REGISTERED NUMBER: 08890000 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2025

for

FDS Corporation Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

8

Statement of Director's Responsibilities

10

Report of the Independent Auditors

11

Statement of Comprehensive Income

14

Statement of Financial Position

15

Statement of Changes in Equity

16

Statement of Cash Flows

17

Notes to the Statement of Cash Flows

18

Notes to the Financial Statements

19

DIRECTOR:

W Wu

REGISTERED OFFICE:

Unit 4 Blackacre Road

Great Blakenham

Ipswich

IP6 0FL

REGISTERED NUMBER:

08890000 (England and Wales)

AUDITORS:

Shinewing Wilson Accountancy Limited

Chartered Certified Accountants

and Statutory Auditors

9 St Clare Street

London

EC3N 1LQ

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

REVIEW OF BUSINESS

The United Kingdom remains Europe's most lucrative e-commerce market and one of the largest globally, with the UK e-commerce market estimated at approximately USD 341.60 billion in 2025. Online sales penetration in the UK has stabilised around 27-28%, reflecting the maturity of the market. Relying on a robust supply chain system and overseas warehouse advantages, the company has further consolidated its market position during the year and continued to execute its strategic growth plan.

MARKET OVERVIEW

E-Commerce has become the largest retail market globally, and the United Kingdom (UK) ranks as the third largest e-commerce market globally, following China and the US. The UK has the most advanced e-commerce market in Europe, highlighting a shift in consumer shopping habits and the retail landscape.

1) Consumer Behaviour in the UK

Price Sensitivity and Value Orientation: Under sustained cost-of-living pressures, UK consumer shopping behaviours have undergone significant changes. In 2025, 87% of UK consumers altered their shopping habits due to the current economic environment. Consumers have placed greater emphasis on value for money, with 23% reporting that they buy and sell second-hand goods more frequently than the previous year. While cost remains the primary consideration for 70.3% of UK consumers, convenience has gradually become a core concern, particularly among millennials.

Mobile Dominance: 49% of UK consumers' most recent retail purchases were completed via mobile devices. UK consumers engage in 28 digital shopping days per month using mobile devices. During the 2025 holiday season, mobile spending reached ¢G16.5 billion, representing a 14.1% increase year-on-year and accounting for 61.5% of total online consumer spending.

2) Technology and Logistics Advancements in the UK

Delivery as a Conversion Driver: High delivery charges remain the primary cause of cart abandonment, with 78.5% of consumers abandoning purchases due to high shipping costs and 41.6% due to slow delivery speeds. 80% of UK shoppers abandon their shopping carts when preferred delivery options are unavailable. Among high-value shoppers, 29% abandon carts due to suboptimal delivery options.

Courier and Parcel Market Growth: The UK courier and parcel market was estimated at US$17.77 billion in 2025 and is projected to reach US$20.87 billion by 2030, representing a CAGR of 3.27%. The domestic courier market reached ¢G14.5 billion in 2025 and is expected to expand at a CAGR of approximately 6.5% to 2035. The e-commerce sector accounts for 30.17% of the UK domestic courier market share.

3) Platform Competitive Landscape

Amazon's Continued Dominance: Amazon remains the UK's leading shopping platform with a 76% consumer preference rate, accounting for approximately 30% of UK online retail sales. Amazon UK maintains market leadership in the daily goods and consumer electronics categories.

Rise of Chinese E-Commerce Platforms: Chinese e-commerce platforms have significantly enhanced their presence in the UK market. According to Ofcom's 2025 Online Nation Report, Temu has become the third most visited online shopping website in the UK, with 28.4 million monthly visits, trailing only eBay (30.7 million) and Amazon (43.2 million). Over the past two years, Temu's UK market traffic has doubled.

Survey data indicates that 70% of UK consumers now shop on Chinese e-commerce platforms, a substantial increase from 60% in the previous year. Among these, 19% of UK shoppers report making purchases on these platforms at least weekly. In terms of platform penetration, Temu leads with 55% of shoppers having made at least one purchase, followed by Shein (52%), TikTok Shop (37%), and AliExpress (34%). Temu's weekly shoppers reached 12%, equivalent to 6.5 million people nationwide.

