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← The Needham Research Institute

2025-09-30-accounts

THE NEEDHAM RESEARCH INSTITUTE

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30!" SEPTEMBER 2025

NEEDHAM RESEARCH INSTITUTE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

CHARITY INFORMATION

Charity Registration Number 311459 Trustees: Professor Martin Jones (Chairman) Dr Christopher Hughes Mr Stephen Perry (resigned 8 November 2024) Mr Michael Womack Ms Elizabeth Wright Dr Mary Augusta Brazelton Dr Imre Galambos Dr Charles Harpum Ms Katie Lee Professor Ying Jin (appointed 8 November 2024) Professor Roel Sterckx (re-elected 6 June 2025) Members of the Finance Committee: Professor Martin Jones (Chairman) Dr Christopher Hughes Mr Michael Womack Ms Elizabeth Wright Members of the Management Committee: Professor Jianjun Mei (Chairman) Ms Susan Bennett Mr John Moffett Dr Christopher Jagger Members of the Publications Board: Professor Jianjun Mei (Chairman) Ms Susan Bennett Mr John Moffett Dr Christopher Jagger Principal Officers: Director: Professor Jianjun Mei Bursar: Dr Christopher Jagger Librarian: Mr John Moffett Administrative Manager Ms Susan Bennett Principal Office Address: 8 Sylvester Road Cambridge CB3 9AF Auditors: Prentis & Co LLP Chartered Accountants & Statutory Auditors 115C Milton Road Cambridge CB4 1XE Bankers and Deposit Holders: National Westminster Bank plc 23 Market Street Cambridge CB2 3PA Quilter Cheviot Limited (until 31 May 2025) Senator House 85 Queen Victoria Street London EC4V 4AB Cazenove Capital (from 1 June 2025) 1 London Wall Place London, EC2Y¥ 5AU Solicitors: King & Co 238 High Street Cottenham Cambridge CB24 8RZ

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NEEDHAM RESEARCH INSTITUTE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

TRUSTEES REPORT

The Trustees present their report and financial statements for the year ended 30 September 2025.

The financial statements comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

REFERENCE AND ADMINISTRATIVE DETAILS

The Needham Research Institute, formerly titled “The East Asian History of Science Trust” is situated at 8, Sylvester Road, Cambridge CB3 9AF. Charity Registration No. 311459.

The names of the Trustees serving during the financial year 1 October 2024 to 30 September 2025 and serving on the date which this report was approved are given on the contents page.

Professor Jianjun Mei is the Director of the Institute and responsible for its day-to-day management. The names of the Institute’s staff are given on the contents page.

OBJECTIVES AND ACTIVITIES

PURPOSES OF THE TRUST AS SET OUT IN THE GOVERNING DOCUMENT Building on the foundation laid by the work of the late Dr Joseph Needham, the Institute seeks to facilitate, promote and develop academic research, publication and teaching of the highest possible standard in the fields of the history of science, technology and medicine in East Asia.

Beyond the purely academic sphere, it also seeks to raise public awareness of those aspects of its work that are of wider significance for human progress. Through the pursuit of those goals it aims to exploit and further develop its role as the world’s leading international centre for research in its field. It seeks closer and mutually beneficial cooperation with Cambridge University whilst maintaining its present autonomy as an independent charitable Foundation.

MAIN ACTIVITES UNDERTAKEN IN RELATION TO THOSE PURPOSES

The Institute aims to ensure the successful completion of the “Science and Civilisation in China” project. Twenty-five volumes have been published and work is proceeding on a further three volumes in the series; in addition, eighteen volumes have been published in the Monograph Series and work is continuing on a number of others. The Institute also publishes a less formal ‘Working Papers’ Series.

The Institute has an active programme of Research Fellowships and Studentships which is largely funded by grants from several outside Foundations and which enables scholars from East Asia and elsewhere to study at the Institute. It also organises workshops and conferences with major academic organisations in and outside the UK. It runs regular academic seminars during the University term.

The Institute also hosts scholars and academics during the year, allowing them access to its diverse library, archives and catalogue of works and publications in the fields of the history of science, technology and medicine in East Asia.

TRUSTEES REGARD TO THE CHARITY COMMISSION'S GUIDANCE ON PUBLIC BENEFIT

The Institute and its Library offers scholars facilities for research and writing unrivalled by any other academic institution in its field. In addition to its collection of monographs, the Library subscribes to a wide selection of journals, many of which are Chinese publications rarely available elsewhere in Europe. The Library also houses the archives of the late Dr Needham relating to his research in the field he established. A 2-year project (2023 ~ 2024) funded partly by the Joseph Needham Foundation for Science and Civilisation (Hong Kong) was catried out on these archives to make them more accessible to researchers. Digitised research materials are freely available on the Cambridge University Digital Library.

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All this material is described and catalogued electronically, and may be searched online for no fee. Any person with a serious interest in the subjects covered by the Institute is welcome to use its facilities without charge. In cases where scholars are sufficiently weil funded, the Institute will accept a contribution to its-overheads, but this is not an absolute condition for use of its facilities.

In addition to maintaining the Institute’s facilities and facilitating access to them, the Trustees encourage the Director to play an active role in making a wider public aware of the area with which it deals, The Director has delivered public lectures in Cambridge and overseas. The Director has been appointed ‘Director of Research’ by The McDonald Institute for Archaeological Research in University of Cambridge.

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NEEDHAM RESEARCH INSTITUTE

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

TRUSTEES REPORT

ACHIEVEMENTS AND PERFORMANCE

SUMMARY OF THE MAINACHIEVEMENTS OF THE TRUST

During the period of October 2024-September 2025, the fellowship programmes, such as Independent School Foundation (ISF) Fellowship, Lloyd-Dan David (LDD) Fellowship, Li Foundation Fellowship, Ho Peng Yoke (HPY) Fellowships, Jing Brand Fellowships, Soon-Young Kim (SYK) awards, and the Sino-British Fellowship Trust (SBFT) award were all in operation.

The current ISF Fellowship holder is Dr. Jenny Jingyi Zhao, who took this fellowship position as a Research Fellow on a three-year contract in February 2021. She was promoted to a Senior Research Fellow position in October 2022 and her contract was extended on 22™ January 2024 for a further three years until 31% January 2027. She also holds a Joseph Needham Visiting Fellowship at Clare Hall College.

Dr. Arthur Harris took his LDD fellowship position on a three-year contract in October 2021, and has been working as a Postdoctoral Fellow at the Institute since then. His fellowship tenure was extended in August 2024 for a further year until September 2025.

