Company Registration Number: SC622646
FOR THE YEAR ENDED 31 DECEMBER 2025
BROADEX TECHNOLOGIES UK LIMITED
COMPANY INFORMATION
BROADEX TECHNOLOGIES UK LIMITED
CONTENTS
BROADEX TECHNOLOGIES UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present the strategic report for the year ended 31 December 2025.
Broadex Technologies UK Limited continues to operate at the forefront of the opto-electronics sector, supporting the global telecommunications industry through the design and manufacture of innovative optical devices. Operating a 2,000 square metre cleanroom wafer fabrication facility, the company specialises in Planar Light Circuit (PLC) devices utilising silica-on-silicon technology and is well positioned to provide advanced technology together with global sales and customer support.
During 2025, trading conditions within the telecommunications market remained challenging, with customer investment and procurement activity continuing to recover gradually. Despite these conditions, the company maintained stable operations whilst continuing to invest in new technologies, strengthen strategic customer relationships and broaden its product portfolio.
Building on the progress achieved in previous years, Broadex continued to expand its portfolio of products addressing the rapidly developing hyperscale datacentre market, where demand for high-performance optical interconnect solutions is being driven by increasing investment in Artificial Intelligence (AI) infrastructure. The company further extended its existing product portfolio for inter-datacentre interconnect applications whilst advancing the development of new technologies targeted at optical connectivity within the datacentre environment.
The company also continued to extend its Cascade AWG product line and progress the commercialisation of its Silicon Nitride–Glass hybrid technology. These developments further strengthen Broadex Technologies UK Limited's position across telecommunications, data communications and AI infrastructure, reinforcing its commitment to innovation and long-term growth.
Future Outlook
Looking ahead, the company will continue to focus on increasing production capacity and commercial deployment of its Cascade AWG and Silicon Nitride–Glass hybrid technologies. Further strengthening relationships with existing customers, developing new market opportunities and expanding within AI and advanced data communications will remain key priorities.
The directors remain confident in the company's long-term prospects. Continued investment in technology, combined with the ongoing support of the parent company, Jiaxing INBroad Technology Company Limited, provides a strong foundation for future growth despite continuing market, cost and geopolitical uncertainties.
During 2025, trading conditions within the telecommunications market remained challenging, with customer investment and procurement activity continuing to recover gradually. Despite these conditions, the company maintained stable operations whilst continuing to invest in new technologies, strengthen strategic customer relationships and broaden its product portfolio.
Building on the progress achieved in previous years, Broadex continued to expand its portfolio of products addressing the rapidly developing hyperscale datacentre market, where demand for high-performance optical interconnect solutions is being driven by increasing investment in Artificial Intelligence (AI) infrastructure. The company further extended its existing product portfolio for inter-datacentre interconnect applications whilst advancing the development of new technologies targeted at optical connectivity within the datacentre environment.
The company also continued to extend its Cascade AWG product line and progress the commercialisation of its Silicon Nitride–Glass hybrid technology. These developments further strengthen Broadex Technologies UK Limited's position across telecommunications, data communications and AI infrastructure, reinforcing its commitment to innovation and long-term growth.
Future Outlook
Looking ahead, the company will continue to focus on increasing production capacity and commercial deployment of its Cascade AWG and Silicon Nitride–Glass hybrid technologies. Further strengthening relationships with existing customers, developing new market opportunities and expanding within AI and advanced data communications will remain key priorities.
The directors remain confident in the company's long-term prospects. Continued investment in technology, combined with the ongoing support of the parent company, Jiaxing INBroad Technology Company Limited, provides a strong foundation for future growth despite continuing market, cost and geopolitical uncertainties.
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BROADEX TECHNOLOGIES UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Broadex Technologies UK Limited continues to monitor the principal risks affecting the business, including geopolitical developments, supply chain resilience, energy costs and wider economic conditions.
The company has continued to manage its supply chain effectively, with no material disruption arising from ongoing geopolitical events. Energy costs have also continued to improve following the significant increases experienced in recent years, supported by lower market prices and continued focus on operational efficiency.
The directors regularly review the company's principal risks and remain satisfied that appropriate measures are in place to support the continued operation and long-term development of the business.
The company has continued to manage its supply chain effectively, with no material disruption arising from ongoing geopolitical events. Energy costs have also continued to improve following the significant increases experienced in recent years, supported by lower market prices and continued focus on operational efficiency.
The directors regularly review the company's principal risks and remain satisfied that appropriate measures are in place to support the continued operation and long-term development of the business.
This report was approved by the board and signed on its behalf.
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BROADEX TECHNOLOGIES UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their report and the financial statements for the year ended 31 December 2025.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙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 to 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.
