{"url_path":"/sec/mb/10-k/2026/item-18","section_key":"item-18","section_title":"Item 18 FINANCIAL STATEMENTS**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/2027265/0001493152-26-023479-index.html","accession_number":"0001493152-26-023479","cik":"0002027265","ticker":"MB","issuer_name":"MASTERBEEF GROUP","edgar_url":"https://www.sec.gov/Archives/edgar/data/2027265/0001493152-26-023479-index.html","primary_entity_key":"0002027265","primary_entity_name":"MASTERBEEF GROUP"},"word_count":19457,"has_tables":true,"body_markdown":"**ITEM\n18. FINANCIAL STATEMENTS**\n\n \n\nThe\nfollowing Financial Statements are filed as part of this Annual Report:\n\n \n\n109\n\n \n\n \n\n**MAsterBeef\nGroup and its subsidiaries**\n\n** **\n\n**CONSOLIDATED\nFINANCIAL STATEMENTS**\n\n** **\n\n**DECEMBER\n31, 2025**\n\n** **\n\n \n\n \n\n** **\n\n**MasterBeef Group and its subsidiaries**\n\n** **\n\n****\n\n \n\n** **\n\n**Contents**\n\n \n\n \n\n \n\n \nPage(s)\n\n \n \n\n**Report\nof Independent Registered Public Accounting Firm (PCAOB ID: 6732)**\nF-2\n\n \n\n**Consolidated statements of Profit or Loss for the year ended December 31, 2025, 2024 and 2023**\nF-3\n\n \n\n**Consolidated statements of Comprehensive Income/(Loss) for the year ended December 31, 2025, 2024 and 2023**\nF-4\n\n \n \n\n**Consolidated statements of Financial Position as at December 31, 2025 and 2024**\nF-5\n– F-6\n\n \n\n**Consolidated statements of Changes in Equity/(Deficit) for the year ended December 31, 2025, 2024 and 2023**\nF-7\n\n \n\n**Consolidated statements of Cash Flows for the year ended December 31, 2025, 2024 and 2023**\nF-8\n– F-9\n\n \n \n\n**Notes\nto the Consolidated Financial Statements**\nF-10\n– F-54\n\n \n\nF-1\n\n \n\n \n\n**REPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n** **\n\n**To\nthe Shareholders and the Board of Directors of MasterBeef Group**\n\n** **\n\n**Opinion\non the Consolidated Financial Statements**\n\n** **\n\nWe\nhave audited the accompanying consolidated statements of financial position of MasterBeef Group and its Subsidiaries (collectively,\nthe “Group”) as of December 31, 2025 and 2024 and the related consolidated statements of profit or loss and other\ncomprehensive income/(loss), changes in equity/(deficit), and cash flows for each of the years in the three-year period ended\nDecember 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In\nour opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as\nof December 31, 2025 and 2024 and the results of its operations and its cash flows for each of the years in the three-year\nperiod ended December 31, 2025, in conformity with IFRS Accounting Standards as issued by the International Accounting\nStandards Board.\n\n** **\n\n**Basis\nfor Opinion**\n\n** **\n\nThese\nconsolidated financial statements are the responsibility of the Group’s management. Our responsibility is to express an opinion\non the Group’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public\nCompany Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the\nGroup in accordance with the United States federal securities laws and the applicable rules and regulations of the Securities and\nExchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to\nobtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error\nor fraud. The Group is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.\nAs part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose\nof expressing an opinion on the effectiveness of the Group’s internal control over financial reporting. Accordingly, we express\nno such opinion.\n\n \n\nOur\naudits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether\ndue to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence\nregarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles\nused and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.\nWe believe that our audits provide a reasonable basis for our opinion.\n\n \n\nWe\nhave served as the Group’s auditor since 2023.\n\n** **\n\n**/s/**Onestop Assurance PAC\n\n** **\n\nSingapore\n\n \n\nMay\n15, 2026\n\n** **\n\nF-2\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\nConsolidated\nStatements of Profit or Loss\n\n**For\nthe year ended December 31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n  \n   \n2025  \n2025  \n2024  \n2023 \n\n  \nNote  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n   \n  \n\nRevenue \n 3  \n 58,985,525  \n 459,102,040  \n 503,975,453  \n 532,286,102 \n\n  \n    \n    \n    \n    \n   \n\nOther income and gains \n 4  \n 403,158  \n 3,137,903  \n 2,575,532  \n 1,191,524 \n\n  \n    \n    \n    \n    \n   \n\nRaw materials and consumables used \n    \n (21,413,932) \n (166,671,052) \n (162,919,358) \n (173,923,946)\n\n  \n    \n    \n    \n    \n   \n\nDepreciation of property, plant and equipment \n 12  \n (3,549,440) \n (27,626,357) \n (34,038,855) \n (35,795,951)\n\n  \n    \n    \n    \n    \n   \n\nAmortisation of right-of-use assets \n 13  \n (5,006,718) \n (38,968,788) \n (44,562,079) \n (48,467,296)\n\n  \n    \n    \n    \n    \n   \n\nStaff costs \n    \n (19,299,674) \n (150,215,156) \n (169,577,298) \n (177,874,361)\n\n  \n    \n    \n    \n    \n   \n\nUtilities expenses \n    \n (2,331,496) \n (18,146,730) \n (19,133,238) \n (19,896,742)\n\n  \n    \n    \n    \n    \n   \n\nImpairment loss in respect of assets held\nfor sale \n 11  \n -  \n -  \n -  \n (23,545,499)\n\n  \n    \n    \n    \n    \n   \n\nImpairment of property, plant and equipment \n 12  \n (241,205) \n (1,877,371) \n (4,549,381) \n - \n\n  \n    \n    \n    \n    \n   \n\nImpairment of right-of-use assets \n 13  \n (527,031) \n (4,102,040) \n (5,013,080) \n - \n\n  \n    \n    \n    \n    \n   \n\nGain on disposal of subsidiaries \n 11  \n -  \n -  \n 58,678,325  \n - \n\n  \n    \n    \n    \n    \n   \n\nOther expenses \n 6  \n (11,624,683) \n (90,478,393) \n (79,631,075) \n (72,312,851)\n\n  \n    \n    \n    \n    \n   \n\nFinance costs \n 7  \n (1,246,913) \n (9,705,101) \n (10,190,795) \n (11,449,103)\n\n  \n    \n    \n    \n    \n   \n\n(Loss)/profit before tax \n 8  \n (5,852,409) \n (45,551,045) \n 35,614,151  \n (29,788,123)\n\n  \n    \n    \n    \n    \n   \n\nIncome tax expense \n 9  \n (896,366) \n (6,976,688) \n (2,713,707) \n (7,657,988)\n\n  \n    \n    \n    \n    \n   \n\n(Loss)/profit\nfor the year \n    \n (6,748,775) \n (52,527,733) \n 32,900,444  \n (37,446,111)\n\n  \n    \n    \n    \n    \n   \n\n(Loss)/earnings per share \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nBasic \n 10  \n (0.41) \n (3.17) \n 2.56  \n (3,745.00)\n\n  \n    \n    \n    \n    \n   \n\nDiluted \n 10  \n (0.41) \n (3.17) \n 2.56  \n (3,745.00)\n\n \n\nF-3\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n \n\nConsolidated\nStatements of Comprehensive (Loss)/Income\n\n**For\nthe year ended December 31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n  \n   \n2025  \n2025  \n2024  \n2023 \n\n  \nNote  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n   \n  \n\n(Loss)/profit\nfor the year \n   \n (6,748,775) \n (52,527,733) \n 32,900,444  \n (37,446,111)\n\n  \n    \n    \n    \n    \n   \n\nOther comprehensive income,\nnet of tax: \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nOther comprehensive income that may be reclassified\nto profit or loss in subsequent periods: \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nExchange difference on\ntranslation of foreign operation \n    \n 3,390 \n 26,382 \n (28,025) \n (3,475)\n\n  \n    \n    \n    \n    \n   \n\nTotal\ncomprehensive (loss)/income for the year \n    \n **(6,745,385****)** \n (52,501,351) \n 32,872,419  \n (37,449,586)\n\n \n\nThe\naccompanying notes form an integral part of these consolidated financial statements.\n\n \n\nF-4\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Consolidated\nStatements of Financial Position**\n\n**December\n31, 2025 and 2024**\n\n \n\n \n\n \n\n  \n   \nDecember 31,\n2025  \nDecember 31,\n2025  \nDecember 31, 2024 \n\n  \nNote  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nAssets \n   \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nNon-current assets \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nProperty, plant and equipment \n 12  \n 3,395,107  \n 26,425,135  \n 50,506,934 \n\nRight-of-use assets \n 13  \n 6,044,280  \n 47,044,447  \n 61,554,718 \n\nDeferred tax assets \n 14  \n 983,727  \n 7,656,645  \n 8,968,929 \n\nDeposits \n 15  \n 1,617,174  \n 12,586,949  \n 10,898,645 \n\n  \n    \n    \n    \n   \n\nTotal\nnon-current assets \n    \n 12,040,288  \n 93,713,176  \n 131,929,226 \n\nCurrent assets \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nAmounts due from related companies \n 16  \n 2,053,584  \n 15,983,658  \n 17,304,600 \n\nAmounts due from shareholders \n 16  \n -  \n -  \n 74,100 \n\nInventories \n 17  \n 3,013,723  \n 23,456,709  \n 20,351,116 \n\nTrade receivables \n 18  \n 437,456  \n 3,404,848  \n 3,319,847 \n\nDeposits, prepayments and other receivables \n 15  \n 2,295,906  \n 17,869,726  \n 18,000,107 \n\nTax recoverable \n    \n 242,303  \n 1,885,920  \n - \n\nCash and bank balances \n 19  \n 18,978,470  \n 147,715,125  \n 117,336,010 \n\n  \n    \n    \n    \n   \n\nTotal\ncurrent assets \n    \n 27,021,442  \n 210,315,986  \n 176,385,780 \n\n  \n    \n    \n    \n   \n\nTotal\nassets \n    \n 39,061,730  \n 304,029,162  \n 308,315,006 \n\n \n\nF-5\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Consolidated\nStatements of Financial Position (Continued)**\n\n**December\n31, 2025 and 2024**\n\n** **\n\n \n\n \n\n  \n   \nDecember 31,\n2025  \nDecember 31,\n2025  \nDecember 31, 2024 \n\n  \nNote  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nEquity and liabilities \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nCapital and reserves \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nShare capital \n 20  \n 8,597  \n 66,916  \n 58,500 \n\n(Accumulated losses)/retained\nprofits \n    \n (3,084,835) \n (24,010,190) \n 28,517,543 \n\nOther reserves \n 21  \n 9,171,241  \n 71,382,519  \n 9,979\n\nExchange reserve \n 21  \n (2,078) \n (16,176) \n (42,558)\n\n  \n    \n    \n    \n   \n\nTotal\nequity \n    \n 6,092,925  \n 47,423,069  \n 28,543,464 \n\n  \n    \n    \n    \n   \n\nNon-current liabilities \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nLoans from related companies \n 22  \n 5,686,724  \n 44,261,481  \n 28,004,873 \n\nLoans from directors \n 16  \n 5,741,388  \n 44,686,941  \n - \n\nLease liabilities \n 23  \n 3,670,053  \n 28,565,127  \n 36,268,295 \n\nProvision for reinstatement\ncosts \n 24  \n 466,383  \n 3,630,000  \n 2,780,000 \n\n  \n    \n    \n    \n   \n\nTotal\nnon-current liabilities \n    \n 15,564,548  \n 121,143,549  \n 67,053,168 \n\n  \n    \n    \n    \n   \n\nCurrent liabilities \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nBank loans \n 25  \n 7,986,489  \n 62,161,236  \n 70,184,889 \n\nLoans from related companies \n 22  \n -  \n -  \n 15,677,958 \n\nAmounts due to directors \n 16  \n -  \n -  \n 42,573,611 \n\nAmounts due to related companies \n 16  \n 51,722  \n 402,561  \n 165,724 \n\nProvision for reinstatement costs \n 24  \n 214,562  \n 1,670,000  \n 2,520,000 \n\nLease liabilities \n 23  \n 4,045,398  \n 31,486,548  \n 38,148,743 \n\nTrade payables \n    \n 1,614,675  \n 12,567,498  \n 16,656,904 \n\nAccruals and other payables \n 26  \n 3,491,411  \n 27,174,701  \n 25,075,647 \n\nCurrent tax payable \n    \n -  \n -  \n 1,714,898 \n\n  \n    \n    \n    \n   \n\nTotal\ncurrent liabilities \n    \n 17,404,257  \n 135,462,544  \n 212,718,374 \n\n  \n    \n    \n    \n   \n\nTotal\nliabilities \n    \n 32,968,805  \n 256,606,093  \n 279,771,542 \n\n  \n    \n    \n    \n   \n\nTotal\nequity and liabilities \n    \n 39,061,730  \n 304,029,162  \n 308,315,006 \n\n \n\nThe\naccompanying notes form an integral part of these consolidated financial statements.\n\n* *\n\nF-6\n\n \n\n* *\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Consolidated\nStatements** **of Changes in Equity/(Deficit)**\n\n**For\nthe year ended December 31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n  \n\n**Share**\n\n**capital**\n  \n\n** **\n\n** **\n\n**Share**\n\n**premium**\n  \n\n**Retained\nprofits/ (accumulated**\n\n**losses)**\n  \n\n** **\n\n** **\n\n**Other**\n\n**reserves**\n  \n\n** **\n\n** **\n\n**Exchange**\n\n**reserve**\n \n \n**Share-based payment reserve**\n  \nTotal \n\n  \nHK$  \n**HK$**  \nHK$  \nHK$  \nHK$ \n \n**HK$**\n  \nHK$ \n\n  \n   \n   \n   \n   \n  \n \n \n \n  \n  \n\nJanuary 1, 2023 \n 10  \n -  \n 33,063,210  \n 147,090  \n (11,058)\n \n \n-\n  \n 33,199,252 \n\n  \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nEffect of merger accounting for common control\ncombination \n -  \n    \n -  \n (137,111) \n - \n \n \n-\n  \n (137,111)\n\nLoss for the year \n -  \n -  \n (37,446,111) \n -  \n - \n \n \n-\n  \n (37,446,111)\n\nOther comprehensive income: \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nExchange difference on\ntranslation of foreign operation \n -  \n -  \n -  \n -  \n (3,475)\n \n \n-\n  \n (3,475)\n\n  \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nDecember 31, 2023 \n 10  \n -  \n (4,382,901) \n 9,979  \n (14,533)\n \n \n-\n  \n (4,387,445)\n\n  \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nIssuance of shares \n 119,340  \n -  \n -  \n -  \n - \n \n \n-\n  \n 119,340 \n\nShare repurchase \n (60,850) \n -  \n -  \n -  \n - \n \n \n-\n  \n (60,850)\n\nProfit for the year \n -  \n -  \n 32,900,444  \n -  \n - \n \n \n-\n  \n 32,900,444 \n\nOther comprehensive income: \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nExchange difference on\ntranslation of foreign operation \n -  \n -  \n -  \n -  \n (28,025)\n \n \n-\n  \n (28,025)\n\n  \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nDecember 31, 2024 \n 58,500  \n -  \n 28,517,543  \n 9,979  \n (42,558)\n \n \n-\n  \n 28,543,464 \n\n  \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nIssuance of shares \n 8,416  \n 67,321,541  \n -  \n -  \n - \n \n \n-\n  \n 67,329,957 \n\nShare issue expense\n \n \n- \n \n \n \n(7,647,539\n)\n \n \n- \n \n \n \n- \n \n \n \n- \n \n \n \n-\n \n \n \n(7,647,539\n)\n\nShare-based payment expense \n -  \n -  \n -  \n -  \n - \n \n \n11,698,538\n  \n 11,698,538 \n\nLoss for the year \n -  \n -  \n (52,527,733) \n -  \n - \n \n \n-\n  \n (52,527,733)\n\nOther comprehensive income: \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nExchange difference\non translation of foreign operation \n -  \n -  \n -  \n -  \n 26,382\n \n \n-\n  \n 26,382 \n\n  \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nDecember 31, 2025 \n 66,916  \n 59,674,002  \n (24,010,190) \n 9,979  \n (16,176)\n \n \n**11,698,538**\n  \n 47,423,069 \n\n  \n    \n    \n    \n    \n   \n \n \n \n  \n   \n\nDecember 31, 2025 (US$) \n 8,597  \n 7,666,928  \n (3,084,835) \n 1,282  \n (2,078)\n \n \n**1,503,031**\n  \n 6,092,925 \n\n** **\n\nThe\naccompanying notes form an integral part of these consolidated financial statements.