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REGISTERED NUMBER: 01532065 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

Fine Organics Limited

Fine Organics Limited (Registered number: 01532065)

Contents of the Financial Statements

for the Year Ended 31 December 2025

Page |

Company Information | 1 |

Strategic Report | 2 |

Report of the Directors | 8 |

Statement of Directors' Responsibilities | 11 |

Report of the Independent Auditors | 12 |

Statement of Comprehensive Income | 15 |

Statement of Financial Position | 16 |

Statement of Changes in Equity | 17 |

Notes to the Financial Statements | 18 |

Fine Organics Limited

Company Information

for the Year Ended 31 December 2025

| DIRECTORS: | Y Xue

| A I Laiho

| S C Rowell

| SECRETARY: | Ms M L Robinson

| REGISTERED OFFICE: | Seal Sands

| Middlesbrough

| Cleveland

| TS2 1UB

| REGISTERED NUMBER: | 01532065 (England and Wales)

| AUDITORS: | Shinewing Wilson Accountancy Limited

| Chartered Certified Accountants

| and Statutory Auditors

| 9 St Clare Street

| London

| EC3N 1LQ

Fine Organics Limited (Registered number: 01532065)

Strategic Report

for the Year Ended 31 December 2025

The directors present their strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS

During the year ended 31 December 2025 the business's revenue has fallen by 4.7% to £89,180K (2024: £93,611K). In addition, the company operated as a Limited Risk Distributor operations on behalf of the ultimate parent £12,047K (2024: £6,255K).

The Company's profit before taxation for the financial year is £5,439K (2024: loss before taxation £11,079K). The financial position of the company as at the year-end is net liabilities of £174,141K (2024: £179,580K).

Business revenues from own product sales increased due to increased sales of existing products.

The Company continued to incur some legacy costs due to the termination of a major contract in 2023. The business has increased administrative and technical collaboration with its parent company, with closer alignment at an operational level, to both reduce related site-level costs and leverage the parent company's greater capacity and capabilities in these areas. To take cost advantage of these synergies, a redundancy program led to the reduction in headcount of 43. However, increases in direct labour positions to support increased manufacturing demand meant the average headcount was little changed from 2024.

The directors expect the coming year to present a number of growth opportunities for the Company. These include the planned introduction of new specialty chemical products within crop protection and pest control along with the continued development of synergies with its ultimate parent company Lianhe Chemical Technology Co., Ltd. The directors are confident that the Company's product pipeline along with the ongoing support of the Group, position it well to deliver sustainable growth in the medium term. The company continues to receive a significant number of new enquiries for products that will start to deliver additional revenues from 2026 onwards. The business still has a stable and expanding customer base with which it works technically to implement innovative chemistry solutions in order to drive process efficiencies and optimal performance from its manufacturing assets.

Following an extensive review of the strategic positioning of all sites within the group, the investors are satisfied with the direction and on-going investment of the business. The company is well placed to take advantage of any upturn in the Agrochemical markets, and is actively seeking new opportunities in other fine and specialty chemical sectors.

Fine Organics Limited (Registered number: 01532065)

Strategic Report

for the Year Ended 31 December 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. The main risks and uncertainties are as follows:

- Pricing: competition in the company's portfolio is based primarily on price, with additional weighting being placed on product quality, reliability of supply and customer service.

- Raw material and energy prices: these are significant costs to the business. Mitigation of this exposure is actioned by wherever practicable by procuring on a global basis.

- Utilisation of assets: the Company's results are materially influenced by the degree to which assets are utilised in order to achieve maximum production volumes.

- Ongoing conflict: impacting global energy price: following the outbreak of the conflict in Ukraine the business continues to work with its energy consultant, energy suppliers and its customers to ensure the appropriate actions are taken to minimise the impact to the business. The relatively high cost of energy across Europe, linked to both wholesale costs and Government policies, places the business at a global disadvantage. The business is seeking to mitigate exposure through every efficiency programmes.

Financial Risk Management

The Company's operations expose it to a variety of financial risks that include the effects of changes in price risk, credit risk, liquidity risk and cashflow risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company where appropriate.

Price risk

The Company is exposed to commodity price risk arising from fluctuations in the cost of raw materials used in its manufacturing operations, primarily oleochemicals in the form of solvents or commodity reagents. These raw materials are sourced both domestically and internationally, and their prices are subject to market volatility.

Given the size and nature of the Company's operations, the directors have assessed that the cost of implementing formal commodity price hedging instruments would exceed any potential benefits. Accordingly, the Company does not currently employ derivative financial instruments to hedge commodity price risk. Instead, the Company seeks to mitigate price risk through the following measures:

- negotiating short-term fixed-price contracts with key suppliers where practicable;

- passing input cost increases through to customers where commercial relationships and market conditions permit; and

- leveraging the Group's procurement function and purchasing scale through its ultimate parent company, Lianhe Chemical Technology Co., Ltd., to obtain more favourable pricing terms.

The directors continue to monitor the appropriateness of this policy and will consider formal hedging arrangements should the Company's operations change materially in size or nature. The Company has no exposure to equity securities price risk as it holds no listed or other equity investments.

Credit risk

The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. Where debt finance is utilised, this is subject to pre-approval by the board of directors.

Liquidity risk

The Company, and its ultimate parent company, actively manage the Company's risk profile on a regular basis to ensure the Company has sufficient available funds for operations and planned expansions.

Fine Organics Limited (Registered number: 01532065)

Strategic Report

for the Year Ended 31 December 2025

Cashflow risk

The business actively manages its cash flow requirements with the assistance of the Group's treasury function, seeking to effectively manage working capital and minimise exposure to foreign exchange movements. The Company is primarily exposed to foreign exchange risk arising from commercial transactions denominated in US Dollars (USD) and Euros (EUR), reflecting its procurement and sales activities. Management reviews net foreign currency exposures on a regular basis and, where practicable, seeks to match foreign currency inflows with outflows to reduce transactional exposure. No formal hedging instruments are currently employed.

