Company Number: 12579869

Analysis Date: 2025-07-20 13:03 UTC

1. Credit Opinion: APPROVE
   BAOJI LIMITED demonstrates a solid and improving financial position for a micro-entity operating in the health sector. The company shows consistent growth in net assets and working capital, indicating effective management of resources and a strong ability to meet short-term liabilities. There are no adverse flags such as overdue filings or director disqualifications. Given the positive trajectory and clean compliance record, the company is assessed as capable of servicing credit facilities with standard monitoring.

2. Financial Strength
   The balance sheet reflects increasing net assets from £34,229 in 2020 to £193,603 in 2024, a nearly sixfold increase over four years. Fixed assets remain minimal (£664 in 2024), appropriate for the service-based industry. Current assets have grown from £136,240 in 2020 to £213,694 in 2024, while current liabilities have decreased significantly from £103,004 in 2020 to £20,755 in 2024. The resulting net current assets (working capital) of £192,939 provide strong liquidity buffers and financial flexibility. Shareholders’ funds have increased commensurately, indicating retained earnings and sound capitalisation.

3. Cash Flow Assessment
   While no direct cash flow statement is provided, the substantial net current assets and reduction in current liabilities suggest strong operational cash flow management. The company maintains a low level of fixed assets, reducing capital expenditure burdens. Current liabilities are well covered by current assets, resulting in a high current ratio (>10), which is conservative and indicative of healthy liquidity. With an average of only 3 employees, payroll obligations are likely modest, supporting stable cash flow requirements. No indications of payment delays or financial distress are apparent.

4. Monitoring Points

• Continue monitoring annual net current assets and liquidity ratios to ensure sustained ability to meet short-term obligations, particularly as the company grows.
• Track any changes in current liabilities to detect potential increases in short-term debt or creditor pressure.
• Review any changes in director appointments or PSCs that could affect governance or financial stewardship.
• Monitor sector-specific risks given the company’s classification in “Other human health activities,” particularly regulatory changes or shifts in demand.
• Confirm timely filing of accounts and confirmation statements to maintain compliance and transparency.