There were three Li Foundation Fellows for the year 2024-2025 from East Asia. Dr. Lu Jingjing of Peking University, completed her research visit to the Institute during December 2024- August 2025. Dr. Li Yuqi ofNankai University came to Cambridge in January 2025 and concluded his six-month visit to the Institute in June 2025. Prof. Wang Guangchao of the University of Chinese Academy of Sciences completed his fellowship tenure during MarchSeptember 2025. Three Li Foundation Fellows were from the USA in 2024-2025. Ni Haoran, a PhD candidate at the University of Kansas and a 3-month Li Foundation fellow (USA) completed her research visit in Cambridge during January-March 2025. Dr. Zhang Xue of Reed College completed her three-month visit to the Needham Research Institute in June 2025. Niall Chithelen, a PhD candidate at University of California, San Diego and a 6- month Li Foundation fellow (USA) for 2023-24, took his fellowship tenure in October 2024 and completed his visit to the Institute in March 2025.

Dr. Ji Chen of University of Science and Technology of China, the HPY Fellow (2024-2025), took up her 12-month HPY fellowship in November 2024 and completed her fellowship tenure in November 2025.

The Institute hosted two Jing Brand scholars during 2024-2025: Dr. Jiang Pei of the University of Cambridge, took up her 12-month Jing Brand (Tianyoude) scholarship in October 2024 and completed her visit to the Institute in August 2025. Dr. Pan Weilin of Shanghai Academy of Social Sciences arrived in Cambridge in January 2025 and completed her six-month study visit in July 2025.

Dr. Lewis Bremner was awarded a 12-month SYK fellowship for 2024-25 and completed his fellowship tenure during October 2024-September 2025.

Professor Li Wenxue of Southwest University, the SBFT fellow (2024-2025), completed his six-month fellowship tenure during March-September 2025.

Dr. Xu Bin, CSC Scholar, The Palace Museum, September 2024-September 2025;

Dr. Zhang Lu, CSC Scholar, Sichuan University, September 2024-September 2025;

Ms. Wu Shan, PhD candidate at Harvard University, December 2024-February 2025; Professor Yin Yafang, CSC Fellow, Chinese Academy of Forestry, January to July 2025; Dr. Gao Shanshan, visiting scholar, City University HK, March to September 2025; Professor Dan Mao, SCC Scholar, Shanghai Jiaotong University, July to December 2025.

On 12" -13" October 2024, the Director attended the Second International Symposium on Theory and Practice of Chinese Archaeology, which was organized by the School of Archaeology and Museology, Peking University. He presented a paper on ‘New Progress in the Studies ofEarly Copper and Bronze Objects in China’ to the symposium.

NEEDHAM RESEARCH INSTITUTE

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

TRUSTEES REPORT

During 15th -22nd October 2024, the Director made the long journey to northern Shaanxi and the Guanzhong region to visit some important archaeological sites excavated in recent years, including: 1) A visit to the Shimao site near Shenmu city on 15th October and one-day conference on the value of the Shimao site on 16th October; 2) A visit to the Zhaigou site in Qingjian county on 17th October and a half-day workshop on the significance of the Zhaigou site on 18th October; 3) A visit to the Zhouyuan site and Zhouyuan Museum on 19th -20th October; 4) Two lectures delivered in Xi’an city on 21st October, one on Needham’s intellectual heritage for Northwest University in the morning, the other on Seima-Turbino bronze spearheads for the Shaanxi Normal University; 5) A visit to the ongoing excavation site of the tomb of First Emperor of Qin’s grandmother.

On 8th November 2024, the 7th Needham Memorial Lecture, sponsored by the Jing Brand Co. Ltd., China, took place at the Riley Auditorium, Clare College. Professor Paul U. Unschuld, Director of the Institute for the Theory, History and Ethics of Chinese Life Sciences, Charité-Universitiitsmedizin Berlin, delivered the lecture entitled ‘Wind-Fire-Eye or Acute Conjunctivitis: Some Personal Recollections ofAccessing the History ofChinese Medicine through Translations ofAncient Texts’.

On 9th -10th November 2024, the Director presented a keynote speech on ‘Needham Question andMutual Learning wasamong heldCivilisations’in Tengzhou,toShandongthe symposiumProvince,on China.Scientific Heritage of Ancient China and Chinese, Civilisation, which

On 23rd -24th November 2024, the Director visited the College of Humanities and Social Development, Nanjing Agricultural University and delivered a lecture on ‘The Technological Characteristics of the Sanxingdui Bronzes and the Problem concerning Their Material Sources’ to the audience of teachers and students.

On 25th -26th November 2024, the Director presented a paper entitled ‘Several issues on the study of early copper and bronze objects and the origin ofmetallurgy in China’ to the symposium on ‘Panlongcheng and Yangtze River Civilization’, which was organized by the Hubei Museum and held in Wuhan city, Hubei Province.

: On 1st -2nd December 2024, the Director made a visit to the Sichuan Institute of Cultural Relics and Archaeology (SICRA) and gavea lecture entitled ‘The Development ofMetallurgy as Seen from the Archaeological Discoveries ofShimao and Zhaigou Sites’ to an audience of researchers from the SICRA and students from Sichuan University.

On 7th December 2024, the Director participated in the activities to celebrate the 50th Anniversary of the Founding of the Institute for Cultural Heritage and History of Science and Technology, University of Science and Technology . Beijing.

On 8th -10th December 2024, the Director attended the Needham Conference 2024 which took place at the Sun Yatsen University (SYSU) in Guangzhou. This conference was jointly organized by the Joseph Needham Foundation for Science & Civilization (Hong Kong), the NRI, and the Institute for Advanced Studies in Humanities, SYSU. The Director joined the roundtable discussion on such topics as Science and Civilization in China: The Needham Legacy and Science as a Multi-Civilisational Process.

On 9th January 2025, the workshop ‘New Direction in the History of East Asia Science’, sponsored by the D. Kim Foundation for the History of Science & Technology in East Asia, and hosted by the NRI, took place at the K. P. Tin Hall. Eight young scholars were invited to present their recent research, and four senior scholars were invited to chair the 4 sessions and to offer comments on the presented papers. The members of the D, Kim Foundation Board as well as scholars from the NRI and the University of Cambridge also attended.

In consultation with Professor Sir Geoffrey Lloyd and Darwin College, the Institute advertised the Lloyd Dan-David (LDD) fellowship in January 2025. By the end of March 30 applications were received and reviewed. After interviewing 5 candidates on 7th May, the Selection Committee decided to award a three-year LDD fellowship to Dr. Yumi Suzuki, affiliated researcher of the University of Bern. Her proposed research topic is ‘Nomenclature and classification in Ancient Chinese and Greek biology’.