Fine Organics Limited (Registered number: 01532065)

Strategic Report

for the Year Ended 31 December 2025

SECTION 172(1) STATEMENT

The Companies (Miscellaneous Reporting) Regulations 2018 ('2018 MRR') require directors to explain how they considered the interests of key stakeholders and the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006 ('S172') when performing their duty to promote the success of the Company under S172. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the company. This S172 statement explains how the directors:

- have engaged with employees, suppliers, customers and others; and

- have had regard to employee interests, the need to foster the company's business relationships with suppliers, customers and other, and the effect of that regards, including on the principal decisions taken by the company during the financial year.

The S172 statement focuses on matters of strategic importance, and the level of information disclosed is consistent with the size and the complexity of the business.

When making decisions, each Director ensures that they act in the way they consider, in good faith, would most likely promote the Company's success for the benefit of its members as a whole, and in doing so have regard (among other matters) to:

S172(1) (A) "The likely consequences of any decision in the long term"

The company's operations, including its sales, manufacturing and investment plans for the year, are set out through the annual budget. This is prepared by the company's senior leadership team (which may also include employees of the ultimate parent company) and approved by the board of the ultimate parent company, ensuring it is aligned with the long-term plans for the Site within the context of the overall group strategy. This can be demonstrated by the company's response to the shifting customer demand and contract terminations as described on page 3 above.

In addition to reporting on the financials through the monthly management accounts, the board of directors, senior management and directors of the ultimate parent company are kept informed of operational matters through monthly reports compiled by the senior leadership team. These reports include, but are not limited to, financial, operational, manufacturing and business development performance, safety statistics, quality and human metrics.

The ultimate parent company, which includes the board, takes a view on long-term decisions based on commercial enquiries, research and development activities and thereafter the appropriate financial and analytical modelling, which it receives in the form of detailed proposals presented by the senior leadership team to the board and subsequently to the ultimate parent company. This could include, but is not be limited to, new product development, site improvements, acquisition opportunities and strategic partnerships.

S172(1) (B) "The interests of the company's employees"

The directors recognise that the company's employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible.

The Company actively promotes employee wellbeing and team cohesion through a range of initiatives, including company social events such as a summer BBQ open to family groups, sports and recreational activities such as a staff football team, a site gym, subsidised golf days and encourage group participation in local running events. These activities reflect the directors' commitment to maintaining a positive and inclusive workplace culture. Sponsorship for employees is also provided for charitable causes.

The directors also recognise that in supporting the long-term sustainability and strategy of the site, there has been a need to make some employees redundant as noted in page 3 above. Where possible, all efforts were made to evaluate those at risk for alternative positions to retain as many employees as possible. Where this was not possible, the business has worked through the redundancy process, following a constructive consultation process, with designated representatives elected by employees and where appropriate in conjunction with site Trade Union officials. For those affected, support has been offered by way of counselling and by engaging our recruitment partners and local businesses in search of opportunities.

Fine Organics Limited (Registered number: 01532065)

Strategic Report

for the Year Ended 31 December 2025

The board of directors' support significant levels of investment in training, online learning, paid-for external development, and the hosting of internal learning events. This sits alongside a generous benefits package which includes pension contributions above the statutory minimum requirement and an annual bonus scheme.

The board of directors recognises the importance of having a diverse workforce that both reflects the company's global supply chain network, and which strengthens its business growth. The business is committed to promoting fairness and equality in the workplace which it demonstrates through a number of policies, including: Equal Opportunities Policy; Flexible Working Policy; Parental Leave Policy; and Maternity, Paternity and Adoption Policies.

S172(1) (C) "The need to foster the company's business relationships with suppliers, customers and others"

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, local and national government, regulators and other associated stakeholders.

Moreover, the directors receive information updates on a variety of topics that indicate and inform how these stakeholders have been engaged. These range from information provided from the supply chain function (on suppliers related to items such as sourcing project updates and supplier contract management topics) to information provided by the commercial and development teams (on customers related to items such as business strategies, on-going manufacturing campaigns and investment or divestment proposals).

In its relationship with suppliers, the company strives to maintain a reputation for fairness and high standards through striving for contracts that provide mutual benefit, and ensuring that suppliers are paid on time. The Company maintains long-standing relationships with a number of key raw material suppliers, with 7 of its top 10 suppliers having traded with the Company for over 5 years. Supplier performance is reviewed annually, supported by an established deviation management system to monitor and address performance where necessary. The Company adopts a flexible procurement approach, with certain raw materials sourced through tactical spot buying to ensure supply continuity and cost competitiveness. The Company's standard payment terms are current month plus 60 days, and the directors are committed to honouring these terms consistently.

The company has a zero-tolerance to human trafficking and slavery and expects its suppliers to take the same approach. The board of directors has approved the publication of the company's Modern Slavery Act statement and will support the senior leadership team in its review of its policies and procedures to ensure continued compliance.

In its relationship with customers, feedback can be collated by several teams and fed back to the directors, mainly by the Commercial Team (including the parent company's Key Account Managers), whose primary focus is customer engagement, management and communication. Specifically, with regard to contract manufacturing agreements, our customers have a direct contribution toward the supply chain, technical development and quality parameters of our finished products. Therefore integration of customer feedback is a key input for site operations. In 2025 the company retained 100% of its customer base.

S172(1) (D) "The impact of the company's operations on the community and the environment"

The directors recognise that the business has a significant responsibility when it comes to its relationship with the environment. The site is Top-Tier COMAH (Seveso III) compliant, has a broad environmental permit and similarly has extensive consents in place to allow us to handle a broad range of substances at a range of scales. A key consideration for the business in this respect is with regards to its chemical substance waste management. The site has direct pipeline access to one of the largest municipal liquid aqueous waste disposal facilities in Europe. In addition, the business works closely with its sister company Fine Environmental Services Limited, who operate one of only three, third party licensed, high temperature thermal oxidisers for incineration of other waste streams. The business continues to work with its regulators in maintaining compliance and striving for best practice where environmental impact is concerned.