During the Black Friday shopping season, Temu ranked as the second most popular choice at 22%, closely followed by Shein (21%) and TikTok Shop (14%). 82% of UK Gen Z consumers shop on Chinese e-commerce platforms, with 41% making at least one purchase on Shein per month.

FUTURE DEVELOPMENTS

Landscape of UK E-Commerce market

As the world's third-largest e-commerce market, the UK continues to demonstrate significant growth potential. The UK e-commerce market size is estimated at USD 341.60 billion in 2025 and is expected to reach USD 914.19 billion by 2030, at a CAGR of 21.76% during the forecast period (2025-2030). With the number of users expected to continue to increase, e-commerce has undoubtedly become an essential part of daily shopping for consumers across the UK.

In addition to the vigorous development of e-commerce in recent years, more and more e-commerce platforms have entered the market. The competition pattern of the e-commerce market in the UK has become increasingly intense, with platforms like Temu and Shein accelerating app-led growth.

Consumer Portfolio

UK consumers are savvy and demanding when it comes to online shopping. They expect fast, convenient, and personalised experiences across multiple channels and devices. They also value trust, security, and transparency when choosing an online retailer and payment method.

UK consumers have a relatively high degree of trust in Chinese brands and products, which provides an advantage for Chinese sellers. Fashion categories have always been the best-selling categories in the UK. In addition, beauty and personal care, sports products, and electronic products are also consumers' first choice for online shopping. The most recent government figures show that over one-fourth of retail sales from textile, clothing, and footwear stores come from online channels. Consumer electronics was the next highest grossing category in terms of revenue, with Amazon at the forefront of the leading online consumer electronics stores in the UK.

Household goods are also the focus of online shopping for UK consumers, and online shopping spending in this category continues to grow. Ultimately, this reflects the long-term expansion of the UK's e-commerce sector, with online sales penetration now having stabilised around 27-28%. This reinforces the UK's status as one of the world's most mature and digitally integrated retail markets.

We believe that the market environment is optimistic, and the market potential remains huge. In the past year, relying on the forward-looking layout, robust supply chain system, and efficient operation management, the company has continuously consolidated its market share and brand building in the fierce competition. In the future, the company will continue with these advantages, and in the meantime devote efforts to improve inventory management and inventory turnover rate, and accelerate the improvement of informatisation and digitalisation, constantly consolidate competitive strength, and strive for more outstanding performance.

FUTURE DEVELOPMENTS - CONTINUED

IN YEAR PERFORMANCE

FDS has been striving to increase its market share in the UK domestic market, committed to providing UK consumers with as many cost-effective furniture and home products as possible. The company has continued to outperform the majority of its competitors, particularly in terms of revenue growth, supply chain management and cost control.

For e-commerce, sufficient warehouse capacity remains an important guarantee for sales growth. Following the successful full operation of the new large warehouse Unit 4 in FY2023, the company's operational capacity has been significantly enhanced. During FY2025, the company continued to benefit from this expanded capacity, which enabled further expansion of product categories and inventory reserves. With more new online stores opened in previous years and continued operational optimisation, the company sustained its profitability in FY2025.

On the other hand, reliable and sufficient storage capacity means the company has more space to expand product categories and to carry out corresponding reserve inventory, which directly resulted in continued growth of the asset base.

KEY PERFORMANCE INDICATORS

The key performance indicators of the company were as follows:

31 December 2025

31 December 2024

Change

£'000

£'000

%

Turnover

92,771

82,621

12%

Profit/(loss) before tax

2,505

4,091

-39%

Gross assets

95,480

78,528

22%

NON-FINANCIAL KEY PERFORMANCE INDICATORS

1) Environmental matters

FDS have continued to improve the energy efficiency across the business. Please refer to Streamlined Energy and Carbon Reporting in the Report of the Director.

