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Registration number: 14806879

Chongie Entertainment UK Limited
Annual Report and Consolidated Financial Statements
for the Year Ended 31 December 2025

Chongie Entertainment UK Limited

Contents

Company Information | 1
Strategic Report | 2 to 4
Directors' Report | 5 to 6
Statement of Directors' Responsibilities | 7
Independent Auditor's Report | 8 to 11
Consolidated Profit and Loss Account | 12
Consolidated Statement of Comprehensive Income | 13
Consolidated Balance Sheet | 14
Balance Sheet | 15
Consolidated Statement of Changes in Equity | 16
Statement of Changes in Equity | 17
Consolidated Statement of Cash Flows | 18 to 19
Statement of Cash Flows | 20 to 21
Notes to the Financial Statements | 22 to 47

Chongie Entertainment UK Limited

Company Information

Directors | Mr G Hamilton Mr B Goulding Mr D J H Pearson

Registered office | 3-5 Wardour Street London England W1D 6PB

Auditors | Xeinadin Audit Limited Ground Floor, Citygate Longridge Road Preston Lancashire PR2 5BQ

Chongie Entertainment UK Limited

Strategic Report for the Year Ended 31 December 2025

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

Principal activity

The principal activity of the group is that of the operation of adult gaming centres.

Fair review of the business

The Chongie Entertainment UK Ltd Group is formed of the following companies:
• Chongie Entertainment UK Ltd
• Chongie Finance UK Ltd
• Chongie Entertainment Ltd
The Group considers its main KPI's to be turnover, gross profit and EBITDA.
For the year ending 31 December 2025, the Group achieved a turnover of £23,999,079 (2024: £14,196,389), an increase of £9,802,690 (69.1%). The Group has opened two new sites in the period which have showed strong revenues in the months since opening. This is supplemented by the four sites opened in the previous year now showing a full year of turnover. The strategic selection of identifying new sites in high-traffic areas is demonstrated by the year-on-year improvement in turnover.
For the period ending 31 December 2025, the gross profit margin for the Group was 35.9% (2024: 26.9%) an increase of 9.0%. The Group has achieved a gross profit of £8,611,527 (2024: £3,816,731). The gross profit margin has improved as a result of streamlining operations and cost control.
For the period ending 31 December 2025, the EBITDA for the Group was £5,518,417 (2024: £1,152,657), an increase of £4,365,760 (379%). The increase in EBITDA is driven by the continued opening and maturity of new sites, whilst streamlining operations and maintaining overheads. EBITDA is anticipated to continue to increase as the Group continues to grow.

Chongie Entertainment UK Limited

Strategic Report for the Year Ended 31 December 2025

Principal risks and uncertainties

The Group’s financial results are influenced by a number of risks and uncertainties, some of which cannot be controlled and management are looking to mitigate these risks.
Regulatory Risk
• Risk: The gambling industry is heavily regulated, and changes in legislation could impact operations.
• Mitigation: The Group closely monitors regulatory developments and engages with industry bodies to stay informed and compliant. It also has a dedicated compliance team to ensure adherence to all regulatory requirements.
Market Risk
• Risk: Changes in consumer preferences and market trends could affect revenue.
• Mitigation: The Group conducts regular market research and customer feedback surveys to stay aligned with consumer needs and preferences. It also diversifies its game offerings and continually innovates to attract and retain customers.
Operational Risk
• Risk: Disruptions in operations due to site closures, technology failures, or other unforeseen events.
• Mitigation: The Group has robust contingency plans in place. It invests in regular maintenance and upgrades of its sites and technology infrastructure to minimise downtime and operational disruptions.
Competitive Risk
• Risk: Increased competition from other gaming centres and entertainment options.
• Mitigation: The Group differentiates itself through superior customer service, unique gaming experiences, and loyalty programs. It also monitors competitor activities and adjusts its strategies accordingly to maintain a competitive edge.
Economic Risk
• Risk: Economic downturns could lead to reduced discretionary spending by consumers.
• Mitigation: The Group maintains a flexible cost structure and explores cost-saving measures during economic slowdowns. It also targets a diverse customer base to mitigate the impact of economic fluctuations on any single demographic.
Liquidity Risk
• Risk: Insufficient liquidity could hinder the Group’s ability to meet its short-term obligations and fund its operations and growth initiatives.
• Mitigation: The Group closely monitors its cash flow and maintains a strong liquidity position through prudent financial management. It also explores various financing options to ensure adequate funding for its operational and strategic needs.
Interest Rate Risk
• Risk: Changes in interest rates could impact borrowing costs and financial performance.
• Mitigation: The Group does not have loan facilities with variable rates of interest, therefore does not consider this to be a key risk.
Foreign Exchange Risk
• Risk: Fluctuations in exchange rates could affect the Group’s financial performance.
• Mitigation: The Group does not have any major overseas suppliers or customers and is not exposed to exchange rate risk.

Chongie Entertainment UK Limited

Strategic Report for the Year Ended 31 December 2025

Approved and authorised by the Board on 29 July 2026 and signed on its behalf by:

......................................... Mr G Hamilton Director

Chongie Entertainment UK Limited

Directors' Report for the Year Ended 31 December 2025

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

Directors of the group

The directors who held office during the year were as follows:

Mr G Hamilton (appointed 24 July 2025)

Mr D Baltadzhiev (ceased 24 July 2025)

The following directors were appointed after the year end:

Mr B Goulding (appointed 2 February 2026)

Mr D J H Pearson (appointed 2 February 2026)

Dividends

No dividends were paid during the year.