\n\n \n\nF-7\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Consolidated\nStatements of Cash Flows**\n\n**For\nthe year ended December 31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n  \n   \n2025  \n2025  \n2024  \n2023 \n\n  \nNote  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n   \n  \n\nCash flows from operating\nactivities \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\n(Loss)/profit before tax \n    \n (5,852,409) \n (45,551,045) \n 35,614,151  \n (29,788,123)\n\n  \n    \n    \n    \n    \n   \n\nAdjustments for: \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nInterest income \n 4  \n (62,215) \n (484,236) \n (682,409) \n (515,980)\n\nInterest expenses \n 7  \n 741,752  \n 5,773,284  \n 4,595,959  \n 5,149,089 \n\nDepreciation of property, plant and equipment \n 12  \n **3,549,440**** **** **\n** ****27,626,357**  \n 34,038,855  \n 35,795,951 \n\nAmortisation of right-of-use assets \n 13  \n 5,006,718  \n 38,968,788  \n 44,562,079  \n 48,467,296 \n\nImpairment loss on disposal group classified\nas held for sale \n    \n -  \n -  \n -  \n 23,545,499 \n\nInterest on lease liabilities \n 7  \n 505,161  \n 3,931,817  \n 5,594,836  \n 6,300,014 \n\nWritten-off of property, plant and\nequipment \n 8  \n 15,521  \n 120,803  \n 526,279  \n 6,702,181 \n\nImpairment of property, plant and equipment \n 12  \n 241,205  \n 1,877,371  \n 4,549,381  \n - \n\nImpairment of right-of-use assets \n 13  \n 527,031  \n 4,102,040  \n 5,013,080  \n - \n\nShare-based payment \n    \n 1,503,218  \n 11,700,000  \n -  \n - \n\nGain on disposal of subsidiaries \n    \n -  \n -  \n (58,678,325) \n - \n\n  \n    \n    \n    \n    \n   \n\nOperating cash flows before movements in working\ncapital \n    \n 6,175,422  \n 48,065,179  \n 75,133,886  \n 95,655,927 \n\n  \n    \n    \n    \n    \n   \n\nDecrease/(increase) in amounts due from\nrelated companies \n    \n 169,715  \n 1,320,942  \n 45,064,210  \n (78,147)\n\nDecrease in amounts due from shareholders \n    \n 9,521  \n 74,100  \n -  \n - \n\n(Increase)/decrease in inventories \n    \n (399,007) \n (3,105,593) \n 4,768,410  \n 5,146,061 \n\n(Increase)/decrease in trade receivables \n    \n (10,921) \n (85,001) \n 5,581,582  \n (5,149,129)\n\nIncrease in deposits, prepayments and other\nreceivables \n    \n (200,162) \n (1,557,923) \n (3,408,599) \n (5,696,237)\n\nDecrease in amounts due to directors \n    \n (5,469,866) \n (42,573,611) \n (67,214,294) \n (224,388)\n\nIncrease in amounts due to related companies \n    \n 30,429  \n 236,837  \n 18,963  \n 35,894 \n\n(Decrease)/increase in trade payables \n    \n (525,408) \n (4,089,406) \n 972,847  \n (1,580,470)\n\n(Decrease)/increase\nin accruals and other payables \n    \n (273,784) \n (2,130,946) \n 8,675,330  \n 2,797,231 \n\n  \n    \n    \n    \n    \n   \n\nCash (used in)/generated\nfrom operations \n    \n (494,061) \n (3,845,422) \n 69,592,335  \n 90,906,742 \n\n  \n    \n    \n    \n    \n   \n\nInterest received \n    \n 62,215  \n 484,236  \n 682,409  \n 515,980 \n\nIncome tax paid \n    \n (1,190,398) \n (9,265,222) \n (10,108,560) \n (7,598,311)\n\n  \n    \n    \n    \n    \n   \n\nNet\ncash (used in)/generated from operating activities \n    \n (1,622,244) \n (12,626,408) \n 60,166,184  \n 83,824,411 \n\n  \n    \n    \n    \n    \n   \n\nCash flows from investing\nactivities \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nPurchase of property, plant and equipment \n    \n (176,746) \n (1,375,666) \n (11,991,530) \n (44,512,104)\n\nNet cash outflow from deconsolidation of\nsubsidiaries \n    \n -  \n -  \n (189,912) \n - \n\nProceeds from disposal\nof property, plant and equipment \n    \n 8,086  \n 62,934  \n -  \n 61,239 \n\n  \n    \n    \n    \n    \n   \n\nNet\ncash used in investing activities \n    \n (168,660) \n (1,312,732) \n (12,181,442) \n (44,450,865)\n\n \n\nF-8\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Consolidated\nStatements of Cash Flows (Continued)**\n\n**For\nthe year ended December 31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n  \n   \n2025  \n2025  \n2024  \n2023 \n\n  \nNote  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n   \n  \n\nCash flows from financing\nactivities \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nInterest paid for bank loans \n    \n (253,431) \n (1,972,532) \n (2,645,713) \n (2,863,104)\n\nProceed from loans from directors\n \n \n \n \n \n \n**5,457,018**\n \n \n \n**42,473,611**\n \n \n \n-\n \n \n \n-\n \n\nGross proceeds from issuance of ordinary shares \n    \n 8,650,567  \n 67,329,957  \n -  \n - \n\nListing expenses paid in relation to issuance of new ordinary shares \n    \n (978,547) \n (7,616,332) \n -  \n - \n\nInterest paid for loans from related companies \n    \n (13,888) \n (108,096) \n (1,950,246) \n (2,285,985)\n\nRepayment of principal portion of bank loan \n    \n (1,030,881) \n (8,023,653) \n (7,569,370) \n (8,489,298)\n\nRepayment of principal portion of loans\nfrom related companies \n    \n (115,719) \n (900,676) \n (10,190,497) \n (13,950,673)\n\nInterest elements of lease rentals paid \n    \n (505,161) \n (3,931,817) \n (5,594,836) \n (6,300,014)\n\nRepayment of principal\nportion of lease liabilities \n    \n (5,515,131) \n (42,925,920) \n (48,883,789) \n (47,679,212)\n\n  \n    \n    \n    \n    \n   \n\nNet\ncash generated from/(used in) financing activities \n    \n 5,694,827  \n 44,324,542  \n (76,834,451) \n (81,568,286)\n\n  \n    \n    \n    \n    \n   \n\nNet increase/(decrease)\nin cash and cash equivalents \n    \n 3,903,923  \n 30,385,402  \n (28,849,709) \n (42,194,740)\n\n  \n    \n    \n    \n    \n   \n\nCash and cash equivalents\nat beginning of the year \n    \n 15,075,355  \n 117,336,010  \n 146,213,744  \n 196,296,774 \n\n  \n    \n    \n    \n    \n   \n\nBank balances and cash transfer\nto assets classified as held for sale \n    \n -  \n -  \n -  \n (7,884,815)\n\n  \n    \n    \n    \n    \n   \n\nEffect\nof foreign exchange rate changes \n    \n (808) \n (6,287) \n (28,025) \n (3,475)\n\n  \n    \n    \n    \n    \n   \n\n**Cash\nand cash equivalents at end of the**\n\n**year**\n \n 19  \n 18,978,470  \n 147,715,125  \n 117,336,010  \n 146,213,744 \n\n \n\n \n\nThe\naccompanying notes form an integral part of these consolidated financial statements.\n\n \n\nF-9\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n**1.****General**\n\n \n\nMasterBeef Group (the “Company”, and together with its subsidiaries, the “Group”) is a limited\nliability company incorporated in Cayman Islands. The Company is listed on Nasdaq since April 10, 2025 and\ndual listed on the Quotation Board of the Frankfurt Stock Exchange since September 3, 2025. The principal\nactivity of the Company is investment holding. The principal activities of the subsidiaries (together with the Company, collectively referred\nto as the “Group”) are:-\n\n \n\n**Information\nabout subsidiaries**\n\n \n\nDetails\nof the Company’s subsidiaries are as follows:\n\n Schedule of subsidiary\n\n**Name**\n \n\n**Place\nof**\n\n**incorporation/**\n\n**operation**\n\n \n\n**Percentage**\n\n**of\nissued**\n\n**capital\nheld**\n\n \n**Principal\nactivities**\n\n \n \n \n \n**2025**\n \n2024\n \n \n\n \n \n \n \n \n \n \n \n \n\nMasterbeef\nLimited\n\n \nBritish\nVirgin Islands\n \n**100**\n \n100\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nTak\nMoon Holdings Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nLuk\nKoon Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nTaiwanese\nHotpot Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nMaster\nBeef Hotpot Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nAble\nForce Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nAmazing\nHotpot Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nAll\nYou Can Eat Hotpot Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nPeople\nMountain People Sea Hotpot Limited\n\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nMrs\nBeef Taiwanese Hotpot Limited\n\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nMrs\nBeef Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nMrs\nBeef Hotpot Limited *β\n \nHong\nKong\n \n**-**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nZone\nCorporation Limited *\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nSharp\nHarbour Limited *\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nAnping\nGrill Limited\n \nBritish\nVirgin Islands\n \n**100**\n \n100\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nAnping\nGrill (HK) Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nTaiwanese\nBarbecue Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n** **\n\nF-10\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n**1.****General\n(continued)**\n\n** **\n\n**Information\nabout subsidiaries (Continued)**\n\n \n\n**Name**\n \n\n**Place\nof**\n\n**incorporation/**\n\n**operation**\n\n \n\n**Percentage**\n\n**of\nissued**\n\n**capital\nheld**\n\n \n**Principal\nactivities**\n\n \n \n \n \n**2025**\n \n2024\n \n \n\n \n \n \n \n \n \n \n \n\nAll\nYou Can Eat Grill Limited\n\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nCool\nSky Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nTaiwanese\nAll You Can Eat Limited *\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nWide\nFame Limited *\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nChubby\nBento Limited #\n \nBritish\nVirgin Islands\n \n**-**\n \n-\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nChubby\nBento (HK) Limited #\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nAll\nYou Can Eat Limited #\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nTaiwanese\nBento Limited #\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nTotal\nRise Corporation Limited * #\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nAble\nCastle Corporation Limited *#!\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nBeauti-Linkage\nLimited *#!\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nGlory\nZone Corporation Limited *#!\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nBao\nPot Taiwanese Claypot Limited #\n \nBritish\nVirgin Islands\n \n**-**\n \n-\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nBao\nPot Taiwanese Claypot (HK) Limited #\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nTaiwanese\nClaypot Limited #\n \nHong\nKong\n \n**-**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nGeneral’s\nFeast Limited ^\n \nBritish\nVirgin Islands\n \n**100**\n \n100\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nGenerals\nFeast (HK) Limited !\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nVast\nHappiness Limited *ꝺ\n \nHong\nKong\n \n**100**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nTak\nMoon Food Supplies (BVI) Limited\n \nBritish\nVirgin Islands\n \n**100**\n \n100\n \nProvision\nof investment holding\n\n** **\n\nF-11\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n**1.****General\n(continued)**\n\n** **\n\n**Information\nabout subsidiaries (Continued)**\n\n \n\n**Name**\n \n\n**Place\nof**\n\n**incorporation/**\n\n**operation**\n\n \n\n**Percentage**\n\n**of\nissued**\n\n**capital\nheld**\n\n \n**Principal\nactivities**\n\n \n \n \n \n**2025**\n \n2024\n \n \n\nTak\nMoon Food Supplies Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof food supply\n\n \n \n \n \n \n \n \n \n \n\nTak\nMei Food Supplies Limited\n \nTaiwan\n \n**100**\n \n100\n \nProvision\nof food supply\n\n \n \n \n \n \n \n \n \n \n\nTaiwanese\nSweeties Limited\n \nBritish\nVirgin Islands\n \n**100**\n \n100\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nTaiwanese\nSweeties (HK) Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nBig\nAssets Limited *ꝺ\n \nHong\nKong\n \n**100**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nHouse\nof Talent (BVI) Limited\n \nBritish\nVirgin Islands\n \n**100**\n \n100\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nHouse\nof Talent Limited\n \nHong\nKong\n \n**100**\n \n100\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nWorvity\nLimited ꝺ\n \nBritish\nVirgin Islands\n \n**100**\n \n-\n \nProvision\nof investment holding\n\n \n \n \n \n \n \n \n \n \n\nWorvity\n(HK) Limited *ꝺ\n \nHong\nKong\n \n**100**\n \n-\n \nProvision\nof catering services\n\n \n \n \n \n \n \n \n \n \n\nWider Rise Limited *ꝺ\n \nHong Kong\n \n**100**\n \n-\n \nProvision of catering services\n\n \n\n*\nThe entities have/had yet to commence its business.\n\n#\nThe entities were disposed of on May 14, 2024. For details, please refer\nto Note 11.\n\nβ\nThe entities were disposed of on June 23, 2025.\n\n^\nThe entities were incorporated in 2024.\n\n!\nThe entities were acquired in 2024.\n\nꝺ\nThe entities were acquired in 2025.\n\n  \n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information**\n\n** **\n\n*2.1**Basis\nof preparation of consolidated financial statements*\n\n \n\nThese\nconsolidated financial statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”) and Interpretations\nissued by the International Accounting Standards Board (“IASB”).\n\n \n\nThese\nconsolidated financial statements are presented in Hong Kong dollars (“HK$”), which is also the functional currency of the\nCompany.\n\n \n\nTranslations\nof the consolidated statements of financial position, consolidated statements of profit or loss, consolidated statements of comprehensive\n(loss)/income and consolidated statements of cash flows from HK$ into US Dollar (“US$”) as of and for the year ended December\n31, 2025 are solely for the convenience of the reader and were calculated at the rate of HK$7.7833 = US$1, as the prevailing rate as\nof December 31, 2025 as published in H.10 statistical release of the United States Federal Reserve Board. No representation is made that\nthe HK$ amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2025, or at any other\nrate.\n\n \n\nF-12\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n \n\n*2.2**Application\nof amendments to IFRS*\n\n \n\nIn\npreparing the consolidated financial statements, the Group has applied the following amendments to IFRS issued by the IASB, for the first\ntime, which are mandatorily effective for the Group’s annual period beginning on January 1, 2025:\n\n \n\nAmendments\nto IAS 21\nLack\nof Exchangeability\n\n \n\nThe\napplication of the amendments to IFRS in the current year has had no material impact on the Group’s financial positions and performance\nfor the current and prior years and/or on the disclosures set out in these consolidated financial statements.\n\n \n\n*2.3**Going\nconcern*\n\n* *\n\nThe Group incurred a loss of HK$52,527,733\nfor the year ended December 31, 2025. This condition indicates the existence of a material uncertainty that may cast significant doubt\non the Group’s ability to continue as a going concern and therefore, the Group may not be able to realise its assets and discharge\nits liabilities in the normal course of business.\n\n \n\nThe\nconsolidated financial statements have been prepared on a going concern basis according to below reason:\n\n \n\ni)The\nGroup has entered into loan agreements and supplemental letters dated February 11, 2025 with\nthe directors of the Group and the related companies which had previously provided loans\nto the Group’s operating subsidiaries, pursuant to which the directors and the related\ncompanies agreed that the Group would not be required to repay such loans until 24 months\nlater.\n\n   \n\n ii)\nThe Directors agreed not to request repayment of\nthe amount due to them of HK$44,685,941 for at least twelve months from the date of these financial statements until the Group is in\na position to do so without impairing its liquidity and financial position.\n\n \n\nBased on the above, the directors\nare of the opinion that the Group will have sufficient working capital to finance its operations and to meet its financial obligations\nas and when they fall due for at least the next twelve months from the end of the reporting period. Accordingly, the consolidated financial\nstatements have been prepared on a going concern basis.\n\n \n\n2.4**Changes\nin accounting policy as a result of application of the HKICPA guidance on the accounting\nimplications of the abolition of the Mandatory Provident Fund (“MPF”) –\nLong Service Payment (“LSP”) offsetting mechanism in Hong Kong**\n\n** **\n\nIn\nJune 2022, the Government of the Hong Kong Special Administrative Region (“HKSAR”) gazetted the Employment and\nRetirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 (the “Amendment Ordinance”) which\nabolishes the use of the accrued benefits derived from employers’ mandatory MPF contributions to offset severance payment and\nLSP (the “Abolition”). The Abolition will officially take effect on May 1, 2025 (the “Transition Date”). In\naddition, under the Amendment Ordinance, the last month’s salary immediately preceding the Transition Date (instead of the\ndate of termination of employment) is used to calculate the portion of LSP in respect of the employment period before the Transition\nDate.\n\n \n\nIn\nJuly 2023, the HKICPA published “Accounting implications of the abolition of the MPF-LSP offsetting mechanism in Hong Kong”\nwhich provides guidance for the accounting for the offsetting mechanism and the impact arising from abolition of the MPF-LSP offsetting\nmechanism in Hong Kong. In light of this, the Group has implemented the guidance published by the HKICPA in connection with the LSP obligation\nretrospectively so as to provide more reliable and more relevant information about the effects of the offsetting mechanism and the Abolition.\n\n \n\nThis has no material impact on the Group’s results and financial\nposition for the prior periods, and the Group recognised total charges of HK$972,221 in the consolidated statements of profit or loss\nfor the year ended December 31, 2025.\n\n \n\nF-13\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n \n\n*2.5**Significant\njudgements and estimates*\n\n \n\nThe\npreparation of these consolidated financial statements in conformity with IFRS require the directors of the Company to make judgements,\nestimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The\nestimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable\nunder the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities\nthat are not readily apparent from other sources. Actual results may differ from these estimates.\n\n \n\nThe\nestimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period\nin which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the\nrevision affects both current and future periods.\n\n \n\nThe\ndirectors have considered the development, selection and disclosure of the Group’s critical accounting judgements and estimates.\n\n \n\nEstimation\nuncertainty\n\n \n\nThe\nkey assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a\nsignificant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are\ndescribed below:\n\n \n\n*Useful\nlives of property, plant and equipment*\n\n \n\nThe\nGroup’s management determines the estimated useful lives and the related depreciation charge for the Group’s property, plant\nand equipment. This estimate is based on the historical experience of the actual useful lives of property, plant and equipment of similar\nnature and functions. Management will increase the depreciation charge where useful lives are less than previously estimated lives, or\nwill write off or write down technically obsolete or non-strategic assets that have been abandoned or sold. Actual economic lives may\ndiffer from estimated useful lives. Periodic review could result in a change in depreciable lives and therefore depreciation charge in\nthe future periods.\n\n* *\n\n*Impairment\nof non-financial assets*\n\n \n\nThe\nGroup assesses whether there are any indicators of impairment for all non-financial assets (including the right-of-use assets) at the\nend of each reporting period. Other non-financial assets are tested for impairment when there are indicators that the carrying amounts\nmay not be recoverable. An impairment exists when the carrying value of an asset or a cash-generating unit exceeds its recoverable amount,\nwhich is the higher of its fair value less costs of disposal and its value in use.