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Registered number: 15203898
OMODA & JAECOO UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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OMODA & JAECOO UK LIMITED
CONTENTS
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Director's responsibilities statement
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Independent auditor's report
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Statement of changes in equity
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Notes to the financial statements
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OMODA & JAECOO UK LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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OMODA & JAECOO UK LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
Principal Activities and Business Model
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The principal activities of Omoda & Jaecoo UK Limited (“O&J UK” or “the Company”) during the year comprised the sale of automotive vehicles and spare parts, together with the provision of after-sales services. The Company acquired vehicles from its parent entity and subsequently sold them to customers within the United Kingdom. The ultimate parent company, Chery Automobile Co., Ltd, undertakes the research and developments of vehicles specifically designed to meet the requirements of the UK market.
Key performance indicators
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The Company was established in October 2023 and the vehicle went to the market in September 2024, it has demonstrated the positive reception of its vehicles in the UK market. During the reporting period, 3,838 vehicles were registered with MMT, ranking 36th out of 63 automotive companies according to published statistics. The Company achieved an EBT of £2.64 million. By June 2025, it had improved its ranking to 24th out of 63, reflecting a significant increase in its presence within the UK automotive market.
The Company will comply with the UK’s decarbonisation policies by increasing the sale of plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) to achieve its targets for 2030. With the support of its ultimate parent company, Chery Automobile Co., Ltd, O&J UK has strong pipelines of new models and products updates to meet growing customer demand. This includes the launch of the Jaecoo 7 in January 2025, the Chery Brand in September 2025, and the new Omoda 7 by the end of 2025. This pipeline of new vehicles is expected to continue into the foreseeable future.
The Company is committed to environmental protection and fully complies with all applicable environmental laws and regulations relevant to its operations. It actively cooperates with regulatory authorities and other stakeholders to ensure ongoing compliance.
In support of the UK government’s target to achieve net-zero greenhouse gas emissions by 2050, the Company aims to expand the sale of plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).
The Company’s objective is to protect and preserve the environment by preventing — and, where possible, reducing — any adverse environmental impacts. Before purchasing, servicing, or implementing any new process or system, the Company conducts thorough assessments of potential environmental impacts to promote the efficient use of energy and natural resources, while minimizing waste. Any residual waste is managed and disposed of in a safe and responsible manner.
The Company, in collaboration with employee representatives, continues to foster employee engagement and encourage meaningful participation in the development and success of the business.
Our policy is to provide, wherever possible, employment, training, and development opportunities for individuals with disabilities. The Company is also committed to supporting employees who become disabled, ensuring they can continue to contribute their skills and realise their potential.
We continue to invest in training and development initiatives to enable all employees to acquire, maintain, and enhance the skills required for their roles. Employees are encouraged to take ownership of their personal development, supported by a diverse range of education and training opportunities to broaden their competencies.
Through regular performance appraisals and personal development planning, managers are equipped to guide and support employees in achieving their professional aspirations and career goals.
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OMODA & JAECOO UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Companies Act 2006, Section 172
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The Board of Directors consider that they have properly discharged their duties and acted in good faith both individually and collectively to promote the success of the company for the benefit of its members as a whole. It sets out in section172 of the Companies Act 2006 for the year ended 31 December 2024 and, in doing so, have regard to:
a. The likely consequences of any decision in the long term,
b. The interests of the company's employees,
c. The need to foster the company's business relationships with suppliers, customers and others,
d. The impact of the company's operations on the community and the environment,
e. The desirability of the company maintaining a reputation for high standards of business conduct, and
f. The need to act fairly between members of the company.
Long term decisions
The Company’s plans, as outlined above, are designed to deliver long-term benefits to the organisation while contributing to the success of its customers in the UK. The Company will continue to operate under strict budgetary controls and in full compliance with all applicable regulatory guidelines.
Interests of employees
Employees are fundamental to the Company’s operations and its long-term sustainable success. The Company is committed to being a responsible employer, ensuring that its approach to pay and benefits is fair and competitive. The well-being of employees is a primary consideration in all aspects of the Company’s activities, as noted in the Employee Involvement section above.
