Company Registration No. 11398451 (England and Wales)
DINGLI MACHINERY UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
Celixir House
Stratford Business & Technology Park
Innovation Way, Banbury Road
Stratford-upon-Avon
Warwickshire
United Kingdom
CV37 7GZ
DINGLI MACHINERY UK LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 6
Director's report
7 - 9
Director's responsibilities statement
10
Independent auditor's report
11 - 14
Profit and loss account
15
Statement of comprehensive income
16
Balance sheet
19
Statement of changes in equity
17
Statement of cash flows
18
Notes to the financial statements
20 - 31
DINGLI MACHINERY UK LIMITED
COMPANY INFORMATION
- 1 -
Director
S. Xu
Company number
11398451
Registered office
Nelson House
2 Hamilton Terrace
Leamington Spa
Warwickshire
England
CV32 4LY
Auditor
TC Group
Celixir House
Stratford Business & Technology Park
Innovation Way, Banbury Road
Stratford-upon-Avon
Warwickshire
United Kingdom
CV37 7GZ
Business address
Unit 12 Navigation Way
Oldbury Road
West Bromwich
B70 9DF
DINGLI MACHINERY UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The director presents the strategic report for the year ended 31 December 2024.
Fair review of the business
The results for the year and the financial position at the year end were considered satisfactory by the directors
Business Review
The sales in the UK market showed slight growth in 2024 compared to 2023 and began to stabilise, benefit from the accumulation of Dingli 's extensive customer base in the UK market in the previous eight years.
Also, this extensive customer network provided a stable foundation for the company's performance.
Additionally, the stability and growth in sales could be attributed to the expansion of product offerings. Dingli UK basically covered all the models of aerial work platform products in the market and acquired some market shares in all aspects.
Principal risks and uncertainties
War in Ukraine
The global and UK macro-economic climate has changed dramatically. The war in Ukraine has had an impact on utility costs and has led to supply shortages causing inflationary pressure on the cost of living with interest rates rising as a result of this. The current state of the UK economy which is challenging
With the supply of machines coming from overseas it has had a direct impact on costs that relate to Dingli, especially given the rise in the cost of fuel and transport
This continues to be a threat to not only Dingli but to companies around the world
Interest rates
High Inflation and Interest Rate Pressures:
Despite inflation consolidating from high levels, the Consumer Price Index (CPI) in early 2024 rose by 3.9% based on prior year, which is higher than the EU and US levels.
The Bank of England raised its benchmark interest rate to 5.25% through 14 rate hikes, leading to higher financing costs for businesses and dampening investment willingness.
Development and performance
The company continues to investigate opportunities to grow the business and extend the range of customer base.
The company also aims to maintain good customer and supplier relations.
Key performance indicators
Turnover has increased from £41,808,244 to £42,387,154.
Gross Profit margin in 2024 is 4.13% (2023: 3.60%).
Trading profit in 2024 of £151,190 (Loss of £288,477 in 2023)
DINGLI MACHINERY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Section 172 Statement
Long term decisions and interests on employees
The Directors understand the Company's business and the evolving environment in which it operates, including the challenges of a competitive marketplace and the ongoing challenges highlighted previously. The Directors remain conscious that decisions made could have an impact on other stakeholders where relevant. By considering the Group’s purpose, vision and values together with its strategic priorities and having a process in place for decision making, we aim to make sure that our decisions are consistent and appropriate in all the circumstances.
The Directors recognise that employees are fundamental to the future growth and success of any company. In 2024, as industry competition becomes increasingly complex, enterprises are facing unprecedented pressure. Building a team of highly skilled and capable individuals has become more urgent than ever. The focus of talent acquisition in 2024 will shift towards "precision," while simultaneously improving the professional level of the entire workforce has become a key priority for employee development this year. Therefore, in 2024, the company will rely on the promotion of a talent cultivation system, emphasizing specialized training and shaping a highly capable, well- qualified, and knowledge-optimized talent team to achieve sustainable development for both the company.
In addition to the four aspects of the training plan from previous years—"standard systems, safety and emergency response, job specifications, and dual improvement"—the company's 2024 training plan will introduce a new theme: "Focus on emerging talents, cultivate comprehensive capabilities, and build a globally specialized, high-level team." This theme aims to equip employees with the professional skills and strategic vision needed to respond to market changes. Training methods will include in-house classes, external expert-led internal training, external training programs, workshop practices, operational drills, outdoor team-building activities, representative training, and extended development programs.