\n\n* *\n\n*Deferred\ntax assets*\n\n \n\nDeferred\ntax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which\nthe losses can be utilised. Significant judgement is required to determine the amount of deferred tax assets that can be recognised,\nbased upon the likely timing and the level of future taxable profits together with future tax planning strategies.\n\n \n\nCertain\nsubsidiaries of the Group have tax loss carry forwards amounting to approximately HK$60,921,000 (2024: HK$33,355,000). The loss does\nnot expire and the Company has no temporary taxable differences which could partly support the recognition of deferred tax assets. Also,\nthere are no tax planning opportunities available that would further provide a basis for recognition.\n\n \n\nIf\nthe Group was able to recognise all unrecognised deferred tax assets, loss would decrease by approximately HK$10,052,000\nfor the year ended December 31, 2025 (2024: HK$5,504,000).\nFurther details are contained in Note 14.\n\n \n\nF-14\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n \n\n*2.5**Significant\njudgements and estimates (continued)*\n\n \n\n*Valuation\nof inventories*\n\n \n\nManagement\nreviews the inventory listing on a periodic basis. This review involves comparison of the carrying value of the inventory items with\nthe respective net realisable value. The purpose is to ascertain whether an allowance is required to be made in the consolidated financial\nstatements for any obsolete and slow-moving items.\n\n \n\n*Leases\n– Estimating the incremental borrowing rate*\n\n* *\n\nThe\nGroup cannot readily determine the interest rate implicit in a lease, and therefore, it uses an incremental borrowing rate (“IBR”)\nto measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with\na similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.\nThe IBR therefore reflects what the Group “would have to pay”, which requires estimation when no observable rates are available\nor when it needs to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR using observable inputs\n(such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s\nstand-alone credit rating).\n\n \n\n*2.6**Material\naccounting policy information*\n\n \n\n*a)**Basis\nof consolidation*\n\n* *\n\nThese\nconsolidated financial statements include the financial statements of the Company and its subsidiaries for the year ended December 31,\n2025 and 2024. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control\nis achieved when the group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability\nto affect those returns through its power over the investee (i.e., existing rights that give the group the current ability to direct\nthe relevant activities of the investee).\n\n* *\n\nWhen\nthe Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Group considers all\nrelevant facts and circumstances in assessing whether it has power over an investee, including:\n\n \n\n●the\ncontractual arrangement with the other vote holders of the investee;\n\n●rights\narising from other contractual arrangements; and\n\n●the\ngroup’s voting rights and potential voting rights.\n\n \n\nThe\nfinancial statements of subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies.\nThe results of subsidiaries are consolidated from the date on which the Group obtains control, and continue to be consolidated until\nthe date that such control ceases.\n\n \n\nProfit\nor loss and each component of other comprehensive income are attributed to the owners of the parent of the Group. All intra-group transactions,\nbalances, income and expenses are eliminated in full on consolidation.\n\n \n\nF-15\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n \n\n*2.6**Material\naccounting policy information (continued)*\n\n \n\n*b)**Property,\nplant and equipment*\n\n \n\nProperty,\nplant and equipment are stated at cost, less provisions for depreciation and impairment loss, if any.\n\n \n\nThe\ncost of an item of property, plant and equipment comprises its purchase price and any directly attributable cost of bringing the asset\nto its working condition and location for its intended use. Expenditure incurred after the item has been put into operation, such as\nrepairs and maintenance and overhaul costs, is normally charged to the consolidated statements of profit or loss in the period in which\nit is incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in future economic\nbenefits expected to be obtained from the use of the item, the expenditure is capitalised as an additional cost of the item. When an\nitem of property, plant and equipment is sold, its cost and accumulated depreciation are removed from the consolidated financial statements\nand any gain or loss resulting from the disposal, being the difference between the net disposal proceeds and the carrying amount of the\nasset, is included in the consolidated statements of profit or loss.\n\n Schedule\nof property, plant and equipment of depreciation\n\nLeasehold\nimprovements (included the reinstatement costs)\n \n\n \n\n20%\nper annum or over the terms of lease\n\nPlant\nand machinery\n \n20%\nper annum\n\nOffice\nequipment\n \n20%\nper annum\n\nMotor\nvehicle\n \n20%\nper annum\n\n \n\nAn\nitem of property, plant and equipment including any significant part initially recognised is derecognised upon disposal or when no future\neconomic benefits are expected from its use or disposal. Any gain or loss on disposal or retirement recognised in the consolidated statements\nof profit or loss in the year the asset is derecognised is the difference between the net sales proceeds and the carrying amount of the\nrelevant asset.\n\n \n\n*c)**Impairment\nof non-financial assets*\n\n \n\nWhere\nan indication of impairment exists, or when annual impairment testing for an asset is required (other than inventories and financial\nassets), the recoverable amount of the asset is estimated. An asset’s recoverable amount is the higher of the value in use of the\nasset or cash-generating unit to which it belongs and its fair value less costs to sell, and is determined for an individual asset, unless\nthe asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the\nrecoverable amount is determined for the cash-generating unit to which the asset belongs.\n\n \n\nSimilarly,\nat each reporting date, inventories are assessed for impairment by comparing the carrying amount of each item of inventory (or group\nof similar items) with its selling price less costs to complete and sell. If an item of inventory (or group of similar items) is impaired,\nits carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in\nconsolidated profit or loss.\n\n \n\nAn\nimpairment loss is recognised only if the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the\nestimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments\nof the time value of money and the risks specific to the asset. An impairment loss is charged to the consolidated statements of profit\nor loss in the period in which it arises in those expense categories consistent with the function of the impaired asset.\n\n \n\nF-16\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6**Material\naccounting policy information (continued)*\n\n \n\n*c)**Impairment\nof non-financial assets (continued)*\n\n \n\nAn\nassessment is made at the end of each reporting period as to whether there is any indication that previously recognised impairment losses\nmay no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment\nloss of an asset is reversed only if there has been a change in the estimates used to determine the recoverable amount of that asset,\nbut not to an amount higher than the carrying amount that would have been determined (net of any depreciation), had no impairment loss\nbeen recognised for the asset in prior years. A reversal of such impairment loss is credited to the consolidated statements of profit\nor loss in the period in which it arises.\n\n \n\n*d)**Inventories*\n\n \n\nInventories\nare stated at the lower of cost and net realisable value. Cost is determined on a weighted average cost basis and includes all costs\nof purchase and other costs incurred in bringing the inventories to their present location and condition.\n\n \n\nNet\nrealisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated\ncosts necessary to make the sale.\n\n \n\nWhen\ninventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which the related revenue\nis recognised. The amount of any write-down of inventories to net realisable value and all losses of inventories are recognised as an\nexpense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories is recognised as a reduction\nin the amount of inventories recognised as an expense in the period in which the reversal occurs.\n\n \n\n*e)**Financial\nassets*\n\n* *\n\nFinancial\nassets are recognised when a Group entity becomes a party to the contractual provisions of the instrument. All regular way purchases\nor sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales\nof financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.\n\n \n\nFinancial\nassets are initially measured at fair value except for trade receivables arising from contracts with customers which are initially measured\nin accordance with IFRS 15 Revenue from Contracts with Customers (“IFRS 15”). Transaction costs that are directly attributable\nto the acquisition of financial assets (other than financial assets at fair value through profit or loss (“FVTPL”)) are added\nto the fair value of the financial assets, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition\nof financial assets at fair value through profit or loss are recognised immediately in consolidated statements of profit or loss.\n\n \n\nThe\neffective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the\nrelevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and\npoints paid that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the\nexpected life of the financial asset, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.\n\n \n\nF-17\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6**Material\naccounting policy information (continued)*\n\n** **\n\n*e)**Financial\nassets (continued)*\n\n* *\n\nClassification\nand subsequent measurement of financial assets\n\n \n\nFinancial\nassets that meet the following conditions are subsequently measured at amortised cost:\n\n \n\n●the\nfinancial asset is held within a business model whose objective is to collect contractual\ncash flows; and\n\n   \n\n●the\ncontractual terms give rise on specified dates to cash flows that are solely payments of\nprincipal and interest on the principal amount outstanding.\n\n \n\nFinancial\nassets that meet the following conditions are subsequently measured at fair value through other comprehensive income (“FVTOCI”):\n\n \n\n●the\nfinancial asset is held within a business model whose objective is achieved by both collecting\ncontractual cash flows and selling; and\n\n   \n\n●the\ncontractual terms give rise on specified dates to cash flows that are solely payments of\nprincipal and interest on the principal amount outstanding.\n\n \n\nAll\nother financial assets are subsequently measured as FVTPL, except that at the date of initial application/initial recognition of a financial\nasset the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income\nif that equity investment is neither held for trading nor contingent consideration recognised by an acquirer in a business combination\nto which IFRS 3 Business Combinations applies.\n\n \n\nA\nfinancial asset is classified as held for trading if:\n\n \n\n●it\nhas been acquired principally for the purpose of selling in the near term; or\n\n   \n\n●on\ninitial recognition it is a part of a portfolio of identified financial instruments that\nthe Group manages together and has a recent actual pattern of short-term profit-taking; or\n\n   \n\n●it\nis a derivative that is not designated and effective as a hedging instrument.\n\n \n\nIn\naddition, the Group may irrevocably designate a financial asset that is required to be measured at the amortised cost or FVTOCI as measured\nat FVTPL if doing so eliminates or significantly reduces an accounting mismatch.\n\n \n\nF-18\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6**Material\naccounting policy information (continued)*\n\n \n\n*e)**Financial\nassets (continued)*\n\n \n\n \n(i)\nAmortised cost and interest income\n\n \n\nInterest\nincome is recognised using the effective interest method for financial assets measured subsequently at amortised cost and debt instruments\n/ receivables subsequently measured at FVTOCI. Interest income is calculated by applying the effective interest rate to the gross carrying\namount of a financial asset, except for financial assets that have subsequently become credit-impaired (see below). For financial assets\nthat have subsequently become credit-impaired, interest income is recognised by applying the effective interest rate to the amortised\ncost of the financial asset from the next reporting period. If the credit risk on the credit-impaired financial instrument improves so\nthat the financial asset is no longer credit-impaired, interest income is recognised by applying the effective interest rate to the gross\ncarrying amount of the financial asset from the beginning of the reporting period following the determination that the asset is no longer\ncredit impaired.\n\n \n\n \nImpairment of financial assets\n\n \n\nThe\nGroup recognises a loss allowance for expected credit losses (“ECL”) on financial assets which are subject to impairment\nunder IFRS 9 (including trade receivables, other receivables, amounts due from related companies and amounts\ndue from shareholders). The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition.\n\n \n\nLifetime\nECL represents the ECL that will result from all possible default events over the expected life of the relevant instrument. In contrast,\n12-month ECL (“12m ECL”) represents the portion of lifetime ECL that is expected to result from default events that are possible\nwithin 12 months after the reporting date. Assessments are done based on the Group’s historical credit loss experience, adjusted\nfor factors that are specific to the debtors, general economic conditions and an assessment of both the current conditions at the reporting\ndate as well as the forecast of future conditions.\n\n \n\nThe\nGroup always recognises lifetime ECL for trade receivables. The ECL on these assets are assessed individually for debtors with significant\nbalances and/or collectively using a provision matrix with appropriate groupings.\n\n \n\nFor\nall other instruments, the Group measures the loss allowance equal to 12m ECL, unless when there has been a significant increase in credit\nrisk since initial recognition, the Group recognises lifetime ECL. The assessment of whether lifetime ECL should be recognised is based\non significant increases in the likelihood or risk of a default occurring since initial recognition.\n\n \n\nF-19\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6**Material\naccounting policy information (continued)*\n\n \n\n*e)**Financial\nassets (continued)*\n\n \n\n \nImpairment of financial assets (continued)\n\n \n\n \n(i)\nSignificant increase in credit risk\n\n \n\nIn\nassessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring\non the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date\nof initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable\nand supportable, including historical experience and forward-looking information that is available without undue cost or effort.\n\n \n\nIn\nparticular, the following information is taken into account when assessing whether credit risk has increased significantly:\n\n \n\n●an\nactual or expected significant deterioration in the financial instrument’s external\n(if available) or internal credit rating;\n\n●significant\ndeterioration in external market indicators of credit risk, e.g. a significant increase in\nthe credit spread, the credit default swap prices for the debtor;\n\n●existing\nor forecast adverse changes in business, financial or economic conditions that are expected\nto cause a significant decrease in the debtor’s ability to meet its debt obligations;\n\n●an\nactual or expected significant deterioration in the operating results of the debtor; and\n\n●an\nactual or expected significant adverse change in the regulatory, economic, or technological\nenvironment of the debtor that results in a significant decrease in the debtor’s ability\nto meet its debt obligations.\n\n \n\nIrrespective\nof the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition\nwhen contractual payments are more than 30 days past due, unless the Group has reasonable and supportable information that demonstrates\notherwise.\n\n \n\nThe\nGroup regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk\nand revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the\namount becomes past due.\n\n \n\n \n(ii)\nDefinition of default\n\n \n\nFor\ninternal credit risk management, the Group considers an event of default occurs when information developed internally or obtained from\nexternal sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account\nany collaterals held by the Group).\n\n \n\nIrrespective\nof the above, the Group considers that default has occurred when a financial asset is more than 90 days past due unless the Group has\nreasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.