Business relationships
The car is an essential part of daily life. The Company aims to provide high-quality products to end users to support their everyday needs. The successful delivery of the Company’s strategy depends on maintaining strong, mutually beneficial relationships with both suppliers and customers. These relationships are fundamental to the Company’s ongoing success and long-term resilience.
Community and environment
The Company primarily recruits locally, supports community activities, and actively integrates itself into UK society to contribute positively to both the community and the environment whenever possible.
Reputation
Although the Company only commenced operations in October 2023, it aims to maintain and enhance its reputation wherever possible within the automotive industry. As part of the Chery family of businesses, the Company continues to build its standing while upholding Chery’s core business values: Customer First, People-Oriented, Independent Innovation, and Openness and Inclusiveness.
Acting fairly
The Company is ultimately owned by Chery Automobile Co., Ltd. It is the Board’s ongoing intention to act responsibly toward the shareholder to ensure they benefit from the success of Omoda & Jaecoo UK Limited. All Board members hold day-to-day responsibilities within the Company, and on this basis, the Board considers that the directors’ interests are fully aligned with those of the shareholder.
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OMODA & JAECOO UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Principal risks and uncertainties
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Risk management is an integral part of how the Company plans and executes its business strategies. The Board reviews risks on a regular basis, including as part of the annual strategic review process. The major risks to the business are identified as follows:
Market
Description: The UK automotive market is highly competitive market.
Impact: Any downturn in the sector could adversely affect the Company's business performance.
Mitigation: The Company plans to launch a broader range of vehicles, enabling O&J UK to enter additional market segments and target a wider base of potential customers.
Competition
Description: The company is subject to competition from both national and multi-national automotive companies. Ability to compete is dependent on technical know-how, effectiveness and innovation within research and development programmes and the ability and capacity to deliver the new vehicles in a timely manner.
Impact: Inability to compete adequately in the markets may adversely impact on future results of the business.
Mitigation: The ultimate parent company is endeavouring to identify and invest in research and development, developments of new vehicles, and reduce costs through various methods, which will help O&J UK to provide high-qualified and price-competitive vehicles in the UK market.
IT systems
Description: Due to the nature of the business, several IT systems are involved in tracking vehicle movements and managing end-to-end business processes. The interfaces between these systems are critical to ensuring smooth data flows.
Impact: Inefficient or poorly integrated system interfaces may cause data bottlenecks, resulting in delays and increased manual intervention.
Mitigation: Ongoing optimization and enhancement of system interfaces to ensure efficient, reliable, and timely data flow between IT systems.
Exchange rates
Description: The global nature of the business exposes the company to volatility in currency exchange denominated transactions and the translation of foreign currency bank and loan balances.
Impact: Significant fluctuations in exchange rates to which the business is exposed could have a material adverse effect on our future results.
Mitigation: In order to protect itself against significant fluctuations the company will hedge currency exposures on the project basis when it is needed.
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OMODA & JAECOO UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Principal risks and uncertainties (continued)
Liquidity and going concern
Although O&J UK only entered the UK market in 2023, it has demonstrated very strong business development. The company had net current assets of £26.32 million and cash balances of £4.10 million as at 31 December 2024. It recorded a profit after tax of £1.98 million for the year then ended. Based on current trends, management forecasts an increase in both turnover and profit in 2025.
Accordingly, the directors consider that there are no material uncertainties related to liquidity or going concern.
On behalf of the board
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OMODA & JAECOO UK LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
Omoda & Jaecoo UK Limited was incorporated on 11 October 2023. The director presents his report and the financial statements for the first accounting period from 11 October 2023 to 31 December 2024.
Details of future developments, corresponding risks and going concern are covered in the Strategic Report and form part of this report by cross-reference.
The director has not declared a dividend during the period.
The director who served during the period was:
C Chen (appointed 11 October 2023)
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The Company does not have any indemnity provisions in place for the benefit of its directors.
Reporting boundary and methodology
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The emissions have been calculated based on the kWh of electricity purchased for own use and used in the head office based on Greenhouse gas reporting: conversion factors from Department for Business, Energy and Industrial Strategy of the UK government.
