ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging/crediting:

Period ended

31 December

Registered number: 04989385

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

COMPANY INFORMATION

Directors	R D North
	K I McAndrew
	G J Taylor
	E K Gibb
	S J Gardner
	D H B Lavalette


Company secretary	S J Burton


Registered number	04989385


Registered office	Creative Industries Centre
	Wolverhampton Science Park
	Wolverhampton
	West Midlands
	WV10 9TG


Independent auditors	PKF Smith Cooper Audit Limited
	Statutory Auditors
	Cornerblock
	2 Cornwall Street
	Birmingham
	B3 2DX

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Comprehensive Income	9
Balance Sheet	10
Statement of Changes in Equity	11
Notes to the Financial Statements	12 - 29

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

STRATEGIC REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2025

The Directors are pleased to present results for the company for the 11-month period to December 31st, 2025. In June 2025 the company was acquired by the Troy Group, a Netherlands based Toy group, with headquarters in Hertogenbosch. Following acquisition, the company changed its accounting reference date to 31st December to align with its new Group owners. However, the directors and senior management team all remain unchanged and in place after the acquisition. Led by MD, Dawn Lavalette, the company compliments Troy existing business strategy and ranges, and it retains its standalone focus and unique market position and continues to focus on our ‘Great Brands Brought to Life’ strategy.

Business review

We are delighted that our new owners are able to invest to accelerate our growth as we create the most innovative products with Intellectual Property Right protection. With the backing of Troy, WOW will rapidly scale operations and drive its signature innovation across its award-winning product portfolio. In doing so, we continue to work closely with our 3rd party Brand licensors, to aggressively expand our new Puppetronic® range and category of products, with its unique puppet-enhanced electronic role-play patterns. Our Disney Stitch Puppetronic® won both the UK and the USA Toy of The Year 2025 as well as multiple country toy of the year awards including a win at The European Licensing Awards.

Our Puppetronics toy category continues to allow us to work with Licensors and Retailers to build out product ranges with the biggest franchise brands. In 2025, we worked with Disney to launch Stitch and Angel characters, plus Toothless for Universal’s How to Train Your Dragon franchise. In 2026 we will launch our Pokemon Pikachu Puppetronic®, and a Star Wars character range. We will build out the range architecture to include key Retailer and Consumer price points. Outside of Puppetronics our Innovation Engine is applied to all our licensed brands; we plan new collectible range launches in 2026 under Netflix, Disney and others.

The company remains well positioned to exploit the huge consumer opportunity that exists in both Europe and North America, where we continue to work with some of the largest USA retailers and create resilient routes to market with carefully chosen partners. We are constantly approached by fans of our brands who wish to purchase our items in their respective countries, and we have new offices opened just outside London.

We continue to partner with 3rd party brand MAGNA-TILES, the original and leading magnetic tiles pre-school brand. As the 3rd largest building block manufacturer globally, we believed MAGNA-TILES was underrepresented in the UK and over the past 20 months we have doubled their UK sales.

Looking ahead, and backed by Troy, the company continues to sign new licenses and work with existing Licensors in a way that will allow the company to show its innovation to full potential, with “on brand and in universe products”. With Troy backing the business to the full, we anticipate further increased sales and profits to FYE 2026 and substantial growth through 2027 onwards. We remain watchful of the local and global uncertainties, US Tariffs and delicate situations surrounding the Middle East and the Ukraine/Russia war and will further expand our geographic distribution to ensure non-reliance on any one region.

We continue to work on exciting long-term innovations in the digital meets physical arena, and sustainability in toys areas using the skills of our world class scientists and product engineers that are at the heart of our wider New Product Development team.