\n\n \n\nF-20\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6**Material\naccounting policy information (continued)*\n\n* *\n\n*e)**Financial\nassets (continued)*\n\n* *\n\n \nImpairment of financial assets (continued)\n\n \n\n \n(iii)\nCredit-impaired financial assets\n\n \n\nA\nfinancial asset is credit-impaired when one or more events of default that have a detrimental impact on the estimated future cash flows\nof that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following\nevents:\n\n \n\n \n(a)\nsignificant\nfinancial difficulty of the issuer or the borrower;\n\n \n(b)\na\nbreach of contract, such as a default or past due event;\n\n \n(c)\nthe\nlender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted\nto the borrower a concession(s) that the lender(s) would not otherwise consider;\n\n \n(d)\nit\nis becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or\n\n \n(e)\nthe\ndisappearance of an active market for that financial asset because of financial difficulties.\n\n \n\n \n(iv)\nWrite-off policy\n\n \n\nThe\nGroup writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there\nis no realistic prospect of recovery, for example, when the counterparty has been placed under liquidation or has entered into bankruptcy\nproceedings, or in the case of trade receivables, when the amounts are over one year past due, whichever occurs sooner. Financial assets\nwritten off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice\nwhere appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognised in consolidated statements\nof profit or loss.\n\n \n\n \n(v)\nMeasurement and recognition of ECL\n\n \n\nThe\nmeasurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default)\nand the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted\nby forward-looking information. Estimation of ECL reflects an unbiased and probability-weighted amount that is determined with the respective\nrisks of default occurring as the weights.\n\n \n\nGenerally,\nthe ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and the cash flows\nthat the Group expects to receive, discounted at the effective interest rate determined at initial recognition.\n\n \n\nWhere\nECL is measured on a collective basis or specifically for cases where evidence at the individual instrument level may not yet be available,\nthe financial instruments are grouped on the following basis:\n\n \n\n●Nature\nof financial instruments (i.e. the Group’s trade and other receivables and contract\nassets are each assessed as a separate group. Amount due from shareholder is assessed for\nexpected credit loss on an individual basis);\n\n●Past-due\nstatus;\n\n●Nature,\nsize and industry of debtors; and\n\n●External\ncredit ratings where available.\n\n \n\nThe\ngrouping is regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics.\n\n \n\nInterest\nincome is calculated based on the gross carrying amount of the financial asset unless the financial asset is credit impaired, in which\ncase interest income is calculated based on amortised cost of the financial asset.\n\n \n\nF-21\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6**Material\naccounting policy information (continued)*\n\n \n\n*f)**Derecognition\nof financial assets*\n\n \n\nA\nfinancial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised\n(i.e., removed from the Group’s consolidated statements of financial position) when:\n\n \n\n \n●\nthe rights to receive cash flows from the\nasset have expired; or\n\n \n \n \n\n \n●\nThe Group has transferred its rights to receive\ncash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party\nunder a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of\nthe asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred\ncontrol of the asset.\n\n \n\nWhen\nthe Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates\nif and to what extent it has retained the risk and rewards of ownership of the asset.\n\n \n\nContinuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying\namount of the asset and the maximum amount of consideration that the Group could be required to repay.\n\n \n\nOn\nderecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of\nthe consideration received and receivable is recognised in consolidated statements of profit or loss.\n\n \n\n*g)**Financial\nliabilities*\n\n \n\nInitial\nrecognition and measurement\n\n \n\nFinancial\nliabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and loans and borrowings,\nas appropriate.\n\n \n\nAll\nfinancial liabilities are recognised initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction\ncosts.\n\n \n\nThe\nGroup’s financial liabilities include trade payables, other payables, loan from related companies, loan from directors, amount\ndue to directors, amounts due to related companies and, lease liabilities.\n\n \n\nSubsequent\nmeasurement\n\n \n\nThe\nsubsequent measurement of financial liabilities depends on their classification as follows:-\n\n \n\nFinancial\nliabilities at fair value through profit or loss.\n\n \n\nFinancial\nliabilities are classified as at FVTPL when the financial liability is (i) contingent consideration of an acquirer in a business combination\nto which IFRS 3 applies, (ii) held for trading or (iii) they are designated as at FVTPL.\n\n \n\nF-22\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6**Material\naccounting policy information (continued)*\n\n** **\n\ng)*Financial\nliabilities (continued)*\n\n \n\nA\nfinancial liability is held for trading if:\n\n \n\n●it\nhas been acquired principally for the purpose of repurchasing it in the near term; or\n\n   \n\n●on\ninitial recognition it is part of a portfolio of identified financial instruments that the\nGroup manages together and has a recent actual pattern of short-term profit-taking; or\n\n   \n\n●it\nis a derivative, except for a derivative that is a financial guarantee contract or a designated\nand effective hedging instrument.\n\n \n\nA\nfinancial liability other than a financial liability held for trading or contingent consideration of an acquirer in a business combination\nmay be designated as at FVTPL upon initial recognition if:\n\n \n\n●such\ndesignation eliminates or significantly reduces a measurement or recognition inconsistency\nthat would otherwise arise; or\n\n   \n\n●the\nfinancial liability forms part of a group of financial assets or financial liabilities or\nboth, which is managed and its performance is evaluated on a fair value basis, in accordance\nwith the Group’s documented risk management or investment strategy, and information\nabout the Grouping is provided internally on that basis; or\n\n   \n\n●it\nforms part of a contract containing one or more embedded derivatives, and IFRS 9 permits\nthe entire combined contract to be designated as at FVTPL.\n\n \n\nFor\nfinancial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial liability that is attributable\nto changes in the credit risk of that liability is recognised in consolidated statements of profit or loss, unless the recognition of\nthe effects of changes in the liability’s credit risk in consolidated other comprehensive income would create or enlarge an accounting\nmismatch in profit or loss. For financial liabilities that contain embedded derivatives, such as convertible loan notes, the changes\nin fair value of the embedded derivatives are excluded in determining the amount to be presented in consolidated other comprehensive\nincome.\n\n \n\n*Loans\nand borrowings*\n\n \n\nAfter\ninitial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost, using the effective interest\nrate method unless the effect of discounting would be immaterial, in which case they are stated at cost. Gains and losses are recognised\nin the consolidated statements of profit or loss when the liabilities are derecognised as well as through the effective interest rate\namortisation process.\n\n \n\nAmortised\ncost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective\ninterest rate. The effective interest rate amortisation is included in finance costs in the consolidated statements of profit or loss.\n\n \n\nDerecognition\nof financial liabilities\n\n \n\nThe\nGroup derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired.\nThe difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised\nin consolidated statements of profit or loss.\n\n \n\nF-23\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6**Material\naccounting policy information (continued)*\n\n** **\n\n*h)**Leases*\n\n \n\nDefinition\nof a lease\n\n \n\nA\ncontract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in\nexchange for consideration.\n\n \n\nFor\ncontracts entered into or modified or arising from business combinations on or after the date of initial application, the Group assesses\nwhether a contract is or contains a lease based on the definition under IFRS 16 at inception, modification date or acquisition date,\nas appropriate. Such contract will not be reassessed unless the terms and conditions of the contract are subsequently changed.\n\n \n\nThe\nGroup as a lessee\n\n \n\n*Allocation\nof consideration to components of a contract*\n\n \n\nFor\na contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration\nin the contract to each lease component on the basis of the relative stand- alone price of the lease component and the aggregate stand-alone\nprice of the non-lease components.\n\n \n\nShort-term\nleases\n\n \n\nThe\nGroup applies the short-term lease recognition exemption to leases of warehouse that have a lease term of 12 months or less from the\ncommencement date and do not contain a purchase option. Lease payments on short-term leases are recognised as expense on a straight-line\nbasis or another systematic basis over the lease term.\n\n \n\nRight-of-use\nassets\n\n \n\nThe\ncost of right-of-use asset includes:\n\n \n\n●the\namount of the initial measurement of the lease liability;\n\n   \n\n●any\nlease payments made at or before the commencement date, less any lease incentives received;\n\n   \n\n●any\ninitial direct costs incurred by the Group; and\n\n   \n\n●an\nestimate of costs to be incurred by the Group in dismantling and removing the underlying\nassets, restoring the site on which it is located or restoring the underlying asset to the\ncondition required by the terms and conditions of the lease.\n\n \n\nRight-of-use\nassets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.\n\n \n\nF-24\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n* *\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6*\n*Material\naccounting policy information (continued)*\n\n** **\n\n \n*h)*\n*Leases\n(continued)*\n\n \n\nThe\nGroup as a lessee (continued)\n\n \n\nRight-of-use\nassets (continued)\n\n \n\nRight-of-use\nassets in which the Group is reasonably certain to obtain ownership of the underlying leased assets at the end of the lease term are\ndepreciated from commencement date to the end of the useful life. Otherwise, right-of-use assets are depreciated on a straight-line basis\nover the shorter of its estimated useful life and the lease term.\n\n \n\nThe\nGroup presents right-of-use assets that do not meet the definition of investment property or inventory in “property, plant and\nequipment”, the same line item within which the corresponding underlying assets would be presented if they were owned.\n\n \n\nRefundable\nrental deposits\n\n \n\nRefundable\nrental deposits paid are accounted under IFRS 9 and initially measured at fair value. Adjustments to fair value at initial recognition\nare considered as additional lease payments and included in the cost of right-of-use assets.\n\n \n\n*Lease\nliabilities*\n\n \n\nAt\nthe commencement date of a lease, the Group recognises and measures the lease liability at the present value of lease payments that are\nunpaid at that date. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement\ndate if the interest rate implicit in the lease is not readily determinable.\n\n \n\nThe\nlease payments include:\n\n \n\n●fixed\npayments (including in-substance fixed payments) less any lease incentives receivable;\n\n   \n\n●variable\nlease payments that depend on an index or a rate, initially measured using the index or rate\nas at the commencement date;\n\n   \n\n●amounts\nexpected to be payable by the Group under residual value guarantees;\n\n   \n\n●the\nexercise price of a purchase option if the Group is reasonably certain to exercise the option;\nand\n\n   \n\n●payments\nof penalties for terminating a lease, if the lease term reflects the Group exercising an\noption to terminate the lease.\n\n \n\nAfter\nthe commencement date, lease liabilities are adjusted by interest accretion and lease payments.\n\n \n\nF-25\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6*\n*Material\naccounting policy information (continued)*\n\n** **\n\n \n*h)*\n*Leases\n(continued)*\n\n \n\nThe\nGroup as a lessee (continued)\n\n \n\n*Lease\nliabilities (continued)*\n\n \n\nThe\nGroup remeasures lease liabilities (and makes a corresponding adjustment to the related right-of-use assets) whenever:\n\n \n\n●the\nlease term has changed or there is a change in the assessment of exercise of a purchase option,\nin which case the related lease liability is remeasured by discounting the revised lease\npayments using a revised discount rate at the date of reassessment.\n\n  \n\n●the\nlease payments change due to changes in market rental rates following a market rent review/expected\npayment under a guaranteed residual value, in which cases the related lease liability is\nremeasured by discounting the revised lease payments using the initial discount rate.\n\n   \n\n●a\nlease contract is modified and the lease modification is not accounted for as a separate\nlease.\n\n \n\nThe\nGroup presents lease liabilities as a separate line item on the consolidated statements of financial position.\n\n \n\n*Lease\nmodifications*\n\n \n\nThe\nGroup applied the practical expedient, the Group accounts for a lease modification as a separate lease if:\n\n \n\n●the\nmodification increases the scope of the lease by adding the right to use one or more underlying\nassets; and\n\n   \n\n●the\nconsideration for the leases increases by an amount commensurate with the stand-alone price\nfor the increase in scope and any appropriate adjustments to that stand-alone price to reflect\nthe circumstances of the particular contract.\n\n \n\nFor\na lease modification that is not accounted for as a separate lease, the Group remeasures the lease liability based on the lease term\nof the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.\n\n \n\nThe\nGroup accounts for the remeasurement of lease liabilities by making corresponding adjustments to the relevant right-of-use asset. When\nthe modified contract contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration\nin the modified contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate\nstand-alone price of the non-lease components.\n\n \n\nF-26\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6*\n*Material\naccounting policy information (continued)*\n\n** **\n\n \n*h)*\n*Leases\n(continued)*\n\n \n\n*Sublease*\n\n \n\nWhen\nthe Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sublease is classified\nas a finance or operating lease by reference to the right-of-use asset arising from the head lease, not with reference to the underlying\nasset.\n\n** **\n\n*i)**Foreign\ncurrency translation*\n\n \n\nThese\nfinancial statements are presented in Hong Kong dollars, which is the Company’s functional currency. Each entity in the group determines\nits own functional currency and items included in the financial statements of each entity are measured using that functional currency.\nForeign currency transactions are initially recorded using the functional currency rates ruling at the date of the transactions. Monetary\nassets and liabilities denominated in foreign currencies are retranslated at the functional currency rates of exchange ruling at the\nend of the reporting period. All differences are taken to consolidated statements of profit or loss. Differences arising on settlement\nor translation of monetary items are recognised in the consolidated statements of profit or loss with the exception of monetary items\nthat are designated as part of the hedge of the group’s net investment of a foreign operation. Non-monetary items that are measured\nin terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary\nitems measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.\nThe gain or loss arising on translation of a non-monetary item measured at fair value is treated in line with the recognition of the\ngain or loss on change in fair value of the item. The functional currency of the overseas branch and subsidiaries is currency other than\nthe Hong Kong dollars. As at the end of the reporting period, the assets and liabilities of the entity are translated into the presentation\ncurrency of the Company at the exchange rates ruling at the end of the reporting period, and their income and expense items are translated\ninto Hong Kong dollars at the spot rates for the year.\n\n \n\nThe\nresulting exchange differences are recorded in other comprehensive income and the cumulative balance is included in exchange reserve\nin the consolidated statements of changes in equity. On disposal of a foreign entity, the deferred cumulative amount recognised in exchange\nreserve relating to that particular foreign operation is recognised in the consolidated statements of profit or loss. Any goodwill arising\non the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on\nacquisition are treated as assets and liabilities of the foreign operation and translated at the closing rate.