,572)

There are no items of other comprehensive income for the current year or prior period other than the loss for the year/period. Accordingly, no statement of other comprehensive income has been presented.

Page 8


 
REGISTERED NUMBER:14818921
GUOTAI JUNAN SECURITIES (UK) LIMITED

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

  

Fixed assets
  

Tangible assets
 6 
98,692
231,009

  
98,692
231,009

Current assets
  

Debtors: amounts falling due within one year
 7 
10,480,543
100,203

Current asset investments
 8 
12,108,020
-

Bank and cash balances
  
2,763,728
7,499,953

  
25,352,291
7,600,156

Creditors: amounts falling due within one year
 9 
(18,522,369)
(515,278)

Net current assets
  
 
 
6,829,922
 
 
7,084,878

Total assets less current liabilities
  
6,928,614
7,315,887

Creditors: amounts falling due after more than one year
 10 
-
(86,458)

Net assets
  
6,928,614
7,229,429


Capital and reserves
  

Called up share capital 
 12 
7,846,001
7,846,001

Profit and loss account
  
(917,387)
(616,572)

Total equity
  
6,928,614
7,229,429




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




J Hu
Director

Date: 10 April 2025

The notes on pages 11 to 21 form part of these financial statements.

Page 9

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 21 April 2023
-
-
-


Comprehensive income for the period

Loss for the period
-
(616,572)
(616,572)


Contributions by and distributions to owners

Shares issued during the period
7,846,001
-
7,846,001



At 1 January 2024
7,846,001
(616,572)
7,229,429


Comprehensive income for the year

Loss for the year
-
(300,815)
(300,815)


At 31 December 2024
7,846,001
(917,387)
6,928,614


The notes on pages 11 to 21 form part of these financial statements.

Page 10

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Guotai Junan Securities (UK) Limited is a private company limited by shares and incorporated in England and Wales. The address of its registered office is 18th Floor, 100 Bishopsgate Bishopsgate, London, England, EC2N 4AG.
In the previously filed financial statements, the company presented results for the period from the date of incorporation on 21 April 2023 to 31 December 2023. Therefore, the comparatives including disclosures are not entirely comparable.
The financial statements are prepared 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 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 79(a)(iv) of IAS 1;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
the requirements of paragraph 88C and 88D of IAS 12 Income Taxes.

This information is included in the consolidated financial statements of Guotai Junan Securities Co. Ltd as at 31 December 2024 and these financial statements may be obtained from company's website.

 
2.3

Going concern

After making enquiries, the directors have a reasonable expectation that the company has 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.

Page 11

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within 'administrative expenses'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 
2.6

Leases

The company as a lessee

The company assesses whether a contract is or contains a lease, at inception of a contract. The company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the company uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

fixed lease payments (including in-substance fixed payments), less any lease incentives;


The lease liability is included in 'Creditors' on the statement of financial position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.
Page 12

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.6
Leases (continued)


The company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised discount rate.

a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in the 'Intangible Assets', 'Tangible Fixed Assets' and 'Investment Property' lines, as applicable, in the statement of financial position.

The company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.11.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The company has used this practical expedient.

 
2.7

Interest income

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

 
2.8

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.

 
2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company 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 statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

Page 13

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Taxation

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 reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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 except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
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.

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
-
5 years straight line - 4% residual value
Computer equipment
-
2 years straight line
Right-of-use assets
-
Over the term of the lease

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

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.

Page 14

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.13

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.14

Financial instruments

The company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value. 

Financial assets

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Fair value through profit or loss

All of the company's financial assets other than those which meet the criteria to be measured at amortised cost are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset. 

Debt instruments at amortised cost

Debt instruments are subsequently measured at amortised cost where they are financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortised cost is calculated using the effective interest method and represents the amount measured at initial recognition less repayments of principal plus the cumulative amortisation using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.

Impairment of financial assets

The company recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised or at FVOCI. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

Page 15

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)

Financial liabilities

Fair value through profit or loss

Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.

At amortised cost

Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.


3.


Employees

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


      Year ended
     31 December
     Period ended
      31 December
        2024
        2023
            No.
            No.