The loss for the year, after taxation, amounted to £4,524,507 (2024 - loss £543,023).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The Directors who served during the year were:
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BROADEX TECHNOLOGIES UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Broadex Technologies UK Limited will continue to build on the progress achieved during 2025 by further expanding its research and development activities and advancing the products and technologies developed in recent years. The company's strategic focus on Cascade AWG and Silicon Nitride–Glass hybrid technologies has continued to gain momentum, with increasing customer engagement and the successful progression of these platforms towards commercial deployment. The positive response from both existing and prospective customers has reinforced the company's strategic direction and validated its continued investment in these technologies.
Alongside its established telecommunications business, Broadex Technologies UK Limited has continued to strengthen its position within the rapidly developing hyperscale datacentre market. Growing demand for high-speed optical interconnect solutions, driven by increasing investment in Artificial Intelligence (AI) infrastructure, has created significant opportunities for the company's expanding portfolio of products. Continued customer collaboration has confirmed strong market interest in both inter-datacentre interconnect solutions and emerging technologies designed for optical connectivity within the datacentre environment.
The company is also actively developing technologies for emerging markets, including quantum computing, where increasing demand for advanced photonic integration is expected to create further opportunities for innovative optical solutions. By leveraging its expertise in silica-on-silicon and hybrid photonic technologies, Broadex Technologies UK Limited is well positioned to support the evolving requirements of both established and next-generation optical networking applications.
Looking ahead through 2026 and into 2027, the company will maintain this momentum by continuing to develop innovative optical solutions that meet the evolving requirements of the telecommunications, data communications, Artificial Intelligence and quantum computing sectors. Broadex Technologies UK Limited remains committed to working closely with its customers to bring new products into volume manufacture and to further strengthen its position within these growing markets.
Whilst recognising the ongoing challenges presented by competitive markets, geopolitical uncertainty and wider economic conditions, the directors remain confident in the company's long-term strategy. The continued support of the parent company, Jiaxing INBroad Technology Company Limited, together with Broadex's established technical capabilities and customer relationships, provides a strong foundation for the company's future development.
Alongside its established telecommunications business, Broadex Technologies UK Limited has continued to strengthen its position within the rapidly developing hyperscale datacentre market. Growing demand for high-speed optical interconnect solutions, driven by increasing investment in Artificial Intelligence (AI) infrastructure, has created significant opportunities for the company's expanding portfolio of products. Continued customer collaboration has confirmed strong market interest in both inter-datacentre interconnect solutions and emerging technologies designed for optical connectivity within the datacentre environment.
The company is also actively developing technologies for emerging markets, including quantum computing, where increasing demand for advanced photonic integration is expected to create further opportunities for innovative optical solutions. By leveraging its expertise in silica-on-silicon and hybrid photonic technologies, Broadex Technologies UK Limited is well positioned to support the evolving requirements of both established and next-generation optical networking applications.
Looking ahead through 2026 and into 2027, the company will maintain this momentum by continuing to develop innovative optical solutions that meet the evolving requirements of the telecommunications, data communications, Artificial Intelligence and quantum computing sectors. Broadex Technologies UK Limited remains committed to working closely with its customers to bring new products into volume manufacture and to further strengthen its position within these growing markets.
Whilst recognising the ongoing challenges presented by competitive markets, geopolitical uncertainty and wider economic conditions, the directors remain confident in the company's long-term strategy. The continued support of the parent company, Jiaxing INBroad Technology Company Limited, together with Broadex's established technical capabilities and customer relationships, provides a strong foundation for the company's future development.
In preparing these financial statements, the Directors have given careful consideration to the current and anticipated future solvency requirements of the Company and its ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
The financial statements have been prepared on a going concern basis notwithstanding the loss incurred in the year of £4,524,507 (2024: £543,023) and the Company’s history of operating losses. The Directors have prepared budgets and cash flow forecasts covering a period of at least twelve months from the date of approval of the financial statements. These forecasts reflect measures implemented during 2026 to streamline operations and reduce the Company’s cost base, together with an increased focus on core manufacturing activities. Management accounts and trading information available to date show positive improvements compared with the prior year position; however, the achievement of the forecast cash position and projected profitability remains dependent on the successful delivery of the directors’ trading plan and related assumptions.
The Directors have developed an alternative funding and trading model which is centred on closer integration with the wider group’s manufacturing and operational activities. This includes an increase in intercompany trading arrangements and the provision of technical and research and development services to group companies. The Company is expected to continue to require support from the wider group through these trading and operational arrangements during the forecast period; however, this support is not currently underpinned by any formal commitment.