\n\n \n\nFor\nthe purpose of the consolidated statements of cash flows, the cash flows of the overseas branch and subsidiaries are translated into Hong\nKong dollars at the exchange rates ruling at the dates of the cash flows. Frequently recurring cash flows of overseas branch and subsidiaries\nwhich arise throughout the year are translated into Hong Kong dollars at the spot rates for the year.\n\n \n\nF-27\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6*\n*Material\naccounting policy information (continued)*\n\n \n\n*j)**Provision*\n\n \n\nA\nprovision is recognised when a present obligation (legal or constructive) has arisen as a result of a past event and it is probable that\na future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount\nof the obligation. When the effect of discounting is material, the amount recognised for a provision is the present value at the end\nof the reporting period of the future expenditures expected to be required to settle the obligation. The increase in the discounted present\nvalue amount arising from the passage of time is included in the finance costs in the consolidated statements of profit or loss.\n\n \n\nProvision\nfor reinstatement costs\n\n \n\nProvisions\nfor the costs to reinstate leased assets to their original condition, as required by the terms and conditions of the leases, are recognised\nat the date of inception of the leases at the Group’s directors best estimate of the expenditure that would be required to reinstate\nthe assets. Estimates are regularly reviewed and adjusted as appropriate for new circumstances. The provision for reinstatement costs\nwill be expected to be materialised in one to five years in accordance with the lease terms.\n\n \n\n*k)**Revenue\nrecognition*\n\n \n\nUnder\nIFRS 15, the Group recognises revenue when (or as) a performance obligation is satisfied, i.e. when “control” of the goods\nor services underlying the particular performance obligation is transferred to the customer.\n\n \n\nA\nperformance obligation represents a good or service (or a bundle of goods or services) that is distinct or a series of distinct goods\nor services that are substantially the same.\n\n \n\nControl\nis transferred over time and revenue is recognised over time by reference to the progress towards complete satisfaction of the relevant\nperformance obligation if one of the following criteria is met:-\n\n \n\n●the\ncustomer simultaneously receives and consumes the benefits provided by the Group’s\nperformance as the group performs;\n\n●the\nGroup’s performance creates and enhances an asset that the customer controls as the\ngroup performs; or\n\n●the\nGroup’s performance does not create an asset with an alternative use to the group and\nthe group has an enforceable right to payment for performance completed to date.\n\n \n\nOtherwise,\nrevenue is recognised at a point in time when the customer obtains control of the distinct good or service.\n\n \n\nA\ncontract liability represents the group’s obligation to transfer goods or services to a customer for which the Group has received\nconsideration (or an amount of consideration is due) from the customer.\n\n \n\nF-28\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n \n\n*2.6*\n*Material\naccounting policy information (continued)*\n\n \n\n \n*k)*\n*Revenue\nrecognition (continued)*\n\n \n\nFurther\ndetails of the group’s revenue recognition policies are as follows:-\n\n \n\ni)Catering\nincome\n\n \n\nRevenue\nfrom restaurant operation is recognised at the point in time when the catering services to the customers are completed.\n\n \n\nLoyalty\nprogramme\n\n \n\nThe\nGroup operates a loyalty programme where customers accumulate reward points from qualified purchases. The reward points earned through\nqualified purchases entitle the customers to discount for future purchases and are considered as a separate performance obligation arising\nfrom transactions with customers. The Group estimates the value of the future redemption obligation based on the estimated value of the\nproducts or services for which the reward points are expected to be redeemed based on the historical redemption pattern, including an\nestimate of the lapse of reward points that will not be redeemed. Subsequently, the contract liability is recognised as revenue at the\npoint in time when the customers redeem the reward points in future purchases, or when the Group is legally released from its obligation\nwhen the reward points expire 12 months after the initial sale.\n\n \n\nii)Sales\nof goods\n\n \n\nRevenue\nfrom the sale of goods is recognised at the point in time when control of the asset is transferred to the customer.\n\n \n\niii)Management\nfee income\n\n \n\nThe\nGroup provide consultancy and management services to customers. Revenue from providing services is recognised in the accounting period\nin which the services are rendered. The control of the services is transferred to the customer when the customer simultaneously receives\nand consumes the benefits of the services as the Group performs, therefore, revenue is recognised progressively over time.\n\n \n\niv)Bank\ninterest income\n\n \n\nBank\ninterest income is recognised on a time proportion basis, taking into account the principal amounts outstanding and the interest rates\napplicable.\n\n \n\nv)Rental\nincome\n\n \n\nRental\nincome is recognised on a time proportion basis over the lease terms.\n\n \n\nvi)Sundry\nincome\n\n \n\nSundry\nincome is recognised when the right to receive payment is established.\n\n \n\nF-29\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6*\n*Material\naccounting policy information (continued)*\n\n** **\n\n \n*l)*\n*Borrowing\ncosts*\n\n \n\nAll\nborrowing costs are charged to the consolidated statements of profit or loss in the period in which they are incurred.\n\n \n\n \n*m)*\n*Retirement\nbenefits costs*\n\n \n\nThe\ngroup operates a defined contribution Mandatory Provident Fund retirement benefit scheme (the “MPF Scheme”) under the Mandatory\nProvident Fund Schemes Ordinance for all of its employees in Hong Kong. Contributions are made based on a percentage of the employees’\nbasic salaries and are charged to the consolidated statements of profit or loss as they become payable in accordance with the rules of\nthe MPF Scheme. The assets of the MPF Scheme are held separately from those of the group in an independently administered fund.\n\n \n\nFor\nLSP obligation, the Group accounts for the employer MPF contributions expected to be offset as a deemed employee contribution towards\nthe LSP obligation in terms of HKAS 19.93(a) and it is measure on a net basis. The estimated amount of future benefit is determined after\ndeducting the negative service cost arising from the accrued benefits derived from the Group’s MPF contributions that have been\nvested with employees, which are deemed to be contributions from the relevant employees.\n\n \n\n \n*n)*\n*Income\ntax*\n\n* *\n\nIncome\ntax represents the sum of current and deferred tax. Income tax relating to items recognised outside profit or loss is recognised outside\nprofit or loss, either in other comprehensive income or directly in equity.\n\n \n\nCurrent\ntax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax\nrates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period, taking into consideration interpretations\nand practices prevailing in the countries in which the group operates.\n\n \n\nDeferred\ntax is provided, using the liability method, on all temporary differences at the end of the reporting period between the tax bases of\nassets and liabilities and their carrying amounts for financial reporting purposes.\n\n \n\nDeferred\ntax liabilities are recognised for all taxable temporary differences, except:-\n\n \n\n●when\nthe deferred tax liability arises from the initial recognition of goodwill or an asset or\nliability in a transaction that is not a business combination and, at the time of the transaction,\naffects neither the accounting profit nor taxable profit or loss and at the time of the transaction\ndoes not give rise to equal taxable and deductible temporary differences; and\n\n   \n\n●in\nrespect of taxable temporary differences associated with investments in subsidiaries, when\nthe timing of the reversal of the temporary differences can be controlled and it is probable\nthat the temporary differences will not reverse in the foreseeable future.\n\n \n\nF-30\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n** **\n\n**2.****Basis\nof preparation of consolidated financial statements and material accounting policy information\n(continued)**\n\n** **\n\n*2.6*\n*Material\naccounting policy information (continued)*\n\n** **\n\n \n*n)*\n*Income\ntax (continued)*\n\n \n\nDeferred\ntax assets are recognised for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses.\nDeferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible\ntemporary differences, the carryforward of unused tax credits and unused tax losses can be utilised, except:-\n\n** **\n\n●when\nthe deferred tax asset relating to the deductible temporary differences arises from the initial\nrecognition of an asset or liability in a transaction that is not a business combination\nand, at the time of the transaction, affects neither the accounting profit nor taxable profit\nor loss and at the time of the transaction does not give rise to equal taxable and deductible\ntemporary differences; and\n\n   \n\n●in\nrespect of deductible temporary differences associated with investments in subsidiaries,\ndeferred tax assets are only recognised to the extent that it is probable that the temporary\ndifferences will reverse in the foreseeable future and taxable profit will be available against\nwhich the temporary differences can be utilised.\n\n \n\nThe\ncarrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer\nprobable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised\ndeferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that\nsufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered.\n\n \n\nDeferred\ntax is calculated, without discounting, at the tax rates that are expected to apply in the period when the asset is realised or the liability\nis settled, based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.\n\n \n\nDeferred\ntax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities\nand when they relate to income taxes levied to the same taxable entity by the same taxation authority.\n\n \n\n \n*o)*\n*Cash\nand cash equivalents*\n\n \n\nCash\nand cash equivalents comprise cash on hand and demand deposits which are readily convertible into known amounts of cash, are subject\nto an insignificant risk of changes in value, and have a short maturity of generally within three months when acquired.\n\n \n\n \n*p)*\n*Government\ngrants*\n\n \n\nGovernment\ngrants are recognised at their fair value where there is reasonable assurance that the grant will be received and all attaching conditions\nwill be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that\nthe costs, which it is intended to compensate, are expensed.\n\n \n\n \n*q)*\n*Share-based\npayments*\n\n \n\nThe\nGroup has an equity-settled share option granted to an advisor. The cost of equity-settled transactions is recognised, together with\na corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled in employee benefit\nexpense. The cumulative expense recognised for equity-settled transactions at the end of each reporting period until the vesting date\nreflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will\nultimately vest. The charge or credit to the consolidated statements of profit or loss for a period represents the movement in the cumulative\nexpense recognised as at the beginning and end of that period. \n\n \n\nF-31\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n** **\n\n \n\n \n\n**3.****Revenue**\n\n \n\nAn\nanalysis of the Group’s revenue is as follows:\n\n Schedule of revenue\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\nRevenue from contract with customers within\nthe scope of IFRS 15, types of goods or services:- \n    \n    \n    \n   \n\nCatering\nincome – at a point in time \n 55,476,223  \n 431,788,086  \n 478,093,240  \n 531,779,040 \n\nSales of goods – at\na point in time \n 1,606,382  \n 12,502,954  \n 12,083,213  \n 507,062 \n\nManagement\nfee income – over time \n 1,902,920  \n 14,811,000  \n 13,799,000  \n - \n\n  \n    \n    \n    \n   \n\nRevenue from contracts\nwith customers \n 58,985,525  \n 459,102,040  \n 503,975,453  \n 532,286,102 \n\n \n\n \n\n**4.****Other\nincome and gains**\n\n** **Schedule\nof other income and gains\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nInterest income \n 62,215  \n 484,236  \n 682,409  \n 515,980 \n\nGovernment grants (Note a) \n 92,604  \n 720,763  \n 14,336  \n - \n\nForeign exchange gain, net \n 97  \n 753  \n -  \n 28,394 \n\nRebate income \n 1,092  \n 8,500  \n 34,159  \n - \n\nRental income \n 134,827  \n 1,049,405  \n 648,509  \n 96,000 \n\nReversal of provision for reinstatement costs \n -  \n -  \n 70,000  \n - \n\nSponsorship income \n 8,568  \n 66,688  \n 495,131  \n 78,888 \n\nSundry income (Note b) \n 103,755  \n 807,558  \n 630,988  \n 472,262 \n\n  \n    \n    \n    \n   \n\nOther\nincome and gains \n 403,158  \n 3,137,903  \n 2,575,532  \n 1,191,524 \n\n \n\nNote:\n\n \n\na)The\ngovernment grants mainly represent subsidies granted from Technology Voucher\nProgramme for the years. All conditions of the government grants have been satisfied.\n\n \n\nb)Sundry\nincome mainly include reimbursement of medical expenses on occupational injury and other\nmiscellaneous income, which individually are not material to the Group.\n\n \n\n \n\n**5.****Segment\ninformation**\n\n** **\n\nThe\nGroup’s operating activities are attributable to a single operating segment focusing on catering service.\n\n \n\nGeographical\ninformation\n\n \n\nThe\nGroup’s operations are located in Hong Kong. All of the Group’s revenue from external customers based on the location of\nthe Group’s operations is from Hong Kong. The geographical locations of the Group’s non-current assets are mostly situated\nin Hong Kong based on physical location of assets.\n\n \n\nInformation\nabout major customers\n\n \n\nDuring\neach of the years ended December 31, 2025 and 2024, there was no revenue from any customer who individually contributing over 10% of\nthe total revenue of the Group.\n\n \n\nF-32\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**6.****Other\nexpenses**\n\n Schedule of other expenses\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nAdministrative expenses (Note\na) \n 3,173,806  \n 24,702,679  \n 27,063,110  \n 27,379,871 \n\nBusiness development expenses \n 899,162  \n 6,998,444  \n 5,930,705  \n 7,257,135 \n\nCleaning expenses \n 789,630  \n 6,145,931  \n 6,845,835  \n 6,804,944 \n\nConsulting services expenses \n 166,318  \n 1,294,500  \n 1,776,726  \n 641,155 \n\nDaily maintenance \n 355,436  \n 2,766,464  \n 3,212,612  \n 2,531,002 \n\nInsurance \n 117,875  \n 917,460  \n 3,470,575  \n 4,397,605 \n\nListing expenses (Note b) \n 1,300,023  \n 10,118,468  \n 8,410,621  \n - \n\nRental related expenses \n 2,893,237  \n 22,518,934  \n 22,460,725  \n 22,730,101 \n\nShare based payment expense \n 1,503,218  \n 11,700,000  \n -  \n - \n\nStorage expenses \n 14,014  \n 109,073  \n 104,011  \n 113,142 \n\nTraveling and communication\nexpenses \n 411,964  \n 3,206,440  \n 356,155  \n 457,896 \n\n  \n    \n    \n    \n   \n\nOther expenses \n 11,624,683  \n 90,478,393  \n 79,631,075  \n 72,312,851 \n\n** **\n\n****\n\n \na)\nAdministrative\nexpenses mainly include expenses incurred on employee activities, freight charge, shop expenses and other miscellaneous expenses,\nwhich individually are not material to the Group.\n\n \n \n \n\n \nb)\nListing expenses include expenses\nincurred for the initial public offering of the Company’s shares on the Nasdaq Stock Exchange and expenses associated with achieving\nthe dual listing of the Company’s shares on the Quotation Board of the Frankfurt Stock Exchange.\n\n ****\n\n** **\n\n**7.****Finance\ncosts**\n\nSchedule of finance costs\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nInterest on loans from directors \n 284,369  \n 2,213,330  \n -  \n - \n\nInterest on bank loans \n 253,431  \n 1,972,532  \n 2,645,713  \n 2,863,104 \n\nInterest on loans from related companies \n 203,952  \n 1,587,422  \n 1,950,246  \n 2,285,985 \n\nInterest on lease liabilities \n 505,161  \n 3,931,817  \n 5,594,836  \n 6,300,014 \n\n  \n    \n    \n    \n   \n\nFinance costs \n 1,246,913  \n 9,705,101  \n 10,190,795  \n 11,449,103 \n\n \n\n \n\n**8.****(Loss)/profit\nbefore tax**\n\n \n\nThe\nGroup’s (loss)/profit before tax is arrived at after charging/crediting:-\n\n Schedule\nof profit (loss) before tax\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nExpense relating to short-term\nleases \n 373,687  \n 2,908,520  \n 1,499,771  \n 2,174,712 \n\nWritten off of property, plant and equipment \n 15,521  \n 120,803  \n 526,279  \n 6,702,181 \n\nEmployer’s contribution to defined contribution\nplan (included in staff costs below) \n 585,148  \n 4,554,380  \n 5,270,478  \n 5,402,612 \n\nImpairment of property, plant and equipment \n 241,205  \n 1,877,371  \n 4,549,381  \n - \n\nImpairment of right-of-use assets \n 527,031  \n 4,102,040  \n 5,013,080  \n - \n\nEmployee benefits expenses \n    \n    \n    \n   \n\n- key management personnel and directors’ remuneration (Note 33) \n 840,908  \n 6,545,039  \n 4,585,352  \n 7,788,000 \n\n- staff costs (including key management personnel and directors’ remuneration) \n 19,299,674  \n 150,215,156  \n 169,577,298  \n 177,874,361 \n\n** ** \n\n**9.