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Registered number: 06984066









DONGHUA LIMITED









FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2024

 
DONGHUA LIMITED
REGISTERED NUMBER: 06984066

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 4 
533,667
326,030

Current assets
  

Stocks
 5 
4,627,595
4,309,801

Debtors: amounts falling due within one year
 6 
1,325,284
1,399,029

Cash at bank and in hand
 7 
1,374,155
760,599

  
7,327,034
6,469,429

Creditors: amounts falling due within one year
 8 
(4,803,802)
(4,463,084)

Net current assets
  
 
 
2,523,232
 
 
2,006,345

Total assets less current liabilities
  
3,056,899
2,332,375

Deferred tax
  
(113,750)
(60,728)

Net assets
  
2,943,149
2,271,647


Capital and reserves
  

Called up share capital 
 9 
1,700,000
1,700,000

Profit and loss account
 10 
1,243,149
571,647

  
2,943,149
2,271,647


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 April 2025.


Mr R G Wellsbury
Director

The notes on pages 2 to 9 form part of these financial statements.

Page 1

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

1.


General information

Donghua Limited is a private company, limited by shares, incorporated in England and Wales. The address of the registered office is 9 & 10 Sidings Close, Wolverhampton, England, WV11 3DR and the registered number is 06984066. The nature of the company's operations and principal activities are distributors of roller chains.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on the going concern basis. The director considers this to be suitable based on the Company’s current trading levels, future prospects and the continued financial support given by the ultimate parent undertaking.
As at the date of approval of these financial statements, the director has received confirmation from the ultimate parent company that repayment of loans totalling £4,625,736 (2023 - £4,312,899) will not be requested unless the Company is in a position to make the repayments without prejudice to its working capital requirements for a period of at least twelve months from the date of approval of these financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Sterling. All amounts in these financial statements have been rounded to the nearest £1.

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 balance sheet date exchange rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.

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 the Statement of Comprehensive Income. 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'other finance income/expense'.

Page 2

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

2.Accounting policies (continued)

 
2.4

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. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is recognised on despatch of goods to customer.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

 
2.6

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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.

 
2.7

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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 3

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

2.Accounting policies (continued)

 
2.8

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 operates and generates 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 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 balance sheet date.


 
2.9

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.

Depreciation is provided on the following basis:

Leasehold improvements
-
20 years over lease term
Plant and machinery
-
15% straight line
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
15% straight line
Office equipment
-
25% straight line

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 the Statement of Comprehensive Income.

Page 4

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

2.Accounting policies (continued)

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

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 the Statement of Comprehensive Income.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. 

 
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.

 
2.13

Creditors

Short-term creditors are measured at the transaction price.

  
2.14

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade debtors and other debtors and creditors and loans from group companies.

 
2.15

Equity instruments

Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. 


3.


Employees

The average monthly number of employees, including directors, during the year was 15 (2023 - 15).

Page 5

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

4.


Tangible fixed assets





Leasehold improve-ments
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£
£



Cost


At 1 January 2024
28,567
245,399
31,853
179,388
187,826
673,033


Additions
-
112,940
86,273
37,876
64,428
301,517


Disposals
-
-
(17,000)
-
-
(17,000)



At 31 December 2024

28,567
358,339
101,126
217,264
252,254
957,550



Depreciation


At 1 January 2024
10,713
49,817
24,837
107,832
153,804
347,003


Charge for the year
1,428
42,161
10,336
16,659
19,000
89,584


Disposals
-
-
(12,704)
-
-
(12,704)



At 31 December 2024

12,141
91,978
22,469
124,491
172,804
423,883



Net book value



At 31 December 2024
16,426
266,361
78,657
92,773
79,450
533,667



At 31 December 2023
17,854
195,582
7,016
71,556
34,022
326,030

Page 6

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

5.


Stocks

2024
2023
£
£

Finished goods and goods for resale
4,627,595
4,309,801


Impairment losses totalling £31,707 (2023 - £nil) were recognised in profit and loss.


6.


Debtors

2024
2023
£
£


Trade debtors
1,135,962
1,281,394

Other debtors
92,659
26,242

Prepayments and accrued income
96,663
91,393

1,325,284
1,399,029



7.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,374,155
760,599



8.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
83,098
37,819

Amounts owed to group undertakings
4,625,736
4,312,899

Corporation tax
47,350
71,114

Other taxation and social security
21,531
19,222

Other creditors
4,885
4,260

Accruals and deferred income
21,202
17,770

4,803,802
4,463,084


Included in amounts owed to group undertakings is £1,318,462 (2023 - £1,541,838) on which interest is being charged at 4.5%. The remaining amount of £3,307,274 (2023 - £2,771,061) is interest free. The total amounts owed to group undertakings of £4,625,736 (2023 - £4,312,899) is unsecured and is repayable on demand. 

Page 7

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

9.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,700,000 (2023 - 1,700,000) Ordinary shares of £1.00 each
1,700,000
1,700,000



10.


Reserves

Profit and loss account

This reserve records all current and prior period retained profits and losses.


11.


Pension commitments

The Company operates a defined contribution 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 £20,128 (2023 - £19,066). Contributions totaling £4,885 (2023 - £3,531) were payable to the fund at the balance sheet date and included in other creditors.


12.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
194,654
222,582

Later than 1 year and not later than 5 years
773,070
780,940

Later than 5 years
1,231,827
1,418,612

2,199,551
2,422,134


13.


Controlling party

The company is controlled by Donghua International Holding B.V, a company registered in Netherlands which owns 100% of the issued share capital of Donghua Limited. Donghua International Holding B.V is the parent company of the smallest group into which the company's results are consolidated. The registered office is Parelweg 1, 1812 RS Alkmaar, the Netherlands. This company's financial statements are publicly available and may be obtained from Netherlands Kamer Van Koophandel.
The ultimate holding company is Hangzhou Donghua Chain Group Co. Limited, a company registered in China, which is the parent company of the largest group into which the company's results are consolidated. This company is controlled by Mr Bihua Xuan, by virtue of his controlling shareholding. The financial statements of the ultimate holding company are not publicly available.

Page 8

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

14.


Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.

The audit report was signed on 30 April 2025 by Richard Haydon (Senior Statutory Auditor) on behalf of PKF Smith Cooper Audit Limited.

 
Page 9