On 14th March 2025, a ceremony was held at our Institute to mark the generous donation of a complete set of "Song Dynasty Painting Collection” by Zhejiang University to the Needham Research Institute.

On 8th April 2025, the Institute received the visit from Professor Chen Chun-I, President of the Chiang Ching-kuo Foundation for International Scholarly Exchange (CCKF) and Ms. Amber Yu, Program Officer, Program Division, CCKF. Professor Geoffrey Lloyd, Dr. Mary Brazelton, the Librarian, Dr. Rosalind Grooms, and the Director joined the meeting.

NEEDHAM RESEARCH INSTITUTE

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

TRUSTEES REPORT

On 14% -17% May 2025, at the invitation of Professor Maria Khayutina of the University of Munich, the Director attended the workshop on ‘Movement and Infrastructure in Ancient Eastern Eurasia’, which was held in Munich. Before the workshop, the Director was also invited to attend the roundtable on interactions between Early China and the Steppe at the University of Munich on 13" May, 2025.

During the period 1st —18th July 2025, the Institute welcomeda visit from ten students from the ISF Academy, Hong Kong, who were accompanied by Dr, Malcolm Pritchard (outgoing Head of School), Dr. Oliver Kramer (New Head of School), Ms Diana Ibarra (Director of Shuyuan), and other members of staff. Under the supervision of Dr. Jenny Zhao (for the first two weeks because of maternity leave) and Dr. Flavia Xi Fang (for the whole three weeks, former HPY fellow), the students conducted research on their chosen topics on Chinese history and civilization, making full use of the NRI library facilities. They also assisted our Archivist Dr. Rosalind Grooms with documenting objects found among the Joseph Needham archives.

On 24th -28th September 2025, the Librarian and the Director attended the 11th Conference on the Beginning of the Uses of Metals and Alloys (BUMA XI), which was held in Quanzhou city, Fujian province. On 25th September, the Director was invited to give a keynote presentation entitled ‘The Development ofArchaeometallurgical Research in Mainland China over the Past Fifty Years’. The Librarian and the Director also visited the Quanzhou Maritime Museum and an iron smelting site of the Song-Yuan period at the Xiacaopu village near Quanzhou city,

The Institute organised twenty-six in-person seminars during the University Michaelmas, Lent and Easter terms from October 2024 to June 2025.

REVIEW OF THE FINANCIAL POSITION AT THE END OF THE YEAR

Funds are invested to provide income to meet the day-to-day running of the Institute. They are split between the Endowment Funds, Restricted Funds (related to grants to expend for the purpose specified, these are shown in note 17 on page 21) and Unrestricted Funds. As at 30 September 2025 funds invested amounted to £16,910,554, (2024: £16,352,304),

The Principal funding sources of the Institute are its income from the Investment Portfolio, donations and grants from outside Foundations, royalties, interest on deposit accounts and rent of No. 2 Sylvester Road. No. 2 Sylvester Road has been leased to Robinson College for fifteen years from 3°! May 2018.

A review of investment performance and the Institute’s investment policy are detailed on page 5.

The Institute has a potential liability relating to the employees who are in the ‘Universities Superannuation Scheme’. Note 16 and 22 to the accounts set out the basis of a provision that has been made of £24,309 (2024: £28,101).

RESERVES POLICY

The Trustees have considered. that the most appropriate policy is to maintain all surplus funds split between investments held with Cazenove Capital and also a level of balances held as cash at bank sufficient to maintain the day to day costs of running and servicing the Institute.

This policy is kept under review, having regard to the level of funds available.

The Trustees’ investment powers are governed by the Trust Deed which permits The Needham Research Institute to invest the monies of the Institute not immediately required for its purposes in such ways as the Institute shall in its absolute discretion think fit.

NEEDHAM RESEARCH INSTITUTE

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

TRUSTEES REPORT STRUCTURE, GOVERNANCE AND MANAGEMENT.

NATURE OF THE GOVERNING DOCUMENT

The Institute is an educational charity registered in England and subject to the provisions of the 1968 Trust Deed, as amended by Schemes of the Charity Commissioners dated 29 March 1988, 17 March 1992 and 27 November 2000.

THE BOARD OF TRUSTEES

The Trustees provide an appropriate mix of skills, diversity and experience; each is appointed for a term of three years by a resolution of the Trustees passed at a meeting and may be re-appointed for further terms in the same way.

The Trustees meet three times a year to receive reports from the Director, the Bursar through the Finance Committee and the Librarian. The Chairman and the Director are in close touch, All major decisions are referred to the Trustees.

The Trustees have given consideration to the major risks to which the Charity is exposed and have satisfied themselves that systems or procedures have been established in order to manage those risks.

The Institute has been moving towards a turnover of Trustees more consistent with Charity Commission guidelines,

RECRUITMENT OF NEW TRUSTEES

New Trustees are given an induction by the Chairman and a tour of the Institute. Following formal election to the Board, they are sent an information pack containing the Charity Commission Investment Guide for Trustees, the Institute's newsletter, and two forms for completion: a Declaration of Interest and a Declaration of Eligibility. Communications from the Charity Commission regarding training etc. are circulated by email.

MANAGEMENT PERSONNEL REMUNERATION

The ultimate responsibility for the management of the Institute rests with the Trustees of the Needham Research Institute, and the day-to-day running of the Institute is overseen by a full-time salaried Director, He is supported by a full-time Librarian, a full-time Administrative Manager and a part-time Bursar, who together with the Director comprise the Management Committee of the Institute.

All Trustees give their time freely and no Trustee received any remuneration in the year. Details of Trustees’ expenses are disclosed in note 8 to the financial statements.

The key officers of the Institute detailed above receive remuneration in line with those in similar positions within the University of Cambridge, and are accordingly remunerated in line with the University of Cambridge's pay scale. Officers receive the small "cost of living" salary increases awarded by the University of Cambridge.

PRINCIPAL RISKS AND UNCERTAINTIES

Internal controls over all forms of income, assets, commitment and expenditure continue to be refined to improve efficiency and effectiveness, Performance is monitored and appropriate management information is prepared and reviewed regularly by the management team and Trustees.

The Institute currently produces an annual budget and reports at Trustees meetings against that budget. The Trustees have delegated authority from the Board to ensure that an active risk management process is in place and forms part of The Needham Research Institute’s ongoing organisation activity.

INVESTMENT POLICY AND PERFORMANCE

The Investment Portfolio was managed by Quilter Cheviot Limited (now part of Old Mutual) until 31 May 2025. In March 2025 a review of investment advisors was conducted, with five advisors invited to tender, including the incumbent. The standard was very high, and resulted in Cazenove Capital (part of the Schroder’s Group) being appointed from | June 2025. The Institute very much appreciates many years of excellent work and returns from Quilter Cheviot Limited.