Financial instruments

Objectives and policies

The Group’s principal financial instruments are loans and finance agreements. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has other financial instruments which arise directly from its operations, such as trade debtors and trade creditors and the directors do not consider there to be any material risks associated with these.

Price risk, credit risk, liquidity risk and cash flow risk

The Group considers its price risk and customer credit risk to be low due to the cash nature of the business. The Group operates under normal credit terms determined by its suppliers. The Group is subject to interest risk on borrowings, however, existing loans have a fixed rate of interest over the loan term. The Group is supported by its shareholders and its objective is to maintain its cashflow through the Group’s operations to reduce liquidity risk.

Chongie Entertainment UK Limited

Directors' Report for the Year Ended 31 December 2025

Future developments

The Group remains focused on measured growth and expansion, with a further five venues currently in the planning and licensing pipeline.
Operationally, Chongie Entertainment UK Ltd continues to focus on improving performance across the estate, particularly through optimisation of the machine mix, site layouts and customer offering at each venue. Management regularly reviews machine performance data to ensure that the right products are deployed in the right locations, supporting stronger revenue generation and improved customer engagement.
The Group has also developed a proven venue roll-out model, including site selection, licensing, fit-out, machine deployment, staffing and operational launch processes. This model will continue to be applied to future venues, allowing new sites to be opened and integrated efficiently while maintaining consistent operational standards, cost control and regulatory compliance.
Overall, the Group remains optimistic about its future prospects. The Group’s strategic focus is on expanding its venue estate, improving operational performance, maintaining strong regulatory compliance and adapting to market changes in order to deliver long-term growth.

Important non adjusting events after the financial period

Subsequent to the balance sheet date, the group has been the subject of preliminary discussions which may or may not lead to a change in the ownership of the group. These discussions remain at an early stage and are subject to a number of conditions. No adjustment is required to the financial statements in respect of this matter.
Subsequent to the balance sheet date, Chongie Entertainment UK Ltd subdivided the Ordinary A and Ordinary B shares from £0.1 to £0.0001. Following the subdivision, 616 Ordinary C shares each with a par value of £0.0001 were issued at par.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 29 July 2026 and signed on its behalf by:

......................................... Mr G Hamilton Director

Chongie Entertainment UK Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• | select suitable accounting policies and apply them consistently;

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

• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Chongie Entertainment UK Limited

Independent Auditor's Report to the Members of Chongie Entertainment UK Limited

Opinion

We have audited the financial statements of Chongie Entertainment UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, 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 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 group's and the parent company's affairs as at 31 December 2025 and of its loss 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.

Chongie Entertainment UK Limited

Independent Auditor's Report to the Members of Chongie Entertainment UK Limited

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. As auditors we have assessed management’s evaluation of the entity’s ability to continue as a going concern and are satisfied with the conclusions arrived at.
We have obtained confirmation that the entity continues to be funded by key creditors and the ultimate controlling party. We have reviewed the amendments arising during the year to the existing loans and we are satisfied that with the continued backing of the ultimate controlling party, the entity has the capacity to repay the loans by the repayment date. We reviewed correspondence with the loan provider along with a letter of intent confirming there is no intention to call in any loan which would negatively impact the business.

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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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:

Chongie Entertainment UK Limited

Independent Auditor's Report to the Members of Chongie Entertainment UK Limited

• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
• | the parent company 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 7], 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 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 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.

Auditor 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.

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

We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Chongie Entertainment UK Limited

Independent Auditor's Report to the Members of Chongie Entertainment UK Limited

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.

......................................
Mr P Swarbrick (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited, Statutory Auditor
Ground Floor, Citygate
Longridge Road
Preston
Lancashire
PR2 5BQ

29 July 2026

Chongie Entertainment UK Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2025

| Note | 2025 £ | (As restated) 2024 £
Turnover | 3 | 23,999,079 | 14,196,389
Cost of sales |  | (15,387,553) | (10,379,658)
Gross profit |  | 8,611,526 | 3,816,731
Administrative expenses |  | (8,120,085) | (8,450,115)
Operating profit/(loss) | 5 | 491,441 | (4,633,384)
Other interest receivable and similar income | 6 | - | 3,121,914
Interest payable and similar expenses | 7 | (3,698,696) | (2,956,824)
|  | (3,698,696) | 165,090
Loss before tax |  | (3,207,255) | (4,468,294)
Tax on loss | 11 | (559,377) | 939,178
Loss for the financial year |  | (3,766,632) | (3,529,116)
Profit/(loss) attributable to: |  |  |
Owners of the company |  | (3,766,632) | (3,529,116)

Chongie Entertainment UK Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2025

| 2025 £ | (As restated) 2024 £
Loss for the year | (3,766,632) | (3,529,116)
Other comprehensive income | 1,802,674 | -
Total comprehensive income for the year | (1,963,958) | (3,529,116)
Total comprehensive income attributable to: |  |
Owners of the company | (1,963,958) | (3,529,116)