2) Employee matters

As of year-end 2025, the employee turnover rate was 20.93%, the average employee tenure was 1,074.33 days (approximately 2 year and 11 months), and the Lost Time Injury Frequency Rate (LTIFR) stood at 394.3, equivalent to 0.039%.

3) Delivery Performance

The overall on-time delivery rate exceeded 98.5%, with a rate of 99% on our primary sales platform, Amazon, while the shipment error rate remained low at 0.02%.

4) Returns and Complaints

The return/refund rate was approximately 4%, with an average customer response time of 9 hours and 54 minutes. Live support was available 24 hours a day, five days a week (Monday to Friday), supplemented by automated responses on weekends.

5) Customer service satisfaction

Customer satisfaction has significantly improved compared to the previous year. Our Amazon store maintains a 94% positive feedback rate.

PRINCIPAL RISKS AND UNCERTAINTIES

The director considers the followings as principal risks and uncertainties associated with the industry the company operates in and continuing trade of the business:

Economic risks

Economic downturns or fluctuations in customer confidence can significantly impact discretionary spending on non -essential items, leading to decreased sales and heightened price sensitivity. Variables such as inflation, interest rates, and unemployment levels can unpredictably influence consumer purchasing behaviour, posing ongoing challenges for retail businesses.

Logistics and delivery challenges

Unlike short-distance deliveries, cross-border e-commerce orders typically involve longer transit times. During this extended process, the risk of product damage or loss increases. As consumers place greater emphasis on the efficiency and quality of logistics services, expectations have risen-contributing to higher return rates when these standards are not met.

Competition

Price competition has long been a challenge and continues to intensify as an increasing number of low-cost competitors enter the market. In response to recent U.S. tariffs, more Chinese suppliers are redirecting exports to alternative markets like the UK, leading to an increasing pressure on local brands. Beyond implementing a robust pricing strategy, effective control of operating costs will play an increasingly vital role in sustaining the company's overall profitability and long-term viability.

Product Regeneration and customer preference

Revitalising, redesigning or relaunching existing products to maintain market relevance presents significant challenges and potential risks. The Company operates in an increasingly sophisticated and dynamic market, where customer preferences are rapidly evolving, particularly towards trends like sustainability or minimalism. Failure to adapt to these shifting preferences may result in a loss of market share.

For non-electronic products, the headquarters has a R&D department responsible for designing and recommending new products tailored to consumer needs across different national markets. The company also regularly reviews factory proposals, collaborates with factory R&D teams, and participates in product exhibitions to identify potential new offerings. Due to the higher technical requirements of electronic products, updates and selections in this category proceed more cautiously. Product choices for electronics primarily rely on market demand and factory R&D recommendations. Additionally, when selecting new products, the company carefully considers the regulatory requirements of the target markets to ensure compliance and avoid introducing items that violate local laws and regulations.

Reputation Risks

The company's brand reputation is highly influenced by customer feedback, which in turn impacts sales performance. To address this, the sales team promptly manages customer refunds and complaints to ensure timely and appropriate resolution of customer concerns. Meanwhile, the operations management team actively monitors the market and brand reputation.

SECTION 172(1) STATEMENT

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole but having regard to a range of factors set out in section 172(1)(a) - (f) in the Companies Act 2006. The Board considers, both individually and collectively, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole in the decisions taken during the year ended 31 December 2025. In considering the Company's purpose, vision and values, together with its strategic priorities and having a process in place for decision-making the Board does however, aim to make sure that its decisions are consistent and reasonable.

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

The Director understands the business and the environment in which the Company operates. The Company's desire to maintain a reputation for high standards of business conduct as well as its long term success. The Board continually assesses and monitors the long-term implications of its decisions to ensure sustainable growth and resilience in the e-commerce sector. Strategic decisions are made with a view to balancing profitability and market expansion and customer satisfaction. We aim to build a competitive advantage that will benefit shareholder over the long term.