In the year to 30 September 2025, a total return of 5.9% was achieved. [14.3% in 2024.]

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' NEEDHAM RESEARCH INSTITUTE

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

TRUSTEES REPORT

PLANS FOR FUTURE PERIODS

The Institute will seek to maximise its contribution to research, teaching and international relations, in its field, focusing principally on China but in the broader context of East Asia, and will take every opportunity to develop fruitful cooperation with the University of Cambridge in those areas, as well as with other institutions of research and higher learning world-wide.

Work will continue on the Science and Civilisation in China series and other publications including a planned Science and Civilisation in Korea series. Fundraising efforts will continue to increase the Institute’s endowment, and to support fellowship programmes. —

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The annual “Needham Memoria} Lecture”, in collaboration with other institutions in Cambridge, has been established and will continue.

The NRI Friendship Association was established in Beijing on 9" June 2018. It has raised funds to be added to the Ho Peng Yoke Fellowship and will continue to do so,

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TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Trustees are responsible for preparing a Trustees’ Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each _ year which give a true and fair view of the state of affairs ofthe charity and of the Incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to;

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The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other Irregularities, : : ThisAPPROVAL report was approved by the Board of Trustees and signed on its behalf, on artSom Mann 2Zedny: dle PROFESSOR MARTIN JONES CHAIRMAN OF TRUSTEES

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THE NEEDHAM RESEARCH INSTITUTE

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE NEEDHAM RESEARCH INSTITUTE

OPINION

We have audited the financial statements of The Needham Research Institute for the year ended 30 September 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS OF OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 9 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the Trustees’ Report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the Trustees’ Report and, in doing so, consider whether the Trustees’ Report is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE NEEDHAM RESEARCH INSTITUTE

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE NEEDHAM RESEARCH INSTITUTE

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees’ responsibilities statement set out on page 6, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

THE EXTENT TO WHICH OUR PROCEDURES ARE CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The primary responsibility for the prevention and detection of irregularities including fraud rests with both the management and those charged with governance of the charity. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

We have considered the nature of the industry and sector, contro] environment, laws and regulations and business performance of the charity, Laws and regulations considered included, but were not limited to the Charities Act 2011, FRS102, Charity SORP and UK taxation legislation.

We have enquired with the management in regards to their own assessment of the risks of irregularities, including fraud. We also enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

We obtained relevant documentation and representations in order to form an opinion on potential irregularities, including fraud.

We considered the opportunities and incentives that may exist within the organisation for fraud.

Based on this understanding, we designed specific audit procedures to identify instances of non-compliance with laws and regulations, including obtaining additional corroborative evidence as required. Examples of procedures included reviewing large and unusual transactions, reviewing large and unexpected variances, reviewing journal entries and reviewing relevant legal correspondence.

There are inherent limitations in the audit procedures described above, not least as sampling is used under International Auditing Standards, therefore not all transactions are reviewed. Therefore, there is a risk we will not detect all irregularities including those leading to a material misstatement in the financial statements or non-compliance with regulations. The risk of not detecting a material misstatement due to fraud is also higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery, collusion, omission or intentional misrepresentation.

THE NEEDHAM RESEARCH INSTITUTE

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE NEEDHAM RESEARCH INSTITUTE

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

This report is made solely to the Trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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PRENTIS & CO LLP CHARTERED ACCOUNTANTS & STATUTORY AUDITORS 115c Milton Road Cambridge ; © . CB4 1XE pra Alpr Lefths,

Prentis & Co LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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THE NEEDHAM RESEARCH INSTITUTE

PAGE 11

.

:

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

BALANCE SHEET

; Notes 2025 2024
; £ £ £ £
- FIXEDASSETS : , .
; Tangible assets 10 1,044,802 1,064,464
’ Investments ; {] 16,910,554 16,352,304
TOTALFIXEDASSETS . 17,955,356 17,416,768
CURRENT ASSETS ,
Debtors 12 26,696 $3,626
Cash atbank and in hand 180,305 245,693
‘TOTALCURRENT ASSETS . ~~207,001 . 299,319
.
LIABILITIES:
Creditors: Amounts fallingdue ;
within one year 13 (A0,269} (35,830)
NET CURRENTASSETS : 166,732 263,489
TOTALASSETS LESSCURRENT 18,122,088 17,680,257
LIABILITIES
;
Provisions for liabilities and charges 14 . (24,309) (28,101)
TOTALNETASSETS 18 18,097,779 17,652,156
THEFUNDS OFTHECHARITY: ,
Restricted finds 15 2,690,473 2,584,774
Endowment funds ; 16 11,357,641 10,824,137
Unrestricted funds: ; .
Designated funds 1? , 78,723 69,299
Othercharitable funds V7 : 3,970,944 4,049,665 4,173,946 4,243,245
TOTAL CHARITY FUNDS 18 . {8,097,779 "17,652,156

The financial statements were approved by the Trustees at its meeting on Sukh A OVE 2a. and signed on its behalf by

‘

PROFESSOR MARTIN JONES © ; CHAIRMAN OF TRUSTEES

The notes on pages 13 to 26 form part of these financial statements.

THE NEEDHAM RESEARCH INSTITUTE

PAGE 12

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

STATEMENT OF CASH FLOWS

2025 2024
Notes Total
Funds		 Total
Funds
£ £
Cash flows from operating activities:
Netcashprovidedby/(usedin) operating activities 19 (474,406) (488,151)
Cash flows from investing activities:
Investmentincome 4 381,997 447,580
Purchase oftangible fixed assets 10 - -
Purchase ofinvestments 11 (16,175,403) (2,073,138)
Proceeds from investments 11 16,138,384 2,176,869
Netcashprovided by (usedin) investing activities 344,978 551,311
Changeincashandcash equivalents in theyear (129,428) 63,160
Cash and cash equivalents brought forward 405,894 342,734
Cashandcashequivalentscarriedforward 19 276,466 405,894

THE NEEDHAM RESEARCH INSTITUTE

PAGE 13

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

  1. ACCOUNTING POLICIES

(a) BASIS OF PREPARATION

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). :

The Needham Research Institute meets the definition ofa public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction values unless otherwise stated in the relevant accounting policy notes.

(b) ASSESSMENT OF GOING CONCERN

The trustees consider that there are no material uncertainties about the Institute’s ability to continue as a going concern.