Page 1

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

STRATEGIC REPORT (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2025

Principal risks and uncertainties

The principal issues facing the business and that it is managing are:

a) Residual tariff and related pricing uncertainty in the light of the Trump administration’s tariff trading policies that affect imports and sales to the USA, which require the company to remain nimble and proactive in sourcing. To that end we continue to work with and expand our ability to source from multiple suppliers, some outside of China and to plan our production with those 3rd party factories in such a way so to allow maximum sourcing flexibility in the face of uncertainty.

b) We continue to watch the risks to global supply chains from conflicts affecting seaways and trading routes. We collaborate successfully with multiple partners to protect supply routes from Asia to get goods into the hands of customers on time. As noted above, we have also broadened our sourcing locations to start to source some product outside of China to build greater resilience into our own sourcing and supply chain.

c) We remain extremely focused on cost control and are working closely with our new Troy investors to optimize production and sourcing costs.

d) We also remain very focused on inventory management to ensure we stock only proven high demand lines and to service confirmed demand forecasts for our large customers.

Financial key performance indicators

The directors are delighted that in a turbulent geopolitical environment, continued supply chain challenges and against a backdrop of tariff uncertainty affecting sales of our China made goods to the USA we continue to show strong performance. Driven by our WOW! Stuff Innovation Engine and the hard work of our staff, Turnover for the 11 months was £20.6m (12-month comparative £21.4m). There were cost and pricing pressures that caused Gross Margin % to fall slightly from 35.6% to 34.8%. Operating Profit Before Tax for the 11 months was £940k (12-month comparative £2.3m) with the fall partly being the 11 to 12 months comparison, but also the margin squeeze and our decisions to increase investment in key areas to scale the business for future growth. EBITDA was £1.23m (12-month comparative £2.62m) The company retains a strong balance sheet with net assets of £4.6m (prior period £3.9m).

No dividends were paid as the directors continue to ensure as much as possible of our success is invested back in the business.

Finally, the directors pay tribute to the hard work and dedication of all our staff, our “Wow! Stuffers”, whose skill continues to enable us to grow our business and to build the most innovative toys in the finest brands that elicit the all-important “WOW!” reaction from children young and old!

This report was approved by the board on 14 July 2026 and signed on its behalf.

D H B Lavalette

Director

Page 2

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

DIRECTORS' REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2025

The directors present their report and the financial statements for the period ended 31 December 2025.

Directors' responsibilities statement

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies 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.

Principal activity

The principal activity of the company continued to be the innovative design and supply of toys and gifts to major retailers and distributors.

Results and dividends

The profit for the period, after taxation, amounted to £729,184 (2025 - £1,636,506).

Directors

The directors who served during the period were:

R D North

K I McAndrew

G J Taylor

E K Gibb

S J Gardner

D H B Lavalette

Page 3

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

DIRECTORS' REPORT (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 14 July 2026 and signed on its behalf.

E K Gibb

Director

Page 4

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

Opinion

We have audited the financial statements of China Industries Limited Trading as Wow! Stuff (the 'Company') for the period ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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).

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 period 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 United Kingdom, including the Financial Reporting Council'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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

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CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF (CONTINUED)

Other information

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.

Opinion 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 Directors' Report for the financial period 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.

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 Directors' Report.

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

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

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

∙certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF (CONTINUED)

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 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.

Based on our understanding of the company and industry, key laws and regulations that we identified included:

∙Health and Safety and Employment Legislation.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

∙Management bias in respect of accounting estimates and judgements made;

∙Management override of controls; and

∙Posting of unusual journals or transactions.

We focussed on those areas that could give rise to a material misstatement in the Company's financial statements.

Our procedures included, but were not limited to:

∙Enquiry of management and those charged with governance/review of available correspondence around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;

∙Reviewing minutes of meetings of those charged with governance, where available;

∙Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, in particular stock provision.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF (CONTINUED)

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.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.