Chongie Entertainment UK Limited

(Registration number: 14806879)
Consolidated Balance Sheet as at 31 December 2025

| Note | 2025 £ | (As restated) 2024 £
Fixed assets |  |  |
Intangible assets | 12 | 8,606,717 | 7,655,045
Tangible assets | 13 | 7,531,453 | 9,047,737
Debtors | 16 | 654,488 | 601,133
|  | 16,792,658 | 17,303,915
Current assets |  |  |
Stocks | 15 | 77,867 | 68,310
Debtors | 16 | 4,485,312 | 5,193,994
Cash at bank and in hand |  | 3,260,921 | 2,850,099
|  | 7,824,100 | 8,112,403
Creditors: Amounts falling due within one year | 18 | (30,328,372) | (28,664,610)
Net current liabilities |  | (22,504,272) | (20,552,207)
Total assets less current liabilities |  | (5,711,614) | (3,248,292)
Creditors: Amounts falling due after more than one year | 18 | (272,370) | (771,833)
Net liabilities |  | (5,983,984) | (4,020,125)
Capital and reserves |  |  |
Called up share capital | 20 | 100 | 1
Capital contribution reserve | 21 | 1,002,447 | -
Retained earnings | 21 | (6,986,531) | (4,020,126)
Equity attributable to owners of the company |  | (5,983,984) | (4,020,125)
Shareholders' deficit |  | (5,983,984) | (4,020,125)

Approved and authorised by the Board on 29 July 2026 and signed on its behalf by:

......................................... Mr G Hamilton Director

Chongie Entertainment UK Limited

(Registration number: 14806879)
Balance Sheet as at 31 December 2025

| Note | 2025 £ | (As restated) 2024 £
Fixed assets |  |  |
Intangible assets | 12 | 8,484,369 | 7,645,025
Tangible assets | 13 | 5,662,756 | 7,445,885
Investments | 14 | 837,329 | 3
Debtors | 16 | 654,488 | 601,133
|  | 15,638,942 | 15,692,046
Current assets |  |  |
Stocks | 15 | 77,867 | 68,310
Debtors | 16 | 6,201,242 | 6,327,946
Cash at bank and in hand |  | 3,138,503 | 2,742,185
|  | 9,417,612 | 9,138,441
Creditors: Amounts falling due within one year | 18 | (31,207,747) | (28,409,438)
Net current liabilities |  | (21,790,135) | (19,270,997)
Total assets less current liabilities |  | (6,151,193) | (3,578,951)
Creditors: Amounts falling due after more than one year | 18 | - | (354,401)
Net liabilities |  | (6,151,193) | (3,933,352)
Capital and reserves |  |  |
Called up share capital | 20 | 100 | 1
Retained earnings |  | (6,151,293) | (3,933,353)
Shareholders' deficit |  | (6,151,193) | (3,933,352)

The company made a loss after tax for the financial year of £2,217,940 (2024 - loss of £3,924,984).

Approved and authorised by the Board on 29 July 2026 and signed on its behalf by:

......................................... Mr G Hamilton Director

Chongie Entertainment UK Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2025
Equity attributable to the parent company

| Share capital £ | Capital contribution reserve £ | Retained earnings £ | Total £ | Total equity £
At 1 January 2025 | 1 | - | (3,558,755) | (3,558,754) | (3,558,754)
Prior period adjustment | - | - | (461,371) | (461,371) | (461,371)
At 1 January 2025 (As restated) | 1 | - | (4,020,126) | (4,020,125) | (4,020,125)
Loss for the year | - | - | (3,766,632) | (3,766,632) | (3,766,632)
Other comprehensive income | - | 1,002,447 | 800,227 | 1,802,674 | 1,802,674
Total comprehensive income | - | 1,002,447 | (2,966,405) | (1,963,958) | (1,963,958)
New share capital subscribed | 99 | - | - | 99 | 99
At 31 December 2025 | 100 | 1,002,447 | (6,986,531) | (5,983,984) | (5,983,984)

| Share capital £ | Retained earnings £ | Total £ | Total equity £
At 1 January 2024 | 1 | (491,010) | (491,009) | (491,009)
Loss for the year | - | (3,529,116) | (3,529,116) | (3,529,116)
At 31 December 2024 | 1 | (4,020,126) | (4,020,125) | (4,020,125)

Chongie Entertainment UK Limited

Statement of Changes in Equity for the Year Ended 31 December 2025

| Share capital £ | Retained earnings £ | Total £
At 1 January 2025 | 1 | (3,471,982) | (3,471,981)
Prior period adjustment | - | (461,371) | (461,371)
At 1 January 2025 (As restated) | 1 | (3,933,353) | (3,933,352)
Loss for the year | - | (2,217,940) | (2,217,940)
New share capital subscribed | 99 | - | 99
At 31 December 2025 | 100 | (6,151,293) | (6,151,193)

| Share capital £ | Retained earnings £ | Total £
At 1 January 2024 | 1 | (8,369) | (8,368)
Loss for the year | - | (3,924,984) | (3,924,984)
At 31 December 2024 | 1 | (3,933,353) | (3,933,352)