(c) INCOME RECOGNITION

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the money and the amounts can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Donations and legacies:

Donations, are recognised when the Institute has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Grant income:

Income from grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the trust has entitlement to ; thereceived funds,andanytheperformanceamount canconditions be measuredattached reliablyto theandgrantsis not havedeferred, been met, it is probable that the income will be

Investment income:

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the trust; this is normally upon notification of the interest paid or payable by the bank.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

(d) EXPENDITURE AND IRRECOVERABLE VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the following expenditure headings as follows:

Raisingfunds:

Costs of raising funds comprise the costs of seeking and applying for grants and costs associated with the seeking and arranging of licence fee agreements,

Charitable activities:

Expenditure on charitable activities includes the costs of activities undertaken to further the purposes of the institute and their associated support costs. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis.

Governance costs include all expenditure not directly related to the charitable activity or fundraising ventures. This includes an appropriate proportion of costs of staff salaries for administration staff and audit fees.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

THE NEEDHAM RESEARCH INSTITUTE

PAGE 14

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

(e) TANGIBLE FIXED ASSETS

The charity has a policy of capitalising fixed assets with a cost in excess of £100, Depreciation is provided on all tangible fixed assets at rates calculated to write-off the costs less estimated residual value of each asset over its expected useful life as follows:

8 Sylvester Road (Long leasehold) - over the period of the lease (97 years) Fixtures and fittings - 10 years straight line Equipment ~ 4 years straight line

(f) HERITAGE ASSETS

The Institute holds a collection of heritage assets comprising rare and historically significant items relating to Chinese culture, including books, manuscripts, artworks, decorative objects and cultural artefacts. These assets are held for their cultural, educational and research value.

The heritage assets held by the Institute were largely acquired prior to 31st December 2020, predominantly by way of donation. Reliable information regarding their original cost or current valuation is not available, and the trustees consider that obtaining such infornation would not be practicable on a cost-benefit basis.

Heritage assets, including donated goods, acquired after 31st December 2020 above the value of £5,000 are recognised in the balance sheet only where reliable cost or fair value information is available at the date of acquistion and where the trustees consider that the benefit to users of the accounts of recognising the asset outweighs the cost of obtaining such a valuation. Assets acquired by donation after this date are recognised at fair value where this can be measured reliably.

(g) INVESTMENTS FIXED ASSETS

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Institute does not acquire put options, derivatives or other complex financial instruments,

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

(h) REALISED GAINS AND LOSSES

All gains and losses are taken to the Statement ofFinancial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement ofFinancial Activities.

(i) DEBTORS

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(j) CREDITORS

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(k) PENSIONS

The Institute participates in the Universities Superannuation Scheme (the scheme). Throughout the current and preceding periods, the scheme was a defined benefit only pension scheme until 31 March 2016 which was contracted out of the Second State Pension (S2P). The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the scheme'’s assets are not hypothecated to individual institutions and a scheme-wide contribution rate is set.

The Institute is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by Section 28 ofFRS 102 "Employee benefits", accounts for the scheme as if it were a defined contribution scheme.

THE NEEDHAM RESEARCH INSTITUTE

PAGE 15

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

(k) PENSIONS- continued

As a result, the amount charged to the Statement of Financial Activities represents the contributions payable to the scheme in respect of the accounting period. Since the institution has entered into an agreement (the Recovery Plan that determines how each employer within the scheme will fund the overall deficit), the institution recognises a liability for the contributions payable that arise from the agreement to the extent that they relate to the deficit and the resulting expense in the Statement of Financial Activities.

The Institute also participates in the Cambridge University Assistants' Contributory Pension Scheme (CPS). The scheme is a defined benefit scheme which is externally funded and is also contracted out of the State Second Pension (S2P). The fund is valued every three years by a professionally qualified independent actuary, with the actuary reviewing the progress of the scheme in the intervening years.

The Cambridge University Assistants’ Contributory Pension Scheme, provides benefits based on final pensionable salary and contributions are made into a defined contribution scheme under the stakeholder rules. The Institute’s contributions to this scheme are charged to the Statement of Financial Activities as they are incurred.

2. INCOMEFROMDONATIONSANDLEGACIES Unrestricted Restricted Endowment 2025
FORTHEYEARENDED 30TH SEPTEMBER 2025 Funds Funds Funds Total
£ £ £ £
Donations 2,550 67,550 - 70,100
INCOMEFROMDONATIONSANDLEGACIES Unrestricted Restricted Endowment 2024
FORTHE YEAR ENDED 30TH SEPTEMBER 2024 Funds Funds Funds Total
£ £ £ £
Donations 2,484 102,766 - 105,250
2,484 102,766 - 105,250
3, INCOMEFROMCHARITABLEACTIVITIES Unrestricted Restricted Endowment
YEARENDED 30TH SEPTEMBER 2025 Funds Funds Funds Total
£ £ £ £
Grants 15,473 92,241 - 107,714
INCOMEFROMCHARITABLEACTIVITIES Unrestricted Restricted Endowment 2024
YEARENDED 30TH SEPTEMBER 2024 Funds Funds Funds Total
£ £ £ £
Grants 12,500 59,141 - 71,641
4, INCOMEFROMINVESTMENTS Unrestricted Restricted Endowment 2025
YEAR ENDED 30TH SEPTEMBER 2025 Funds Funds Funds Total
£ £ £ £
Bank interest receivable 3,897 “ - 3,897
Dividends and gilts receivable 61,642 42,345 233,018 337,005
Rents receivable (No 2 SylvesterRoad) 41,095 - - 41,095
106,634 42,345 233,018 381,997
INCOMEFROMINVESTMENTS Unrestricted Restricted Endowment 2024.
YEARENDED 30TH SEPTEMBER 2024 Funds Funds Funds Total
£ £ £ £
Bank interest receivable 2,173 399 - 2,572
Dividends and gilts receivable 64,874 62,943 277,500 405,317
Rents receivable (No 2 SylvesterRoad) 39,691 - - 39,691
106,738 63,342 277,500 447,580
5. INCOME FROMOTHER Unrestricted Restricted Endowment 2025
YEARENDED 30TH SEPTEMBER 2025 Funds Funds Funds Total
£ £ £ £
Royalties 12,616 - - 12,616
Sundry 11,008 - - 114,008
23,624 —- - 23,624