The financial statements have been prepared on a going concern basis notwithstanding the loss incurred in the year of £4,524,507 (2024: £543,023) and the Company’s history of operating losses. The Directors have prepared budgets and cash flow forecasts covering a period of at least twelve months from the date of approval of the financial statements. These forecasts reflect measures implemented during 2026 to streamline operations and reduce the Company’s cost base, together with an increased focus on core manufacturing activities. Management accounts and trading information available to date show positive improvements compared with the prior year position; however, the achievement of the forecast cash position and projected profitability remains dependent on the successful delivery of the directors’ trading plan and related assumptions.
The Directors have developed an alternative funding and trading model which is centred on closer integration with the wider group’s manufacturing and operational activities. This includes an increase in intercompany trading arrangements and the provision of technical and research and development services to group companies. The Company is expected to continue to require support from the wider group through these trading and operational arrangements during the forecast period; however, this support is not currently underpinned by any formal commitment.
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BROADEX TECHNOLOGIES UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Going concern (continued)
The Directors have also considered the Company’s improved trading performance during 2026 to date, its existing order book, the benefits arising from operational streamlining and cost-saving initiatives, and ongoing opportunities within the telecommunications, Artificial Intelligence and data-centre markets. The Directors believe these factors provide a reasonable basis for preparing the forecasts.
However, the Company remains dependent on the successful execution of the forecast trading performance, which is subject to uncertainty, and on the continuation of intercompany trading. Whilst the Directors expect this activity to continue, these arrangements are not supported by formal commitments. Accordingly, these matters indicate the existence of a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern and therefore to realise its assets and discharge its liabilities in the normal course of business.
Notwithstanding the material uncertainty described above, the Directors have a reasonable expectation that the Company will have access to adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
The Directors have also considered the Company’s improved trading performance during 2026 to date, its existing order book, the benefits arising from operational streamlining and cost-saving initiatives, and ongoing opportunities within the telecommunications, Artificial Intelligence and data-centre markets. The Directors believe these factors provide a reasonable basis for preparing the forecasts.
However, the Company remains dependent on the successful execution of the forecast trading performance, which is subject to uncertainty, and on the continuation of intercompany trading. Whilst the Directors expect this activity to continue, these arrangements are not supported by formal commitments. Accordingly, these matters indicate the existence of a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern and therefore to realise its assets and discharge its liabilities in the normal course of business.
Notwithstanding the material uncertainty described above, the Directors have a reasonable expectation that the Company will have access to adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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BROADEX TECHNOLOGIES UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADEX TECHNOLOGIES UK LIMITED
We have audited the financial statements of Broadex Technologies UK Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows, the Analysis of Net Debt and the related notes, 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).
We draw attention to note 2.2 in the financial statements, which indicates that the company has incurred significant losses as at 31 December 2025 with further losses forecast for at least the forthcoming 12 months. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
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BROADEX TECHNOLOGIES UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADEX TECHNOLOGIES UK LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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BROADEX TECHNOLOGIES UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADEX TECHNOLOGIES UK LIMITED (CONTINUED)
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and knowledge of the Company to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management and review of appropriate industry knowledge. Key laws and regulations we identified during the audit were the UK Companies Act 2006 and tax legislation, UK employment legislation and UK health and safety legislation;
• we assessed the extent of compliance with the laws and regulations identified above by making enquiries of management; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
• tested journal entries recorded on the Company’s finance system to identify unusual transactions that may indicate override of controls;
• reviewed key judgements and estimates for any evidence of management bias; and
• reviewed the application of accounting policies with focus on those with heightened estimation uncertainty.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and
• enquiring of management to identify actual and potential litigation and claims.
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BROADEX TECHNOLOGIES UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADEX TECHNOLOGIES UK LIMITED (CONTINUED)
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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 Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants and Statutory Auditors
Glasgow
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BROADEX TECHNOLOGIES UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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BROADEX TECHNOLOGIES UK LIMITED
REGISTERED NUMBER: SC622646
BALANCE SHEET
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 28 form part of these financial statements.
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BROADEX TECHNOLOGIES UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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BROADEX TECHNOLOGIES UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
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BROADEX TECHNOLOGIES UK LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Broadex Technologies UK Limited is a private company limited by shares incorporated in Scotland. The registered office is Starlaw Business Park, Starlaw Road, Livingston, United Kingdom, EH54 8SF.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
In preparing these financial statements, the Directors have given careful consideration to the current and anticipated future solvency requirements of the Company and its ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
The financial statements have been prepared on a going concern basis notwithstanding the loss incurred in the year of £4,524,507 (2024: £543,023) and the Company’s history of operating losses. The Directors have prepared budgets and cash flow forecasts covering a period of at least twelve months from the date of approval of the financial statements. These forecasts reflect measures implemented during 2026 to streamline operations and reduce the Company’s cost base, together with an increased focus on core manufacturing activities. Management accounts and trading information available to date show positive improvements compared with the prior year position; however, the achievement of the forecast cash position and projected profitability remains dependent on the successful delivery of the directors’ trading plan and related assumptions.