Chongie Entertainment UK Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2025

| Note | 2025 £ | (As restated) 2024 £
Cash flows from operating activities
Loss for the year |  | (3,766,632) | (3,529,116)
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 5 | 4,869,617 | 4,123,625
Impairment of goodwill |  | - | 2,066,341
Loss/(profit) on disposal of tangible assets | 4 | 25,457 | (403,925)
Loss on disposal of intangible assets | 4 | 131,901 | -
Finance income | 6 | - | (3,121,914)
Finance costs | 7 | 3,698,696 | 2,956,824
Income tax expense | 11 | 559,377 | (939,178)
Foreign exchange gains/losses |  | 36,762 | 3,806
|  | 5,555,178 | 1,156,463
Working capital adjustments |  |  |
Increase in stocks | 15 | (9,557) | (68,310)
Decrease/(increase) in trade debtors | 16 | 95,949 | (214,907)
Increase in trade creditors | 18 | 4,199,885 | 652,434
Increase/(decrease) in non current creditors |  | (30,708) | 62,921
Cash generated from operations |  | 9,810,747 | 1,588,601
Income taxes paid | 11 | (637) | -
Net cash flow from operating activities |  | 9,810,110 | 1,588,601
Cash flows from investing activities |  |  |
Interest received |  | - | 1,179
Acquisitions of tangible assets |  | (2,230,118) | (4,273,909)
Proceeds from sale of tangible assets |  | 71,587 | 836,475
Acquisition of intangible assets | 12 | (2,203,738) | (977,396)
Proceeds from sale of intangible assets |  | 1 | 167,079
Net cash flows from investing activities |  | (4,362,268) | (4,246,572)

Chongie Entertainment UK Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2025

| Note | 2025 £ | (As restated) 2024 £
Cash flows from financing activities |  |  |
Interest paid |  | (714,717) | (62,385)
Proceeds from issue of ordinary shares, net of issue costs |  | 99 | -
Proceeds from other borrowing draw downs |  | 8,384,300 | 5,083,150
Repayment of other borrowing |  | (8,604,384) | -
Novation of other loans (to)/from group company |  | (3,090,445) | -
Payments to finance lease creditors |  | (975,748) | (905,822)
Net cash flows from financing activities |  | (5,000,895) | 4,114,943
Net increase in cash and cash equivalents |  | 446,947 | 1,456,972
Cash and cash equivalents at 1 January |  | 2,850,099 | 1,396,932
Effect of exchange rate fluctuations on cash held |  | (36,125) | (3,805)
Cash and cash equivalents at 31 December |  | 3,260,921 | 2,850,099

Chongie Entertainment UK Limited

Statement of Cash Flows for the Year Ended 31 December 2025

| Note | 2025 £ | (As restated) 2024 £
Cash flows from operating activities
Loss for the year |  | (2,217,940) | (3,924,984)
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 5 | 4,508,751 | 2,918,553
Impairment of goodwill |  | - | 3,408,246
Loss/(profit) on disposal of tangible assets | 4 | 25,457 | (5,698)
Loss on disposal of intangible assets | 4 | 131,901 | -
Finance income |  | - | (3,120,735)
Finance costs |  | 2,320,255 | 2,612,334
Income tax expense | 11 | 465,737 | (660,487)
Foreign exchange gains/losses |  | 36,762 | 2,629
|  | 5,270,923 | 1,229,858
Working capital adjustments |  |  |
Increase in stocks | 15 | (9,557) | (68,310)
Increase in trade debtors | 16 | (392,389) | (2,918,078)
Increase in trade creditors | 18 | 20,221,945 | 1,808,473
Increase/(decrease) in non current creditors |  | (15,034) | 15,034
Increase/(decrease) from working capital acquired from business combinations |  | - | 1,257,731
Net cash flow from operating activities |  | 25,075,888 | 1,324,708
Cash flows from investing activities |  |  |
Acquisition of subsidiaries | 14 | (837,326) | -
Acquisitions of tangible assets |  | (1,528,068) | (2,531,534)
Proceeds from sale of tangible assets |  | 71,587 | 62,199
Acquisition of intangible assets |  | (2,203,738) | (840,354)
Proceeds from sale of intangible assets |  | 1 | -
Cash acquired on business combination |  | - | 1,304,734
Net cash flows from investing activities |  | (4,497,544) | (2,004,955)

Chongie Entertainment UK Limited

Statement of Cash Flows for the Year Ended 31 December 2025

| Note | 2025 £ | (As restated) 2024 £
Cash flows from financing activities |  |  |
Interest paid |  | (186,941) | (53,011)
Proceeds from issue of ordinary shares, net of issue costs |  | 99 | -
Proceeds from other borrowing draw downs |  | 8,384,300 | 4,133,150
Novation of other loans (to)/from group company |  | (27,557,503) | -
Payments to finance lease creditors |  | (785,219) | (655,080)
Net cash flows from financing activities |  | (20,145,264) | 3,425,059
Net increase in cash and cash equivalents |  | 433,080 | 2,744,812
Cash and cash equivalents at 1 January |  | 2,742,185 | 1
Effect of exchange rate fluctuations on cash held |  | (36,762) | (2,628)
Cash and cash equivalents at 31 December |  | 3,138,503 | 2,742,185

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
3-5 Wardour Street
London
W1D 6PB
England

These financial statements were authorised for issue by the Board on 29 July 2026.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2025.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £2,217,940 (2024 - loss of £3,924,984).