THE NEEDHAM RESEARCH INSTITUTE

PAGE 16

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

5. INCOMEFROMOTHER Unrestricted Restricted Endowment 2024
YEARENDED 30TH SEPTEMBER 2024 Funds Funds Funds Total
£ £ £ £
Royalties 1,625 - - 1,625
Sundry 7177 - - 7A77
8,802 - - 8,802
6. EXPENDITURE ON:
CHARITABLEACTIVITIES Unrestricted Restricted Endowment 2025
YEARENDED 30THSEPTEMBER 2025 Funds Funds Funds Total
£ £ £ £
Academic and related costs 210,360 237,110 - 447,470
Establishment costs 97,450 “ 16,770 114,220
Office and support costs 94,668 3,846 - 98,514
Governance costs 8,907 51 - 8,958
411,385 241,007 16,770 669,162
ANALYSIS OFEXPENDITUREONCHARITABLE Unrestricted Restricted Endowment 2025
ACTIVITIESYEARENDED 30TH SEPTEMBER 2025 Funds Funds Funds Total
Academic and related costs £ £ £ £
Salaries (academic) 107,736 83,298 - 191,034
Salaries (librarian) 66,187 15,914 - 82,101
Research grants - 122,900 - 122,900
Books and publications 9,611 728 - 10,339
Travelandaccommodation 8,801 11,912 - 20,713
Computer costs 11,882 2,211 - 14,093
Telephone, postage andphotocopying 3,239 147 - 3,386
Other (incl, lecture and exhibition expenses) 2,904 - - 2,904
210,360 237,110 - 447,470
Kstablishment costs
Rates 17,533 - - 17,533
Insurance 11,819 - - 11,819
Repairs andmaintenance 33,302 - - 33,302
Water, light and heat 15,533 - - 15,533
Cleaning 9,605 - - 9,605 —
Gardening and grounds 9,658 - - 9,658
Depreciation - - 16,770 16,770
97,450 - 16,770 114,220
Office and support costs
Other salaries 78,205 - - 78,205
Depreciation 2,892 - - 2,892
Printing and stationery 6,177 66 - 6,243
Events 7,394 3,780 - 11,174
94,668 3,846 - 98,514
Governance costs
Audit and accountancy 8,250 - - 8,250
Other legal and professional fees 657 51 - 708
~
8,907 51 - 8,958
411,385 241,007 16,770 669,162

|

THE NEEDHAM RESEARCH INSTITUTE

PAGE 17

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

6, EXPENDITURE ON:
CHARITABLEACTIVITIES Unrestricted Restricted Endowment 2024
YEARENDED 30TH SEPTEMBER 2024 Funds Funds Funds Total
£ £ £ £
Academic and related costs 214,560 234,237 - 448,797
Establishment costs 91,353 - 16,770 108,123
Office and support costs 89,363 4,549 - 93,912
Governance costs 8,341 7 - 8,348
403,617 238,793 16,770 659,180
ANALYSISOFEXPENDITUREONCHARITABLE Unrestricted Restricted Endowment 2024
ACTIVITIES YEARENDED 30THSEPTEMBER 2024 Funds Funds Funds Total
Academic and related costs £ £ £ £
Salaries (academic) 105,293 87,730 - 193,023
Salaries (librarian) 77,573 7,095 - 84,668
Research grants - 120,415 - 120,415
Books and publications 11,232 1,081 - 12,313
Travel and accommodation 3,388 16,572 - 19,960
Computercosts 11,528 449 - 11,977
Telephone, postage andphotocopying 3,277 - - 3,277
Other (incl. lecture and exhibition expenses) 2,269 895 - 3,164
214,560 234,237 - 448,797
Establishment costs
Rates 16,759 - - 16,759
Insurance 10,603 - - 10,603
Repairs andmaintenance 25,643 - - 25,643
Water, lightandheat 20,031 - ~ 20,031
Cleaning 9,863 - - 9,863
Gardening and grounds 8,454 - - 8,454
Depreciation - - 16,770 16,770
91,353 - 16,770 108,123
Officeand support costs
Other salaries 74,919 - - 74,919
Depreciation 3,802 - - 3,802
Printingand stationery 4,618 - - 4,618
Events 6,024 4,549 - 10,573
89,363 4,549 - 93,912
Governance costs
Audit and accountancy 8,340 - - 8,340
Other legal and professional fees 1 7 - 8
8,341 7 - 8,348
403,617 238,793 16,770 659,180

THE NEEDHAM RESEARCH INSTITUTE

PAGE 18

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |7,|NET INCOME FOR THE YEAR|2025|2024| |This|is|stated|after|charging:|£|£| |Auditors|remuneration|-|external|audit|8,250|8,340| |Depreciation of tangible|fixed|assets|19,662|20,572|

----- End of picture text -----

MANAGEMENT THREAT IN RELATION TO NON-AUDIT SERVICES

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |In common with many|other|businesses|of our|size and nature we use our|auditors|to|assist with|the|preparation|of|the| |financial|statements.| |8.|ANALYSIS|OF|STAFF COSTS AND REMUNERATION|OF|2025|2024| |KEY MANAGEMENT PERSONNEL|£|£| |Salaries|and wages|280,809|274,399| |Social|security|costs|23,777|29,131| |Pension|contributions|54,187|57,037| |358,773|360,567|

----- End of picture text -----

The pension contributions shown above include amounts relevant to the inclusion of the pension provision shown in note 14 to the financial statements as required following the introduction of FRS 102.

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |The|total number ofemployees|whose|total|salaries|exceeded|£60,000|is|as|follows:|2025|2024| |£80,000|- £90,000|1|1| |The|average number of staff employed,|analysed|by function,|employed|during the|year were:| |2025|2024| |Number|Number| |Academic|5|5| |Administration|3|3| |Establishment|1|1| |9|9|

----- End of picture text -----

The above numbers do not include Trustees who are not permitted to receive remuneration for their duties.

Related party transactions in the year were £Nil (2024: £Nil)

No expenses were reimbursed to the Trustees, and no payments were made to Trustees in the year (2024: £16 paid by the Institute in respect of Trustees’ attendance at meetings).

  1. TAXATION As a charity, The Needham Research Institute is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the year.