Richard Haydon (Senior Statutory Auditor)

for and on behalf of

PKF Smith Cooper Audit Limited

Statutory Auditors

Cornerblock

2 Cornwall Street

Birmingham

B3 2DX

20 July 2026

Page 8

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2025

	Period ended 31 December	31 January
	2025	2025
Note	£	£


Turnover	4	20,601,243	21,350,590
Cost of sales		(13,440,638)	(13,751,688)
Gross profit		7,160,605	7,598,902
Distribution costs		(4,266,292)	(3,798,589)
Administrative expenses		(1,953,920)	(1,470,067)
Operating profit	5	940,393	2,330,246
Interest receivable and similar income	9	287	40
Interest payable and similar expenses	10	(43,370)	(130,880)
Profit before tax		897,310	2,199,406
Tax on profit	11	(168,126)	(562,900)
Profit for the financial period		729,184	1,636,506

There was no other comprehensive income for 2025 (2025: £NIL).

The notes on pages 12 to 29 form part of these financial statements.

Page 9

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

REGISTERED NUMBER: 04989385

BALANCE SHEET

AS AT 31 DECEMBER 2025

	31 December	31 January
	2025	2025
Note	£	£

Fixed assets
Intangible assets	12		-		-
Tangible assets	13		540,677		423,453
Investments	14		-		-
			540,677		423,453
Current assets
Stocks	15	1,561,041		763,570
Debtors: amounts falling due within one year	16	5,720,739		5,443,656
Cash at bank and in hand	17	2,147,448		3,315,132
		9,429,228		9,522,358
Creditors: amounts falling due within one year	18	(5,381,573)		(6,086,663)
Net current assets			4,047,655		3,435,695
Total assets less current liabilities			4,588,332		3,859,148

Net assets			4,588,332		3,859,148

Capital and reserves
Called up share capital	20	16,538	16,538
Profit and loss account	21	4,571,794	3,842,610
		4,588,332	3,859,148

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 14 July 2026.

E K Gibb

Director

The notes on pages 12 to 29 form part of these financial statements.

Page 10

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 February 2024	16,538	2,206,104	2,222,642

Profit for the year	-	1,636,506	1,636,506

At 1 February 2025	16,538	3,842,610	3,859,148

Profit for the period	-	729,184	729,184
At 31 December 2025	16,538	4,571,794	4,588,332

The notes on pages 12 to 29 form part of these financial statements.

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CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

1.	General information

China Industries Limited is a private company, limited by shares, incorporated in England and Wales, United Kingdom. The address of the registered office is given in the company information of these financial statements. The company's registration number is 04989385. The principal activity of the company continued to be the innovative design and supply of toys and gifts to major retailers and distributors.

The financial statements are prepared in Sterling which is the functional currency of the company. The financial statements level of rounding is to the nearest £1.

2.Accounting policies

2.1

Basis of preparation of financial statements

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:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Troy Toys Limited for period ended 31 December 2025 and these financial statements may be obtained from its registered office, Creative Industries Centre, Wolverhampton Science Park, Wolverhampton, West Midlands, WV10 9TG.

2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

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CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.4

Reporting period

Since the acquisition by Troy Toys Limited, the company has changed its year end to coincide with other group companies. This change in the reporting period has resulted in the figures not being entirely comparable with the comparatives. The reporting period covered by the financial statements is the 11 months ended 31 December 2025 and the comparative period is the 12 months ended 31 January 2025.

2.5

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Comprehensive Income.

2.6

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer (usually on dispatch of the goods) in accordance with contractual terms;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is recognised on despatch of goods to customer.

2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to Statement of Comprehensive Income on a straight-line basis over the lease term.

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CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.8

Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product and project.

Deferred development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related development is written off to the Statement of Comprehensive Income.

2.9

Interest income

Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.

2.10

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.11

Pensions

Defined contribution pension plan

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet.

2.12

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.13

Intangible assets

For development expenditure see accounting policy on research and development.

Intangible assets have an useful life of ten years.

2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. 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 by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings	-	50%
Computer equipment	-	25%
Tooling	-	50%

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 Statement of Comprehensive Income.

2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.16

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost is based on the cost of purchases on a first in, first out basis.

2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment.

