Company registration number 05372017 (England and Wales)
MLM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
MLM LIMITED
COMPANY INFORMATION
Director
Mr L X Zhang
Secretary
Mr L X Zhang
Company number
05372017
Registered office
Office 402
82 King Street
Manchester
M2 4WQ
Auditor
Bankers
ABN AMRO
4th Floor
5 Aldermanbury Square
London
EC2V 7HR
MLM LIMITED
CONTENTS
Page
Strategic report
1 - 4
Director's report
5 - 6
Independent auditor's report
7 - 10
Statement of income and retained earnings
11
Statement of financial position
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
MLM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The director presents the strategic report for the year ended 31 December 2025.

Review of the business

Net Turnover

Compared to 2024, the net turnover in 2025 has decreased from GBP 19.9 million to GBP 8.6 million. The decreased turnover

was a result of decreased volume traded out of the UK market.

Gross Margin

The gross margin has decreased from GBP 1.02 million in 2024 to GBP 0.86 million. The gross margin as a percentage of the

net turnover increased to 9.92% in 2025 from 5.10% in 2024.

Income after Tax

The profit before tax was GBP 354,273 for 2025 while it was GBP 255,761 for 2024.

Liquidity and Solvency

As of 31 December 2025, the quick ratio is 1.557 with a tangible net worth of GBP 5,309,995 with the fixed fee per sold metric ton.

Cash Flow and Financing

Cash and bank accounts are sufficient to fulfil liabilities as they become due in the normal course of business.

Principal Risks and Uncertainties

Risk Appetite

The Company manages risk within those levels related to its core business activity and experience, striving to always minimize associated risks by informing and updating itself through qualified external sources and in regular internal management meetings and reporting. Emphasis is spent on compliance with employment laws, best practices in management techniques, and updating internal policy to comply with rules and regulations – both national and international. Therefore, the impact of described risks is kept low in accordance with the Company’s low appetite for risk.

Strategic Risks

Demand for ACN’s Services and Product

The Company is primarily focused on the procurement of recovered paper for export into global markets. The Company’s primary customer, Nine Dragons Paper (Holdings) Ltd (“ND Paper”), continues to be profitable, investing in new technologies and plants across the USA, China, Vietnam and Malaysia.

The limiting factor for the current reporting year and the near future is the rate at which quality from sourcing markets within Europe and the U.K. will be able to meet ever increasing import regulations for recovered paper as well as restrictions on the volume of trade afforded by licenses, customs, environmental requirements for said material because of policy changes by the various governments. Therefore, the Company is expanding its sales channels, continuing with strict quality control procedures, and developing new systems which will meet regulatory requirements.

Inspection standards for import

The Company’s main risk is to maintain its ability to export materials to the global market. Pulp and recovered material loaded into every container needs to be rigorously checked, whilst other destinations develop their own inspection requirements. The Company monitors any changes in regulations to ensure that procedures and policies are implemented to facilitate the export of materials. The Company can manage compliance and quality risks within acceptable limits.

MLM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Principal Risks and Uncertainties

Reputation

The Company has a strong brand name in the business and is known to be a good partner for suppliers, vendors and customers. Suppliers and vendors are paid in a timely manner and all third parties are treated with respect. The Company has a strong focus on healthy business relationships and providing superior service to our customers and suppliers.

Operational Risks

Internal Control

To avoid cases of fraud and corruption, the Company has a strong system of internal controls and organizational structure to support the ongoing integrity of business growth within existing and new markets.

ERP System

The Company employs SAP since October 2016 as its Enterprise Resource Planning (ERP) platform which strengthens operational control and business intelligence. This system provides additional benefits in efficiency for the business and reduces operational costs.

Staff

The Company actively reviews and updates organizational structure and staffing levels where necessary to retain sufficient operational capacity but also balance operational costs with budgeted volume targets and revenue which have been impacted by changing market conditions and regulations as stated earlier.

