Space Brands Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 07932315 (England and Wales)
Space Brands Limited
Company Information
Director
J Huang
Company number
07932315
Registered office
1st Floor
175/176 Tottenham Court Road
London
W1T 7NU
Auditor
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Space Brands Limited
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
Space Brands Limited
Strategic Report
For the year ended 31 December 2024
Page 1

The director presents the strategic report for the year ended 31 December 2024.

Principal activity and fair review of the business

The principal activities of the Company during the period was the wholesale of skincare products.

The company delivered turnover of £26,091,917 during the period ended of 31 December 2024. The turnover of the Company has increased by 23.9% over the previous period. This growth is because of a very strong sales trend in Asia.

The Company’s profit before tax for the financial period ended 31 December 2024 was £956,789, it has decreased 17.8% over the previous period due the company heavily i investing in marketing expenses in China and Asia’s market. The continued strategy of investment to fuel growth is anticipated to pay a strong return in the long term.

The Director is confident this will further increase the company’s resilience and result in strong long-term growth to both turnover and EBITDA.

The further outlook is positive with growth in customer numbers across all age and spend demographics.

Key performance indicators

The key performance indicators for Space Brands Limited for the year ended 31 December 202 4 were as follows:

202 4 202 3 % change

Turnover £2 6.092 m £2 1.065 m 23.9%

EBITDA £1.2 1 7 m £1.418 m -14.2%

Profit for the financial year £850 k £903k 16.9%

The turnover for the financial year has in creased by 1 23.9% to £2 6.902 m (202 3: £21.065m) which is due to increasing sales in the Chinese market.

Profit for the financial year decreased to £850 k (2023: £903k), and EBITDA declined to £1.217m (2023: £1.418m), which was driven by higher sales, offset in part by an increase in the cost base. The Company however did remain profitable.

Principal risks and uncertainties

Business and market Risk

The Company is subject to the risk that its products are no longer deemed desirable to the customer and addresses this risk on an ongoing basis by regular management reviews of all aspects of the business to prevent this.

Credit risk

Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Supply chain risk

The Company’s supplies of inventory travel from overseas locations. Given the current economic climate there is an operational risk resulting from disruptions in various aspects of the supply chain which could impact on business continuity and resilience. The company monitors its supply chain on a regular basis and mitigates the risk by maintaining strong supplier partnerships and having robust pricing agreements in place.

Space Brands Limited
Strategic Report (Continued)
For the year ended 31 December 2024
Page 2

Liquidity risk

Liquidity risk arises from the company’s management of working capital. The Company is part of a group that operates a treasury function which manages group cash and borrowing requirements centrally which is appropriate for the scale and complexity of its business. The treasury function is responsible for managing the liquidity, foreign exchange and interest risks associated with the Company’s activities and operates to maximise interest income and minimise interest expense, whilst ensuring that the group has sufficient liquid resources to meet the operating needs of its business.

Foreign currency risk

The Company has minimal foreign currency exposure arising from purchasing from and selling to overseas companies and therefore does not hedge these exposures.

Development and performance

The Company continues to work on developing and launching new products in order to expand the range of products and to drive increased sales. However, sales timing and volumes are harder to predict than previous years, with challenges faced due to the intense demand in the industry and increasing cost base. T he Company and group remain committed to our long-term growth strategy by intensifying our focus on growth in Asia and rest of the world.

On behalf of the board

J Huang
Director
16 July 2026
Space Brands Limited
Director's Report
For the year ended 31 December 2024
Page 3

The director presents his annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of sales of skincare products.

Results and dividends

The results for the year are set out on page 10.

There were no dividends paid, recommended or declared during the current financial year or previous period.

No dividends have been declared since the balance sheet date.

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:

J Huang
Auditor

The auditor, Moore Kingston Smith LLP, is 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. 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.

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. It has done so in respect of credit risk, liquidity risk, business risk, foreign currency risk and future developments.

Space Brands Limited
Director's Report (Continued)
For the year ended 31 December 2024
Page 4
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.