**\n**Income\ntax**\n\n \n\nFor\nthe years ended December 31, 2025, 2024 and 2023, under the two-tiered profits tax rates regime in Hong Kong, the first HK$2 million\nof profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. The profits\nof group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%. Provision\nfor Taiwan Corporate Income Tax has been made at 20% on the estimated assessable profits.\n\n \n\nF-33\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**9.**\n**Income\ntax (continued)**\n\n \n\nDetails\nof income tax are as follows:\n\n Schedule\nof income tax\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nCurrent tax – Hong Kong \n    \n    \n    \n   \n\n- current year\nprovision \n 721,119  \n 5,612,684  \n 7,522,946  \n 6,407,506 \n\n- prior year over-provision \n -  \n (2) \n (9,923) \n (1,049)\n\nCurrent tax – Taiwan \n 6,645  \n 51,722  \n 5,775  \n - \n\nTotal current tax \n 727,764  \n 5,664,404  \n 7,518,798  \n 6,406,457 \n\nDeferred tax (Note 14) \n 168,602  \n 1,312,284  \n (4,805,091) \n 1,251,531 \n\n  \n    \n    \n    \n   \n\nTotal tax expenses for\nthe year \n 896,366  \n 6,976,688  \n 2,713,707  \n 7,657,988 \n\n \n\nA\nreconciliation of the tax expense applicable to (loss)/profit before tax at the statutory rates for the jurisdictions or countries in\nwhich the Group and the majority of its subsidiaries are domiciled to the tax expense at the effective tax rates is as follows:\n\n Schedule\nof income tax expense at the effective tax rates\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\n(Loss)/profit\nbefore tax \n (5,852,409) \n (45,551,045) \n 35,614,151  \n (29,788,123)\n\n  \n    \n    \n    \n   \n\nTax at applicable rate \n (978,563) \n (7,616,451) \n 5,766,512  \n (5,018,726)\n\nIncome not subject to tax \n (20,460) \n (159,247) \n (11,142,285) \n (177,009)\n\nNon-deductible expenses \n 688,343  \n 5,357,582  \n 2,513,924  \n 4,613,617 \n\nIncome tax exemption and rebate \n (2,313) \n (18,000) \n (10,500) \n (30,000)\n\nTax effect of deductible temporary differences\nnot recognised \n 646,137  \n 5,029,080  \n 1,331,573  \n 4,213,670 \n\nUtilisation of previously unrecognised tax\nlosses \n (9,090) \n (70,749) \n (395,030) \n (1,052,220)\n\nOver-provision for previous year \n -  \n (2) \n (9,923) \n (1,049)\n\nDifference in tax rate in different countries \n 6,645  \n 51,722  \n 5,775  \n - \n\nTax losses not recognised \n 565,667  \n 4,402,753  \n 4,653,661  \n 5,146,140 \n\nOthers \n -  \n -  \n -  \n (36,435)\n\n  \n    \n    \n    \n   \n\nTax charge at the Group’s\neffective rate \n 896,366  \n 6,976,688  \n 2,713,707  \n 7,657,988 \n\n \n\nUnrecognised\ntax losses\n\n \n\nDeferred\nincome tax assets are recognised to the extent that it has become probable that sufficient taxable profit will be available to allow\nall or part of the deferred tax asset to be recovered. The Group have the unrecognised tax losses of approximately HK$60,921,000\n(2024: HK$33,355,000\nand 2023: HK$38,515,000)\nat the reporting date which can be carried forward and used to offset against future taxable income subject to meeting certain statutory\nrequirements. The tax losses have no expiry date. In the opinion of the directors, no deferred tax assets have been recognised for the subsidiaries which are loss-making and have unpredictability of future profit streams.\n\n \n\nF-34\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**10.****(Loss)/earnings\nper shares**\n\n** **\n\nThe\ncalculation of the basic and diluted (loss)/earnings per share attributable to owners of the Company is based on the following data:\n\n \n\nEarnings\nfigures are calculated as follows:\n\n Schedule\nof basic and diluted earnings per share\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\n(Loss)/profit for the year attributable to the owners of the Company \n (6,748,775) \n (52,527,733) \n 32,900,444  \n (37,446,111)\n\n  \n    \n    \n    \n   \n\nWeighted average number\nof ordinary shares for the purpose of calculating the basic earnings per share and dilutive earning per share \n 16,555,205  \n 16,555,205  \n 12,845,765  \n 10,000 \n\n \n\nNo\ndiluted earnings per share for the years ended December 31, 2025, 2024 and 2023 were presented as there were no potential ordinary shares\nin issue for these three years.\n\n \n\nF-35\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**11.**\n**Disposal\nof subsidiaries/ Disposal group classified as held for sale**\n\n \n\nOn\nDecember 15, 2023, all the directors signed a written resolution that the Company intends to dispose of all its share in Chubby Bento\nLimited and Bao Pot Taiwanese Claypot Limited and its subsidiaries (collectively referred as the “Disposal groups”). The\nassets and liabilities attributable to the Disposal groups, which is expected to be sold within twelve months, have been classified as\na disposal group held for sale as it did not represent a separate major line of business or geographical area and are presented separately\nin the consolidated statements of financial position (see below).\n\n \n\nIn\n2024, the directors consider the sales proceeds less directly attributable cost which amounted to HK$Nil as the fair value less cost\nof disposal for the disposal of Disposal groups. An impairment loss of HK$23,545,499 including property, plant and equipment of HK$8,894,566\nand right-of-use assets of HK$14,650,933, which represents the sale proceeds less the carrying amount of the net assets of Disposal groups\nas at the reporting date, was charged to consolidated profit or loss.\n\n \n\nThe\nmajor classes of assets and liabilities of Disposal groups classified as held for sale are as follows:\n\n Schedule\nof assets and liabilities of disposal group classified as held for sale\n\n  \n2023 \n\n  \nHK$ \n\n  \n  \n\nProperty, plant and equipment \n 6,273,767 \n\nRight-of-use assets \n 10,189,425 \n\nAmount due from related parties \n 63,550 \n\nInventories \n 298,221 \n\nTrade receivables \n 217,209 \n\nDeposits, other receivables and prepayments \n 6,551,199 \n\nCash and bank balance \n 7,884,815 \n\n  \n   \n\nTotal assets classified\nas held for sale \n 31,478,186 \n\n  \n   \n\nLease Liabilities \n 27,294,255 \n\nProvision for reinstatement costs \n 530,000 \n\nAmount due to directors \n 1,679,488 \n\nTrade payables \n 2,175 \n\nAccruals and other payables \n 1,972,268 \n\n  \n   \n\nTotal liabilities classified\nas held for sale \n 31,478,186 \n\n \n\nF-36\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**11.**\n**Disposal\nof subsidiaries/ Disposal group classified as held for sale (continued)**\n\n** **\n\nOn\nMay 14, 2024, the Company entered into a sale and purchase agreement, Galaxy Shine Company Limited and Thrivors Holdings Limited, the\nprincipal shareholders of the Company (collectively, the “Purchasers”), pursuant to which the Company agreed to sell its\n100% equity interest in Chubby Bento Limited and its subsidiaries, and the Purchasers agreed to acquire the same for an aggregate consideration\nof US$1,000 on and subject to the terms and conditions contained in the sale and purchase agreement. All the conditions precedent under\nthe sale and purchase agreement have been fulfilled and the transaction was completed on May 14, 2024.\n\n \n\nOn\nthe same date, the Company also entered into a sale and purchase agreement with the Purchasers, pursuant to which the Company agreed\nto sell its 100% equity interest in Bao Pot Taiwanese Claypot Limited and its subsidiaries, and the Purchasers agreed to acquire the\nsame for an aggregate consideration of US$1,000 on and subject to the terms and conditions contained in the sale and purchase agreement.\nAll the conditions precedent under the sale and purchase agreement have been fulfilled and the transaction was completed on May 14, 2024.\n\n Schedule\nof consideration received\n\n  \nMay 14, \n\n  \n2024 \n\n  \nHK$ \n\n  \n  \n\nConsideration\nreceived \n   \n\nCash \n 15,600 \n\n** **\n\nAssets\nand liabilities at the date of disposal were as follows:\n\n Schedule\nof assets and liabilities disposal\n\n  \nMay 14, \n\n  \n2024 \n\n  \nHK$ \n\n  \n  \n\nProperty, plant and equipment \n 10,322,156 \n\nRight-of-use assets \n 10,189,424 \n\nAmounts due from fellow subsidiaries \n 1,307,913 \n\nAmount due from ultimate holding company \n 15,600 \n\nInventories \n 969,410 \n\nTrade receivables \n 341,028 \n\nDeposits, other receivables and prepayments \n 7,529,293 \n\nCash and bank balance \n 8,074,727 \n\nLease liabilities \n (23,986,314)\n\nProvision for reinstatement costs \n (530,000)\n\nAmount due to a director \n (10,000)\n\nAmounts due to fellow subsidiaries \n (63,542,091)\n\nTrade payables \n (516,367)\n\nAccruals and other payables \n (8,827,504)\n\n  \n   \n\nNet liabilities disposed \n (58,662,725)\n\n  \n   \n\nGain on disposal \n 58,678,325 \n\n \n\nF-37\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**12.**\n**Property,\nplant and equipment**\n\nSchedule\nof Property, Plant and Equipment \n\n  \nLeasehold  \nPlant and  \nOffice  \nMotor  \n  \n\n  \nimprovements  \nmachinery  \nequipment  \nvehicle  \nTotal \n\n  \nHK$  \nHK$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n   \n  \n\nCost \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nJanuary 1, 2024 \n 131,947,758  \n 23,592,372  \n 2,021,817  \n -  \n 157,561,947 \n\n  \n    \n    \n    \n    \n   \n\nAdditions \n 6,451,975  \n 1,137,141  \n 264,025  \n 20,000  \n 7,873,141 \n\nWritten off \n (3,934,125) \n (924,330) \n (65,283) \n -  \n (4,923,738)\n\n  \n    \n    \n    \n    \n   \n\nDecember 31, 2024 \n 134,465,608  \n 23,805,183  \n 2,220,559  \n 20,000  \n 160,511,350 \n\nCost beginning \n 134,465,608  \n 23,805,183  \n 2,220,559  \n 20,000  \n 160,511,350 \n\n  \n    \n    \n    \n    \n   \n\nAdditions \n 4,950,503  \n 490,758  \n 134,405  \n 30,000  \n 5,605,666 \n\nDisposal \n -  \n (116,219) \n (8,818) \n -  \n (125,037)\n\nWritten off \n -  \n (316,793) \n (131,183) \n -  \n (447,976)\n\n  \n    \n    \n    \n    \n   \n\nDecember 31, 2025 \n 139,416,111  \n 23,862,929  \n 2,214,963  \n 50,000  \n 165,544,003 \n\nCost ending \n 139,416,111  \n 23,862,929  \n 2,214,963  \n 50,000  \n 165,544,003 \n\n  \n    \n    \n    \n    \n   \n\nAccumulated depreciation \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nJanuary 1, 2024 \n 63,171,268  \n 11,852,964  \n 789,407  \n -  \n 75,813,639 \n\n  \n    \n    \n    \n    \n   \n\nCharge for the year \n 28,956,777  \n 4,671,570  \n 408,508  \n 2,000  \n 34,038,855 \n\nWritten off \n (3,634,261) \n (717,381) \n (45,817) \n -  \n (4,397,459)\n\n  \n    \n    \n    \n    \n   \n\nDecember 31, 2024 \n 88,493,784  \n 15,807,153  \n 1,152,098  \n 2,000  \n 105,455,035 \n\nAccumulated depreciation,\nbeginning \n 88,493,784  \n 15,807,153  \n 1,152,098  \n 2,000  \n 105,455,035 \n\n  \n    \n    \n    \n    \n   \n\nCharge for the year \n 23,260,951  \n 3,965,785  \n 390,621  \n 9,000  \n 27,626,357 \n\nDisposal \n -  \n (53,725) \n (8,378) \n -  \n (62,103)\n\nWritten off \n -  \n (255,006) \n (72,167) \n -  \n (327,173)\n\n  \n    \n    \n    \n    \n   \n\nDecember 31, 2025 \n 111,754,735  \n 19,464,207  \n 1,462,174  \n 11,000  \n 132,692,116 \n\nAccumulated depreciation, ending \n 111,754,735  \n 19,464,207  \n 1,462,174  \n 11,000  \n 132,692,116 \n\n  \n    \n    \n    \n    \n   \n\nImpairment \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nJanuary 1, 2024 \n -  \n -  \n -  \n -  \n - \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nProvision\n \n \n4,549,381\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n4,549,381\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nDecember 31, 2024\n \n \n4,549,381\n \n \n \n-\n \n \n \n-\n \n \n \n-\n \n \n \n4,549,381\n \n\nImpairment, beginning balance  \n 4,549,381  \n -  \n -  \n -  \n 4,549,381 \n\n  \n    \n    \n    \n    \n   \n\nProvision \n 1,877,371  \n -  \n -  \n -  \n 1,877,371 \n\n  \n    \n    \n    \n    \n   \n\nDecember 31, 2025 \n 6,426,752  \n -  \n -  \n -  \n 6,426,752 \n\nImpairment, ending balance \n 6,426,752  \n -  \n -  \n -  \n 6,426,752 \n\n  \n    \n    \n    \n    \n   \n\nNet carrying amount \n    \n    \n    \n    \n   \n\n  \n    \n    \n    \n    \n   \n\nDecember 31, 2025 \n 21,234,624  \n 4,398,723  \n 752,788  \n 39,000  \n 26,425,135 \n\n  \n    \n    \n    \n    \n   \n\nDecember 31, 2024 \n 41,422,443  \n 7,998,030  \n 1,068,461  \n 18,000  \n 50,506,934 \n\n  \n    \n    \n    \n    \n   \n\nNet carrying amount (US$) \n    \n    \n    \n    \n   \n\nDecember 31, 2025 \n 2,728,229  \n 565,149  \n 96,718  \n 5,011  \n 3,395,107 \n\nNet carrying amount  \n 2,728,229  \n 565,149  \n 96,718  \n 5,011  \n 3,395,107 \n\n** **\n\nF-38\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n** **\n\n**12.**\n**Property,\nplant and equipment (continued)**\n\n \n\nDuring\nthe year, the Group disposed of property, plant and equipment with net book value of HK$62,934 at a consideration of HK$62,934. (2024:\nthe Group does not dispose of property, plant and equipment during the year.)\n\n \n\nDuring\nthe year, the Group has written off of property, plant and equipment with net book value of HK$120,803\ndue to malfunction of plant and machinery and office equipment. (2024: the Group had written off of property, plant and equipment with net book value of HK$526,279\ndue to termination of a warehouse tenancy agreement and malfunction of plant and machinery and office equipment.)\n\n \n\nDuring\nthe year, an impairment loss of HK$1,877,371\n(2024: HK$4,549,381)\nwas recognised for the leasehold improvements. The Group has identified that its property, plant and equipment constitute a\ncash-generating unit that has been reporting persistent operating losses over 2 consecutive reporting periods. This sustained\nunderperformance triggered a formal impairment assessment and a partially or fully impairment loss has been made on the net carrying\namount of assets.\n\n \n\nF-39\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**13.**\n**Right-of-use\nassets**\n\n**Schedule of detailed information about right-of-use assets **\n\n  \nLeased \n\n  \nproperties \n\n  \nHK$ \n\n  \n  \n\nCost \n   \n\n  \n   \n\nJanuary 1, 2024 \n 195,013,742 \n\n  \n   \n\nAdditions \n 26,786,998 \n\nModification \n 16,222,827 \n\nWritten-off \n (15,023,753)\n\nExchange adjustments \n (1,964)\n\n  \n   \n\nDecember 31, 2024 \n 222,997,850 \n\n  \n   \n\nAdditions \n 29,572,601 \n\nModification \n (1,012,044)\n\nWritten-off \n (53,686,786)\n\n  \n   \n\nDecember 31, 2025 \n 197,871,621 \n\n  \n   \n\nAccumulated amort**isation** \n   \n\n  \n   \n\nJanuary 1, 2024 \n 126,893,389 \n\n  \n   \n\nCharge for the year \n 44,562,079 \n\nWritten-off \n (15,023,753)\n\nExchange adjustments \n (1,663)\n\n  \n   \n\nDecember 31, 2024 \n 156,430,052 \n\n  \n   \n\nCharge for the year \n 38,968,788 \n\nWritten-off \n (53,686,786)\n\n  \n   \n\nDecember 31, 2025 \n 141,712,054 \n\n  \n   \n\nImpairment \n   \n\n  \n   \n\nJanuary 1, 2024 \n - \n\n \n \n \n \n \n\nProvision\n \n \n5,013,080\n \n\n \n \n \n \n \n\nDecember\n31, 2024\n \n \n5,013,080 \n \n\n  \n   \n\nProvision \n 4,102,040 \n\n  \n   \n\nDecember 31, 2025 \n 9,115,120 \n\n  \n   \n\nNet carrying amount \n   \n\n  \n   \n\nDecember 31, 2025 \n 47,044,447 \n\n  \n   \n\nDecember 31, 2024 \n 61,554,718 \n\n  \n   \n\nNet carrying amount (US$) \n   \n\nDecember 31, 2025 \n 6,044,280 \n\n \n\nDuring\nthe year, an impairment loss of HK$4,102,040\n(2024: HK$5,013,080)\nwas recognised. The Group has identified that its right-of-use assets constitutes a cash-generating unit that has been reporting\npersistent operating losses over 2 consecutive reporting periods. This sustained underperformance triggered a formal impairment\nassessment and a partially or fully impairment loss has been made on the net carrying amount of assets.\n\n \n\nF-40\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**13.**\n**Right-of-use\nassets (continued)**\n\n**Schedule\nof detailed information about lease liabilities and short term leases**\n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nExpenses relating to short-term\nleases \n 373,687  \n 2,908,520  \n 1,499,771 \n\n  \n    \n    \n   \n\nVariable lease payments not included in the\nmeasurement of lease liabilities \n 31,799  \n 247,502  \n 271,808 \n\n  \n    \n    \n   \n\nExpenses relating to leases of low-value assets,\nexcluding short-term leases of low value assets \n 1,931  \n 15,026  \n 7,295 \n\n  \n    \n    \n   \n\nTotal cash outflow for\nleases # \n 6,427,709  \n 50,028,785  \n 56,257,499 \n\n** **\n\n#Amount\nincludes payments of principal and interest portion of lease liabilities, short-term leases, variable lease payments and expenses related to leases of low-value assets.\n\n \n\nFor\nboth years, the Group leases various offices and warehouses for its operations. Lease contracts are entered into for fixed term of 2\nto 5 years. Lease terms are negotiated on an individual basis.\n\n \n\n**14.