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

The Director recognises that the employees are essential and core to the operations and for completion of strategic ambitions. The success of business is contingent on attracting, retaining and motivating employees. We aim to maintain a safe working environment through regular health and safety audits, risk assessments, and training sessions to ensure employees have access to proper protective equipment and that safety protocols are regularly updated to reflect best practices. We have implemented automated warehouse systems to reduce physical strain on workers.

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

The Director notes that maintaining strong relationships with our suppliers, partners, and customers is crucial for the success of our business. The Board takes steps to ensure ethical sourcing practices and long-term collaborations with key suppliers, which ensures product availability and quality.

Customers safety and satisfaction are pivotal to the success of our business. The needs, behaviours and feedback of our customers are regularly collected, evaluated and utilised to develop our long term strategy. In the process of product design and category marketing, the company also pays close attention to market changes and in-depth analysis of consumer demand adjustments.

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

The Board recognises the importance of corporate social responsibility and the impact of our operations on the environment.

We have implemented a range of sustainability initiatives, including reducing packaging waste, improving energy efficiency in logistics, and transitioning to carbon-neutral delivery options. As customers increasingly prefer environmentally friendly, energy-saving and low-emission products, the company is aligning its supply chain accordingly. All suppliers will be required to provide wood-cutting certificates to ensure that timber used in furniture products complies with sustainable harvesting standards. For upholstered products, such as gymnastics mats, we prioritise the use of renewable materials. In selecting refrigerants, we have upgraded from the original R29 filling to the more environmentally friendly R32 materials in our air conditioning products.

We are also committed to supporting local communities through partnerships and employment opportunities.

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

The Company aims to maintain a reputation for high standards of business conduct to meet customers' expectation and satisfactions. The board periodically reviews and approves the codes of practice in place in the Company to ensure that its high standards are maintained both within the Company and the business relationships we maintain.

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

The Board acknowledges that every decision it makes aim to benefit the company and its shareholder. After weighing up all factors surrounding the decision and by taking into account the Company's overall vision and goals, the Board aims to make sure that the decisions it makes are dependable and predictable and support the Company's long-term success and the shareholder's interest.

ON BEHALF OF THE BOARD:

W Wu - Director

24 September 2026

The director presents his report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of retailing a wide range of quality products for the home and garden through online platforms.

DIVIDENDS

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

DIRECTOR

W Wu held office during the whole of the period from 1 January 2025 to the date of this report.

STREAMLINED ENERGY AND CARBON REPORTING

Under the requirements of the Companies Act 2006 (Strategic report and Directors' report) Regulation 2013 and the Companies (Directors' report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, FDS sets out its Streamlined Energy and Carbon Reporting below.

FDS is a UK business with one office and two warehouses in Ipswich. FDS also owns company vehicles. Where we have direct operational control of operations at these sites, and usage if found to be material (i.e. >5%), energy consumption and resulting greenhouse gas ("GHG") emissions are included in our figures. FDS's distribution activities are managed by third-party providers and therefore emissions relating to distribution are not included in the below figures.

Area

Unit

FY2024-25

FY2023-24

Change %

Energy consumed

kWh

322,582.67

358,314.53

-10.0%

GHG Scope 1 emissions

t CO2e

0.30

0.15

+99.5%

GHG Scope 2 emissions

t CO2e

47.59

58.74

-19.0%

Total location-based GHG scope 1 and 2 emissions

t CO2e

47.89

58.89

-18.7%

GHG intensity (location-based emissions) per sq ft of floor area

t CO2e / '000 sq ft

1.20

1.47

Employee mileage claim

km

387.0

622.8

-37.9%

GHG Scope 3 emissions

kg CO2e

54.2

87.2

-60.9%

Definitions

Energy consumed: Diesel used, purchased electricity consumed and electricity generated by solar panel.

Scope 1: Emissions from diesel used by the company owned vehicles.

Scope 2: Emissions associated with the generation of purchased electricity.

Scope 3: Emissions calculated from employee mileage claim for business travel in private vehicles (small cars).