2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

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CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.20

Financial instruments

Derivative financial instruments ("derivatives") are only used to manage risks arising from changes in foreign currency exchange rates relating to sales denominated in foreign currencies. In accordance with the foreign exchange policy, the company does not enter into derivatives for speculative purposes. Derivatives are stated at their fair value, being the estimated amount that the Company would receive or pay to terminate the contracts at the balance sheet date based on prevailing foreign currency exchange rates.

Changes in fair value of foreign currency derivatives which are designated and effective as hedges of future cash flows are recognised in equity in the cash flow hedge reserve, and subsequently transferred to the carrying amount of the hedged item or the Statement of comprehensive income. Realised gains and losses on cash flow hedges are therefore recognised as turnover in the Statement of comprehensive income in the same period as the hedged item.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument previously recognised in equity is retained in equity until the hedged transaction occurs. If the hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in equity is then transferred to the Statement of comprehensive income.

Changes in fair value of derivatives which are ineffective or do not meet the criteria for hedge accounting in FRS 102 are recognised in the Statement of comprehensive income under turnover.

Page 16

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

3.	Significant judgements and estimates

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.

Stock provision

Stock is stated net of provisions for slow moving and obsolete stock, the calculation of which includes judgements. The directors review these periodically to ensure slow moving and obsolete stock is identified and provisions are appropriately calculated. At the Balance Sheet date, the carrying value of finished goods and goods for resale net of provisions for slow moving and obsolete stock is £1,561,041 (2025: £763,570).

Depreciation

The charge in respect of periodic depreciation and amortisation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives of all assets are determined at the time the asset is acquired and reviewed at least annually for appropriateness by the directors. At the Balance Sheet date, the carrying value of intangible assets is £nil (2025: £nil ) and the carrying value of tangible fixed assets is £540,677 (2025: £423,453).

Turnover

The whole of the turnover is attributable to the one principal activity of the company.

Analysis of turnover by country of destination:

					Period ended 31 December	31 January
					2025	2025
					£	£

United Kingdom	6,363,552	10,678,742
Rest of Europe	4,812,638	3,983,818
Rest of the world	9,425,053	6,688,030
	20,601,243	21,350,590

Page 17

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

Impairment of fixed asset investment	-	111,462
Exchange losses/(gains)	70,226	(70,800)
Depreciation of tangible fixed assets	293,499	285,210
Loss on sale of tangible fixed assets	202,228	55
Bad debt expense	3,830	3,987
Stock - impairment loss movement recognised in cost of sales	(89,649)	164,237

Fees payable to the Company's auditors for the audit of the Company's financial statements	28,525	25,500
Fees payable to the Company's auditors in respect of:
Taxation compliance services	5,350	5,350
All taxation advisory services not included above	124,500	5,000
All non-audit services not included above	31,375	8,382

Page 18

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

Wages and salaries	2,323,420	2,425,091
Social security costs	215,472	201,135
Cost of defined contribution scheme	46,252	44,774
	2,585,144	2,671,000

The average monthly number of employees, including the directors, during the period was as follows:

	Period ended 31 December	31 January
	2025	2025
	No.	No.

Sales and support	34	31

Page 19

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

Directors' emoluments	548,387	706,265
Company contributions to defined contribution pension schemes	4,844	5,284
Amounts paid to third parties in respect of directors' services	13,750	15,155
	566,981	726,704

During the period retirement benefits were accruing to 6 directors (2025 - 5) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £162,401 (2025: £189,674).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,211 (2025: £1,321).

Other interest receivable

287

Bank interest payable	-	421
Other loan interest payable	-	103,856
Other interest payable	43,370	26,603
	43,370	130,880

Page 20

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

Deferred tax
Origination and reversal of timing	168,126	562,900
Total deferred tax	168,126	562,900


	Tax on profit	168,126	562,900

Profit on ordinary activities before tax

897,310

2,199,406

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 25%)	224,328	549,852
Effects of:
Expenses not deductible for tax purposes	102,173	13,048
Other permanent differences	(135,692)	-
Adjustments to losses	(22,683)	-
Total tax charge for the period/year	168,126	562,900

Factors that may affect future tax charges

The Company has estimated losses of £0.8m (2025 - £1m) available for carry forward against future trading profits.