**\n**Deferred\ntax assets**\n\n**Schedule\nof deferred tax assets **\n\n  \n HK$  \n HK$  \n HK$  \n HK$  \n HK$ \n\n  \n\nAccelerated\n\n tax\ndepreciation\n  \n\nLosses available\n\nfor offsetting against future\ntaxable profits\n  \nRight-of-use\n\nassets  \nLease\n\nliabilities  \nTotal \n\n  \n HK$  \n HK$  \n HK$  \n HK$  \n HK$ \n\n  \n    \n    \n    \n    \n   \n\nAt January 1, 2024 \n 1,966,254  \n 1,182,688  \n (11,239,859) \n 12,254,755  \n 4,163,838 \n\n  \n    \n    \n    \n    \n   \n\nDeferred tax credited\nto consolidated statements of profit or loss during the year \n 4,397,749  \n 299,731  \n 1,083,330  \n (975,719) \n 4,805,091 \n\n  \n    \n    \n    \n    \n   \n\nAt December 31, 2024 \n 6,364,003  \n 1,482,419  \n (10,156,529) \n 11,279,036  \n 8,968,929 \n\nDeferred tax assets, beginning balance \n 6,364,003  \n 1,482,419  \n (10,156,529) \n 11,279,036  \n 8,968,929 \n\n  \n    \n    \n    \n    \n   \n\nDeferred tax charged to\nconsolidated statements of profit or loss during the year \n 21,165  \n (824,575) \n 2,837,872  \n (3,346,746) \n (1,312,284)\n\n  \n    \n    \n    \n    \n   \n\nAt\nDecember 31, 2025 \n 6,385,168  \n 657,844  \n (7,318,657) \n 7,932,290  \n 7,656,645 \n\nDeferred tax assets, ending balance \n 6,385,168  \n 657,844  \n (7,318,657) \n 7,932,290  \n 7,656,645 \n\nAt\nDecember 31, 2025 (US$) \n 820,368  \n 84,520  \n (940,303) \n 1,019,142  \n 983,727 \n\nDeferred tax assets, ending balance \n 820,368  \n 84,520  \n (940,303) \n 1,019,142  \n 983,727 \n\n \n\nF-41\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**15.**\n**Deposits,\nprepayments and other receivables**\n\nSchedule\nof deposits, prepayments and other receivables \n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nDeposits\n(non-current) \n 1,617,174  \n 12,586,949  \n 10,898,645 \n\n  \n    \n    \n   \n\nDeposits (current) \n 1,512,245  \n 11,770,255  \n 12,564,617 \n\nPrepayments \n 782,760  \n 6,092,454  \n 5,428,473 \n\nOther receivables \n 901  \n 7,017  \n 7,017 \n\n  \n    \n    \n   \n\n  \n **2,295,906**  \n 17,869,726  \n 18,000,107 \n\n \n\n**16.****Amounts\ndue from/to related companies, shareholders and directors and loans from directors**\n\n \n\nThe\namounts due from/to related companies, shareholders and directors are unsecured, interest-free and repayable on demand. The loans from directors are unsecured, bearing interest of 5.25% per annum and repayable on February 11, 2028.\n\n \n\n**17.**\n**Inventories**\n\n** **\n\n**Schedule\nof inventories **\n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nFood and beverage and other operating \n    \n    \n   \n\n items for restaurant\noperations \n 3,013,723  \n 23,456,709  \n 20,351,116 \n\n \n\n \n\n**18.**\n**Trade\nreceivables**\n\n \n\nSchedule\nof trade receivables \n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n    \n    \n   \n\nTrade receivables \n 437,456  \n 3,404,848  \n 3,319,847 \n\n \n\nThe\nfollowing is an aged analysis of trade receivables net of allowance for expected credit losses presented based on the invoice dates\nand the date of rendering of services.\n\n \n\nSchedule\nof trade receivables net of allowance for credit losses \n\n  \n2025  \n2025  \n2024 \n\n  \n**US$**** **** **\n**HK$**  \nHK$ \n\n  \n   \n   \n  \n\n0-30 days \n 428,332  \n **3,333,832**  \n 3,080,433 \n\n31-60 days \n 4,261  \n **33,168**  \n 224,697 \n\n61-90 days \n 4,863  \n **37,848**  \n 14,717 \n\n  \n    \n    \n   \n\nTotal \n 437,456  \n 3,404,848  \n 3,319,847 \n\n \n\nDetails\nof impairment assessment of trade and other receivables are set out in Note 28.\n\n \n\nF-42\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**19.**\n**Cash\nand cash equivalents**\n\n \n\nSchedule\nof cash and cash equivalents \n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nSavings accounts \n 8,996,158  \n 70,019,797  \n 54,496,479 \n\nCurrent accounts \n 5,866,579  \n 45,661,343  \n 62,131,411 \n\nTime deposits \n 4,041,432  \n 31,455,679  \n - \n\nCash on hand \n 74,301  \n 578,306  \n 708,120 \n\n  \n    \n    \n   \n\n  \n 18,978,470  \n 147,715,125  \n 117,336,010 \n\n** **\n\nCash\nat banks earns interest at floating rates based on daily bank deposit rates.\n\n \n\n**20.**\n**Share\ncapital**\n\n** **\n\n**Schedule of share capital shares**\n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nOrdinary shares at par value of US$0.0005 (December 31, 2024: HK$0.0005)\neach \n -   \n -   \n -  \n\n  \n    \n    \n   \n\nAuthorised: \n    \n    \n   \n\n3,000,000,000 (December 31,\n2024: 3,000,000,000) ordinary shares \n 1,500,000  \n 11,700,000  \n 11,700,000 \n\n  \n    \n    \n   \n\nIssued and fully paid:- \n    \n    \n   \n\n17,155,000 (December 31, 2024: 15,000,000)\nordinary shares \n 8,597  \n 66,916  \n 58,500 \n\n** **\n\nA\nsummary of movements in the Company’s share capital is as follows:\n\n \n\n Summary\nof changes in share capital\n\n  \nNumber of  \nShare \n\n  \nissued  \ncapital \n\n  \nordinary\nshares  \nHK$ \n\n  \n   \n  \n\nAt December 31, 2024 \n 15,000,000  \n 58,500 \n\n  \n    \n   \n\nIssue of shares \n 2,155,000  \n 8,416 \n\n  \n    \n   \n\nAt December 31, 2025 \n 17,155,000  \n 66,916 \n\n \n\nThe\nCompany is an exempted company incorporated in the Cayman Islands and the corporate affairs are governed by its memorandum and articles\nof association, as amended from time to time, the Companies Act, and the common law of the Cayman Islands.\n\n \n\nOn\nApril 11, 2025, the Company has completed initial public offering (“IPO”) of 2,000,000\nOrdinary Shares at a public offering price of US$4.00\nper share. The total gross proceeds from the IPO were US$8,000,000,\nand the net proceeds after deducting discounts, expense allowance and expenses, were approximately US$5,439,000.\n\n \n\nOn\nMay 16, 2025, an aggregate of additional 155,000 ordinary shares at a public offering price of US$4.00 per share was issued under the\nover-allotment option to the underwriters. The newly issued shares rank pari passu in all aspects with the previously issued shares.\n\n \n\nF-43\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**20.**\n**Share\ncapital (continued)**\n\n \n\nThe\nCompany is authorised to issue one class of share. The holders of the Company’s ordinary shares are entitled to the following rights:\n\n \n\nVoting\nRights: Each share of the Company’s share entitles its holder to one vote per share on all matters to be voted or consented upon\nby the stockholders. Holders of the Company’s shares are not entitled to cumulative voting rights with respect to the election\nof directors.\n\n \n\nDividend\nRight: Subject to limitations under the Cayman law and preferences that may apply to any shares of preferred stock that the Company may\ndecide to issue in the future, holders of the Company’s share are entitled to receive ratably such dividends or other distributions,\nif any, as may be declared by the directors of the Company out of funds legally available therefor.\n\n \n\nLiquidation\nRight: In the event of the liquidation, dissolution or winding up of the Company’s business, the holders of the Company’s\nshare are entitled to share ratably in the assets available for distribution after the payment of all of the debts and other liabilities\nof the Company, subject to the prior rights of the holders of the Company’s preferred stock, if any.\n\n \n\nOther\nMatters: The holders of the Company’s share have no subscription, redemption or conversion privileges. The Company’s share\ndoes not entitle its holders to pre-emptive rights. All of the outstanding shares of the Company’s share are fully paid and non-assessable.\nThe rights, preferences and privileges of the holders of the Company’s share are subject to the rights of the holders of shares\nof any series of preferred stock which the Company may issue in the future. Fully paid ordinary shares shall be free from any restriction\non transfer of shares.\n\n \n\n**21.**\n**Reserves**\n\n** **\n\n(i)Exchange\nreserve\n\n** **\n\nForeign\ncurrency translation reserve represents exchange differences arising from the translation of the consolidated financial statements of\nforeign operations whose functional currencies are different from that of the Group’s presentation currency.\n\n \n\n(ii)Other\nreserves\n\n \n\n \na)\nShare\npremium\n\n \n\nThe\nshare premium represents the excess of consideration received over the nominal value of shares issued by the Company. The share premium\nis not distributable to shareholders except in accordance with applicable laws and regulations.\n\n \n\n \nb)\nShare-based\npayment reserve\n\n \n\nThe\nshare-based payment reserve represents the cumulative value of equity-settled share-based compensation granted to an advisor of the\nCompany in 2025, recognised in accordance with IFRS 2.\n\n \n\nMovements\nin the reserve relate to:\n\n \n\n●recognition of\nshare-based payment expenses over the vesting period; and\n\n  \n●\ntransfer to share capital/share premium upon exercise or vesting of the awards.\n\n \n\nc)Merger\nreserve\n\n \n\nIt represents the effect of adopting\nmerger accounting for common control combination.\n\n \n\nd)Surplus\nreserve\n\n \n\nPursuant\nto Taiwan company law, a Taiwan company is required to maintain a non-distributable surplus reserve when it commences to distribute dividend\nto its shareholders. Appropriations to the surplus reserve are required to be made at not less than 10% of profit after taxes and accumulated\nto the Taiwan company’s registered capital.\n\n \n\nF-44\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**22.**\n**Loans\nfrom related companies**\n\n** **\n\nThe\nloans from related companies are repayable from March 2028 to October 2036 (2024: repayable on demand or from March 2026 to October 2034). They carry interest at 2.5%\np.a below HKD Prime Lending Rate or 3.5%\nto 4.63%\n(2024: 3.5%\nto 4.13%)\nper annum. The loans from related companies are unsecured.\n\n \n\nDetails\nof the repayment schedule in respect of the loans from related companies are as follows:-\n\n \n\nSchedule of repayment of loans from\nrelated companies \n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nLoans repayable:- \n    \n    \n   \n\nWithin one\nyear or on demand \n -  \n -  \n 15,677,958 \n\n  \n    \n    \n   \n\nIn the second to fifth years, inclusive \n 4,879,273  \n 37,976,845  \n 22,985,054 \n\nMore than five years \n 807,451  \n 6,284,636  \n 5,019,819 \n\nLoans from related companies \n 5,686,724  \n 44,261,481  \n 28,004,873 \n\n  \n    \n    \n   \n\nLoans repayable \n 5,686,724  \n 44,261,481  \n 43,682,831 \n\n** **\n\n** **\n\n**23.**\n**Lease\nliabilities**\n\n**Schedule of maturity analysis of operating\nlease payments **\n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nLease liabilities payable: \n    \n    \n   \n\n  \n    \n    \n   \n\nWithin one year \n 4,045,398  \n 31,486,548  \n 38,148,743 \n\nWithin a period of more\nthan one year\nbut not more than 5 years \n 3,670,053  \n 28,565,127  \n 36,268,295 \n\n  \n    \n    \n   \n\nLease liabilities \n 7,715,451  \n 60,051,675  \n 74,417,038 \n\n  \n    \n    \n   \n\nLess: portion classified\nas current\nliabilities \n (4,045,398) \n (31,486,548) \n (38,148,743)\n\n  \n    \n    \n   \n\nNon-current liabilities \n 3,670,053  \n 28,565,127  \n 36,268,295 \n\n** **\n\nThe\nincremental borrowing rates at 5% to 7.8% (2024: 2.6% to 8.4%) per annum.\n\n \n\nLease\nobligations that are denominated in currencies other than the functional currencies of the relevant group entities are set out below:\n\nSchedule of lease\nobligation \n\n  \nNew Taiwan\nDollar \n\n  \nHK$ \n\n  \n  \n\nAs at December 31, 2025 \n - \n\n  \n   \n\nAs at December 31, 2024 \n 7,295 \n\n \n\nF-45\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**24.**\n**Provision\nfor reinstatement costs**\n\n** **\n\nUnder\nthe terms of operating leases in respect of properties entered into try by the Group, the Group is required to reinstate the properties\nto the original physical condition at the end of the respective leases. Provision is therefore made for the best estimate of the expected\ncosts that related to the restoration of the alternations made to the properties.\n\n \n\nSchedule\nof provision for reinstatement costs \n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nAt beginning of year \n 680,945  \n 5,300,000  \n 5,370,000 \n\nProvision \n 349,466  \n 2,720,000  \n 1,480,000 \n\nUtilisation for the year \n -  \n -  \n (200,000)\n\nWrite-off upon the expiration\nof leases \n (349,466)  \n (2,720,000)  \n (1,350,000)\n\n  \n    \n    \n   \n\nAt end of year \n 680,945  \n 5,300,000  \n 5,300,000 \n\nLess: portion classified\nas current liabilities \n (214,562) \n (1,670,000) \n (2,520,000)\n\n  \n    \n    \n   \n\n  \n 466,383  \n 3,630,000  \n 2,780,000 \n\n \n\n \n\n**25.**\n**Bank\nloans**\n\n** **\n\nThe\nbank loans are repayable from August 2032 to June 2033. They contain a repayment on demand clause and therefore they are classified\nas current liabilities as at December 31, 2025 and 2024. They carry interest at\n2.5% per annum below the Prime Lending Rate. The bank loans are guaranteed by (i) HKMC Insurance Limited and (ii) personal\nguarantee, plus interest and other charges provided from certain directors and an indirect shareholder of the Group.\n\n \n\nSchedule\nof bank loans  \n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nBank loans repayable:- \n    \n    \n   \n\nWithin one\nyear \n 1,069,096  \n 8,321,091  \n 7,999,165 \n\n  \n    \n    \n   \n\nIn the second to fifth years, inclusive \n 4,582,753  \n 35,668,938  \n 34,692,766 \n\nMore than five years \n 2,334,640  \n 18,171,207  \n 27,492,958 \n\n  \n 6,917,393  \n 53,840,145  \n 62,185,724 \n\n  \n    \n    \n   \n\n  \n 7,986,489  \n 62,161,236  \n 70,184,889 \n\n \n\n**26.**\n**Accruals\nand other payables**\n\n Schedule\nof accruals and other payables\n\n  \n2025  \n2025  \n2024 \n\n  \nUS$  \nHK$  \nHK$ \n\n  \n   \n   \n  \n\nAccruals \n 2,266,537  \n 17,641,133  \n 19,335,471 \n\nOther payables (Note a) \n 1,224,874  \n 9,533,568  \n 5,740,176 \n\n  \n    \n    \n   \n\n  \n 3,491,411  \n 27,174,701  \n 25,075,647 \n\n \n\n Note\na:Other\npayables included HK$2,117,082 (2024: HK$2,290,851) related to customer loyalty programmes.\nThe loyalty points give rise to a separate performance obligation because they provide a\nmaterial right to the customer and a portion of the transaction price was allocated to the\nloyalty points awarded to customers.\n\n \n\nF-46\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**27.**\n**Financial\ninstruments by category**\n\n** **\n\nAt\nthe end of the reporting period, the Group’s financial assets and liabilities were classified at amortised cost.\n\n \n\n**28.**\n**Financial\nrisk management and fair values of financial instruments**\n\n \n\n(a)Financial\nrisk management\n\n** **\n\nThe\nGroup is exposed to a variety of risks including credit risk, liquidity risk and interest rate risk arising in the normal course of its\nbusiness activities.\n\n \n\nThe\nCompany’s directors monitor the financial risk management of the Group and take such measures as considered necessary from time\nto time to minimise such financial risks.\n\n \n\n \n(i)\nCredit\nrisk and impairment assessment\n\n \n\nOther\nthan those financial assets whose carrying amounts best represent the maximum exposure to credit risk, the group’s maximum exposure\nto credit risk which will cause a financial loss to the group arising from the amount of trade receivables by the group is disclosed\nin Note 18. The group does not hold any collateral or other credit enhancements to cover its credit risks associated with its financial\nassets.\n\n \n\n*Amounts\ndue from related companies*\n\n* *\n\nThe\nGroup considers that the credit risk arising from the remaining amounts due from related companies to be low. In assessing the ECL of\namounts due from related companies, the directors of the Company have obtained financial information from these related companies to\nassess and monitor the credit risk at the end of the reporting period. In this regard, the directors of the Company consider that the\nCompany’s credit risk has not increased significantly.\n\n \n\n*Trade\nreceivables*\n\n* *\n\nThe\nGroup has applied the simplified approach in IFRS 9 to measure the loss allowance at lifetime ECL. The Group determines the ECL by using\na provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate\nto reflect current conditions and estimates of future economic conditions. Accordingly, the credit risk profile of trade receivables\nis presented based on their past due status in terms of the provision matrix. In addition, trade receivables in connection with bills\nsettled through payment platforms with high credit rating and no past due history. The management of the Group considers these assets\nare short-term in nature and the estimated loss rate are low as the probability of default is negligible on the basis of high-credit-rating\nissuers, and accordingly, no expected credit loss was recognised.\n\n \n\n*Deposits*\n\n \n\nThe\nGroup makes periodic assessment on the recoverability of these balances based on historical records, past experience and also quantitative\nand qualitative information that is reasonable and supportive forward-looking information. The directors believe that there is no significant\nincrease in credit risk of these deposits since initial recognition and the Group provided impairment based on 12m ECL. The credit risk\non the deposits is limited as these are paid to reputable landlords. The Group assesses the ECL for the amounts due are limited and no\nloss allowance is made for the years ended December 31, 2025, 2024 and 2023.\n\n \n\nF-47\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**28.**\n**Financial\nrisk management and fair values of financial instruments (continued)**\n\n \n\n(a)Financial\nrisk management (continued)\n\n \n\n \n(i)\nCredit\nrisk and impairment assessment (continued)\n\n \n\n*Cash\nand cash equivalents*\n\n* *\n\nThe\ncredit risks on bank balances are limited because the counterparties are banks/financial institutions with high credit ratings assigned\nby international credit-rating agencies.