Company registration number 07277251 (England and Wales)
Charity registration number 1139466 (England and Wales)
CHINA ART FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
CHINA ART FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr M Gao
Ms P Lam
Charity number
1139466
Company number
07277251
Registered office
3rd Floor
114a Cromwell Road
London
SW7 4AG
Accountants
BGM Helmores Limited
3rd Floor
114a Cromwell Road
Kensington
London
SW7 4AG
CHINA ART FOUNDATION
CONTENTS
Page
Trustees' report
1 - 3
Statement of financial activities
4
Balance sheet
5
Notes to the financial statements
6 - 11
CHINA ART FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 JUNE 2025
- 1 -

The Trustees present their annual report and financial statements for the year ended 30 June 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Foundation's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".

Objectives and activities

The Foundation’s objects, as set out in its governing document, are to:

- advance public knowledge and understanding of Chinese art, culture and heritage; and

- promote education in the history and development of Chinese traditions and culture.

The aims of the Foundation remain unchanged; however, the ways in which these aims are delivered continue to evolve through strategic collaboration and partnership.

The Foundation’s core purpose is to foster a deeper understanding of the history and traditions of Chinese art and culture across China, Europe and the United States. This includes supporting learning and engagement within the contemporary cultural community in its broadest sense—artists, educators, curators, critics and museum professionals.

A key objective is to promote the international exchange of knowledge. The Foundation seeks to ensure that Western audiences have meaningful opportunities to engage with the richness and complexity of Chinese cultural history, while also enabling Chinese audiences to access both the historical and contemporary cultures of the West. By doing so, the Foundation supports practicing artists from all regions to explore, interpret and respond to each other’s artistic traditions.

Public benefit

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Foundation should undertake.

Grant making policy

The Foundation's policy is to seek donations and grants from organisations to cover costs and meet ongoing liabilities.

Achievements and performance
Significant activities and achievements against objectives

Although this has been a relatively quiet year for the Foundation, we are proud to have facilitated Zhu Jinshi’s participation in the 60th Venice International Art Biennale through a generous donation from The Hsieh Family Foundation.

Zhu Jinshi’s monumental installation *Rice Paper Pagoda* was exhibited within the China Pavilion’s project *Atlas: Harmony in Diversity*, curated by Professor Wang Xiaosong (Zhejiang University) and independent curator Jiang Jun. The work comprises thousands of sheets of rice paper combined with bamboo, cotton thread, LED light strips and metal structures. Its sculptural form—created through hand‑crumpled paper—evokes geological surfaces and recalls the architectural language of ancient temples, reimagined through the purity and lightness of rice paper. Originally completed in Chengdu, the installation was inspired in part by the nearby former residence of Tang Dynasty poet Du Fu, whose lines on creating expansive, sheltering spaces resonate strongly with the artwork’s conceptual foundation.

CHINA ART FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 2 -

Zhu Jinshi has incorporated rice paper into his installations since the late 1980s as a means of expanding conceptual expression and spatial form. His major works include *Wave of Materials*, jointly collected by the Los Angeles County Museum of Art and the Smart Museum of Art (University of Chicago); *Tao of Xuan Paper*, held by the Vancouver Art Gallery; and *Boat*, exhibited internationally in Shanghai, Hong Kong, London, Miami, San Francisco and San Antonio.

*Atlas: Harmony in Diversity* ran from 20 April to 24 November 2024 at the Arsenale in Venice.

Financial review

Total income for the year was £3,146, all unrestricted. Total expenditure was £3,623, comprising solely governance and support costs (2024 included £71,191 of restricted charitable expenditure). This resulted in a net deficit of £477 (2024 deficit: £91). The charity held £3,076 in cash (2024: £3,131). There were no debtors (2024: £71,191) and creditors of £5,058 (2024: £75,827), representing trade creditors and accruals.