Page 21

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

12.	Intangible assets

		Product development
		£
	Cost
	At 1 February 2025	1,482,929
	At 31 December 2025	1,482,929
	Amortisation
	At 1 February 2025	1,482,929
	At 31 December 2025	1,482,929
	Net book value
	At 31 December 2025	-
	At 31 January 2025	-

Page 22

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

13.	Tangible fixed assets

	Fixtures and fittings	Computer equipment	Tooling	Total
	£	£	£	£
Cost
At 1 February 2025	1,247	84,011	1,786,522	1,871,780
Additions	16,947	13,967	615,058	645,972
Disposals	(1,247)	(41,407)	(360,987)	(403,641)
At 31 December 2025	16,947	56,571	2,040,593	2,114,111
Depreciation
At 1 February 2025	1,247	60,620	1,386,460	1,448,327
Charge for the year	1,567	13,423	278,509	293,499
Disposals	(1,247)	(41,407)	(125,738)	(168,392)
At 31 December 2025	1,567	32,636	1,539,231	1,573,434
Net book value
At 31 December 2025	15,380	23,935	501,362	540,677
At 31 January 2025	-	23,391	400,062	423,453

Page 23

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

14.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 February 2025	111,462
	At 31 December 2025	111,462
	Impairment
	At 1 February 2025	111,462
	At 31 December 2025	111,462
	Net book value
	At 31 December 2025	-
	At 31 January 2025	-

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

Wow! Stuff (H.K.) Limited	Ordinary	100%
Wow Stuff USA LLC	Ordinary	100%
Txt4vid Limited	Ordinary	100%
The Printable Mask Co Ltd	Ordinary	100%
Wow! Stuff Limited	Ordinary	100%
Nexttoptoy Limited	Ordinary	100%

The registered office for Wow! Stuff (H.K.) Limited is Unit 1502, 15th Floor, Greenfield Tower, Concordia Plaza, 1 Science Museum Road, T.S.T, Kowloon, Hong Kong. The registered office for Wow Stuff USA LLC is Suite M-145, 1201 West 5th Street, Los Angeles, California 90017.

The registered office for Txt4vid Limited, The Printable Mask Co Ltd, Wow! Stuff Limited and Nexttoptoy Limited is Creative Industries Centre, Mammoth Drive, Wolverhampton Science Park, Wolverhampton, WV10 9TG.

Page 24

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

	Finished goods and goods for resale	1,561,041	763,570

The carrying value of stocks are stated net of impairment losses totalling £136,517 (2025 - £226,166). Impairment losses occurred due to items of stock which are deemed to be slow moving or obsolete.

16.

Debtors

					31 December	31 January
					2025	2025
					£	£


Trade debtors	4,017,236	4,914,516
Amounts owed by group undertakings	244,903	27,597
Other debtors	283,557	117,064
Prepayments and accrued income	1,156,069	197,379
Deferred taxation	18,974	187,100
	5,720,739	5,443,656

	Cash at bank and in hand	2,147,448	3,315,132

Page 25

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

Trade creditors	1,563,304	2,603,219
Amounts owed to group undertakings	70,483	43,493
Other taxation and social security	175,065	53,247
Invoice discounting creditor	368,040	1,988,599
Other creditors	7,427	6,692
Accruals and deferred income	3,197,254	1,391,413
	5,381,573	6,086,663

The invoice discounting creditor is secured by a fixed and floating charge over the assets of the Company. The value of trade debtors securing the invoice discount facility at the balance sheet date is £3,768,416 (2025: £2,752,867).