\n\n \n\nThe\ntables below detail the credit risk exposures of the Group’s financial assets which are subject to ECL assessment:-\n\n \n\nSchedule of credit risk \n\n  \n \n\n**Internal**\n\n**credit**\n\n \n12-month\nor  \n\n**2025**\n\n**Gross**\n\n**carrying**\n\n**amount**\n  \n\n**2025**\n\n**Gross**\n\n**carrying**\n\n**amount**\n  \n\n2024\n\nGross\n\ncarrying\n\namount\n \n\n  \n**Notes**  \n**rating** \n**lifetime ECL** \nUS$  \nHK$  \nHK$ \n\nFinancial assets at amortised\ncost \n  \n  \n  \n    \n    \n   \n\n  \n  \n  \n  \n    \n    \n   \n\nTrade receivables \n18 \n  \nLifetime ECL\n(provision matrix) \n 437,456  \n 3,404,848  \n 3,319,847 \n\nDeposits and other receivables \n15 \n  \n12-month ECL \n 3,130,320  \n 24,364,221  \n 23,470,279 \n\nAmounts due from related companies \n16 \n(Note 1) \n12-month ECL \n 2,053,584  \n 15,983,658  \n 17,304,600 \n\nAmounts due from shareholders \n16 \n(Note 1) \n12-month ECL \n -  \n -  \n 74,100 \n\n \n\nNote1:\nThese balances are repayable on demand.\n\n \n\nF-48\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**28.**\n**Financial\nrisk management and fair values of financial instruments (continued)**\n\n** **\n\n(a)Financial\nrisk management (continued)\n\n \n\n(ii)Liquidity\nrisk\n\n \n\nLiquidity\nrisk is the risk that the Group will encounter difficulty in raising funds to meet commitments associated with financial instruments.\nLiquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.\n\n \n\nPrudent\nliquidity risk management implies maintaining sufficient cash. The Group monitors and maintains a level of bank balances deemed adequate\nto finance the Group’s operations.\n\n \n\nThe\nfollowing table details the Group’s remaining contractual maturity for its financial liabilities. The table has been drawn up\nbased on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The maturity profile of the Group’s\nfinancial liabilities as at 31 December 2025 and 2024, based on the contracted undiscounted payments, is as follows:-\n\n Schedule\nof remaining contractual maturity for financial liabilities\n\n  \nWithin\n\n1 year  \n2\nto 5\nyears  \nOver\n5\n\nyears  \nTotal \n\n  \nHK$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nDecember 31, 2025 \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nBank loans \n 9,929,265  \n 39,717,059  \n 18,665,748  \n 68,312,072 \n\nLoans from related companies \n -  \n 42,066,921  \n 7,203,202  \n 49,270,123 \n\nLoans from directors \n \n-\n  \n 48,854,141  \n -  \n 48,854,141 \n\nAmounts due to related companies \n 402,561  \n -  \n -  \n 402,561 \n\nLease liabilities \n 34,049,654  \n 29,626,146  \n -  \n 63,675,800 \n\nTrade payables \n 12,567,498  \n -  \n -  \n 12,567,498 \n\nOther payables \n 9,533,568  \n -  \n -  \n \n9,533,568\n \n\n  \n    \n    \n    \n   \n\nTotal \n 66,482,546  \n 160,264,267  \n 25,868,950  \n 252,615,763 \n\n  \n    \n    \n    \n   \n\nUS$ \n 8,541,691  \n 20,590,786  \n 3,323,648  \n 32,456,125 \n\n \n\n  \nWithin\n\n1 year  \n2\nto 5\nyears  \nOver\n5 years  \nTotal \n\n  \nHK$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nDecember 31, 2024 \n    \n    \n    \n   \n\n  \n    \n    \n    \n   \n\nBank loans \n 10,013,806  \n 40,055,223  \n 28,845,729  \n 78,914,758 \n\nLoans from related companies \n 16,802,118  \n 24,606,150  \n 5,379,624  \n 46,787,892 \n\nAmounts due to directors \n 42,573,611  \n -  \n -  \n 42,573,611 \n\nAmounts due to related companies \n 165,724  \n -  \n -  \n 165,724 \n\nLease liabilities \n 41,371,011  \n 38,337,962  \n -  \n 79,708,973 \n\nTrade payables \n 16,657,404  \n -  \n -  \n 16,657,404 \n\nOther payables \n 5,740,176  \n -  \n -  \n 5,740,176 \n\n  \n    \n    \n    \n   \n\nTotal \n 133,323,850  \n 102,999,335  \n 34,225,353  \n 270,548,538 \n\n \n\nF-49\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**28.**\n**Financial\nrisk management and fair values of financial instruments (continued)**\n\n** **\n\n(a)Financial\nrisk management (continued)\n\n \n\n(iii)Interest\nrate risk\n\n \n\nInterest\nrate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market\ninterest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s cash\ndeposits, bank loans and loans from related companies with floating interest rates.\n\n \n\nAt\nDecember 31, 2025, it is estimated that a general increase or decrease of 100\nbasis points in interest rates, with all other variables held constant, would increase or decrease the Group’s loss after tax\nby approximately HK$496,000\n(US$64,000)\n(2024: decrease or increase Group’s profit after tax by approximately HK$594,000).\n\n \n\n(b)Fair\nvalues of financial instruments\n\n \n\nThe\nnotional amounts of financial assets and financial liabilities with a maturity of less than one year are assumed to approximate their\nfair values.\n\n \n\nThe\nfair values of the amounts due from/to related companies, directors and the shareholders have not been determined as the timing of the\nexpected cash flows of these balances cannot be reasonably determined because of the relationships.\n\n \n\n**29.**\n**Share\noption**\n\n** **\n\nOn\nApril 30, 2024, the Group granted an advisor share option equivalent to 2.5% of total number of issued shares of the Company\nimmediately prior to the company’s initial public offering with no vesting period. According to the addition terms and\nconditions on the share option granted to the advisor, the share option is contingent upon the occurrence of a performance condition\n(i.e. the successful listing of the Company’ shares on Nasdaq), the share option shall not be recognised until the performance\ncondition becomes probable in accordance with IFRS 2 *Share-based Payment*. Therefore, no share-based payment expense was\nrecorded during the year December 31, 2024.\n\n \n\nOn\nApril 10, 2025 (the date of successful initial public offering of the Company), the Company has recorded a share-based payment of HK$11,700,000.\nThe total number of ordinary shares granted to the advisor was 375,000 at US$4 each (i.e. the public offering price of the Company).\nIn the opinion of the directors, the share-based payment\nrepresented the fair value of the equity instruments at the date when the terms and condition of the share-based payment are fulfilled.\n\n \n\n**30.**\n**Contingencies\n& Commitments**\n\n** **\n\nThere were no pending or threatened claims and litigation as of December\n31, 2025 and through the issuance date of these consolidated financial statements that in the opinion of the directors would have a material\nadverse effect on the Group’s business.\n\n \n\n**31.**\n**Capital\nmanagement**\n\n \n\nThe\nprimary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and net current asset\nposition in order to support its business and maximise shareholder value. The capital structure of the Group comprises issued share capital\nand reserves.\n\n \n\nThe\nGroup manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the\ncapital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The\nGroup is not subject to any externally imposed capital requirements. No changes were made to the objectives, policies or processes during\nthe financial years ended December 31, 2025.\n\n \n\nF-50\n\n \n\n \n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n** **\n\n**32.**\n**Cash\nflows information**\n\n** **\n\n** Schedule\nof cash flows information**\n\n  \nLoans from related companies  \nLease liabilities  \nBank loans  \nLoans from directors \n\n  \n(Note 22)  \n(Note 23)  \n(Note 25)  \n(Note 16) \n\n  \nHK$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nJanuary 1, 2024 \n 53,873,328  \n 76,983,367  \n 77,754,259  \n - \n\n  \n    \n    \n    \n   \n\nChanges from financing cash flows \n    \n    \n    \n   \n\nPayment of bank loan \n -  \n -  \n (7,569,370) \n - \n\nInterest paid for bank loan \n -  \n -  \n (2,645,713) \n - \n\nPayment of loan from related companies \n (10,190,497) \n -  \n -  \n - \n\nInterest paid for loan from related companies \n (1,950,246) \n -  \n -  \n - \n\nPayment of principal portion of lease liabilities \n -  \n (48,883,789) \n -  \n - \n\nPayment of interest portion of lease liabilities \n -  \n (5,594,836) \n -  \n - \n\n  \n    \n    \n    \n   \n\nTotal changes from financing\ncash flows \n (12,140,743) \n (54,478,625) \n (10,215,083) \n - \n\n  \n    \n    \n    \n   \n\nOther changes \n    \n    \n    \n   \n\nIncrease in lease liabilities from entering into new lease (Note 13) \n -  \n 26,786,998  \n -  \n - \n\nIncrease in lease liabilities from modification (Note 13) \n -  \n 16,222,827  \n -  \n - \n\nInterest on lease liabilities (Note 7) \n -  \n 5,594,836  \n -  \n - \n\nWritten back on disposal \n -  \n 3,307,941  \n -  \n - \n\nExchange difference \n -  \n (306) \n -  \n - \n\nInterest on bank loan (Note 7) \n -  \n -  \n 2,645,713  \n - \n\nInterest on loan from related companies (Note 7) \n 1,950,246  \n -  \n -  \n - \n\n  \n    \n    \n    \n   \n\nTotal other changes \n 1,950,246  \n 51,912,296  \n 2,645,713  \n - \n\n  \n    \n    \n    \n   \n\nDecember 31, 2024 \n 43,682,831  \n 74,417,038  \n 70,184,889  \n - \n\n** **\n\nF-51\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n**32.**\n**Cash\nflows information (continued)**\n\n \n\n  \nLoan from related companies  \nLease liabilities  \nBank loans  \nLoans from directors \n\n  \n(Note 22)  \n(Note 23)  \n(Note 25)  \n(Note 16) \n\n  \nHK$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nChanges from financing cash flows \n    \n    \n    \n   \n\nPayment of bank loan \n -  \n -  \n (8,023,653) \n - \n\nInterest paid for bank loan \n -  \n -  \n (1,972,532) \n - \n\nPayment of loan from related companies \n (900,676) \n -  \n -  \n - \n\nInterest paid for loan from related companies \n (108,096) \n -  \n -  \n - \n\nProceed from loans from directors \n -  \n -  \n -  \n 42,473,611 \n\nPayment of principal portion of lease liabilities \n -  \n (42,925,920) \n -  \n - \n\nPayment of interest portion of lease liabilities \n -  \n (3,931,817) \n -  \n - \n\n  \n    \n    \n    \n   \n\nTotal changes from financing cash flows \n (1,008,772) \n (46,857,737) \n (9,996,185) \n 42,473,611 \n\n  \n    \n    \n    \n   \n\nOther changes \n    \n    \n    \n   \n\nIncrease in lease liabilities from entering into new lease (Note 13) \n -  \n 29,572,601  \n -  \n - \n\nDecrease in lease liabilities from modification (Note 13) \n -  \n (1,012,044) \n -  \n - \n\nInterest on lease liabilities (Note 7) \n -  \n 3,931,817  \n -  \n - \n\nInterest on bank loan (Note 7) \n -  \n -  \n 1,972,532  \n - \n\nInterest on loan from related companies (Note 7) \n 1,587,422  \n -  \n -  \n - \n\nInterest on loans from directors (Note 7) \n -  \n -  \n -  \n 2,213,330 \n\n  \n    \n    \n    \n   \n\nTotal other changes \n 1,587,422  \n 32,492,374  \n 1,972,532  \n 2,213,330 \n\n  \n    \n    \n    \n   \n\nDecember 31, 2025 \n 44,261,481  \n 60,051,675  \n 62,161,236  \n 44,686,941 \n\n  \n    \n    \n    \n   \n\nDecember 31, 2025 (US$) \n 5,686,724  \n 7,715,451  \n 7,986,489  \n 5,741,388 \n\n  \n\nF-52\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n \n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n \n\n \n\n**33.**\n**Related\nparty transactions**\n\n \n\nIn\naddition to the transactions detailed elsewhere in these consolidated financial statements, the Group had the following transactions\nwith related parties during the year:-\n\n Schedule\nof transaction detailed in consolidated financial statements\n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\n  \n   \n   \n   \n  \n\nSales of goods to related companies \n    \n    \n    \n   \n\n- related companies (Note (a)) \n 1,217,068  \n 9,472,803  \n 11,192,830  \n - \n\n- a related company (Note (b)) \n -  \n -  \n -  \n 22,298 \n\n- a related company (Note (c)) \n 781  \n 6,081  \n -  \n 9,432 \n\nRental income received related companies\n(Note (a)) \n **134,828**  \n **1,049,405**  \n 626,517  \n - \n\nRental expenses to related companies (Note\n(a)) \n **22,356**** **** **\n** ****174,000**  \n 14,500  \n - \n\nRental expenses to related companies (Note\n(b)) \n **588,506**** **** **\n** ****4,580,520**  \n 3,715,200  \n 4,188,400 \n\nLoan interest expenses to directors \n 284,369  \n 2,213,331  \n -  \n - \n\nLoan interest expenses to related companies\n(Note (b)) \n **203,952**** **** **\n** ****1,587,422**  \n 1,950,246  \n 2,285,985 \n\nStorage expenses to related company (Note\n(b)) \n **14,014**** **** **\n** ****109,073**  \n 104,011  \n 113,142 \n\nManagement fee income\nfrom related companies (Note (a)) \n 1,902,920  \n 14,811,000  \n 13,799,000  \n - \n\n \n\nThe\nabove transactions were made at prices and terms in the normal course of business as agreed between the parties.\n\n \n\nNote:\n\n \n\n(a)These are the related companies to the Group because some of the directors\nof the Group are part of the shareholders or ultimate shareholder in these related companies.\n\n \n\n(b)These are related companies to the Group because some of the directors\nof the Group, are the close family member of the shareholder or ultimate shareholder in this related company.\n\n \n\n(c)This\nis a related company to the Group because one of the directors of the Group, is a close family\nmember of one of the shareholders in this related company.\n\n \n\nCompensation\nof key management personnel and directors’ remuneration\n\n \n\nCompensation of key management personnel of the Group during the year was\nas follows:-\n\nSchedule of compensation of key\nmanagement  \n\n  \n2025  \n2025  \n2024  \n2023 \n\n  \nUS$  \nHK$  \nHK$  \nHK$ \n\n  \n   \n   \n   \n  \n\nShort-term employee benefits \n    \n    \n    \n   \n\n - other emoluments \n 827,610  \n 6,441,539  \n 4,508,852  \n 7,680,000 \n\nEmployer’s contribution\nto defined contribution plans \n 13,298  \n 103,500  \n 76,500  \n 108,000 \n\n  \n    \n    \n    \n   \n\nShort-term\nemployee benefits \n 840,908  \n 6,545,039  \n 4,585,352  \n 7,788,000 \n\n \n\nF-53\n\n \n\n** **\n\n**MasterBeef\nGroup and its subsidiaries**\n\n** **\n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements (Continued)**\n\n**December\n31, 2025, 2024 and 2023**\n\n \n\n \n\n** **\n\n**33.**\n**Related\nparty transactions (continued)**\n\n** **\n\nAs\nat December 31, 2025, the parent and ultimate holding company of the Company was Galaxy Shine Company Limited, which was incorporated\nin the British Virgin Islands. The shareholders of Galaxy Shine Company Limited are Chau Oi Wai, Chung Hee Shun, Chau Oi Yee, Leung Man Kit and\nChan Yuk Ming and their respective shareholdings in Galaxy Shine Company Limited are approximately 27.27%, 24.83%, 27.27%, 13.64% and\n6.99%, respectively.\n\n** **\n\n**34.**\n**New\nand amendments to IFRS in issue but not yet effective**\n\n \n\nThe\nGroup has not early applied the following new and amendments to IFRS that have been issued but are not yet effective:-\n\n \n\nAmendments\nto IFRS 9 and IFRS 7\n \nAmendments\nto the Classification and Measurement of Contracts Referencing Nature-dependent Electricity2\n\nAmendments\nto IFRS 10 and IAS 28\n \nSale\nor Contribution of Assets between an Investor and its Associate or Joint Venture1\n\nAmendments\nto IFRS\n \nAnnual\nImprovements to HKFRS Accounting Standards -\n\nAccounting\nStandards\n \nVolume\n112\n\nIFRS\n18\n \nPresentation\nand Disclosure in Financial Statements3\n\nIFRS\n19\n \nSubsidiaries\nwithout Public Accountability: Disclosures*3*\n\nAmendments\nto IFRS 19\n \n\nAmendments\nto Subsidiaries without Public\n\nAccountability:\nDisclosures3\n\n \n\n1\nEffective for annual periods beginning on or after a date to be determined.\n\n2\nEffective for annual periods beginning on or after 1 January 2026.\n\n3\nEffective for annual periods beginning on or after 1 January 2027.\n\n \n\nExcept\nfor the new IFRS mentioned below, the directors of the Company anticipate that the application of all other new and amendments to IFRS\nwill have no material impact on the consolidated financial statements in the foreseeable future.\n\n \n\nIFRS\n18 *Presentation and Disclosure in Financial Statements*\n\n \n\nIFRS\n18, which sets out requirements on presentation and disclosures in financial statements, will replace IAS 1 *Presentation of Financial\nStatements*. Whilst many of the requirements will remain consistent, the new standard introduces new requirements to present specified\ncategories and defined subtotals in the income statement; provide disclosures on management-defined performance measures in the notes\nto the financial statements and improve aggregation and disaggregation of information to be disclosed in the primary financial statements\nand the notes. In addition, some IAS 1 paragraphs have been moved to IAS 8 and IFRS 7. Minor amendments to IAS 7 *Statement of Cash\nFlows* and IAS 33 *Earnings per Share* are also made.\n\n \n\nIFRS\n18, and amendments to other standards, will be effective for annual periods beginning on or after 1 January 2027, with early application\npermitted, and will be applied retrospectively. The application of the new standard is expected to affect the presentation of the income\nstatement and disclosures in the future financial statements. The Company is still currently assessing the impact that IFRS 18 will have\non the financial statements.\n\n \n\n**35.**\n**Event after reporting period**\n\n \n\nThe Group has evaluated subsequent\nevents through the date the consolidated financial statements were available to be issued. Based on this evaluation, there are no subsequent\nevents that require disclosure or adjustment to the consolidated financial statements as of the reporting date.\n\n \n\nF-54"}