Going concern

At 31 December 2024 the company recorded a profit of £850,158 (2023: £902,826) and had net assets of £13,882,869 (2023: £13,032,711).

In adopting the going concern basis, the director is required to consider whether the Company can continue in operational existence for a minimum period of at least twelve months from the date of approval of these financial statements. In making this assessment, management have considered, and the director has approved, the following:

- The Company’s current financial performance, trading and current cash position to meet its day to day working capital requirements;

- The Company’s cash flow forecast for a period of at least 12 months from the date of approval of these financial statements.

As a result of the assessment, the director is satisfied that the Company has adequate resources to meet its liabilities and obligations as they fall due and for at least one year from the date of approval of these financial statements. The director has concluded that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Accordingly, the director has adopted the going concern basis in preparation of these financial statements.

Qualifying third party indemnity provision

The Company maintained liability insurance for its director and officers during the period under review and up to the date of signing the financial statements. This is a qualifying third-party indemnity provision for the purposes of the Companies Act 2006.

On behalf of the board
J Huang
Director
16 July 2026
Space Brands Limited
Independent Auditor's Report
To the Members of Space Brands Limited
Page 5
Opinion

We have audited the financial statements of Space Brands Limited (the 'company') for the year ended 31 December 2024 which comprise 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.

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.

Space Brands Limited
Independent Auditor's Report
To the Members of Space Brands Limited (Continued)
Page 6

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.

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.

Space Brands Limited
Independent Auditor's Report
To the Members of Space Brands Limited (Continued)
Page 7
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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Space Brands Limited
Independent Auditor's Report
To the Members of Space Brands Limited (Continued)
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

- We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Space Brands Limited
Independent Auditor's Report
To the Members of Space Brands Limited (Continued)
Page 9
Jonathan Roberts
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
16 July 2026
Chartered Accountants
Statutory Auditor
The Shipping Building
The Old Vinyl Factory
Hayes
London
UB3 1HA
Space Brands Limited
Statement of Comprehensive Income
For the year ended 31 December 2024
Page 10
2024
2023
Notes
£
£
Turnover
3
26,091,917
21,065,496
Cost of sales
(11,009,903)
(9,296,602)
Gross profit
15,082,014
11,768,894
Administrative expenses
(14,126,670)
(10,604,690)
Other operating income
1,445
-
0
Profit before taxation
956,789
1,164,204
Tax on profit
7
(106,631)
(261,378)
Profit for the financial year
850,158
902,826

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

There was no other comprehensive income for the year (2023: £nil).

The notes on pages 14 to 26 form part of these financial statements.

Space Brands Limited
Balance Sheet
As at 31 December 2024
Page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
8
493,621
490,331
Tangible assets
9
132,394
197,558
626,015
687,889
Current assets
Stock
10
6,610,396
3,541,759
Debtors
11
12,397,568
11,796,083
Cash at bank and in hand
3,730,015
4,621,029
22,737,979
19,958,871
Creditors: amounts falling due within one year
12
(9,481,125)
(7,614,049)
Net current assets
13,256,854
12,344,822
Net assets
13,882,869
13,032,711
Capital and reserves
Called up share capital
15
102
102
Share premium account
5,671,365
5,671,365
Profit and loss reserves
8,211,402
7,361,244
Total equity
13,882,869
13,032,711

The notes on pages 14 to 26 form part of these financial statements.

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 16 July 2026
J Huang
Director
Company Registration No. 07932315
Space Brands Limited
Statement of Changes in Equity
For the year ended 31 December 2024
Page 12
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
102
5,671,365
6,458,418
12,129,885
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
902,826
902,826
Balance at 31 December 2023
102
5,671,365
7,361,244
13,032,711
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
850,158
850,158
Balance at 31 December 2024
102
5,671,365
8,211,402
13,882,869

The notes on pages 14 to 26 form part of these financial statements.