The Directors have developed an alternative funding and trading model which is centred on closer integration with the wider group’s manufacturing and operational activities. This includes an increase in intercompany trading arrangements and the provision of technical and research and development services to group companies. The Company is expected to continue to require support from the wider group through these trading and operational arrangements during the forecast period; however, this support is not currently underpinned by any formal commitment.
The Directors have also considered the Company’s improved trading performance during 2026 to date, its existing order book, the benefits arising from operational streamlining and cost-saving initiatives, and ongoing opportunities within the telecommunications, Artificial Intelligence and data-centre markets. The Directors believe these factors provide a reasonable basis for preparing the forecasts.
However, the Company remains dependent on the successful execution of the forecast trading performance, which is subject to uncertainty, and on the continuation of intercompany trading. Whilst the Directors expect this activity to continue, these arrangements are not supported by formal commitments. Accordingly, these matters indicate the existence of a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern and therefore to realise its assets and discharge its liabilities in the normal course of business.
The financial statements have been prepared on a going concern basis notwithstanding the loss incurred in the year of £4,524,507 (2024: £543,023) and the Company’s history of operating losses. The Directors have prepared budgets and cash flow forecasts covering a period of at least twelve months from the date of approval of the financial statements. These forecasts reflect measures implemented during 2026 to streamline operations and reduce the Company’s cost base, together with an increased focus on core manufacturing activities. Management accounts and trading information available to date show positive improvements compared with the prior year position; however, the achievement of the forecast cash position and projected profitability remains dependent on the successful delivery of the directors’ trading plan and related assumptions.
The Directors have developed an alternative funding and trading model which is centred on closer integration with the wider group’s manufacturing and operational activities. This includes an increase in intercompany trading arrangements and the provision of technical and research and development services to group companies. The Company is expected to continue to require support from the wider group through these trading and operational arrangements during the forecast period; however, this support is not currently underpinned by any formal commitment.
The Directors have also considered the Company’s improved trading performance during 2026 to date, its existing order book, the benefits arising from operational streamlining and cost-saving initiatives, and ongoing opportunities within the telecommunications, Artificial Intelligence and data-centre markets. The Directors believe these factors provide a reasonable basis for preparing the forecasts.
However, the Company remains dependent on the successful execution of the forecast trading performance, which is subject to uncertainty, and on the continuation of intercompany trading. Whilst the Directors expect this activity to continue, these arrangements are not supported by formal commitments. Accordingly, these matters indicate the existence of a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern and therefore to realise its assets and discharge its liabilities in the normal course of business.
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Notwithstanding the material uncertainty described above, the Directors have a reasonable expectation that the Company will have access to adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
Functional and presentation currency
Transactions and balances
R&D tax credits are also recognised at the fair value of the asset received or receivable when there is reasonable assurance that claims will be successful. R&D tax credits are recognised in other operating income.
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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 which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
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.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock valuation - 2025: £2.26m (2024: £2.45m)
Stock is valued using standard costs applied at an estimation of actual costs incurred incorporating certain direct and indirect costs which could be absorbed into the cost of stock produced
Valuation of fixed assets - 2025: £2.14m (2024: £2.74m)
Depreciation is provided based on management's assessment of an assets useful life and its residual value at the end of that life. Both of these are assessed as key sources of estimation uncertainty.
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Analysis of turnover by country of destination:
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
9.Taxation (continued)
There were no factors that may affect future tax charges.
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 26
BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
On 19 December 2025, the company issued 3,403,171 ordinary shares of £1 each for a total consideration of £3,403,171.
Share premium account
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £99,437 (2024 - £105,151). Contributions totalling £18,675 (2024 - £18,376) were payable to the fund at the balance sheet date.
The Royal Bank of Scotland PLC holds a charge over the company's deposit of £10,000. The bank may retain the deposit and, without prior notice, apply or set off the Deposit to reduce the owner's obligations.
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BROADEX TECHNOLOGIES UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The parent company of Broadex Technologies UK Limited is Jiaxing INBroad Technology Company Limited a company registered in China, whose registered address is 1F, Building 1, 306 Yatai Road Daqiao Town, Nanhu District, Jiaxing, Zhejiang Province, China.
There is no ultimate controlling party.
There is no ultimate controlling party.
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