THE NEEDHAM RESEARCH INSTITUTE

PAGE 19

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

----- Start of picture text -----
|||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |10.|TANGIBLE FIXED ASSETS|Long|Fixtures &|Equipment| |YEAR ENDED|30TH|SEPTEMBER 2025|Leasehold|Fittings|&|Software|Total| |£|£|£|£| |COST| |Balance|at|1st October 2024|1,626,664|57,188|27,614|1,711,466| |Disposals|-|-|-|-| |Balance|at 30th|September 2025|1,626,664|57,188|27,614|1,711,466| |DEPRECIATION| |Balance|at|Ist|October 2024|570,098|52,340|24,564|647,002| |Charge|for|the year|16,770|1,157|1,735|19,662| |Eliminated|-|-|-|-| |Balance|at|30th|September 2025|586,868|53,497|26,299|666,664| |NET BOOK VALUE|as|at 30th|September|2025|1,039,796|3,691|1,315|1,044,802| |TANGIBLE FIXED ASSETS|Long|Fixtures &|Equipment| |YEAR ENDED|30TH SEPTEMBER 2024|Leasehold|Fittings|&|Software|Total| |£|£|£|£| |COST| |Balance|at|1st|October 2023|1,626,664|70,813|28,691|1,726,168| |Disposals|-|(13,625)|(1,077)|(14,702)| |Balance|at 30th|September 2024|1,626,664|57,188|27,614|1,711,466| |DEPRECIATION|oo|a|a|——_| |Balance|at|Ist|October 2023|553,328|64,647|23,157|641,132| |Charge|for|the|year|16,770|1,318|2,484|20,572| |Eliminated|-|(13,625)|(1,077)|(14,702)| |Balance|at 30th|September 2024|570,098|52,340|24,564|647,002| |NET BOOK VALUE|as|at|30th|September 2024|1,056,566|4,848|3,050|1,064,464| |11.|INVESTMENT|FIXED ASSETS|2025|2024| |Market|Market| |Cost|Value|Cost|Value| |£|£|£|£| |Investment|properties|-|long leasehold|111,548|715,000|111,548|1,200,000| |Listed|investments|15,303,704|16,099,393|11,280,256|14,992,103| |Capital|account|96,161|96,161|160,201|160,201| |15,511,413|16,910,554|11,552,005|16,352,304| |Market value|at|Ist|October|16,192,103|14,637,048| |Listed|investments|acquired|16,175,403|2,073,138| |Listed|investments|disposed|(16,138,384)|(2,176,869)| |Realised|gains|;|216,559|204,024| |Net|gains|on revaluations|at|30th|September|368,712|1,454,762| |Market value|at|30th|September|16,814,393|16,192,103| |The|long|leasehold|of 2|Sylvester|Road was|revalued|in|February|2026|by|Watsons|Property|Group,|an independent| |firm of|chartered|surveyors and|valuers,|on the basis|of itsopen market|value.|The leasehold was|valued|at £715,000.| |Listed|investments|have been|valued|at|the|prices|as|shown|on|recognised|exchanges.|At the|30th|September 2025,| |investments|are|held by|the|Institute's fund managers|Schroder & Co Ltd|and|Quilter|Cheviot Limited.| |Investments|held|within|the|portfolios|that exceed 5%|of|the|total|valuation|are:|2025| |%| |Charity|Multi-Asset Accumulation|Fund|24.70| |Charity Multi-Asset Distribution Fund|73.26|

----- End of picture text -----

THE NEEDHAM RESEARCH INSTITUTE

PAGE 20

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

12, DEBTORS 2025 2024
Due within one year: £ £
Prepayments andaccrued income 26,696 53,626
13, CREDITORS 2025 2024
Duewithin one year: £ £
Accruals and deferred income 38,244 33,805
; Depositheld 2,025 2,025
40,269 35,830
14, PROVISIONSFORLIABILITIES 2025
. £
Balance at Ist October 2024 28,101
Provision identified inthe year -
Movement in provision (3,792)
Balance at 30th September 2025 24,309
PROVISIONS FORLIABILITIES 2024
£
Balance at 1stOctober 2023 31,717
Provision identified inthe year -
Movement in provision (3,616)
Balanceat30thSeptember2024 28,101

The introduction of FRS 102 necessitates the inclusion of a provision to account for the full liability of any pension deficit catch up plan. The liability is based on the additional expected payments required over the life of the catch up plan, allowing for discounting rates and changes in future contributions.

The provision relates to the USS pension deficit recovery plan as mentioned in note 1 (Ik) to the financial statements.

THE NEEDHAM RESEARCH INSTITUTE

PAGE 21

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

16. ENDOWMENTFUNDS Balance Revaluation Balance
YEARENDED 30TH B/Fwd. Income Expenditure Gains Transfers C/Fwd,
SEPTEMBER2025 £ £ £ £ £ £
BuildingFund 673,307 - (10,650) - - 662,657
BuildingFund (South Wing) 435,596 - (6,120) - - 429,476
EndowmentFund 9,207,495 233,018 - $50,274 (233,018) 9,757,769
EndowmentFund Library 21,850 - - - - 21,850
JosephNeedhamEstate 485,889 - - - - 485,889
10,824,137 233,018 (16,770) 550,274 (233,018) 11,357,641

The building funds were provided for and expended on the erection of permanent premises for the Needham Research Institute and to house the East Asian History of Science Library.

The Endowment Fund exists to provide capital for investment which in turn will produce income sufficient in time to secure the continuing operation of the Institute.

ENDOWMENTFUNDS Balance Revaluation Balance
YEARENDED30TH B/Fwd. Income Expenditure Gains Transfers C/Fwd.
SEPTEMBER 2024 £ £ £ £ £ £
Building Fund 683,957 - (10,650) - - 673,307
BuildingFund (South Wing) 441,716 - (6,120) - - 435,596
EndowmentFund 8,338,759 277,500 - 868,736 (277,500) 9,207,495
EndowmentFundLibrary 21,850 - - - - 21,850
JosephNeedhamEstate 485,889 - - - - 485,889
9,972,171 277,500 (16,770) 868,736 (277,500) 10,824,137
17, UNRESTRICTED FUNDS Balance Revaluation Balance
YEARENDED 30TH B/Fwd. Income __Expenditure Gains Transfers - C/Fwd.
SEPTEMBER2025 £ £ £ £ £ £
Designated funds:
Building repairs fund 31,622 - - - 4,000 35,622
Computer andequipment
fund 16,485 - - - - 16,485
LibrarySpecial Fund 21,192 - (6,578) - 12,000 26,614
69,299 - (6,578) - 16,000 78,721
Other charitable funds 4,173,946 148,281 (450,460) (133,185) 232,362 3,970,944
4,243,245 148,281 (457,038) (133,185) 248,362 4,049,665
Purpose ofdesignated funds: a a a oo — a

The building repairs fund arises from amounts set aside towards major building maintenance.

The computer and equipment fund arises from amounts set aside towards the updating and replacement of computers and equipment.

The Library Special Fund arises from amounts set aside towards the purchase of books and publications for the Library.