The Company recognises its role as a significant local employer in the Teesside area, providing employment for approximately 240 full-time equivalent employees, and supports many local 3rd party contractors through the procurement of materials and services. The Company engages with local recruitment partners and educational institutions to support skills development in the region.

Energy consumption and associated greenhouse gas emissions are monitored as part of the Company's environmental management obligations under its environmental permit. Details are provided in the SECR disclosure on page 9.

Fine Organics Limited (Registered number: 01532065)

Strategic Report

for the Year Ended 31 December 2025

S172(1) (E) "The desirability of the company maintaining a reputation for high standards of business conduct"

The directors recognise that the business operates within an industry where a high degree of emphasis is placed on ensuring business decisions are economically, environmentally and socially responsible. The company periodically reviews its policies and principles, as set out in the company Staff Handbook and other guiding documentation, to ensure that these high standards are maintained. This, complemented by the ways the board is informed and monitors compliance with relevant governance standards help assure its decisions are taken and that the company acts in a way that promotes high standards of business conduct and ethics

S172(1) (F) "The need to act fairly as between members of the company"

The directors consider which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on stakeholders. In doing so, our directors act fairly as between the Company's members but are not required to balance the Company's interest with those of other stakeholders, and this can sometimes mean that certain stakeholder interests may not be fully aligned.

KEY PERFORMANCE INDICATORS

The key performance indicators of the company were as follows:

| 31-Dec-2025 |  | 31-Dec-2024 |  | Change |  |

| £'000 |  | £'000 |  |  |

Turnover |  | 89,180 |  | 93,611 |  | -5% |  |

Gross profit |  | 25,170 |  | 21,183 |  | +20% |  |

Operating (loss)/profit |  | 5,595 |  | (10,596) |  | +153% |  |

Non-finance KPI

| 31-Dec-2025 |  | 31-Dec-2024 |  | Change |  |

Employee Turnover Rate |  | 2.27 |  | 2.55 |  | -11% |  |

Customer Complaints |  | 2 |  | 2 |  | +0% |  |

On-time Delivery Rate |  | 98.08 |  | 98.96 |  | -1% |  |

Lost Time Injury Rate |  | 0 |  | 6.4 |  | -100% |  |

In conjunction with the management of costs and working capital to improve profit, the Company uses a number of KPIs to monitor performance. These KPIs are monitored both on a product-by-product basis and also for the Company as a whole, compared to budget.

ON BEHALF OF THE BOARD:

S C Rowell - Director

21 July 2026

Fine Organics Limited (Registered number: 01532065)

Report of the Directors

for the Year Ended 31 December 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a manufacturer of fine chemicals, supplying the pharmaceutical, agrochemical and speciality chemical industry. The Company's manufacturing plant is in the UK and has customers in Europe, North America, South America, and the UK.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025 (2024: Nil).

RESEARCH AND DEVELOPMENT

The company's research and development activities are focused on the safe implementation of new products coupled with improving plant efficiency, optimisation of plant productivity, reducing waste and improving environmental performance, satisfying both our customers and all stakeholders.

DIRECTORS

Y Xue has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

T M J Bollaert - resigned 9 January 2025

A I Laiho - appointed 9 January 2025

S C Rowell - appointed 12 March 2025

FINANCIAL RISK MANAGEMENT

The Company's financial risk management objectives and policies, including its exposure to price risk, credit risk, liquidity risk and cashflow risk, have been disclosed within the Strategic Report on page 3 and 4.

ENGAGEMENT WITH EMPLOYEES

Disabled Employees

The group is committed to employment policies, where following best practice, based on equal opportunities for all employees, irrespective of sex, race, colour, disability or marital status. The group gives full and fair consideration to applications for employment for disabled persons, having regard to their particular aptitudes and abilities. Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled persons employed by the group. If members of staff become disabled the group continues employment, either in the same or an alternative position, with appropriate retraining being given where necessary.

Employee Involvement

The group systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests. Employee involvement in the group is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the group plays a major part in maintaining its effective management.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The Company engages with its stakeholders regularly to inform its decision making and assist in delivering our long term strategies. In respect of its customers, the Company seeks to build long term, stable relationships by collaborating on technical development, supply chain and quality decisions with regards to the services provided. The Company maintains a stable supplier base. When it is appropriate, the Company also collaborates with its customers to fulfil its supply needs and, in all cases, will work closely with suppliers to ensure quality and delivery standards are met.

STREAMLINED ENERGY AND CARBON REPORTING

Introduction

Our environmental performance information is presented in accordance with the Streamlined Energy and Carbon Reporting ("SECR") Guidance (March 2019), as specified under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013. Data is presented for our financial year, from 1 January through to 31 December, and includes information on our most significant environmental aspects: energy consumption and associated greenhouse gas ("GHG") emissions; and waste generation.

Fine Organics Limited (Registered number: 01532065)

Report of the Directors

for the Year Ended 31 December 2025

We are actively seeking ways to reduce our impact on the environment and build resilience to climate change by focusing on energy, waste and water. These three focus areas have been identified based on an overall evaluation of environmental impacts and risks, with a focus on impacts that we can influence.