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on a going concern basis. At the balance sheet date, the Group’s liabilities exceed the assets, arising as a result of the capital outlay required for the business model. Despite recognising a loss before tax, the group has achieved an EBITDA of £5,518,417 (2024: £1,152,657) and EBITDA is expected to continue to improve based on future projections. As the Group continues to grow and expand, the directors anticipate that the Group will be funded through its retained earnings. The entity is backed by its ultimate controlling owner who is committed to supporting the ongoing operations of the Group for the foreseeable future.
Within 12 months from the date of signing of the balance sheet a loan with a value of £14,300,000 is due to be repaid. The Group retains its backing of the ultimate controlling party and has the capacity to repay the outstanding loans by the repayment date. The group received a letter of intent from the loan provider confirming there is no intention to call in any loan which would negatively impact the business.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Prior period errors

The reserves at the balance sheet date for Chongie Entertainment UK Ltd were amended with a prior year adjustment. The adjustment has been made to restate the corporation tax and deferred tax balances due to an amendment to the prior periods corporation tax computation.

| Relating to the current period disclosed in these financial statements £ | Relating to the prior period disclosed in these financial statements £ | Relating to periods before the prior period disclosed in these financial statements £
Tax on profit/(loss) | - | (461,371) | -
Retained earnings brought forward | (461,371) | - | -
Deferred tax asset | (456,331) | (456,331) | -
Corporation tax liability | 5,040 | 5,040 | -

Key sources of estimation uncertainty

The annual amortisation and depreciation charges for fixed assets is sensitive to changes in the estimated useful lives and residual value of the assets. The useful economic lives and residual value 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.

Revenue recognition

Turnover comprises the fair value of gaming machine takings net of any prizes paid out and the consideration received or receivable for the provision of services in the ordinary course of the Group’s activities.
Machines used by the company are subject to Machine Games Duty. Where the machine takings are subject to Machine Games Duty the turnover is shown in the profit and loss account gross with the Machine Games Duty recorded separately as an expense. Turnover not subject to Machine Games Duty is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Group and specific criteria have been met for each of the Group’s activities. Machine income taken after the final collection of the accounting period is accrued and apportioned evenly over the week.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Gaming machines | 1-5 year straight line
Other plant and machinery | 33% straight line
Computer equipment | 33% straight line
Fixtures and fittings | 20% straight line
Leasehold improvements | 20% straight line
Motor vehicles | 25% reducing balance

Gaming machines are depreciated over a period of 1 to 5 years. New machines are depreciated over 5 years. Older machines are depreciated over 1-3 years.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost. Lease premiums and associated lease costs are recognised within intangible assets and are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses. Lease premiums and associated lease costs are amortised over the lease term and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows. Where the useful life of an intangible asset cannot be reliably measured, it is amortised on a straight line basis over a period that does not exceed 10 years.

Asset class | Amortisation method and rate
Goodwill | 10% straight line
Other intangible assets | 10% straight line
Lease premiums and associated lease costs | Over the term of the lease

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Stocks also includes any spare parts which do not meet the definition of property, plant and equipment. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The Group operates a defined contribution pension scheme for its employees. A defined contribution pension scheme is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in an independently administered fund.

Financial instruments

The Group recognises a financial asset or financial liability only when it becomes a party to the contractual provisions of the instrument.
Basic financial assets and basic financial liabilities are initially recognised at the transaction price, including transaction costs, unless the arrangement constitutes a financing transaction. Where the arrangement constitutes a financing transaction, the financial asset or financial liability is measured initially at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Basic financial instruments are subsequently measured at amortised cost using the effective interest method. If there is a material change to the terms of the financial instrument, it is remeasured and where the financial instrument is with a connected party then any gain or loss is recognised within equity, otherwise it is recognised through the profit and loss account.
At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. Where objective evidence exists, an impairment loss is recognised in the profit and loss account.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

3 | Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Machine takings | 23,960,166 | 14,148,577
Other revenue | 38,913 | 47,812
| 23,999,079 | 14,196,389

4 | Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

| 2025 £ | 2024 £
(Loss)/gain on disposal of Tangible assets | (25,457) | 403,925
Loss on disposal of intangible assets | (131,901) | -
| (157,358) | 403,925

5 | Operating profit/(loss)

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 3,749,452 | 3,116,538
Amortisation expense | 1,120,165 | 1,007,087
Impairment loss | - | 2,066,342
Foreign exchange losses | 36,762 | 3,806
Loss/(profit) on disposal of property, plant and equipment | 25,457 | (403,925)

6 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | - | 1,179
Net gain on financial instrument | - | 3,120,735
| - | 3,121,914

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

7 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 64,892 | 44,028
Interest on obligations under finance leases and hire purchase contracts | 168,770 | 175,670
Interest expense on other finance liabilities | 3,465,034 | 2,737,126
| 3,698,696 | 2,956,824

8 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 5,567,740 | 4,014,563
Social security costs | 547,867 | 327,512
Pension costs, defined contribution scheme | 51,343 | 46,483
Other employee expense | 120,821 | 65,732
| 6,287,771 | 4,454,290

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Shop staff | 183 | 145
Engineers | 3 | 2
Head office | 17 | 11
Directors | 1 | 1
| 204 | 159

9 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 80,112 | 48,333

10 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of these financial statements | 36,200 | 66,200

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

11 | Taxation

Tax charged/(credited) in the consolidated profit and loss account

| 2025 £ | (As restated) 2024 £
Deferred taxation |  |
Arising from origination and reversal of timing differences | 559,377 | (939,178)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Loss before tax | (3,207,255) | (4,468,294)
Corporation tax at standard rate | (801,814) | (1,117,074)
Tax increase from effect of capital allowances and depreciation | 671,232 | 732,870
Tax increase from other short-term timing differences | 118,019 | 506,889
Effect of expense not deductible in determining taxable profit (tax loss) | 239,425 | 8,786
Effect of tax losses | (441,741) | (154,070)
Tax increase from effect of unrelieved tax losses carried forward | 441,740 | -
Effect of foreign tax rates | 327,491 | -
Deferred tax expense from unrecognised tax loss or credit | - | 34
Tax increase from other tax effects | 5,025 | 8,671
Further item of tax decrease | - | (925,284)
Total tax charge/(credit) | 559,377 | (939,178)