Scope 1 and 2 methodology

Methodology: The Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard (2015 edition).

Conversion factors: UK Government GHG Conversion Factors for Company Reporting (2023 & 2024 Conversion factors)

Boundary: The office and two warehouses in Ipswich

Exclusions: Fugitive emission from fire extinguisher etc. (accounting for <5% footprint)

Energy Efficiency Actions

In 2024-2025 and 2023-2024, the company taken:

- Warehouse LED lighting

- EV vans

- Renewable energy

MATTERS INCLUDED IN THE STRATEGIC REPORT

The company has chosen to disclose information relating to future developments, financial risk assessment and fair review of the business in the Strategic Report in accordance with Section 414C (11) of the Companies Act 2006.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

W Wu - Director

24 September 2026

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of FDS Corporation Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 December 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Director and the Statement of Director's Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

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

Responsibilities of director

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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

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

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

- It is considered that there are other laws and regulations for which non-compliance may be fundamental to the operating aspects of the business such as health and safety, GDPR, Plastic Packaging Tax (PPT), The Consumer Rights Act 2015 and Import & Export Regulations in the UK.

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

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

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nijendra Dhungana FCCA (Senior Statutory Auditor)

for and on behalf of Shinewing Wilson Accountancy Limited

Chartered Certified Accountants

and Statutory Auditors

9 St Clare Street

London

EC3N 1LQ

24 September 2026

TURNOVER

4

92,771,600

82,621,229

Cost of sales

81,751,810

70,356,450

GROSS PROFIT

11,019,790

12,264,779

Administrative expenses

8,520,790

8,187,237

2,499,000

4,077,542

Other operating income

-

12,584

OPERATING PROFIT

2,499,000

4,090,126

Interest receivable and similar income

6,321

540

PROFIT BEFORE TAXATION

6

2,505,321

4,090,666

Tax on profit

7

642,449

1,042,186

PROFIT FOR THE FINANCIAL YEAR

1,862,872

3,048,480

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,862,872

3,048,480

FIXED ASSETS

Tangible assets

8

3,853,225

4,435,863

CURRENT ASSETS

Stocks

9

47,729,664

38,898,876

Debtors

10

40,979,764

33,365,610

Cash at bank

2,917,119

1,827,592

91,626,547

74,092,078

CREDITORS

Amounts falling due within one year

11

90,512,481

75,777,422

NET CURRENT ASSETS/(LIABILITIES)

1,114,066

(1,685,344

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,967,291

2,750,519

PROVISIONS FOR LIABILITIES

13

1,156,519

802,619

NET ASSETS

3,810,772

1,947,900

CAPITAL AND RESERVES

Called up share capital

14

111

111

Retained earnings

3,810,661

1,947,789

SHAREHOLDERS' FUNDS

3,810,772

1,947,900

The financial statements were approved by the director and authorised for issue on 24 September 2026 and were signed by:

W Wu - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

111

(1,100,691

)

(1,100,580

)

Changes in equity

Total comprehensive income

-

3,048,480

3,048,480

Balance at 31 December 2024

111

1,947,789

1,947,900

Changes in equity

Total comprehensive income

-

1,862,872

1,862,872

Balance at 31 December 2025

111

3,810,661

3,810,772

Cash flows from operating activities

Cash generated from operations

1

1,150,049

(1,474,134

)

Tax paid

(103

)

(97

)

Net cash from operating activities

1,149,946

(1,474,231

)

Cash flows from investing activities

Purchase of tangible fixed assets

(66,740

)

(6,099

)

Interest received

6,321

540

Net cash from investing activities

(60,419

)

(5,559

)

Increase/(decrease) in cash and cash equivalents

1,089,527

(1,479,790

)

Cash and cash equivalents at beginning of year

2

1,827,592

3,307,382

Cash and cash equivalents at end of year

2

2,917,119

1,827,592

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.25

31.12.24

£

£

Profit before taxation

2,505,321

4,090,666

Depreciation charges

649,377

652,652

Finance income

(6,321

)