To meet employees' needs for self-improvement and support their personal career development, the company encourages employees to achieve dual advancement in skills and professional qualifications. This will accelerate the cultivation of skilled professionals, enabling the company to quickly develop and deploy specialised talent. Additionally, through departmental representative training and extended learning opportunities for team members, the company will provide training tailored to the core management departments and individuals, focusing on adapting to global strategic layouts (e.g., ESG, international professional knowledge, etc.). This will ensure that relevant personnel can meet the demands of the new work environment while also achieving personal growth and value enhancement.
DINGLI MACHINERY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
How the company fosters business relationships
The company boasts a well-established domestic and international marketing network, along with extensive market expansion experience. It flexibly promotes the simultaneous development of both domestic and international markets, actively advancing its globalisation strategy. In the international market, the company's products have been exported to over 80 countries and regions. Through orderly planning, the company has expanded its overseas sales channels by engaging in equity cooperation, establishing branches or subsidiaries at appropriate times, and forming local teams. These efforts have enabled the company to further strengthen its presence in overseas markets unaffected by trade friction and enhance partnerships with large overseas leasing companies. In the domestic market, the company has consistently focused on cultivating and developing new clients, continuously identifying potential high-quality customer groups. Leveraging its high-quality, differentiated products and exceptional after-sales service, the company has steadily increased customer loyalty and deepened strategic partnerships with premium domestic leasing companies. Supported by its robust marketing network, the company is well-equipped to adapt to changes in both domestic and international market conditions, flexibly adjust sales strategies, and maintain strong risk resilience.
The company always prioritises the customer perspective, adhering to a "customer-centric, demand-driven" approach to optimize the customer experience. Through multi-channel, comprehensive pre-sales, in-sales, and after-sales services, the company continuously builds a strong customer service system.
Customer Training Services:
The company has passed the rigorous audit of IPAF (International Powered Access Federation) and is recognised as an IPAF training centre in China. Several instructors have been certified after strict evaluations. By combining online live-streaming interactive training with offline face-to-face sessions, the company provides high-quality theoretical tests and practical operation training for customers. It focuses on analysing the causes of frequent safety accidents and offers practical recommendations, comprehensively enhancing the safety awareness, operational skills, and maintenance capabilities of both domestic and international customers. The company continuously innovates its training models, offering personalised and diversified training courses tailored to different working conditions, regions, and countries. This ensures that the diverse training needs of customers are met, transforming the "soft power" of service into a "hard support" for the company's development.
After-Sales Maintenance Services:
The company is the first in China to extend the warranty period for all series of aerial work platforms to three years. Beyond the warranty period, the company provides lifelong repair services and free technical support. Additionally, with a customer-centric approach, the company offers a 7×24 "concierge-style" service. Through the CRM (Customer Relationship Management) system, it ensures full visibility of the entire repair and maintenance process, strictly adhering to real-time order acceptance, real-time communication, progress transparency, and synchronised online and offline services. This guarantees comprehensive, high-quality after-sales maintenance services.
DINGLI MACHINERY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
The impact of the company's operations on the community and environment
The directors appreciate that collaboration with charities and community groups helps to create stronger communities and provide insights that enable the board to understand the company’s impact on the community and the consequences of its decisions in the long term. The company supports both local and national charities, and actively encourages its employees to engage in community activities.
The company grasps the trend of electrification and deeply integrates the concept of green and low-carbon development with the direction of product research and development. The company regards green energy saving as an important indicator of new product research and development, and has taken the lead in realising the electrification of a full range of products, the company's electric arm type, scissor type new products have many advantages such as energy saving, environmental protection, no noise, convenient maintenance, low cost, safe and practical power, etc., which can meet the needs of high-speed rail airports, old community renovation, urban construction, dust-free workshops and other fields with higher requirements for environmental protection emissions. The company has newly launched an oil-free and environmentally friendly scissor aerial work platform, which has no hydraulic system, and uses electric push rods to replace traditional cylinders for take-off and landing and steering, fully electric drive, oil-free, noise-free, zero-emission, and a higher degree of environmental protection
DINGLI MACHINERY UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
Desirability to maintain high standards and act fairly
As a global leader in new energy aerial work platforms, the company focuses on electrification, modularisation, and intelligence as its core research and development directions. It is committed to exploring cutting- edge technologies in the global aerial work platform industry and developing world-leading intelligent aerial work platform products. The company has established overseas R&D centres and a Chinese enterprise research institute, currently holding 280 patents, including 131 invention patents, 86 overseas patents, and 5 software copyrights, ranking first in the domestic aerial work platform industry in terms of patent ownership. The company has participated in the formulation of 16 national standards and 9 industry standards and is recognised as a national intellectual property advantage enterprise and a drafting unit for national and industry standards, demonstrating its comprehensive strength in core technology development, product innovation, and intellectual property protection.