The company presents its energy usage as below:

Our greenhouse gas emissions |  | Year ended 31 December 2025 |  | Year ended 31December 2024 |

| kWh |  | tCO2e |  | kWh |  | tCO2e |

Scope 1 Energy and Emissions |  | 33,711,596 |  | 7,798 |  | 66,018,758 |  | 12,131 |

Scope 2 Energy and Emission |  | 33,845,450 |  | 5,991 |  | 22,395,334 |  | 4,637 |

| 67,557,046 |  | 13,788 |  | 88,414,092 |  | 16,768 |

The company tracks energy efficiency improvements as below:

Total Reactor Hours Occupied (TRHO)

Total Reactor Hours |  | Year ended 31 December 2025 |  | Year ended 31 December 2024 |

Occupied |  | 413,448 |  | 485.688 |

Energy Intensity

Energy Intensity |  | Year ended 31 December 2025 |  | Year ended 31 December 2024 |

| kWh |  | tCO2e |  | kWh |  | tCO2e |

Intensity per TRHO |  | 163.4 |  | 0.033 |  | 182.039 |  | 0.035 |

SECR Methodology

Below is a brief outline of the methodology used to produce the various figures and identified opportunities for Fine Organics Ltd.

Data Collection

Data was collected as follows:

Utility Data: This was collected from energy suppliers in the form of Half Hourly data or Non Half Hourly consumption summary repo rts and invoices.

Other Fuels: These were collected from automatic metering.

Carbon Conversion

To perform the carbon conversion, we utilised the Government conversion factors for company reporting of greenhouse gas emissions found here:

https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting

To report the greenhouse gas emissions associated with an organization's activities, the carbon emissions need to be converted into 'activity data' such as:

- distance travelled

- litres of fuel used

- tonnes of waste disposed

The conversion factor spreadsheets provide the values to be used for such conversions, and step by step guidance on how to use them.

A new set of conversion factors are published each year, together with a methodology paper explaining how the conversion factors are derived, and a paper explaining the major changes in the latest year's factors. All of which can be found following the Link above.

Energy Intensity

The Energy intensity metric utilised this year for Fine Organics Limited is the total reactor hours occupied/kWh.

Fine Organics Limited (Registered number: 01532065)

Report of the Directors

for the Year Ended 31 December 2025

Identified Opportunities

The following opportunities were identified on site.

Energy Conservation Measures |  | kWh Saving |  | Implementation Date |  |

Upgrade Energy Monitoring System |  | 792,976 |  | July 2026 |  |

Steam Leak Repairs and Insulation Lagging to be Replaced |  | 482,516 |  | January 2026 |  |

Steam Trap Survey Completed and Highlights Replacement Steam Equipment |  | 785,032 |  | December 2026 |  |

To Repair Identified Air Leaks Following Completed Air Leak Survey (Approx 5000 l/min Waste Flow Identified) |  | 558,169 |  | January 2027 |  |

LED Lighting |  | 292,515 |  | December 2027 |  |

Total |  | 2,911,208 |  |

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen to disclose information regarding the future development opportunities in the strategic report rather than the directors' report.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Shinewing Wilson Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S C Rowell - Director

21 July 2026

Fine Organics Limited (Registered number: 01532065)

Statement of Directors' Responsibilities

for the Year Ended 31 December 2025

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- | select suitable accounting policies and then apply them consistently;

- | make judgements and accounting estimates that are reasonable and prudent;

- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are 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. They are 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.

Report of the Independent Auditors to the Members of

Fine Organics Limited

Opinion

We have audited the financial statements of Fine Organics Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 101 'Reduced Disclosure Framework' (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 Auditors' 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.

Material Uncertainty related to going concern

We draw attention to the "Going concern" section of note 2 to the financial statements. This note states that the Company incurred a profit before tax of £5,439K during the year (2024: loss £11,079K), and had net current liabilities of £212,913K (2024: £221,655K) and net liabilities of £174,141K (2024: £179,580K) as at the balance sheet date comprising principally of an amount owed to its intermediate parent. The Company is therefore dependent on its ultimate parent's support. Although we consider that the statements that are made in note 2 are fair, it is our opinion that the note should also state that these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of

Fine Organics Limited

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or

- | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page eleven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of

Fine Organics Limited

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations, health and safety legislation, employment law, and General Data Protection Regulation (GDPR).

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Nijendra Dhungana FCCA (Senior Statutory Auditor)

for and on behalf of Shinewing Wilson Accountancy Limited

Chartered Certified Accountants

and Statutory Auditors

9 St Clare Street

London

EC3N 1LQ

3 August 2026

Fine Organics Limited (Registered number: 01532065)

Statement of Comprehensive Income

for the Year Ended 31 December 2025

| 31.12.25 |  | 31.12.24

| Notes | £'000 | £'000 |

TURNOVER | 4 | 89,180 |  | 93,611 |  |

Cost of sales | 63,722 |  | 72,428 |  |

GROSS PROFIT | 25,458 |  | 21,183 |  |

Administrative expenses | 19,891 |  | 31,879 |  |

5,567 |  | (10,696 | ) |

Other operating income | 5 | 81 |  | 100 |  |

OPERATING PROFIT/(LOSS) | 5,648 |  | (10,596 | ) |

Interest payable and similar expenses | 7 | 209 |  | 483 |  |

PROFIT/(LOSS) BEFORE TAXATION | 8 | 5,439 |  | (11,079 | ) |

Tax on profit/(loss) | 9 | - |  | 76 |  |

PROFIT/(LOSS) FOR THE FINANCIAL YEAR | 5,439 |  | (11,155 | ) |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 5,439 |  | (11,155 | ) |

Fine Organics Limited (Registered number: 01532065)

Statement of Financial Position

31 December 2025

| 31.12.25 | 31.12.24 |

| Notes | £'000 | £'000 | £'000 | £'000 |

FIXED ASSETS

Owned

| Tangible assets | 10 | 38,620 |  | 42,045 |  |

Right-of-use

| Tangible assets | 10, 16 | 371 |  | 62 |  |

38,991 |  | 42,107 |  |

CURRENT ASSETS

Inventory | 11 | 31,343 |  | 29,557 |  |

Debtors | 12 | 25,094 |  | 17,466 |  |

Cash at bank and in hand | 6,494 |  | 8,592 |  |

62,931 |  | 55,615 |  |

CREDITORS

Amounts falling due within one year | 13 | 275,844 |  | 277,270 |  |

NET CURRENT LIABILITIES | (212,913 | ) | (221,655 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | (173,922 | ) | (179,548 | ) |