Reward System

Since its inception, the Company has employed a reward system that has been refined over time as the business has grown in scale. The reward system is a results-driven model whereby all employees may become eligible to receive additional compensation based on the group results and individual contribution of defined objectives. This reward system does not expose the Company to fraud risks.

Financial Risks

Foreign Currency Exposure

MLM Limited does not trade in foreign currency. Most purchase transactions are handled in pound sterling (GBP) with a part of the purchase volume in Euros (EUR). As the Company buys and sells in the same currency, the foreign currency risk is limited.

Valuation and Sales of Packaging Recover Notes (PRNs) MLM Limited is accredited by the UK Environment Agency to issue PERNs against the volume of packaging material it exports from the UK to accredited mills. These PERNs are sold on a spot basis throughout the calendar year.

The difference between the initial valuation of these PERNs and the ultimate sales price can result in a profit of loss for the Company. To reduce the risk of loss, the general Manager has taken sole responsibility for the sales of these PERNs to reduce exposure and maximize return. New SAP systems are set up to help monitor PERN cost and value. Export controls to PERN accredited mills are in place and will be reviewed to ensure compliance and PERN value can be claimed.

The valuation of PERNs is performed on a monthly basis linked to prevailing market conditions in order to minimize the risk of loss. PERN valuations are signed off by a Company director and audited internally. Use of the PERN revenue is controlled through an approval process.

MLM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
Principal Risks and Uncertainties

Accounts Receivable

All of MLM’s sales of recovered materials are made to its parent company, America Chung Nam LLC, who in turn sells the material to final customers. Consequently, most accounts receivable are from the parent company. America Chung Nam LLC. is a financially healthy and stable organization. All sales to their end customers are covered by letters of credit and no purchase orders are taken without a sales order with letter of credit in place, further limiting the risk of non-recoverability. Accounts Receivable with companies other than America Chung Nam LLC. are covered via contra business or through credit insurance.

Interest Rate Risk

MLM Limited has no loans. There is no interest rate risk.

Financing Possibilities

Due to the stability and financial health of the Company there are no risks in case the Company wishes to employ external financing.

Future Business Development

Financial position

The export tonnage budget for 2026 is 133k Metric Tons. The Company continues to receive the full support of the group and shareholders to maintain a stable and long-term position in the UK market despite challenging conditions. The Company will continue to review business activity and maintains the ability to increase commission levels for inter-Company sales as necessary to retain profitability

Management has undertaken an active and thorough review of all business practices, procedures and protocols to make sure the Company is suitably positioned for the change in regulations on the importation of recovered paper in various countries that are preparing to make changes in their control procedures for imported raw materials. In addition, the Company is expanding its coverage to serve more customers in SE Asian markets with the support of a sales team employed by the group. This is aided by the fact that the Company’s primary customer, Nine Dragons Paper Industries, has also continued to expand its operations outside of China, namely in the USA, Vietnam, and Malaysia.

Besides enhancing or generating new sources of revenue, a primary goal of the company’s business plan is to manage profitability as a result of controlling costs – both trade and non-trade related. All vendor contracts have been reviewed and as well as management fees with an eye to lower cost and retain service functionality.

The expectation for 2026 is that gross margin will remain in line with that of 2025 and income after tax will remain as well. Overall, there is a healthy and growing demand for packaging materials, particularly with the pressure on retail to reduce plastic packaging and replace with biodegradable paper options, along with the increased demand in packaging for the on-line businesses. PERNs provide a unique revenue for U.K.-sourced material compared to other sourcing markets within Europe and abroad. This provides a direct benefit for the Company as it takes advantage this revenue stream to secure additional market share compared to non-PERN generating buyers.

Staffing

The Company has a director who has proven his capability to manage day-to-day business, communicate the strategic vision of the group, and support the local staff at a senior level. Staff levels have been adjusted to keep in line with expected business volume while retaining operational coverage to generate sufficient purchasing capacity. Those processes which can be more efficiently shared in a centralized service center of the group have been outsourced. The Company has retained key staff members who represent a core group of fully trained and highly motivated individuals who are engaged in the business to provide a high quality of service and operational control at the local level.