Going concern

Despite operating at a minimal level and holding negative unrestricted reserves, the Trustees consider the charity able to meet its limited obligations as they fall due and continue as a going concern. Administrative costs are low and predictable, and the charity does not have significant ongoing financial commitments, and the Trustees are able to manage cash flow through close cost control and limiting activity to available resources.

The reduction in unrestricted reserves, from £(1,505) to £(1,982) at 30 June 2025, reflects a period of reduced activity arising in part from the wider economic downturn experienced across the art and cultural sector. This has delayed the recommencement of the charity’s planned programme of activities and the generation of unrestricted income during the year.

The charity continues to operate with negative unrestricted reserves, and the Trustees are taking steps to address these deficits in the medium term. The Trustees consider the current position to be temporary and expect that, once conditions within the art sector improve and the charity is able to recommence its activities, operating surpluses will be generated and the charity’s surplus fund position will be restored over time. No restricted funds existed at the year end.

Structure, governance and management

The Foundation is a company limited by guarantee governed by its Articles of Association.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr M Gao
Ms P Lam
Recruitment and appointment of trustees

The appointment and induction of new Trustees is reviewed regularly to cover areas of expertise required by the charity. The Foundation may by ordinary resolution of its members or the consent of the majority of the board of directors, appoint new trustees. The training requirement of current Trustees is reviews regularly at Trustees meetings.

The organisational structure of China Art Foundation consists of a Board of Trustees which consults and/or meets on a regular basis to consider and review the charity's activities, general progress and current financial position. Decisions are then made on matters as appropriate in order to meet the objective of the charity.

CHINA ART FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -

The Trustees' r eport was approved by the Board of Trustees.

Ms P Lam
Trustee
31 March 2026
CHINA ART FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
(INCLUDING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 30 JUNE 2025
- 4 -
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
2025
2024
2024
2024
Notes
£
£
£
£
Income from:
Donations and legacies
3
3,136
3,115
71,191
74,306
Investments
4
10
10
-
10
Total income
3,146
3,125
71,191
74,316
Expenditure on:
Charitable activities
5
3,623
3,216
71,191
74,407
Total expenditure
3,623
3,216
71,191
74,407
Net expenditure and movement in funds
(477)
(91)
-
(91)
Reconciliation of funds:
Fund balances at 1 July 2024
(1,505)
(1,414)
-
(1,414)
Fund balances at 30 June 2025
(1,982)
(1,505)
-
(1,505)

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

CHINA ART FOUNDATION
BALANCE SHEET
AS AT
30 JUNE 2025
30 June 2025
- 5 -
2025
2024
Notes
£
£
£
£
Current assets
Debtors
10
-
71,191
Cash at bank and in hand
3,076
3,131
3,076
74,322
Creditors: amounts falling due within one year
11
(5,058)
(75,827)
Net current liabilities
(1,982)
(1,505)
The funds of the Foundation
Unrestricted funds
13
(1,982)
(1,505)
(1,982)
(1,505)

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2025. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 31 March 2026
Ms P Lam
Trustee
CHINA ART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 6 -
1
Accounting policies
Charity information

China Art Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 3rd Floor, 114a Cromwell Road, Kensington, London, SW7 4AG.

1.1
Basis of preparation

The financial statements have been prepared in accordance with the Foundation's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)". The Foundation is a Public Benefit Entity as defined by FRS 102.

The Foundation has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.

The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary a mounts 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.

1.2
Going concern

The financial statements have been prepared on a going concern basis. At the year end the charity held negative unrestricted reserves of £1,982 and had net current liabilities of £1,982, of which £5,058 relates to trade creditors and accruals arising primarily from accountancy and governance costs. These liabilities have historically been settled through the ongoing financial support of the Trustees, who continue to fund the charity’s administrative expenditure through donations in kind and direct settlement of costs where required.

The reduction in unrestricted reserves reflects a period of significantly reduced activity, which has been driven in part by a wider economic downturn experienced across the art and cultural sector. This has adversely affected the charity’s ability to recommence its planned programme of activities and generate unrestricted income during the period.