UNRESTRICTED
FUNDS		 Balance Revaluation Balance
YEARENDED 30TH B/Fwd. Income Expenditure Gains Transfers C/Fwd,
SEPTEMBER 2024 £ £ £ £ £ £
Designated funds:
Building repairs fund 27,622 - - - 4,000 31,622
Computerand equipment
fund 16,485 - - - - 16,485
Library Special Fund 31,918 - (5,499) - (5,227) 21,192
76,025 - (5,499) - (1,227) 69,299
Other charitable funds 3,680,296 130,524 (457,700) 532,451 288,375 4,173,946
3,756,321 130,524 (463,199) 532,451 287,148 4,243,245

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THE NEEDHAM RESEARCH INSTITUTE

PAGE 24

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

18. . ANALYSIS OFNETASSETS BETWEENFUNDS 2025
YEAR ENDED30THSEPTEMBER2025 Unrestricted Restricted Endowment Total
Funds Funds Funds Funds
£ £ £ £
Fundbalances at30th September arerepresented by:.
Tangible fixed assets 5,006 ~ 1,039,796 1,044,802
Investment fixed assets 3,968,097 2,656,078 10,286,379 16,910,554
Debtors 17,108 9,588 - 26,696
Cash atbankand inhand 109,815 39,024 31,466 180,305
Current liabilities (26,052) (14,217) - (40,269)
Provisions for liabilities (24,309) - - (24,309)
Net assets 4,049,665 2,690,473 11,357,641 18,097,779
ANALYSIS OFNETASSETS BETWEEN FUNDS 2024
YEAR ENDED30TH SEPTEMBER 2024 Unrestricted Restricted Endowment Total
Funds Funds Funds Funds
£ £ £ £
Fund balances at30th September are represented by:.
Tangible fixed assets 7,898 - 1,056,566 1,064,464
Investment fixed assets 4,076,781 2,539,418 9,736,105 16,352,304
Debtors 33,597 20,029 ~ 53,626
Cash atbankand inhand 186,068 28,159 31,466 245,693
Currentliabilities (32,998) (2,832) - (35,830)
Provisions for liabilities (28,101) ~ - (28,101)
Netassets 4,243,245 2,584,774 10,824,137 17,652,156
  1. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
2025 2024
£ £
Netmovement infunds 445,623 1,562,344
Add: Depreciation 19,662 20,572
Less: Investment income (381,997) (447,580)
Less: Gains on investments (585,271) (1,658,786)
Decrease in debtors 26,930 34,103
Increase in creditors 4,439 4,812
Decrease in provisions (3,792) (3,616)
Netcashprovidedby(used in)operatingactivities " (474,406) “(488,151)
ANALYSIS OF CASHAND CASHEQUIVALENTS 2025 2024
£ £
Cash held under investments 96,161 160,201
Cash atbank 180,305 245,693
276,466 405,894

THE NEEDHAM RESEARCH INSTITUTE

PAGE 25

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

  1. PENSIONS

(a) Universities Superannuation Scheme

The Institute participates in the Universities Superannuation Scheme (the scheme) with three active members. Throughout the current and preceding periods, the scheme was a defined benefit only pension scheme until 31 March 2017 which was contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the scheme's assets are not hypothecated to the individual institutions and a scheme-wide contribution rate is set. The Institute is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by Section 28 of FRS 102 "Employee benefits", accounts for the scheme as if it were a defined contribution scheme.

As a result, the amount charged to the Statement of Financial Activities represents the contributions payable to the scheme. Since the Institute has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the Institute recognises a liability for the contributions payable that arise from the agreement to the extent that they relate to the deficit and the resulting expense in the Statement of Financial Activities.

The total cost charged to the Statement of Financial Activities for the Institute is £26,997 (2023/24: £30,555).

Since the Institute cannot identify its share of the scheme assets and liabilities, the following disclosures reflect those relevant for the scheme as a whole.

The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme'’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles.

CPI assumption Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less:

1.0% p.a. to 2030, reducing linearly by 0.1% p.a. from 2030

Pension increase Benefits with no cap: (subject to a floor of 0%) CPI assumption plus 3bps Benefits subject to a "soft cap" of 5% (providing inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum of 10%): CPI assumption minus 3bps Discount rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement: 2.5% p.a. Post retirement: 0.9% p.a.

The main demographic assumptions used relate to the mortality assumption. These assumptions are based on analysis of the scheme's experience carried out as part of the 2023 actuarial valuation. The mortality assumption used in these figures are as follows:

2023 valuation

Mortality base table 101% of S2PMA "light" for males and 95% of S3PFA for females Future improvements to mortality CMI 2021 with a smoothing parameter of 7.5 an initial addition of 0.4% p.a., 10% w2020 and w2021 parameters, and a long-term improvement rate of 1.8% p.a. for males and 1.6% p.a. for females

THE NEEDHAM RESEARCH INSTITUTE

PAGE 26

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH SEPTEMBER 2025

NOTES TO THE FINANCIAL STATEMENTS

PENSIONS
_....(CONT.)
The current life expectancies on retirement atage of65 are: 2025 2024
Males currently aged 65 (years) 23.8 23.7
Females currentlyaged 65 (years) 25.5 25.6
Males currently aged 45 (years) 25.7 25.4
Femalescurrentlyaged 45(years) 27.2 27.2

The matter of eligibility to participate in the scheme is subject to an ongoing review, and the outcome remains uncertain at the reporting date.

(b) Cambridge University Assistants’ Contributory Pension Scheme

The Institute participates in the Cambridge University Assistants’ Contributory Pension Scheme (CPS) which is a defined benefit scheme. The Institute’s contributions are affected by a surplus or deficiency in the CPS but the Institute is unable to identify its share of the underlying assets and liabilities in the Scheme on a consistent and reasonable basis. The Institute therefore accounts for its contributions to the CPS as if it were a defined contribution scheme. It had six active members participating in the Scheme.

The CPS was established under the authority of the Universities of Oxford and Cambridge Act 1923. It is a registered pension scheme for the purposes of the Finance Act 2004. The active members of the scheme are employees of the University and its subsidiary undertakings. The scheme’s benefit structure changed significantly from 1 January 2013, at which point employees covered by the schemes ceased to be contracted out of the State Second Pension,

‘Triennial valuation of the scheme

A full triennial valuation of the scheme was carried out by the actuary for the trustees of the scheme as at 31 July 2021. The results of valuation showed the actuarial value of the scheme’s assets as £814m. These were sufficient to cover the scheme's past service liabilities of £738m; the scheme had a surplus of £76m and was 110% funded.

Since 1 August 2013 employer contributions have been set at 11.5% of pensionable pay for existing members at 31 December 2021 and 5.8% of pensionable pay (together with contributions at 5.0% to a separate defined contribution arrangement) for new entrants from 1 January 2013. On 1 August 2023, employer contributions will be adjusted to 14.1% of pensionable pay for existing members at 31 December 2012 and 7.6% of pensionable pay (together with contributions at 5% to a separate defined contribution arrangement) for new entrants from 1 January 2013. In addition, fixed employer contributions totalling £14.6m per annum are payable over the period from 1 August 2011 to 31 July 2023, These payments are subject to review at the next triennial valuation due as at 31 July 2024.