MLM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
Future Business Developments

Internal control

As the Company has evolved during the last several years, internal audit and process controls have created a more stable operating environment, Management is able to realize the benefit of the ERP system and continuous improvement of key processes to reduce risk to the business. Management believes the internal controls are sufficiently robust and therefore sufficient for obtaining an unqualified auditor’s report in future years.

Investments

The Company has no investments planned for next year.

Other information and explanations

Financial Reporting

The Company has a solid reporting system.

Rules and Legislation

The Company makes sure to comply with rules and legislation to minimize risk. Suppliers and vendors are instructed of our expectations and forewarned and educated as to the impact of non-compliance with national and international regulations and standard practices.

Code of Conduct

The Company has five main corporate culture values which comprise a standard code of conduct involving, Communication, Teamwork, Professionalism, Respect and Loyalty. The Company has implemented training and development programs which are directed by HR and a local office manager. Regular performance evaluations and one on one staff meetings continue to be held between staff and direct supervisors/​managers. Along with the Employee Handbook, the Company has an active approach towards enforcing a strong code of conduct with its employees.

Research and Development

The Company has within the buying team, developed sales to 3 rd party customers to grow the business.

On behalf of the board

Mr L X Zhang
Director
9 April 2026
MLM LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 5 -

The director presents the annual report and financial statements for the year ended 31 December 2025.

Principal activities

The Company procure s recovered materials for export to Asia. MLM’s sales of recovered materials are made to its parent company America Chung Nam LLC, who in turn sells the material to its end customers.

Results and dividends

The results for the year are set out on page 11.

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:

Mr L X Zhang
Auditor

The auditor, Mitchell Charlesworth (Audit) Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

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; 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 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. 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.

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.

MLM LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 6 -
Statement of disclosure to auditor

Each of the director in office at the date of approval of this annual report confirms that:

- so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

- the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board
Mr L X Zhang
Director
9 April 2026
MLM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MLM LIMITED
- 7 -
Opinion

We have audited the financial statements of MLM Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of income and retained earnings, the statement of financial position, 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 2025 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.

Basis for opinion

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.

Other information

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.

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 r eport 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.

MLM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MLM LIMITED (CONTINUED)
- 8 -
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 identifie d material misstatements in the strategic report or the director's r eport.

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.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, 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.

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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

MLM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MLM LIMITED (CONTINUED)
- 9 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- the company's own assessment of the risks that irregularities may occur either as a result of fraud or error;

- the results of our enquiries of management and members of the Board of Directors of their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in the timing of the recognition of revenue and the completeness of trade payables. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the importing and exporting regulations, the Companies Act, and local taxation legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included Producer Responsibility (Packaging Waste) Regulations 2005 in the UK, and Data Protection Regulations.

MLM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MLM LIMITED (CONTINUED)
- 10 -
Audit response to risks identified

As a result of performing the above, we identified the timing of the recognition of revenue as the key audit matter related to the p otential risk of fraud.

In addition to the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a d irect effect on the f inancial s tatements;

- enquiring of management and members of the Board of Directors concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance and reviewing correspondence with relevant authorities where matters identified were significant; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Use of our 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.

Jonathan Lucas (Senior Statutory Auditor)
For and on behalf of , Statutory Auditor
Accountants
9 April 2026
MLM LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
2025
2024
Notes
£
£
Revenue
3
8,616,299
19,923,299
Cost of sales
(7,761,210)
(18,907,243)
Gross profit
855,089
1,016,056
Administrative expenses
(680,387)
(857,668)
Other operating income
90,851
-
0
Operating profit
4
265,553
158,388
Investment income
7
88,720
97,373
Profit before taxation
354,273
255,761
Tax on profit
8
(89,788)
(48,889)
Profit for the financial year
264,485
206,872
Retained earnings brought forward
4,963,491
4,756,619
Retained earnings carried forward
5,227,976
4,963,491

The income statement has been prepared on the basis that all operations are continuing operations.