(540

)

3,148,377

4,742,778

(Increase)/decrease in stocks

(8,830,788

)

1,153,439

Increase in trade and other debtors

(7,614,154

)

(9,159,902

)

Increase in trade and other creditors

14,446,614

1,789,551

Cash generated from operations

1,150,049

(1,474,134

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

2,917,119

1,827,592

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,827,592

3,307,382

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

1,827,592

1,089,527

2,917,119

1,827,592

1,089,527

2,917,119

Total

1,827,592

1,089,527

2,917,119

1.	STATUTORY INFORMATION

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

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirement of paragraph 33.7.

Going concern

The Company had net current assets of £1.1mil mainly due to the balance owed to a related party which under the common control. The related party has agreed not to chase for the repayment until the company has the ability to do so. The company had cash reserves of £2.9mil and net assets of £3.8mil at the balance sheet date. Based on these, the Director has concluded that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Retail Sales of goods - internet based transactions

The company sells goods via its websites and other ecommerce platforms to the customer. Revenue is recognised when the risks and rewards of the inventory are passed to the customer. For deliveries to the customer this is the point of delivery the product out of the warehouse. Transactions are settled by credit or payment card.

Tangible fixed assets

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Short leasehold - over 15 years

Improvement to property - 10% on cost

Fixtures and fittings - 10% on cost

Computer equipment - 25% on cost

Motor vehicles - 10% on cost.

Stocks

Stocks are valued on a weighted average cost basis and carried at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all direct expenditure and other attributable costs incurred in bringing inventories to their present location and condition. All inventories are finished goods.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

Financial instruments

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 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 receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, and loans from group undertakings, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest method.

Share capital

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

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Operating leasing commitments - company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The company has not made any significant judgements when applying the accounting policies.

Key Sources of Estimation and Uncertainty

Useful lives of property, plant and equipment

Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out in the company's accounting policy. The selection of these estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management's assessment of useful lives shorten then depreciation charges in the financial statements would increase and carrying amounts of property, plant and equipment would reduce accordingly. The carrying amount of property, plant and equipment by each class is included in note 8 and details of the useful lives are included within the accounting policy.

Stock provision and cost allocation

Management review the market value and demand for its stocks on a periodic basis. Any provision for impairment is recorded against the carrying value of stocks. Management estimate future selling prices and demand for products using their knowledge of market conditions, historical experiences and estimates of future events.

The cost of stock include costs of purchase and other costs incurred in bringing the stock to its present location and condition ("incidental costs"). The costs of purchase of stock include purchase price, import duties and other irrecoverable taxes, transport and handling costs and other directly attributable costs. Transport and handling costs are based on shipping container weight, and it is therefore impractical for management to allocate the transport and handling costs in proportion to the weight of each product. Accordingly, management attributes transport and handling costs incurred to closing stock in the same proportion as the value of that closing stock bears to the value of total purchases made during year. Import duty and other irrecoverable taxes incurred are attributed to closing stock on the same basis. Management considers that this method gives a reasonable estimate of the incidental costs attributable to closing stock. A total of £2,853,889 (2024: £492,988) has been attributed to the closing stock shown in Note 9.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.25

31.12.24

£

£

Sales of products

92,771,600

82,621,229

92,771,600

82,621,229

An analysis of turnover by geographical market is given below:

31.12.25

31.12.24

£

£

United Kingdom

92,771,600

82,621,229

92,771,600

82,621,229

5.	EMPLOYEES AND DIRECTORS

31.12.25

31.12.24

£

£

Wages and salaries

1,549,542

1,339,213

Social security costs

190,143

120,784

Other pension costs

54,843

45,299

1,794,528

1,505,296

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

31.12.25

31.12.24

Customer service

2

2

Office

8

8

Warehouse

33

32

43

42

The average number of employees during the year was 44 (2024 - 43).

During the year, the director was not remunerated for services provided to the company as these costs were borne by other companies in the group.

31.12.25

31.12.24

£

£

Director's remuneration

-

-