Greenhouse gas emissions, energy consumption and energy efficiency action
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As required by the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 the company's energy use and greenhouse gas (GHG) emissions are set out below.
The data relates to the first accounting period from 11 October 2023 to 31 December 2024.
Total energy consumption 73,532 kwh
Emissions from combustion of gas (scope 1) 3 tCO2e
Emissions from purchased electricity (scope 2) 2.7 tCO2e
Emissions from business travel in rental cars or employee-owned
vehicles the company is responsible for purchasing the fuel (scope 3) 10.9 tCO2e
Total gross emissions 16.6 tCO2e
The company quantifies and reports its organisational greenhouse gas emissions using UK Government conversion factors.
There are two ratios that express the company's annual emissions associated with the company's activities. These are:
∙Tonnes of CO2 equivalent emitted per employee during the year were 0.9
∙Tonnes of CO2 equivalent emitted per £m turnover during the year were 0.2
Matters covered in the Strategic Report
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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.
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OMODA & JAECOO UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Disclosure of information to auditor
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The director at the time when this director's report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the company's auditor is unaware, and
∙he 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.
Post balance sheet events
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There have been no significant events affecting the company since the year end.
This report was approved and signed by the sole director.
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OMODA & JAECOO UK LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2024
The directors is responsible for preparing the strategic report, the director's 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 prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law).
Under company law, director 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 the financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙state whether applicable United Kingdom Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;
∙make judgments and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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.
The director is also responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.
Independent Auditors
Pursuant to Section 487 of the Companies Act 2006, the independent auditors will be deemed to be reappointed and RSM therefore will continue in office.
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OMODA & JAECOO UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OMODA & JAECOO UK LIMITED
FOR THE PERIOD ENDED 31 DECEMBER 2024
We have audited the financial statements of Omoda & Jaecoo UK Limited (the 'company') for the period ended 31 December 2024 which comprise profit and loss account, balance sheet, statement of changes in equity, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
∙give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the period 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.
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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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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.
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OMODA & JAECOO UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OMODA & JAECOO UK LIMITED (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
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 report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the 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
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In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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 directorss' 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
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As explained more fully in the directors’ responsibilities statement set out on page 8, 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.
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OMODA & JAECOO UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OMODA & JAECOO UK LIMITED (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
Auditor's responsibilities for the audit of the financial statements
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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.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
∙obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
∙inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
∙discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from internal/external tax advisors.
The audit engagement team identified the risk of management override of controls and revenue cut off as the areas where the financial statements were most susceptible to material misstatement due to fraud.
Audit procedures performed in respect of the included but were not limited to:
−Risk of management override of controls:
°Testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant and unusual transactions, and transactions entered into outside the normal course of business; and challenging judgments and estimates.
−Risk of incorrect cut off of revenue:
°Selecting a sample of sales made around the year end verifying these to supporting documentation to confirm these have been recognised in the correct period.
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OMODA & JAECOO UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OMODA & JAECOO UK LIMITED (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://www.frc.org.uk /auditorsresponsibilities This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.
Mark Nisbett (Senior statutory auditor)
for and on behalf of
RSM UK Audit LLP, Statutory Auditor
Chartered Accountants
25 Farringdon Street
London
EC4A 4AB
Date: 11 July 2025
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OMODA & JAECOO UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial period
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There are no items of other comprehensive income for 2024 other than the profit for the period. As a result, no separate Statement of Comprehensive Income has been presented.
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This is the first accounting period for the company and therefore there are no comparative results.
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REGISTERED NUMBER:15203898
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OMODA & JAECOO UK LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements were approved and signed by the sole director.
The notes on pages 17 to 31 form part of these financial statements.
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OMODA & JAECOO UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Comprehensive income for the period
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Total comprehensive income for the period
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Contributions by and distributions to owners
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Shares issued during the period
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Total transactions with owners
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The notes on pages 17 to 31 form part of these financial statements.