MLM LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 12 -
2025
2024
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
41,558
4,989
Current assets
Inventories
10
136,485
414,486
Trade and other receivables
11
3,155,789
5,447,741
Cash and cash equivalents
11,263,308
13,501,778
14,555,582
19,364,005
Current liabilities
12
(9,285,768)
(14,322,593)
Net current assets
5,269,814
5,041,412
Total assets less current liabilities
5,311,372
5,046,401
Provisions for liabilities
Deferred tax liability
13
1,377
891
(1,377)
(891)
Net assets
5,309,995
5,045,510
Equity
Called up share capital
15
1,000
1,000
Share premium account
16
81,019
81,019
Retained earnings
5,227,976
4,963,491
Total equity
5,309,995
5,045,510

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 9 April 2026
Mr L X Zhang
Director
Company registration number 05372017 (England and Wales)
MLM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
20
(2,235,710)
12,928,420
Income taxes paid
(48,608)
-
0
Net cash (outflow)/inflow from operating activities
(2,284,318)
12,928,420
Investing activities
Purchase of property, plant and equipment
(43,544)
(4,186)
Proceeds from disposal of property, plant and equipment
672
-
0
Interest received
88,720
97,373
Net cash generated from investing activities
45,848
93,187
Net (decrease)/increase in cash and cash equivalents
(2,238,470)
13,021,607
Cash and cash equivalents at beginning of year
13,501,778
480,171
Cash and cash equivalents at end of year
11,263,308
13,501,778
MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 14 -
1
Accounting policies
Company information

MLM Limited is a private company limited by shares incorporated in England and Wales. The registered office is Office 402, 82 King Street, Manchester, M2 4WQ.

1.1
Basis of preparation

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 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

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

1.3
Revenue

Turnover represents amounts receivable for goods exported during the year, net of VAT and trade discounts.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

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.

Other income

The sale of Packaging Waste Export Recycling Notes (PERNs) is recognised once an agreement has been made to make a sale. The company decides, based on the market price, when to offer PERNs for sale.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, 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:

Leasehold improvements
over the lease term
Plant and machinery
10% of cost
Fixtures, fittings & equipment
10% of cost
Computer equipment
20% of cost

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.

MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.5
Impairment of non-current 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.

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.

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to sell. The cost of inventories is based on a weighted average method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.8
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

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

MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
Basic financial assets

Basic financial assets, which include trade and other receivables 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.

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 trade and other payables, and loans from fellow group companies, 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 paymen 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 payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -
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 s ubsequently 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 th r ough 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.

1.9
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

Deferred tax

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

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

1.10
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases
As lessee
MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 18 -

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.

1.13
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

The Directors do not believe there are any critical judgements or key sources of estimation uncertainty.

3
Revenue

An analysis of the company's revenue is as follows:

2025
2024
£
£
Revenue analysed by class of business
Revenue in relation to the company's principal activity
8,490,506
19,513,170
Revenue in relation to sale of Packaging Export Recovery Notes (PERNs)
125,793
410,129
8,616,299
19,923,299
2025
2024
£
£
Revenue analysed by geographical market
United States of America
8,045,864
19,513,170
UK and EC Countries
570,435
410,129
8,616,299
19,923,299
2025
2024
£
£
Other revenue
Interest income
88,720
97,373
MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(171,194)
(30,286)
Depreciation of property, plant and equipment
6,303
3,332
(Profit)/loss on disposal of property, plant and equipment
-
44
Operating lease charges
65,456
55,861
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,100
12,400
For other services
All other non-audit services
3,250
3,350
6
Employees

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

2025
2024
Number
Number
Management and administrative staff
7
9

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
517,235
501,208
Social security costs
49,387
57,184
Pension costs
26,409
25,808
593,031
584,200

The directors received no remuneration in this or the previous year.

MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
7
Investment income
2025
2024
£
£
Interest income
Interest on bank deposits
88,720
97,373
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
89,302
48,608
Deferred tax
Origination and reversal of timing differences
486
281
Total tax charge
89,788
48,889

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
354,273
255,761
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
88,568
63,940
Tax effect of expenses that are not deductible in determining taxable profit
1,220
2,827
Utilisation of tax losses
-
0
(17,878)
Taxation charge for the year
89,788
48,889
MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
9
Property, plant and equipment
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2025
-
0
-
0
16,215
73,443
89,658
Additions
40,558
493
-
0
2,493
43,544
Disposals
-
0
-
0
-
0
(683)
(683)
At 31 December 2025
40,558
493
16,215
75,253
132,519
Depreciation and impairment
At 1 January 2025
-
0
-
0
16,215
68,454
84,669
Depreciation charged in the year
4,506
37
-
0
1,760
6,303
Eliminated in respect of disposals
-
0
-
0
-
0
(11)
(11)
At 31 December 2025
4,506
37
16,215
70,203
90,961
Carrying amount
At 31 December 2025
36,052
456
-
0
5,050
41,558
At 31 December 2024
-
0
-
0
-
0
4,989
4,989
10
Inventories
2025
2024
£
£
Finished goods
136,485
414,486
11
Trade and other receivables
2025
2024
Amounts falling due within one year:
£
£
Trade receivables
10,316
11
Amounts owed by group undertakings
3,020,278
5,133,562
Other receivables
79,865
294,273
Prepayments and accrued income
45,330
19,895
3,155,789
5,447,741
MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
12
Current liabilities
2025
2024
£
£
Trade payables
157,115
1,389,121
Amounts owed to group undertakings
8,846,392
12,326,198
Corporation tax
89,302
48,608
Other taxation and social security
19,881
37,899
Accruals and deferred income
173,078
520,767
9,285,768
14,322,593
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
1,377
891
2025
Movements in the year:
£
Liability at 1 January 2025
891
Charge to profit or loss
486
Liability at 31 December 2025
1,377
14
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,409
25,808

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.

15
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
16
Share premium account

There was no movement on the share premium account during the financial year.

17
Operating lease commitments
As lessee

The company leases offices under an operating lease.

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:

2025
2024
£
£
Within 1 year
46,616
33,743
Years 2-5
64,904
5,624
111,520
39,367
18
Related party transactions
Remuneration of key management personnel

There is no remuneration paid to the Key Management Personnel as they are remunerated through other group companies.

Transactions with related parties

Although the company is a wholly owned subsidiary, the group accounts are not publicly available, and therefore the company has not taken advantage of the exemptions available concerning the disclosure of group transactions.

During the year the company entered into the following transactions with related parties:

Other information

During the year the company invoiced goods totalling £8,030,097 (2024 - £19,513,170) to fellow group member and parent company America Chung Nam LLC. The balance due from this company at the year-end was £3,020,278 (2024 - £5,131,758), which is included in Amounts due from group undertakings.

The balance due to fellow group member America Chung Nam BV at the year-end was £8,964,830 (2024 - £12,326,198), which is included in Amounts due to group undertakings. The balance receivable from this company at the year-end was £118,438 (2024 - £1,805), which is included in Amounts due to group undertakings.

19
Ultimate controlling party

The company is under the control of its parent company America Chung Nam LLC, a company incorporated in California, USA.

Mrs Y Cheung is the Ultimate Controlling Party due to her being the majority shareholder of the ultimate parent company America Chung Nam (Group) LLC, again incorporated in California, USA.

MLM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
20
Cash (absorbed by)/generated from operations
2025
2024
£
£
Profit after taxation
264,485
206,872
Adjustments for:
Taxation charged
89,788
48,889
Investment income
(88,720)
(97,373)
(Gain)/loss on disposal of property, plant and equipment
-
44
Depreciation and impairment of property, plant and equipment
6,303
3,332
Movements in working capital:
Decrease/(increase) in inventories
278,001
(149,816)
Decrease in trade and other receivables
2,291,952
2,222,547
(Decrease)/increase in trade and other payables
(5,077,519)
10,693,925
Cash (absorbed by)/generated from operations
(2,235,710)
12,928,420
21
Analysis of changes in net funds
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
13,501,778
(2,238,470)
11,263,308
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