CREDITORS

Amounts falling due after more than one year | 14 | 219 |  | 32 |  |

NET LIABILITIES | (174,141 | ) | (179,580 | ) |

CAPITAL AND RESERVES

Called up share capital | 17 | 1 |  | 1 |  |

Share premium | 47 |  | 47 |  |

Capital redemption reserve | 120 |  | 120 |  |

Other reserves - IFRS16 | (120 | ) | (120 | ) |

Retained earnings | (174,189 | ) | (179,628 | ) |

SHAREHOLDERS' FUNDS | (174,141 | ) | (179,580 | ) |

The financial statements were approved by the Board of Directors and authorised for issue on 21 July 2026 and were signed on its behalf by:

S C Rowell - Director

Fine Organics Limited (Registered number: 01532065)

Statement of Changes in Equity

for the Year Ended 31 December 2025

| Called up |

| share |  | Retained |  | Share

| capital |  | earnings |  | premium

£'000 | £'000 | £'000 |

Balance at 1 January 2024 | 1 |  | (168,473 | ) | 47 |  |

Changes in equity

Total comprehensive income | - |  | (11,155 | ) | - |  |

Balance at 31 December 2024 | 1 |  | (179,628 | ) | 47 |  |

Changes in equity

Total comprehensive income | - |  | 5,439 |  | - |  |

Balance at 31 December 2025 | 1 |  | (174,189 | ) | 47 |  |

| Capital |  | Other |

| redemption |  | reserves |  | Total

| reserve |  | - IFRS16 |  | equity

£'000 | £'000 | £'000 |

Balance at 1 January 2024 | 120 |  | (120 | ) | (168,425 | ) |

Changes in equity

Total comprehensive income | - |  | - |  | (11,155 | ) |

Balance at 31 December 2024 | 120 |  | (120 | ) | (179,580 | ) |

Changes in equity

Total comprehensive income | - |  | - |  | 5,439 |  |

Balance at 31 December 2025 | 120 |  | (120 | ) | (174,141 | ) |

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements

for the Year Ended 31 December 2025

1. | STATUTORY INFORMATION

| Fine Organics Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

| The presentation currency of the financial statements is the Pound Sterling (£).

2. | ACCOUNTING POLICIES

| Basis of preparation

| These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

| The company is a subsidiary of a larger group. The ultimate parent undertaking, Lianhe Chemical Technology Co., Limited (SZSE: 002250), heads both the largest and smallest group in which the Company's financial statements are consolidated. Ultimate parent consolidated financial statements continue to be prepared under Chinese GAAP, and the English version of these consolidated financial statements can be obtained from their registered office at No. 8 Yongjiao Road, Huangyan Economic Development Zone, Taizhou City, Zhejiang, P. R. China, 318020. The consolidated statements are publicly available from the website https://www.szse.cn/certificate/individual/index.html?code=002250.

| The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

| • | the requirements of IFRS 7 Financial Instruments: Disclosures;

| • | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

| • | the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases;

| the requirements of paragraph 58 of IFRS 16;

| • | the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

| - | paragraphs 53(a), (h) and (j) of IFRS 16;

| • | the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1;

| • | the requirements of

| - | paragraphs 1 to 44E, 44H(b)(ii) and 45 to 63 of IAS 7 Statement of Cash Flows; and

| - | paragraphs 44F, 44G, 44H(a), 44H(b)(i), 44H(b)(iii) and 44H(c) of IAS 7;

| • | the requirements of paragraphs 88C and 88D of IAS 12 Income Taxes;

| • | the requirements of paragraph 74(b) of IAS 16;

| • | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

| • | the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group;

| Going concern

| The Company made a profit before tax of £5,439K during the year, and had net current liabilities of £212,913K and net liabilities of £174,141K. At the year ended 31 December 2025 the company owed amount of £267,561K to group undertakings, which the group undertakings confirmed they seek no repayment until the Company has the ability to do so. Furthermore the ultimate parent company has confirmed that it will financially support the whole UK group for at least 18 months from the date of signing these financial statements. Based on this, the directors have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

2. | ACCOUNTING POLICIES - continued

| Turnover

| The Company adopted IFRS 15 "Revenue from contracts with customers". IFRS 15 establishes the principles that an entity applies when reporting information about the nature, amount, timing and uncertainty of revenue and cash flows from a contract with a customer.

| To recognise revenue under IFRS 15, the Company applies the following five steps:

| - identify the contract(s) with a customer.

| - identify the performance obligations in the contract.

| - determine the transaction price, which is normally agreed in advance.

| - allocate the transaction price to each performance obligation on the basis of each stage of product processing, which is promised in the contract.

| - recognise revenue when a performance obligation is satisfied. A performance obligation is satisfied at the point when a quality control of the product is proved, product is ready to be delivered (in accordance with the agreed Incoterm) and invoice is subsequently issued.

| Tangible fixed assets

| Tangible fixed assets are stated at historic purchase cost less accumulated depreciation. The cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation is calculated so as to write off the cost of a fixed asset on a straight line basis over its estimated useful economic life, taking into account any contractual relationships, using the following rates:

| Freehold land - not depreciated

| Freehold building - maximum of 25 years

| Plant and machinery - maximum 10 years

| Right of use assets - between 2-6 years

| Construction in progress - not depreciated until completion and fully in use

| At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined with is the higher of its fair value less costs to sell and its value in use. An impairment loss or gain is recognised in the profit or loss account. The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