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OMODA & JAECOO UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Profit for the financial period
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Depreciation of tangible assets
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Increase in amounts owed to group undertakings
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Net cash used in operating activities
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Purchase of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Net cash generated from financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at the end of period
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Cash and cash equivalents at the end of period comprise:
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
Omoda & Jaecoo UK Limited's principal activity is the sale of motor vehicles through a network of franchised independent car retailers.
The company is a private company limited by shares and incorporated in England and Wales. The address of its registered office and principal place of business is Building 7 Chiswick Park, 566 Chiswick High Road, London, W4 5YG.
These financial statements have been prepared for the first accounting period from incorporation on 11 October 2023 to 31 December 2024.
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
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Basis of preparation of financial statements
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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 management to exercise judgment in applying the company's accounting policies.
The following principal accounting policies have been applied:
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.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 such as vehicles and spare parts
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.
Rendering of services such as training
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
The company 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 company 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 company after deducting all of its liabilities.
The company’s policies for its major classes of financial assets and financial liabilities are set out below.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances 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 rate method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors 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.
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 company 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.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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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.
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Operating leases: the company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest rate method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest rate 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.
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 balance sheet. The assets of the plan are held separately from the company in independently administered funds.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the period 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.
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.
The estimated useful lives range as follows:
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.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost being the good purchase price and associated import and transit fees. Cost is based on the cost of purchase on a first in first out 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 profit or loss.
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Cash and cash equivalents
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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.
In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
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Provisions for liabilities
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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.
Warranty provisions
Provisions for warranties granted by the company for the passenger vehicles sold are recognised based on sales volumes and past experiences of costs for repairs and replacement, among others. The estimate of unit warranty cost may not be equal to the actual warrant costs in the future. The company reassesses the unit warranty cost at least annually and the unit warranty cost is revised when appropriate.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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The operating profit is stated after charging:
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Depreciation of tangible fixed assets
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Other operating lease rentals
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Impairment of trade and other debtors
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Audit fees payable to the company's auditor
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Staff costs were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the director, during the period was as follows:
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Period ended
31
December
2024
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Key management personnel's emoluments
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Company contributions to defined contribution pension schemes
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Interest receivable and similar income
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Other interest receivable
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Interest payable and similar expenses
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Current tax on profits for the period
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Origination and reversal of timing differences
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
9.Taxation (continued)
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Factors affecting tax charge for the period
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The tax assessed for the period is higher than the standard rate of corporation tax in the UK of 25%. The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25%
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Expenses not deductible for tax purposes
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Total tax charge for the period
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Factors that may affect future tax charges
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There are no matters affecting the future tax charges.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Finished goods and goods for resale
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There is no significant difference between the replacement cost of finished goods and goods for resale and their carrying value. Stocks are stated after provisions for impairment of £nil.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Prepayments and accrued income
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Trade debtors and other debtors are stated net of a bad debt provision of £230,602.
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest-free, have no fixed repayment date and are repayable on demand.
Other creditors includes £45,822,781 relating to liability of goods in transit.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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Charged to profit or loss
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A provision has been recognised for the estimated costs associated with warranty repairs and servicing obligations arising from vehicles sold. The provision reflects management’s best estimate of future expenditure required to meet these obligations based on historical data and current expectations.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Allotted, called up and fully paid
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30,000,000 Ordinary shares of $1.00 each
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On incorporation the company issued 30,000,000 ordinary shares of $1 each at par, in order to establish the capital structure of the company.
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
Profit and loss account
The profit and loss account includes all current period retained profits and losses.
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 £130,835. Contributions totalling £69,111 were payable to the fund at the balance sheet date and are included in creditors.
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OMODA & JAECOO UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
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Commitments under operating leases
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At 31 December 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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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.
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The immediate parent undertaking is O&J Automotive Netherlands B.V..
The parent undertaking of the smallest group of undertakings for which group financial statements are drawn up and of which the company is a member is Chery Auto Mobile Co. Ltd, whose registered office is at 8 Changchun Road, Wuhu City, China. Copies of these group financial statements are not available to the public.
In the opinion of the director there is no ultimate controlling party.
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