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Deferred tax

Group

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Accelerated tax depreciation | - | 633,643
Tax losses carried forward | 4,076,896 | -
| 4,076,896 | 633,643

2024 | Asset £ | Liability £
Accelerated tax depreciation | - | 515,623
Tax losses carried forward | 4,975,222 | -
| 4,975,222 | 515,623

Company

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Accelerated tax depreciation | - | 289,143
Tax losses carried forward | 3,800,960 | -
| 3,800,960 | 289,143

2024 | Asset £ | Liability £
Accelerated tax depreciation | - | 264,764
Tax losses carried forward | 4,698,649 | -
| 4,698,649 | 264,764

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

12 | Intangible assets

Group

| Goodwill £ | Other intangible assets £ | Total £
Cost or valuation
At 1 January 2025 | 9,418,940 | 1,375,152 | 10,794,092
Additions acquired separately | - | 2,203,738 | 2,203,738
Disposals | - | (131,935) | (131,935)
At 31 December 2025 | 9,418,940 | 3,446,955 | 12,865,895
Amortisation
At 1 January 2025 | 3,052,524 | 86,523 | 3,139,047
Amortisation charge | 941,894 | 178,270 | 1,120,164
Amortisation eliminated on disposals | - | (33) | (33)
At 31 December 2025 | 3,994,418 | 264,760 | 4,259,178
Carrying amount
At 31 December 2025 | 5,424,522 | 3,182,195 | 8,606,717
At 31 December 2024 | 6,366,416 | 1,288,629 | 7,655,045

Impairment

Goodwill
The impairment was introduced to reflect the realisable economic value of the assets. The amount of impairment loss included in profit or loss is £Nil (2024 - £2,066,343).

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Company

| Goodwill £ | Other intangible assets £ | Total £
Cost or valuation
At 1 January 2025 | 10,553,565 | 1,350,358 | 11,903,923
Additions acquired separately | - | 2,203,738 | 2,203,738
Disposals | - | (131,935) | (131,935)
At 31 December 2025 | 10,553,565 | 3,422,161 | 13,975,726
Amortisation
At 1 January 2025 | 4,187,150 | 71,748 | 4,258,898
Amortisation charge | 1,055,356 | 177,136 | 1,232,492
Amortisation eliminated on disposals | - | (33) | (33)
At 31 December 2025 | 5,242,506 | 248,851 | 5,491,357
Carrying amount
At 31 December 2025 | 5,311,059 | 3,173,310 | 8,484,369
At 31 December 2024 | 6,366,415 | 1,278,610 | 7,645,025

Impairment

Goodwill
The impairment was introduced to reflect the realisable economic value of the assets. The amount of impairment loss included in profit or loss is £Nil (2024 - £3,408,247).

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

13 | Tangible assets

Group

| Short leasehold land and buildings £ | Fixtures and fittings £ | Office equipment £ | Motor vehicles £ | Other tangible assets £ | Total £
Cost or valuation
At 1 January 2025 | 5,927,221 | 279,419 | 817,849 | 29,521 | 5,369,885 | 12,423,895
Additions | 1,314,684 | 62,880 | 141,814 | 8,690 | 802,144 | 2,330,212
Disposals | (42,185) | (7,647) | (12,634) | (7,212) | (53,827) | (123,505)
At 31 December 2025 | 7,199,720 | 334,652 | 947,029 | 30,999 | 6,118,202 | 14,630,602
Depreciation
At 1 January 2025 | 1,281,126 | 71,862 | 289,981 | 5,790 | 1,727,399 | 3,376,158
Charge for the year | 1,673,340 | 77,892 | 332,329 | 7,553 | 1,658,338 | 3,749,452
Eliminated on disposal | - | - | (4,900) | (1,596) | (19,965) | (26,461)
At 31 December 2025 | 2,954,466 | 149,754 | 617,410 | 11,747 | 3,365,772 | 7,099,149
Carrying amount
At 31 December 2025 | 4,245,254 | 184,898 | 329,619 | 19,252 | 2,752,430 | 7,531,453
At 31 December 2024 | 4,646,095 | 207,557 | 527,868 | 23,731 | 3,642,486 | 9,047,737

Included within the net book value of land and buildings above is £4,245,254 (2024 - £4,646,095) in respect of short leasehold land and buildings.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Plant and machinery | 2,335,088 | 2,545,150

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Company

| Land and buildings £ | Furniture, fittings and equipment £ | Motor vehicles £ | Other tangible assets £ | Total £
Cost or valuation
At 1 January 2025 | 5,604,713 | 978,918 | 29,207 | 2,895,594 | 9,508,432
Additions | 1,314,684 | 204,694 | 8,690 | 62,104 | 1,590,172
Disposals | (42,185) | (20,281) | (7,212) | (53,827) | (123,505)
At 31 December 2025 | 6,877,212 | 1,163,331 | 30,685 | 2,903,871 | 10,975,099
Depreciation
At 1 January 2025 | 958,618 | 243,493 | 5,476 | 854,960 | 2,062,547
Charge for the year | 1,673,340 | 410,221 | 7,553 | 1,185,143 | 3,276,257
Eliminated on disposal | - | (4,900) | (1,596) | (19,965) | (26,461)
At 31 December 2025 | 2,631,958 | 648,814 | 11,433 | 2,020,138 | 5,312,343
Carrying amount
At 31 December 2025 | 4,245,254 | 514,517 | 19,252 | 883,733 | 5,662,756
At 31 December 2024 | 4,646,095 | 735,425 | 23,731 | 2,040,634 | 7,445,885

