DATASEA INFORMATION TECHNOLOGY LTD

Executive Summary

DATASEA INFORMATION TECHNOLOGY LTD demonstrates significant solvency risk as evidenced by a near-zero net asset position in the latest accounts, despite being compliant with filing requirements. Limited financial disclosure restricts full evaluation, but the drastic asset decline warrants caution and further investigation into operational and liquidity status before investment consideration.

DATASEA INFORMATION TECHNOLOGY LTD - Analysis Report

Company Number: 13811461

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: HIGH
   The company shows extremely minimal net assets (£1) as of the latest financial year, indicating negligible capitalization. This raises significant solvency concerns as the company’s balance sheet position is barely above zero, suggesting it may struggle to meet obligations or absorb financial shocks.

2. Key Concerns:

• Minimal Net Assets: £1 net assets in 2023, down from £500 in 2022, indicates a drastic decline in financial strength.
• Lack of Financial Detail: Micro-entity accounts provide limited transparency and no profit & loss data, impeding proper assessment of operational performance and cash flow.
• Single Employee and Director: The company has only one employee/director, which may indicate limited operational capacity and concentration risk.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statement filings are current and not overdue, suggesting adherence to statutory requirements.
• Active Website and Industry Classification: The company appears operational with a live website and relevant SIC codes in IT consultancy and software development, supporting business sustainability prospects.
• Clear Control and Governance: Ownership and control are transparent, with a single PSC holding 75-100% shares and voting rights, reducing governance ambiguity.

4. Due Diligence Notes:

• Investigate reasons behind the drastic reduction in net assets from £500 in 2022 to £1 in 2023 to assess financial distress or asset write-offs.
• Obtain detailed management accounts or cash flow statements to evaluate liquidity and operational viability beyond micro-entity filings.
• Examine related party transactions or loans that may affect financial position given the single director/shareholder structure.
• Assess business model and revenue generation given minimal reported assets and employees.