Employees
7
3



Directors
3
3

10
6

Page 16

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Directors' remuneration

Year ended
31 December
Period ended
31 December
2024
2023
£
£

Directors' emoluments
201,375
150,091

Directors' pension costs
43,500
5,100

244,875
155,191


The remuneration related to one director (2023: 1), who was the only paid director. 


5.


Taxation


Year ended
31 December
Period ended
31 December
2024
2023
£
£



Total current tax
-
-

Factors affecting tax charge for the year/period

The tax assessed for the year/period is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

Year ended
31 December
Period ended
31 December
2024
2023
£
£


Loss on ordinary activities before tax
(300,815)
(616,572)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
(75,204)
(154,143)

Effects of:


Expenses not deductible for tax purposes
866
485

Other timing differences leading to an increase (decrease) in taxation
2,759
(778)

Unrelieved tax losses carried forward
71,579
154,436

Total tax charge for the year/period
-
-

Page 17

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Tangible fixed assets





Office equipment
Computer equipment
Right-of-use assets
Total

£
£
£
£



Cost


At 1 January 2024
3,775
2,700
284,277
290,752


Additions
1,566
4,449
156,204
162,219


Disposals
-
-
(284,277)
(284,277)



At 31 December 2024

5,341
7,149
156,204
168,694



Depreciation


At 1 January 2024
181
338
59,224
59,743


Charge for the year
976
3,422
152,619
157,017


Disposals
-
-
(146,758)
(146,758)



At 31 December 2024

1,157
3,760
65,085
70,002



Net book value



At 31 December 2024
4,184
3,389
91,119
98,692



At 31 December 2023
3,594
2,362
225,053
231,009

Page 18

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Debtors

2024
2023
£
£


Amounts owed by group undertakings
8,936,380
-

Other debtors
83,296
70,406

Prepayments and accrued income
46,652
29,797

Derivative assets
1,414,215
-

10,480,543
100,203



8.


Current asset investments

2024
2023
£
£

Financial asset investments
12,108,020
-



9.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
15,777,576
4,073

Amounts owed to group undertakings
492,909
287,030

Lease liabilities
92,253
141,368

Other creditors
460,410
2,970

Accruals and deferred income
278,255
79,837

Derivative liabilities
1,420,966
-

18,522,369
515,278


Amounts owed to group undertakings are unsecured, interest free and are repayable on demand.


10.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Lease liabilities
-
86,458


Page 19

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.

Leases

Company as a lessee

The company has lease contract for its office space used in its operations.

Lease liabilities are due as follows:


2024
2023
£
£

Not later than one year
92,253
141,368

Between one year and five years
-
86,458

92,253
227,826


Contractual undiscounted cash flows are due as follows:


2024
2023
£
£

Not later than one year
93,639
150,440

Between one year and five years
-
87,757

93,639
238,197




The following amounts in respect of leases, where the company is a lessee, have been recognised in profit or loss:


2024
2023
£
£

Interest expense on lease liabilities
9,825
6,232


12.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



7,846,001 (2023 - 7,846,001) Ordinary shares shares of £1 each
7,846,001
7,846,001


Page 20

 

GUOTAI JUNAN SECURITIES (UK) LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £74,148 (2023: £6,313). Contributions totalling £15,500 (2023: £2,845) were payable to the fund at the reporting date and are included in creditors.


14.


Related party transactions

As permitted by FRS 101, the company has taken advantage of the exemption contained in IAS 24 Related Party. 
Disclosures not to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
The were no other identified related parties with which the company has transacted in the financial period.
Directors' remuneration is disclosed in note 4.


15.


Post balance sheet events

There were no events after the balance sheet date which have affected the balances and disclosures in these financial statements.


16.


Controlling party

The immediate parent undertaking is Guotai Junan Financial Holdings Limited, a company incorporated in Hongkong, China.
The ultimate parent undertaking is Guotai Junan Securities Co. Ltd, a company incorporated in China.
The parent undertaking of the smallest and the largest group of undertakings for which group financial statements are drawn up and of which the company is a member is Guotai Junan Securities Co. Ltd, a company incorporated and based in China. Copies of the group financial statements are available to the public from its head office at No. 768 Nanjing West Road, Jingan District, Shanghai, China.

 
Page 21