Company Registration No. 09498614 (England and Wales)
QUALIBEST EASTCHEAP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
QUALIBEST EASTCHEAP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
QUALIBEST EASTCHEAP LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment properties
4
53,219,384
33,186,801
Current assets
Debtors
5
2,306,056
1,551,878
Cash at bank and in hand
7,874,005
6,230,115
10,180,061
7,781,993
Creditors: amounts falling due within one year
6
(54,506,034)
(33,481,851)
Net current liabilities
(44,325,973)
(25,699,858)
Total assets less current liabilities
8,893,411
7,486,943
Provisions for liabilities
7
(98,090)
(11,887)
Net assets
8,795,321
7,475,056
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
8,795,221
7,474,956
Total equity
8,795,321
7,475,056

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 9 July 2025 and are signed on its behalf by:
Philip Jay Jacobs
Director
Company Registration No. 09498614
QUALIBEST EASTCHEAP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
1
Accounting policies
Company information

Qualibest Eastcheap Limited is a private company limited by shares incorporated in England and Wales. The registered office is 20 Fenchurch Street, Level 23, London, England, EC3M 3BY.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 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 £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has continued to trade profitably, however at the year end it had net current liabilities of £44,325,973 (2023: £true25,699,858) which includes an amount of £52,021,822 (2023: £32,087,455) due to group undertakings. The directors have obtained assurance from LKK Health Products Group Limited, a company under common control, that it will continue to provide support and that it will not recall the amounts due to any group member for a period of at least 12 months after the date of signing these financial statements.

 

Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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 from rental income is measured as the fair value of the consideration received or receivable.

1.4
Investment properties

Investment property is carried at fair value, determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any differences in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair values are recognised in the profit and loss account.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

QUALIBEST EASTCHEAP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 3 -
Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group, 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. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

QUALIBEST EASTCHEAP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revaluation of investment property

The company carries its investment property, used in the business, at fair value. It has a carrying amount at the balance sheet date of £53,219,384 (2023: £33,186,801). Changes in fair value are recognised through the statement of income. The company used the valuation performed by its external valuer, Cushman & Wakefield Debenham Tie Leung Limited, as the fair value of the investment property as at 31 December 2024. The valuation was based on an estimate of the maintainable level of rental yields a competent operator of a business conducted on the premises acting in an efficient manner would expect to achieve from the units within the property. As at 31 December 2024 the directors believe that the fair value of the investment property, after the additions, materially reflects the market value.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 0 (2023: 0).

4
Investment property
2024
£
Fair value
At 1 January 2024
33,186,801
Additions
19,750,592
Revaluations
281,991
At 31 December 2024
53,219,384
QUALIBEST EASTCHEAP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Investment property
(Continued)
- 5 -

An Independent valuation, prepared in accordance with RICS valuation standard, has been carried out at year end by Cushman & Wakefield.

 

The historic cost of the properties held at 31 December 2024 is £45,386,936 (2023: £25,636,344).

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
536,336
215,210
Amounts owed by group undertakings
59,274
59,274
Other debtors
1,549,833
1,112,395
Prepayments and accrued income
67,677
67,496
2,213,120
1,454,375
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
92,936
97,503
Total debtors
2,306,056
1,551,878
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
25,966
57,729
Amounts owed to group undertakings
52,021,822
32,087,455
Corporation tax
15,494
24,603
Deferred income
794,616
412,236
Other creditors
1,151,546
668,899
Accruals
496,590
230,929
54,506,034
33,481,851
7
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
98,090
11,887
QUALIBEST EASTCHEAP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Provisions for liabilities
(Continued)
- 6 -

A provision for a deferred tax asset of £2,555,598 (2023: £2,626,096) has not been recognised on the basis that there is uncertainty over the recoverability of the asset.

8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Mandy Janes.
The auditor was HW Fisher Audit.
10
Parent company

The immediate parent company is Qualibest International Ltd, a company registered in the British Virgin Islands.

 

As at 31 December 2024, the directors regarded LKK Group II Limited, a company incorporated in Hong Kong, as the ultimate holding party. The registered office of LKK Group II Limited is 37/F, Infinitus Plaza, 199 Des Voeux Road Central, Hong Kong.

 

The largest group in which the results of the company are consolidated, is headed by LKK Health Products Group II Limited, a company incorporated in Hong Kong whose consolidated financial statements are kept in its registered office at 37/F, Infinitus Plaza, 199 Des Voeux Road Central, Hong Kong. No other group financial statements include the results of the company.

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