The company is designated as a "National Manufacturing Single Champion Demonstration Enterprise" by the Ministry of Industry and Information Technology and has been awarded the "IPAF Pioneer of Access Award," marking China's first breakthrough in this international award. Chairman Xu Shugen was elected as a judge for the "2023 International Awards for Powered Access (IAPA 2023)," becoming the first Chinese judge in the award's history. The "BT44ERT" was shortlisted for the 2024 "IAPA Innovation Award" and "IAPA Product of the Year" (self-propelled boom lifts and spider lifts), while the "JCPT1612PA" won the 2024 "IAPA Product of the Year" (scissor lifts and vertical mast lifts), achieving another milestone for Chinese companies in this award.
The company actively pursues a green development path and continues to lead industry transformation. It is the first to achieve full electrification of its product series and the world's first manufacturer to produce high-reach, high-capacity, modular electric boom lifts. The company's electric boom lift series offers advantages such as energy efficiency, environmental friendliness, noiseless operation, safety, strong performance, easy maintenance, and long battery life, making them suitable for applications in environmentally sensitive areas such as national power grids, nuclear power plants, Sinopec, PetroChina, high-speed railways, airports, tunnels, and residential communities. Currently, the company's full range of boom lifts provides three power source options, with electric-diesel hybrid platforms and working heights ranging from 16 to 44 meters, catering to diverse application scenarios and fully meeting customer needs. The company is also the world's only manufacturer to achieve mass production of oil-free, fully electric eco-friendly scissor lifts, with maximum working heights of 5-16 meters and load capacities of 230-450kg. The entire series eliminates hydraulic systems, using electric actuators instead of traditional cylinders for lifting and steering, offering advantages such as low energy consumption, enhanced safety, easy maintenance, greater comfort, and environmental friendliness.
The company's aerial work platforms have consistently led the industry in product development, with strong innovation capabilities and advanced technical expertise. Its competitive edge is particularly evident in the high- end and differentiated product markets. For example, its road-rail dual- purpose track aerial vehicles, a template lift vehicle with a maximum magnetic force of 500kg, and an upgraded pure electric glass suction lift vehicle with a maximum lifting height of 26.1 meters and a suction force of 1500kg have been highly praised by customers. The company has also broken through technical barriers with its high-reach hybrid rough-terrain scissor lifts, achieving a height of 37 meters and a load capacity of 700kg. By continuously deepening and strengthening its electrification and differentiation strategies, the company will continue to develop and launch more high-end products that meet emerging market demands.
S. Xu
Director
8 July 2025
DINGLI MACHINERY UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
The director presents his annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company was that of the sale of specialised construction equipment.
Results and dividends
The results for the year are set out on page 15.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
S. Xu
Auditor
TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
29,722
26,946
- Electricity purchased
20,737
30,163
50,459
57,109
DINGLI MACHINERY UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
5.48
4.92
- Fuel consumed for owned transport
35.28
33.29
40.76
38.21
Scope 2 - indirect emissions
- Electricity purchased
4.29
6.25
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
-
Total gross emissions
45.05
44.46
Intensity ratio
Tonnes C02 per employee
4.50
4.45
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
Measures taken to improve energy efficiency
Dingli Machinery UK Limited are committed to continually improving the integration of sustainability and carbon reduction into our working environment and business practices. Management continually encourages staff and our supply chain to consider reducing their environmental imports for products and services,
We have increased the amount of online video calling for customer meetings as well as internal management discussions to help reduce the need to travel for business meetings as well as implementing power saving equipment where possible to help decrease consumption across the company
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
DINGLI MACHINERY UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
On behalf of the board
S. Xu
Director
8 July 2025
DINGLI MACHINERY UK LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is 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 director is 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. He 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.