The Trustees have confirmed that they will continue to provide such financial support for the foreseeable future and for a period of at least twelve months from the date of approval of these financial statements. The charity operates at a minimal cost base with predictable administrative expenses and does not currently rely on third‑party unrestricted income to meet its obligations.

The Trustees consider the current deficit on unrestricted funds to be temporary. Once conditions within the wider art sector improve and the charity is able to recommence its activities, the Trustees expect the charity to return to generating operating surpluses, which will enable the restoration of its surplus fund position over time.

In light of the Trustees’ ongoing commitment to support the charity, their demonstrated history of meeting its administrative costs, and the anticipated recovery of the sector, the Trustees consider that the charity will continue to be able to meet its liabilities as they fall due. Accordingly, the going concern basis of preparation remains appropriate.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

CHINA ART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 7 -
1.4
Income
Income is recognised when the Foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Foundation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6
Cash and cash equivalents

Cash and cash equivalents 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.

1.7
Financial instruments

The Foundation 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 Foundation's balance sheet when the Foundation becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

CHINA ART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 8 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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 p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derecognition of financial liabilities

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

2
Critical accounting estimates and judgements

In the application of the Foundation's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There were no critical accounting judgements and estimates made by the Trustees in the preparation of these financial statements.

3
Income from donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2025
2025
2025
2024
2024
2024
£
£
£
£
£
£
Donations and gifts
3,136
-
3,136
3,115
71,191
74,306
4
Income from investments
Unrestricted
Unrestricted
funds
funds
2025
2024
£
£
Interest receivable
10
10
CHINA ART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 9 -
5
Expenditure on charitable activities
Charitable Expenditure
Charitable Expenditure
2025
2024
£
£
Direct costs
Exhibition Costs
-
71,191
Share of support and governance costs (see note 6)
Support
65
80
Governance
3,558
3,136
3,623
74,407
Analysis by fund
Unrestricted funds
3,623
3,216
Restricted funds
-
71,191
3,623
74,407
6
Support costs allocated to activities
2025
2024
£
£
Bank charges
65
3
Website hosting
-
77
Governance costs
3,558
3,136
3,623
3,216
Analysed between:
Charitable Expenditure
3,623
3,216
2025
2024
Governance costs comprise:
£
£
Accountancy
3,558
3,136
3,558
3,136
7
Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Foundation during the year. No trustee expenses were incurred during the reporting period.

CHINA ART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 10 -
8
Employees

The average head count and monthly number of employees during the year was:

2025
2024
Number
Number
Total
0
0
There were no employees whose annual remuneration was more than £60,000.
9
Taxation

The charity is exempt from tax ation on its activities because all its income is applied for charitable purposes.

10
Debtors
2025
2024
Amounts falling due within one year:
£
£
Other debtors
-
71,191
11
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
3,208
3,136
Accruals and deferred income
1,850
72,691
5,058
75,827
12
Restricted funds

The restricted funds of the charity compri se the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be use d.

Previous year:
At 1 July 2023
Incoming resources
Resources expended
At 30 June 2024
£
£
£
£
Zhu Jinsh's exhibit at the Venice Biennale
-
71,191
(71,191)
-
CHINA ART FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 11 -
13
Unrestricted funds

The unrestricted funds of the charity compri se the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be use d. The se include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 July 2024
Incoming resources
Resources expended
At 30 June 2025
£
£
£
£
General funds
(1,505)
3,146
(3,623)
(1,982)
Previous year:
At 1 July 2023
Incoming resources
Resources expended
At 30 June 2024
£
£
£
£
General funds
(1,414)
3,125
(3,216)
(1,505)
14
Related party transactions
Transactions with related parties

During the year, the Foundation received donation income from Pearl Lam in the amount of £3,136 (2024: £3,115).

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