Included within the net book value of land and buildings above is £4,245,254 (2024 - £4,646,095) in respect of short leasehold land and buildings.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Plant and machinery | 466,391 | 943,299

14 | Investments

Company

| 2025 £ | 2024 £
Investments in subsidiaries | 837,329 | 3

Subsidiaries | £
Cost or valuation
At 1 January 2025 | 3
Additions | 837,326
At 31 December 2025 | 837,329
Provision
At 31 December 2025 | -
Carrying amount
At 31 December 2025 | 837,329
At 31 December 2024 | 3

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertakings
Chongie Finance UK Limited | 71-75 Shelton Street, London, England, WC2H 9JQ England and Wales | Ordinary | 100% | 100%
Chongie Entertainment Ltd | 9 Pineapple House, Western Road, Lyford Cay, P.O. Box Sp64274, New Providence, Bahamas Bahamas | Ordinary | 100% | 100%

The principal activity of Chongie Finance UK Ltd is that of the leasing of amusement machines. The principal activity of Chongie Entertainment Ltd is that of a non trading entity, previously that of the operation of adult gaming centres.

15 | Stocks

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Other inventories | 77,867 | 68,310 | 77,867 | 68,310

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

16 | Debtors

|  | Group | Company
Current | Note | 2025 £ | (As restated) 2024 £ | 2025 £ | (As restated) 2024 £
Amounts owed by related parties | 24 | - | - | 1,740,144 | 1,278,723
Other debtors |  | 177,076 | 447,059 | 155,069 | 330,908
Prepayments and accrued income |  | 864,347 | 743,668 | 794,213 | 740,761
Deferred tax assets | 11 | 3,443,252 | 4,003,267 | 3,511,816 | 3,977,554
Income tax asset | 11 | 637 | - | - | -
|  | 4,485,312 | 5,193,994 | 6,201,242 | 6,327,946

| Group | Company
Non-current | 2025 £ | 2024 £ | 2025 £ | 2024 £
Other debtors | 654,488 | 601,133 | 654,488 | 601,133
| 654,488 | 601,133 | 654,488 | 601,133

17 | Cash and cash equivalents

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Cash on hand | 1,196,376 | 1,053,884 | 1,196,375 | 1,053,885
Cash at bank | 2,064,545 | 1,796,182 | 1,942,128 | 1,688,267
Other cash and cash equivalents | - | 33 | - | 33
| 3,260,921 | 2,850,099 | 3,138,503 | 2,742,185

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

18 | Creditors

|  | Group | Company
| Note | 2025 £ | 2024 £ | 2025 £ | 2024 £
Due within one year |  |  |  |  |
Loans and borrowings | 22 | 24,080,226 | 26,616,349 | 9,070,752 | 26,494,388
Trade creditors |  | 587,827 | 463,336 | 298,128 | 345,124
Amounts due to related parties | 24 | - | - | 19,785,906 | 2
Social security and other taxes |  | 1,554,466 | 940,321 | 1,554,466 | 940,321
Outstanding defined contribution pension costs |  | 7,382 | 6,399 | 7,382 | 6,399
Other payables |  | 125,923 | 278,214 | 125,922 | 278,213
Accruals |  | 3,972,548 | 359,991 | 365,191 | 344,991
|  | 30,328,372 | 28,664,610 | 31,207,747 | 28,409,438
Due after one year |  |  |  |  |
Loans and borrowings | 22 | 165,030 | 633,785 | - | 339,367
Other financial liabilities |  | 107,340 | 138,048 | - | 15,034
|  | 272,370 | 771,833 | - | 354,401

Barclays Bank PLC have a debenture with Chongie Entertainment UK Ltd. The charge is secured by way of a fixed and floating charge over all the property or undertaking of the company and contains a negative pledge.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Loans and borrowings

Loans and borrowings include a loan with a repayment value of £14,300,000. The loan is interest free and is due for repayment within 12 months. The loan has been discounted to its present value, based on the value of future payments and the carrying value at the balance sheet date is £12,460,226 (2024: £12,442,675). During the year the repayment date was extended by 12 months and the remaining loan was discounted to the new present value of future repayments. A fair value credit of £1,802,675 arose from the discounting. The extension was granted in return for security provided by the shareholder, and this credit has been recognised through a capital contribution reserve.
Security has been provided over the aforementioned loan by way of a call option to acquire all the issued Ordinary B shares for a price of £1. The option has been provided to the lender and is exercisable in the event that the loan is not repaid by 31 December 2026. This option is not embedded within the loan agreement and is provided separately by the shareholder.
On 18 July 2025, three separate loans with a fair value of £24,466,756 were novated from Chongie Entertainment UK Ltd to Chongie Entertainment Ltd. All rights, obligations and liabilities under the loan agreements have been assigned to Chongie Entertainment Ltd. As part of the novation, the original lender has novated, transferred and assigned all the rights, obligations and liabilities under the loan agreement to Berry Islands Debt Capital Ltd. The original party and original lender, cease to be part to the loan arrangements. The loans were novated at their carrying value. At the balance sheet date, the carrying value of these loans is £14,860,226 along with accrued interest of £3,597,349. Other than the aforementioned security with the shareholder, these loans are unsecured.
At the balance sheet date Loans and Borrowings due within one year includes other loans with a connected party of £8,701,548 along with accrued interest of £122,185. These loans are unsecured.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

19 | Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents employer contributions payable by the group to the scheme and amounted to £51,343 (2024 - £46,483).
Employee deductions and employer contributions totalling £7,382 (2024 - £6,399) were payable to the scheme at the end of the year and are included in creditors.