DINGLI MACHINERY UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DINGLI MACHINERY UK LIMITED
- 11 -
Opinion
We have audited the financial statements of Dingli Machinery UK Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit 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.
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
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
DINGLI MACHINERY UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DINGLI MACHINERY UK LIMITED
- 12 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the director's report and from the requirement to prepare a strategic report.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
DINGLI MACHINERY UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DINGLI MACHINERY UK LIMITED
- 13 -
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach was as follows:
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
Testing key income lines, in particular cut-off, for evidence of management bias.
Obtaining third party confirmation of material bank balances.
Documenting and verifying all significant related party and consolidation balances and transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
DINGLI MACHINERY UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DINGLI MACHINERY UK LIMITED
- 14 -
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 Bullock FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
8 July 2025
Celixir House
Stratford Business & Technology Park
Innovation Way, Banbury Road
Stratford-upon-Avon
Warwickshire
United Kingdom
CV37 7GZ
DINGLI MACHINERY UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£
£
Turnover
1
42,387,154
41,808,244
Cost of sales
(40,636,272)
(40,301,281)
Gross profit
1,750,882
1,506,963
Administrative expenses
(1,633,429)
(1,801,202)
Operating profit/(loss)
3
117,453
(294,239)
Interest receivable and similar income
5
33,737
5,762
Profit/(loss) before taxation
151,190
(288,477)
Tax on profit/(loss)
6
(41,272)
72,119
Profit/(loss) for the financial year
109,918
(216,358)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DINGLI MACHINERY UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2024
2023
£
£
Profit/(loss) for the year
109,918
(216,358)
Other comprehensive income
-
-
Total comprehensive income for the year
109,918
(216,358)
DINGLI MACHINERY UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
200,000
2,881,397
3,081,397
Year ended 31 December 2023:
Loss and total comprehensive income
-
(216,358)
(216,358)
Balance at 31 December 2023
200,000
2,665,039
2,865,039
Year ended 31 December 2024:
Profit and total comprehensive income
-
109,918
109,918
Balance at 31 December 2024
200,000
2,774,957
2,974,957
DINGLI MACHINERY UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
1,679,425
1,032,524
Income taxes paid
(4,634)
(101,758)
Net cash inflow from operating activities
1,674,791
930,766
Investing activities
Purchase of tangible fixed assets
(31,500)
(25,995)
Interest received
33,737
5,762
Net cash generated from/(used in) investing activities
2,237
(20,233)
Net increase in cash and cash equivalents
1,677,028
910,533
Cash and cash equivalents at beginning of year
2,643,949
1,733,416
Cash and cash equivalents at end of year
4,320,977
2,643,949
DINGLI MACHINERY UK LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 19 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
7
101,717
96,872
Current assets
Stocks
8
24,080,253
11,858,553
Debtors
9
21,758,564
11,803,314
Cash at bank and in hand
4,320,977
2,643,949
50,159,794
26,305,816
Creditors: amounts falling due within one year
10
(47,261,125)
(23,513,431)
Net current assets
2,898,669
2,792,385
Total assets less current liabilities
3,000,386
2,889,257
Provisions for liabilities
7
(25,429)
(24,218)
Net assets
2,974,957
2,865,039
Capital and reserves
Called up share capital
13
200,000
200,000
Profit and loss reserves
2,774,957
2,665,039
Total equity
2,974,957
2,865,039
The financial statements were approved and signed by the director and authorised for issue on 8 July 2025
S. Xu
Director
Company Registration No. 11398451
DINGLI MACHINERY UK LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
31 December 2024
- 20 -
1
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
40,760,255
37,115,448
Republic of Ireland
1,074,136
4,541,288
Europe
126,636
31,105
China
426,127
120,403
42,387,154
41,808,244
2024
2023
£
£
Other revenue
Interest income
33,737
5,762
Turnover is made up of on one class of item and therefore a summary is not required
2
Accounting policies
Company information
Dingli Machinery UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Nelson House, 2 Hamilton Terrace, Leamington Spa, Warwickshire, England, CV32 4LY. The company's trading address is Unit 12, Navigation Way, Oldbury Road, West Bromwich, West Midlands B70 9DF.