Space Brands Limited
Statement of Cash Flows
For the year ended 31 December 2024
Page 13
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
19
(2,729,963)
(2,362,806)
Income taxes paid
(49,579)
(570,344)
Net cash outflow from operating activities
(2,779,542)
(2,933,150)
Investing activities
Purchase of intangible assets
(180,544)
(237,228)
Purchase of tangible fixed assets
(17,617)
(56,709)
Net cash used in investing activities
(198,161)
(293,937)
Financing activities
Proceeds of group loans
2,086,689
2,681,337
Net cash generated from financing activities
2,086,689
2,681,337
Net decrease in cash and cash equivalents
(891,014)
(545,750)
Cash and cash equivalents at beginning of year
4,621,029
5,166,779
Cash and cash equivalents at end of year
3,730,015
4,621,029

The notes on pages 14 to 26 form part of these financial statements.

Space Brands Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 14
1
Accounting policies
Company information

Space Brands Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, 175/176 Tottenham Court Road, London, W1T 7NU.

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 31 December 2024 the company recorded a profit of £850,158 (2023: £902,826) and had net assets of £13,882,869 (2023: £13,032,711). true

In adopting the going concern basis, the director is required to consider whether the Company can continue in operational existence for a minimum period of at least twelve months from the date of approval of these financial statements. In making this assessment, management have considered, and the director has approved, the following:

- The Company’s current financial performance, trading and current cash position to meet its day to day working capital requirements;

- The Company’s cash flow forecast for a period of at least 12 months from the date of approval of these financial statements.

As a result of the assessment, the director is satisfied that the Company has adequate resources to meet its liabilities and obligations as they fall due and for at least one year from the date of approval of these financial statements. The director has concluded that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Accordingly, the director has adopted the going concern basis in preparation of these financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 15
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
Straight line over 3 years
Development costs
Straight line over 3 years
Trademarks
Straight line over 10 years
1.6
Tangible fixed assets

Tangible fixed assets 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 land and buildings
Straight line over 3 to 10 years
Fixtures and fittings
Straight line over 3 to 6 years

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.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 16
1.8
Stock

Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock 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.

1.9
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.

1.10
Financial instruments

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

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

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

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.

Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 17
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 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 18
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.

1.11
Equity instruments

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

1.12
Taxation

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

Current tax

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

Deferred tax

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

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

Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 19
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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.

1.14
Retirement benefits

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

1.15
Leases
As lessee

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 lease s asset are consumed.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock provisions

The Company sells luxury branded skin care and cosmetic products. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. See note 10 for the net carrying amount of the inventory and associated provision and note 1.8 for the accounting policy.

Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 20
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of skincare products
26,091,917
21,065,496
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
3,391,949
2,400,893
Outside the United Kingdom
22,699,968
18,664,603
26,091,917
21,065,496
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
78,437
40,665
Fees payable to the company's auditor for the audit of the company's financial statements
47,775
46,750
Depreciation of tangible fixed assets
82,781
95,951
Amortisation of intangible assets
177,254
157,434
Operating lease charges
358,689
377,842
5
Employees

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

2024
2023
Number
Number
Administration
18
17
Retail
1
1
Total
19
18
Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
5
Employees
(Continued)
Page 21

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,852,020
1,733,200
Social security costs
179,733
206,225
Pension costs
110,576
73,216
2,142,329
2,012,641
6
Director's remuneration

No remuneration was paid to the director for their services to the company during the current or prior year. The director is remunerated by a fellow group company.

7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
216,146
233,240
Adjustments in respect of prior periods
(154,427)
(15,931)
Total current tax
61,719
217,309
Deferred tax
Origination and reversal of timing differences
44,912
44,069
Total tax charge
106,631
261,378
Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
7
Taxation
(Continued)
Page 22

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:

2024
2023
£
£
Profit before taxation
956,789
1,164,204
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
239,197
273,821
Tax effect of expenses that are not deductible in determining taxable profit
478
93
Deferred tax movements
10,040
2,607
Other movements
11,343
788
Adjustments in respect of prior periods
(154,427)
(15,931)
Taxation charge for the year
106,631
261,378
8
Intangible fixed assets
Software
Development costs
Trademarks
Total
£
£
£
£
Cost
At 1 January 2024
744,495
1,797,808
801,293
3,343,596
Additions - internally developed
-
0
180,544
-
0
180,544
At 31 December 2024
744,495
1,978,352
801,293
3,524,140
Amortisation and impairment
At 1 January 2024
736,791
1,517,702
598,772
2,853,265
Amortisation charged for the year
5,995
113,169
58,090
177,254
At 31 December 2024
742,786
1,630,871
656,862
3,030,519
Carrying amount
At 31 December 2024
1,709
347,481
144,431
493,621
At 31 December 2023
7,704
280,106
202,521
490,331
Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 23
9
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2024
261,518
1,184,645
1,446,163
Additions
-
0
17,617
17,617
At 31 December 2024
261,518
1,202,262
1,463,780
Depreciation and impairment
At 1 January 2024
225,541
1,023,064
1,248,605
Depreciation charged in the year
23,684
59,097
82,781
At 31 December 2024
249,225
1,082,161
1,331,386
Carrying amount
At 31 December 2024
12,293
120,101
132,394
At 31 December 2023
35,977
161,581
197,558
10
Stock
2024
2023
£
£
Raw materials and consumables
1,291,782
702,032
Finished goods and goods for resale
5,318,614
2,839,727
6,610,396
3,541,759

Inventories are stated after provisions for impairment £149,843 (202 3: £220,789).

11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,213,214
3,318,136
Amounts owed by group undertakings
7,725,612
7,830,220
Other debtors
1,010,171
181,319
Prepayments and accrued income
269,590
242,515
12,218,587
11,572,190
Deferred tax asset (note 13)
178,981
223,893
12,397,568
11,796,083
Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 24
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,855,847
1,529,541
Amounts owed to group undertakings
6,767,452
4,680,763
Corporation tax
128,473
269,480
Other taxation and social security
-
0
55,664
Accruals and deferred income
729,353
1,078,601
9,481,125
7,614,049

Amounts owed to group undertakings are unsecured, interest free, and are repayable on demand.

13
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
178,981
223,893
2024
Movements in the year:
£
Asset at 1 January 2024
(223,893)
Charge to profit or loss
44,912
Asset at 31 December 2024
(178,981)
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
110,576
73,216

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.

The balance outstanding at the year end in respect of defined contribution schemes was £nil (2023: £nil).

Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 25
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
102
102
102
102
16
Operating lease commitments
As 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 1 year
358,689
319,113
Years 2-5
662,462
742,343
1,021,151
1,061,456
17
Related party transactions
Transactions with related parties

The company has taken the exemption to not disclose related party transactions with companies under the same control in accordance with FRS 102 - Section 33 "Related Party Disclosures".

At the balance sheet date the company owed £6,767,452 (2023: £4,680,763) in relation to intercompany loan balance with Yatsen Global Holding Limited. In the year the company borrowed an additional £2,086,689 (2023: £2,681,337) from Yatsen Global Holding Limited.

18
Ultimate controlling party

The immediate parent company is Eve Lom Limited, a company registered in the British Virgin Islands with a registered office at 12 West 27th Street, 5th Floor, New York, NY 10001, United States

.

The ultimate parent company and ultimate controlling party is Yatsen Holding Limited, a company registered in the Cayman Islands. The registered office is c/o Office of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The smallest and largest group in which the results of the company are consolidated is that headed by Yatsen Holding Limited.

Space Brands Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2024
Page 26
19
Cash absorbed by operations
2024
2023
£
£
Profit after taxation
850,158
902,826
Adjustments for:
Taxation charged
106,631
261,378
Amortisation and impairment of intangible assets
177,254
157,434
Depreciation and impairment of tangible fixed assets
82,781
95,951
Movements in working capital:
(Increase)/decrease in stock
(3,068,637)
282,012
Increase in debtors
(646,397)
(5,729,176)
(Decrease)/increase in creditors
(231,753)
1,666,769
Cash absorbed by operations
(2,729,963)
(2,362,806)
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