2. | ACCOUNTING POLICIES - continued

| Financial instruments

| Financial assets at amortised cost

| The company’s financial assets measured at amortised cost comprise trade and other debtors and cash and cash equivalents in the balance sheet. Cash and cash equivalents includes cash in hand, deposits held at call with banks.

| Financial assets are assessed for impairment using the Expected Credit Loss (ECL) model. For trade debtors, the Company applies the simplified approach permitted by FRS 101, which requires expected lifetime losses to be recognised from initial recognition of the debtors. For related party balances, ECLs are assessed based on a 12-month ECL unless there has been a significant increase in credit risk since initial recognition, in which case lifetime ECL is recognised.

| Financial liabilities

| The company does not have any liabilities held for trading nor does it voluntarily classify any financial liabilities as being at fair value through profit or loss.

| Trade creditors and other short-term monetary liabilities, which are initially recognised at fair value and are subsequently carried at amortised cost using the effective interest method.

| Offsetting financial instruments

| Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

| Share capital

| Financial instruments issued by the company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset.

| The company's ordinary shares are classified as equity instruments.

| Inventories

| Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average principle and includes expenditure incurred in acquiring the inventories and other costs in bringing them to their existing location and condition.

| Where necessary, provision is made to reduce the cost to no more than net realisable value having regard to the nature and condition of inventory as well as anticipated utilisation and saleability.

| Taxation

| Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date.

| Deferred tax is recognised in respect of all taxable temporary differences that have originated but not reversed at the balance sheet date where transactions that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. An asset is not recognised to the extent that the transfer of economic benefits in the future is uncertain. Deferred tax is measured at the average tax rates that are expected to apply in the years in which the timing differences are expected to reverse based on tax rates and laws that have been substantially enacted by the balance sheet date. Deferred tax assets and liabilities which have been recognised have not been discounted.

| Research and development

| Expenditure on research and development is written off in the year in which it is incurred.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

2. | ACCOUNTING POLICIES - continued

| Foreign currencies

| Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Non-monetary items would never be retranslated. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

| Government grants

| Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

| Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

| Leases

| At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. If the contract contains both lease and non-lease components, the consideration is allocated based on their relative stand-alone prices.

| The Company leases various equipment and vehicles under fixed-term contracts typically of 3 to 5 years.

| Recognition and initial measurement

| At the lease commencement date, the Company recognises a right-of-use (ROU) asset and a corresponding lease liability. The lease liability is initially measured at the present value of lease payments not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate.

| The lease term comprises the non-cancellable period together with any periods covered by an extension option where the Company is reasonably certain to exercise that option.

| The ROU asset is initially measured at cost, comprising: the initial measurement of the lease liability; any lease payments made at or before the commencement date; any initial direct costs incurred; less any lease incentives received; plus estimated costs of dismantling or restoring the underlying asset where contractually required.

| Subsequent measurement

| The lease liability is subsequently measured under the amortised cost method, increasing for interest accrued and decreasing for payments made. It is remeasured when the Company revises its assessment of whether it will exercise an extension or termination option.

| The ROU asset is depreciated on a straight-line basis. Where ownership transfers to the Company at the end of the lease term, depreciation is charged over the asset's useful life; otherwise, over the shorter of the useful life and the lease term.

| Short-term and low-value leases

| The Company has elected not to recognise ROU assets and lease liabilities for leases with a term of 12 months or less and leases of low-value assets. Payments under such leases are expensed on a straight-line basis over the lease term.

| Presentation

| ROU assets are presented separately as 'Lease right-of-use assets' and lease liabilities within 'Trade and other payables' in the statement of financial position.

| Employee benefit costs

| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

| The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and reported amounts of assets and liabilities, revenue and expenses. Actual results may differ from these estimates.

| Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the year in which the estimates are revised and in any future years affected.

| a. Useful economic lives of property, plant and equipment

| The annual depreciation charge (Note 10) for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

| b. Fixed assets impairment

| Management assesses whether there are any losses in the carrying value of the fixed assets (Note 10). As a first step the Company compares the carrying value to the recoverable value of the fixed assets as at 31 December 2025. If the recoverable value is below the carrying value, then the Company may perform a valuation of the fixed assets by using a discounted cash flow analysis. If this valuation still indicates a need for a write down, the Company reduces the carrying value of the fixed assets accordingly. The determination whether the fixed assets need to be impaired including assumptions about the profitability of the underlying business and growth, which involves management's estimates.

| c. Stock provision

| Management assesses whether there are any losses in the carrying value of the stock (Note 11). As a first step the Company compares the carrying value to the recoverable value of the stock as at 31 December 2025. If the recoverable value is below the carrying value, this indicates a need for a stock provision, the Company reduces the carrying value of the stock accordingly. The determination whether the stock need to be impaired including estimation of selling price used, stock condition and saleability, the management also negotiates with the customers and try to pass on potential provision to customers.

| d. Trade debtors and related party provision and recoverability

| The Company assesses the recoverability of trade debtors and related party balances (Note 12) based on management's knowledge of the client base, detailed review of debtor aging profiles, and historical default rates.

| For third-party trade debtors, management estimates the bad debt provision using an Expected Credit Loss (ECL) approach under FRS 101 or on a specific identification basis. This incorporates critical judgements regarding customer financial stability, historical collectability, and forward-looking economic factors.

| For related party balances, recoverability is assessed by reviewing the counterparty's financial position, repayment history, and the continuous financial support from the Ultimate Parent. Where historical unrecovered balances exist, full provisions are recognized to mitigate valuation risk. Actual credit losses may differ from management's current expectations, and estimates are revised when market conditions or customer circumstances change.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

4. | TURNOVER

| The turnover and profit (2024 - loss) before taxation are attributable to the one principal activity of the company.

| An analysis of turnover by geographical market is given below:

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| United Kingdom | 5,190 |  | 22,306 |  |

| United States of America | 22,979 |  | 24,758 |  |

| South America | 43,134 |  | 13,099 |  |

| Asia | 5,603 |  | 22,308 |  |

| Europe (Excludes UK) | 12,274 |  | 11,140 |  |

89,180 |  | 93,611 |  |

5. | OTHER OPERATING INCOME

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Government grants | 81 |  | 100 |  |

6. | EMPLOYEES AND DIRECTORS

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Wages and salaries | 12,006 |  | 11,389 |  |

| Social security costs | 1,501 |  | 1,199 |  |

| Other pension costs | 1,039 |  | 995 |  |

14,546 |  | 13,583 |  |

| The average number of employees during the year was as follows:

| 31.12.25 |  | 31.12.24

| Operations | 237 |  | 240 |  |

| Administration | 32 |  | 30 |  |

| Research and development | 13 |  | 14 |  |

282 |  | 284 |  |

|  | 31.12.25 |  |  | 31.12.24 |  |

|  | £'000 |  |  | £'000 |  |

| Director's remuneration |  | 140 |  |  | - |  |

| Director's pension |  | 18 |  |  | - |  |

7. | INTEREST PAYABLE AND SIMILAR EXPENSES |

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Bank interest | 183 |  | 477 |  |

| Leasing | 26 |  | 6 |  |

209 |  | 483 |  |

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

8. | PROFIT/(LOSS) BEFORE TAXATION

| The profit before taxation (2024 - loss before taxation) is stated after charging/(crediting):

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Cost of inventories recognised as expense | 63,722 |  | 72,428 |  |

| Depreciation - owned assets | 5,617 |  | 7,098 |  |

| Depreciation - assets on hire purchase contracts or finance leases | 163 |  | 33 |  |

| Auditors' remuneration | 67 |  | 67 |  |

| Foreign exchange differences | (2,045 | ) | (209 | ) |

| The Company's financial statements show an auditors' remuneration of £67,200 (including VAT), which represents the total UK group audit fee of £56,000 (excluding VAT) under the group contract. Of this total, £25,800 (2024: £25,800) relates to the audit of the Company, and £30,200 (2024: £30,200) relates to the audit of the group's company. No fees were incurred for non-audit services during the current year or the preceding year.

9. | TAXATION

| Analysis of tax expense

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Current tax:

| Tax | - |  | 76 |  |

| Total tax expense in statement of comprehensive income | - |  | 76 |  |

| Factors affecting the tax expense

| The tax assessed for the year is lower (2024 - higher) than the standard rate of corporation tax in the UK. The difference is explained below:

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Profit/(loss) before income tax | 5,439 |  | (11,079 | ) |

| Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%) | 1,360 |  | (2,770 | ) |

| Effects of:

| Expenses not deductible for tax purposes | 6 |  | 19 |  |

| Tax on R+D expenditure credit | - |  | 3 |  |

| Amounts not recognised | (1,366 | ) | 2,824 |  |

| Tax expense | - |  | 76 |  |

| The Company has not recognised deferred tax assets as at 31 December 2025 of £43.06M (2024: £44.71M). This has not been recognised in the financial statements due to uncertainty over the future income streams required from the potential asset to be recovered.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

10. | TANGIBLE FIXED ASSETS

| Freehold |  | Short |  | Plant and |

| property |  | leasehold |  | machinery |  | Totals

£'000 | £'000 | £'000 | £'000 |

| COST

| At 1 January 2025 | 1,107 |  | 796 |  | 85,924 |  | 87,827 |  |

| Additions | 1 |  | 534 |  | 2,801 |  | 3,336 |  |

| Impairments | - |  | - |  | (610 | ) | (610 | ) |

| Reclassification/transfer | - |  | (796 | ) | - |  | (796 | ) |

| At 31 December 2025 | 1,108 |  | 534 |  | 88,115 |  | 89,757 |  |

| DEPRECIATION

| At 1 January 2025 | 85 |  | 734 |  | 44,901 |  | 45,720 |  |

| Charge for year | 9 |  | 163 |  | 5,608 |  | 5,780 |  |

| Reclassification/transfer | - |  | (734 | ) | - |  | (734 | ) |

| At 31 December 2025 | 94 |  | 163 |  | 50,509 |  | 50,766 |  |

| NET BOOK VALUE

| At 31 December 2025 | 1,014 |  | 371 |  | 37,606 |  | 38,991 |  |

| At 31 December 2024 | 1,022 |  | 62 |  | 41,023 |  | 42,107 |  |

| The categories of plant and machinery includes assets under construction, classified as Construction in Progress (CIP).

| Short leasehold are Right of Use asset such as Motor Vehicles, Copy machine and lab equipment leased by the Company for 2 - 6 years.

11. | INVENTORY

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Raw materials | 11,172 |  | 10,898 |  |

| Work-in-progress | 784 |  | 950 |  |

| Finished goods | 19,387 |  | 17,709 |  |

31,343 |  | 29,557 |  |

| Included within the inventory provision is an amount of £6,925K (2024: £6,657K).

12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

|  | 31.12.25 |  |  | 31.12.24 |  |

|  | £'000 |  |  | £'000 |  |

| Trade debtors |  | 21,745 |  |  | 15,124 |  |

| Amounts owed by group undertakings |  | 5,931 |  |  | 5,931 |  |

| Less: Provision for doubtful debts |  | (5,931 | ) |  | (5,931 | ) |

| Other debtors |  | 3,282 |  |  | 2,067 |  |

| Prepayments and accrued income |  | 67 |  |  | 275 |  |

|  | 25,094 |  |  | 17,466 |  |

| Included in the amounts owed by group undertakings are amount of £5,931K (2024: £5,931K) due from a fellow subsidiary Fine Environmental Services Ltd., The amounts owned by group undertakings were unsecured, interest free and have no fixed repayment date.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Bank loans and overdrafts (see note 15) | - |  | 5,275 |  |

| Leases (see note 15) | 161 |  | 35 |  |

| Trade creditors | 2,345 |  | 3,443 |  |

| Amounts owed to group undertakings | 267,561 |  | 263,753 |  |

| Social security and other taxes | 678 |  | 482 |  |

| Accruals and deferred income | 5,099 |  | 4,282 |  |

275,844 |  | 277,270 |  |

| Amounts owed to group undertakings of £267,561K (2024: £263,753K) were unsecured, interest free and have no fixed repayment date. At the balance sheet date, amounts of £147,181K (2024: £148,771K) and £84,835K (2024: £87,028K) were due to the intermediate parent company Lianhetech Holdco Ltd and immediate parent company Lianhetech Europe Ltd, respectively. The remaining amounts were due to other group companies.