2.1
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.
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. The principal accounting policies adopted are set out below.
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 21 -
2.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
2.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
2.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% Reducing Balance
Motor vehicles
25% Reducing Balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
2.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 22 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
2.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
2.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
2.8
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 23 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
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.
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 24 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
2.9
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
2.10
Taxation
The tax expense represents the sum of the tax currently payable 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.
2.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 25 -
2.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
3
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange (gains)/losses
3,292
Fees payable to the company's auditor for the audit of the company's financial statements
10,400
10,400
Depreciation of owned tangible fixed assets
26,655
27,235
Operating lease charges
236,299
218,006
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
4
4
Technician
2
2
Engineer
4
4
Total
10
10
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Employees
(Continued)
- 26 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
547,092
462,256
Social security costs
57,623
46,925
Pension costs
12,191
10,237
616,906
519,418
5
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
33,737
5,762
6
Taxation
2024
2023
£
£
Current tax
Foreign current tax on profits for the current period
4,634
Deferred tax
Origination and reversal of timing differences
36,638
(72,119)
Total tax charge/(credit)
41,272
(72,119)
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Taxation
(Continued)
- 27 -
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
151,190
(288,477)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
37,798
(72,119)
Change in unrecognised deferred tax assets
1,211
(310)
Permanent capital allowances in excess of depreciation
(7,875)
(6,499)
Depreciation on assets not qualifying for tax allowances
6,663
6,809
Foreign tax
3,475
Taxation charge/(credit) for the year
41,272
(72,119)
7
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2024
14,730
140,544
155,274
Additions
9,000
22,500
31,500
At 31 December 2024
23,730
163,044
186,774
Depreciation and impairment
At 1 January 2024
9,292
49,110
58,402
Depreciation charged in the year
1,922
24,733
26,655
At 31 December 2024
11,214
73,843
85,057
Carrying amount
At 31 December 2024
12,516
89,201
101,717
At 31 December 2023
5,438
91,434
96,872
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
8
Stocks
2024
2023
£
£
Finished goods and goods for resale
24,080,253
11,858,553
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
21,430,262
10,209,132
Corporation tax recoverable
21,472
21,472
Other debtors
49,800
1,449,800
Prepayments and accrued income
220,648
51,101
21,722,182
11,731,505
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 11)
36,382
71,809
Total debtors
21,758,564
11,803,314
10
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
112,062
31,427
Amounts owed to group undertakings
45,830,904
23,342,773
Taxation and social security
1,297,625
71,271
Other creditors
5,959
3,167
Accruals and deferred income
14,575
64,793
47,261,125
23,513,431
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
25,429
24,218
36,382
71,809
2024
Movements in the year:
£
Asset at 1 January 2024
(47,591)
Charge to profit or loss
36,638
Asset at 31 December 2024
(10,953)
The deferred tax asset of £36,382 set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. £6,357 of the deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
12
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,191
10,237
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
13
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
200,000
200,000
200,000
200,000
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
14
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
144,501
166,001
Between two and five years
373,333
117,835
517,834
283,836
15
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2024
2023
£
£
Consultancy fees
281,407
575,633
2024
2023
Amounts due to related parties
£
£
Key management personnel
-
51,123
Other information
The company has taken advantage of the exemption available in accordance with FRS102 'Section 33
Paragraph 33.1A' not to disclose transactions entered into between two or more members of a group, as
the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
16
Ultimate controlling party
The company is a wholly owned subsidiary of Zhejiang Dingli Machinery Co. Ltd, incorporated in China. The parent company has no single controlling shareholder. The parent company's trading address is 1255 Baiyun South Road, Leidian Town, Deqing, China. Consolidated accounts for the group are available from that address.
DINGLI MACHINERY UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
17
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
109,918
(216,358)
Adjustments for:
Taxation charged/(credited)
41,272
(72,119)
Investment income
(33,737)
(5,762)
Depreciation and impairment of tangible fixed assets
26,655
27,235
Movements in working capital:
(Increase)/decrease in stocks
(12,221,700)
1,952,048
(Increase)/decrease in debtors
(9,990,677)
8,484,099
Increase/(decrease) in creditors
23,747,694
(9,136,619)
Cash generated from operations
1,679,425
1,032,524
18
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
2,643,949
1,677,028
4,320,977
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