20 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary share of £1 each | - | - | 1 | 1
Ordinary A share of £0.10 each | 910 | 91 | - | -
Ordinay B share of £0.10 each | 91 | 9 | - | -
| 1,001 | 100 | 1 | 1

Share reorganisations and allotments in the year

During the year, Ordinary shares with a par value of £1 were subdivided into shares with a par value of £0.10 and reclassified at Ordinary A shares.
During the year, 900 Ordinary A shares with a par value of £0.10 were issued at par and 91 Ordinary B shares with a par value of £0.10 were issued at par.

Rights, preferences and restrictions

Ordinary A shares have the following rights, preferences and restrictions: Each Ordinary A share shall confer on the holder the right to attend and vote at any general meeting of the company and the right to vote on proposed written resolutions of the company. Holders shall be entitled to dividends and distributions on winding up in the following proportions: 25% to the holders of Ordinary A shares and 75% to the holders of Ordinary B shares.
Ordinary B shares have the following rights, preferences and restrictions: Each Ordinary B share contains no right to attend and vote at any general meeting of the company and no right to vote on proposed written resolutions of the company. Holders shall be entitled to dividends and distributions on winding up in the following proportions: 25% to the holders of Ordinary A shares and 75% to the holders of Ordinary B shares.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

21 | Reserves

Group

Capital contribution reserve

Capital contribution reserve comprises an adjustment to debt arising from security provided by a shareholder and the subsequent unwinding of this debt.

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

| Capital contribution reserve £ | Retained earnings £ | Total £
Other comprehensive income | 1,002,447 | 800,227 | 800,227

22 | Loans and borrowings

Non-current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Hire purchase contracts | 165,030 | 633,785 | - | 339,367

Current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Hire purchase contracts | 518,450 | 811,399 | 369,203 | 689,438
Other borrowings | 23,561,776 | 25,804,950 | 8,701,549 | 25,804,950
| 24,080,226 | 26,616,349 | 9,070,752 | 26,494,388

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

23 | Obligations under leases and hire purchase contracts

Group

Finance leases

The finance leases are secured over the assets concerned.

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 518,450 | 811,398
Later than one year and not later than five years | 165,030 | 633,785
| 683,480 | 1,445,183

The finance leases relate to gaming machines used in the Group's trade.

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 2,489,129 | 1,131,400
Later than one year and not later than five years | 3,889,183 | 3,671,419
Later than five years | 6,454,899 | 6,747,217
| 12,833,211 | 11,550,036

The operating leases relate to property leases.

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,346,014 (2024 - £1,184,023).

Company

Finance leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 369,203 | 689,438
Later than one year and not later than five years | - | 339,367
| 369,203 | 1,028,805

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 2,489,129 | 1,131,400
Later than one year and not later than five years | 3,889,183 | 3,671,419
Later than five years | 6,454,899 | 6,747,217
| 12,833,211 | 11,550,036

The amount of non-cancellable operating lease payments recognised as an expense during the year was £1,346,014 (2024 - £883,860).

24 | Related party transactions

Group

The entity has taken advantage of the exemption available under FRS102 paragraph 33.1A, whereby it has not disclosed transactions with companies which are wholly owned within the group.

Key management compensation

| 2025 £ | 2024 £
Salaries and other short term employee benefits | 302,373 | 289,759

Summary of transactions with entities with control or significant interest

There are transactions between Chongie Entertainment UK Ltd and G Hamilton. G Hamilton is the ultimate controlling party. During the year the director advanced €8,500,000 to the Company. At the balance sheet date, the amount owed to G Hamilton is £8,701,548 (2024: 1,283,150) and these loans are included within Creditors. No interest is charged on loans with a carrying value of £1,283,150 and these loans are unsecured and repayable on demand. Interest is chargeable at 4% per annum on loans with a carrying value of £7,418,398 and these loans are unsecured and repayable on the earlier of 30 days written notice of a request for repayment or 25 July 2027. Interest with a carrying value of £122,185 in respect of this loan is recognised within accruals.
There are transactions between Chongie Entertainment UK Ltd and Glyndyfrdwy Ltd. Glyndyfrdwy Ltd is a company controlled by G Hamilton. During the year, Chongie Entertainment UK Ltd paid Glyndyfrdwy Ltd £40,443 in respect of rent and other lease costs. At the balance sheet date, the amount owed to Glyndyfrdwy Ltd is £nil (2024: £nil). The transactions were incurred under normal market conditions.

25 | Parent and ultimate parent undertaking

The ultimate controlling party is G Hamilton.

Chongie Entertainment UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

26 | Non adjusting events after the financial period

Subsequent to the balance sheet date, the group has been the subject of preliminary discussions which may or may not lead to a change in the ownership of the group. These discussions remain at an early stage and are subject to a number of conditions. No adjustment is required to the financial statements in respect of this matter. Subsequent to the balance sheet date, Chongie Entertainment UK Ltd subdivided the Ordinary A and Ordinary B shares from £0.1 to £0.0001. Following the subdivision, 616 Ordinary C shares each with a par value of £0.0001 were issued at par.