14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Leases (see note 15) | 219 |  | 32 |  |

15. | FINANCIAL LIABILITIES - BORROWINGS |

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Current:

| Bank overdrafts | - |  | 5,275 |  |

| Leases (see note 16) | 161 |  | 35 |  |

161 |  | 5,310 |  |

| Non-current:

| Leases (see note 16) | 219 |  | 32 |  |

| Terms and debt repayment schedule

| 1 year or |

| less |  | 1-2 years |  | Totals

£'000 | £'000 | £'000 |

| Leases | 161 |  | 219 |  | 380 |  |

| Interest is charged on bank overdraft at 1.4% above Bank of England base rate.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

16. | LEASING

| Right-of-use assets

| Tangible fixed assets

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| COST

| At 1 January 2025 | 796 |  | 796 |  |

| Additions | 534 |  | - |  |

| Reclassification/transfer | (796 | ) | - |  |

534 |  | 796 |  |

| DEPRECIATION

| At 1 January 2025 | 734 |  | 701 |  |

| Charge for year | 163 |  | 33 |  |

| Reclassification/transfer | (734 | ) | - |  |

163 |  | 734 |  |

| NET BOOK VALUE | 371 |  | 62 |  |

| Lease liabilities

| Minimum lease payments fall due as follows:

| 31.12.25 |  | 31.12.24

£'000 | £'000 |

| Gross obligations repayable:

| Within one year | 144 |  | 29 |  |

| Between one and five years | 219 |  | 28 |  |

363 |  | 57 |  |

| Finance charges repayable:

| Within one year | (17 | ) | (6 | ) |

| Between one and five years | - |  | (4 | ) |

(17 | ) | (10 | ) |

| Net obligations repayable:

| Within one year | 161 |  | 35 |  |

| Between one and five years | 219 |  | 32 |  |

380 |  | 67 |  |

| Future finance charges associated with lease liabilities charges at 3% per annum are applied to the liabilities.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

17. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 31.12.25 |  | 31.12.24

| value: | £'000 | £'000 |

| 1,200 | Ordinary | £1 | 1 |  | 1 |  |

| The number of shares allotted and fully paid were 1,200 at £1 each.

| OTHER RESERVES

| Other reserves - IFRS16: This represents the impact arising from the initial adoption of IFRS 16 in 2019, which was recognized directly in equity.

18. | PENSION COMMITMENTS

| The Company operates a defined contribution pension scheme. The pension cost charged for the year represents contributions payable by the Company to the scheme and amounted to £1,040K (2024: £994K). There was £141K (2024: £137K) outstanding at the end of the financial year.

19. | BANK GUARANTEE AND OUTSTANDING CHARGES

| Bank Guarantee

| As at 31 December 2025, the Company has a bank guarantee in place issued by HSBC Bank plc in favor of HM Revenue & Customs (HMRC) amounting to £125,000 (2024: £125,000) to secure the Company's duty deferment account. This facility is supported by general security charges previously registered with Companies House and the Land Registry in favor of HSBC Bank plc.

| The directors consider that the likelihood of any crystalline liability arising from this guarantee is remote, and accordingly, no provision has been recognized in these financial statements.

| Outstanding Charges

| As at 31 December 2025, there are three outstanding charges registered against the Company at Companies House (Charge codes: 0153 2065 0017, 0153 2065 0015, and 0153 2065 0013) in favor of Northedge Capital LLP and Keith Hanson, securing certain freehold land and buildings.

| The Directors have confirmed that these registrations are administrative errors and that no actual underlying liabilities or obligations exist in relation to these charges. The Company is currently in the process of rectifying these records with Companies House. Accordingly, no provision or financial liability has been recognized in these financial statements.

20. | RELATED PARTY DISCLOSURES

| See note 6 for disclosure of the directors’ remuneration, notes 12 and 13 for disclosures of balances due from a fellow subsidiary and due to the parent companies.

Fine Organics Limited (Registered number: 01532065)

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

21. | ULTIMATE CONTROLLING PARTY

| The immediate parent undertaking of the Company is Lianhetech Europe Ltd, a company incorporated in the UK.

| The intermediate parent undertaking of the Company is Lianhetech Holdco Ltd, a company incorporated in the UK.

| The company is a subsidiary of a larger group. The ultimate parent undertaking, Lianhe Chemical Technology Co., Limited (SZSE: 002250), heads both the largest and smallest group in which the Company's financial statements are consolidated. Ultimate parent consolidated financial statements continue to be prepared under Chinese GAAP, and the English version of these consolidated financial statements can be obtained from their registered office at No. 8 Yongjiao Road, Huangyan Economic Development Zone, Taizhou City, Zhejiang, P. R. China, 318020. The consolidated statements are publicly available from the website https://www.szse.cn/certificate/individual/index.html?code=002250.

| Ms Jinxiang Mou is the ultimate controlling party.

22. | PREVIOUS YEAR FIGURES

| The previous year figures have been rearranged/regrouped/reclassified, wherever considered necessary to facilitate comparison with current year figures.