19.	Deferred taxation

		2025
		£

	At beginning of year	187,100
	Charged to statement of comprehensive income	(168,126)
	At end of year	18,974

Fixed asset timing differences	(174,115)	(81,079)
Short term timing differences	696	3,127
Losses and other deductions	192,393	265,052
	18,974	187,100

Page 26

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

Allotted, called up and fully paid

5,893 (2025 - 5,893) deferred shares of £1.000 each	5,893	5,893
10,645,000 (2025 - 10,645,000) ordinary shares of £0.001 each	10,645	10,645

	16,538	16,538

21.

Reserves

Profit and loss account

This reserve records all current and prior period retained profits and losses.

22.	Contingent liabilities

HSBC Bank plc holds an unlimited multilateral guarantee between the company and all of its subsidiary companies. The company is therefore jointly and severally liable for the amount owed by its subsidiary companies to HSBC Bank plc. At the balance sheet date this amounted to £nil (2025 - £nil).

A group VAT registration is in force. The company is, therefore, jointly and severally liable for the amount of VAT owed by other members of the group. At the balance sheet date this amounted to £nil (2025 - £nil).

Contracted for but not provided in these financial statements

102,528

90,598

24.	Pension commitments

The Company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £46,252 (2025 - £44,774). Contributions totalling £7,427 (2025 - £6,692) were payable to the scheme at the end of the period and are included in creditors.

Page 27

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

Not later than 1 year	51,163	-
Later than 1 year and not later than 5 years	89,535	-
	140,698	-

26.Other financial commitments

Total financial commitments to licensors at the balance sheet date were $2,140,443 (2025 - $1,858,530). This approximately translates to £1,586,689 (2025 - £1,493,995).

27.	Transactions with directors

During the period the company advanced £nil (2025 - £nil) to a director and the director repaid £nil (2025 - £37,480). At the balance sheet date, the amount due to the company was £nil (2025 - £nil). The amount advanced is interest free and holds no conditions.

28.

Related party transactions

During the period, the company paid £13,750 (2025 - £15,155) to a third party for director services. At 31 December 2025, the company owed the third party £1,500 (2025 - £1,500). A director of the company is also a director of the third party.

During the period, interest of £nil (2025 - £37,410) was charged on existing loan notes to directors and shareholders of the company. At the balance sheet date, the company owed £nil (2025 - £nil) to the directors and shareholders.

During the period, the company purchased £nil (2025 - £16,612) from a company in which the controlling party has an interest and is also a director. Additionally, during the period the company recieved a credit note from the related party totalling £19,744 (2025 - £nil) due to a previous overcharge. At the balance sheet date, the company owed £121 (2025 - was owed £26,285) to this related party.

All individuals of the company who have authority and responsibility for planning, directing and controlling activities of the company are considered to be the key management personnel. Total remuneration in respect of these individuals is disclosed in note 8.

The company has taken advantage of the exemption in paragraph 33.1A of Financial Reporting Standard 102, from the requirement to disclose transactions with wholly owned members of the group.

Page 28

CHINA INDUSTRIES LIMITED TRADING AS WOW! STUFF

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2025

29.	Controlling party

The immediate parent company is Troy Toys Limited. Troy Toys Limited is a priviate company, limited by shares and incorporated in England and Wales. The registered office is Creative Industries Centre, Wolverhampton Science Park, Wolverhampton, West Midlands, WV10 9TG. The smallest group in which the results of the company are consolidated is headed by Troy Toys Limited. The consolidated financial statements of Troy Toys are available from its registered office.

The ultimate parent company is Troy Companies International B.V. Troy Companies International B.V. is a private company, limited by shares and incorporated in the Netherlands. The registered office address is Stadionlaan 155, 5246 JT's - Hertogenbosch, The Netherlands. The largest group in which the results of the company are consolidated is headed by Troy Companies International B.V. The consolidated financial statemehts of Troy Companies International B.V are available from its registered office.

The ultimate controlling party is John Huiberts.

Page 29