Company Number: 13660112

Analysis Date: 2025-07-20 17:56 UTC

1. Risk Rating: LOW
   Dengteng Ltd shows positive net asset growth, maintains a healthy net current asset position, and is compliant with filing requirements. The micro-entity status limits detailed financial disclosures, but available data indicates no immediate solvency or liquidity concerns.

2. Key Concerns:

• Limited Financial Transparency: As a micro-entity, detailed financial performance metrics such as profitability, cash flow, and debt structure are unavailable, limiting a full assessment of financial health.
• Low Fixed Assets Base: Fixed assets have decreased significantly from £1,004 in 2022 to £468 in 2023, which may indicate asset disposals or limited capital investment impacting operational capacity.
• Concentration of Control: Ownership is heavily concentrated among three individuals with significant overlapping voting rights and appointment powers, which could pose governance risks if interests diverge.

3. Positive Indicators:

• Growing Net Assets and Working Capital: Net assets increased from £12,719 in 2022 to £20,043 in 2023, with net current assets rising from £11,715 to £19,575, indicating improved liquidity and balance sheet strength.
• Timely Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue filings or penalties.
• Operational Stability: The company has grown its average number of employees from 2 to 3, suggesting gradual operational expansion.

4. Due Diligence Notes:

• Profitability and Cash Flow: Request profit and loss accounts and cash flow statements to confirm sustainable earnings and sufficient cash generation.
• Debt Profile: Clarify the nature of current liabilities (£22,850) to assess repayment terms and potential liquidity risks.
• Director and PSC Backgrounds: Conduct background checks on directors and persons with significant control to identify any past regulatory or legal issues.
• Business Model and Market Position: Understand the company's business activities under SIC codes 71129 and 62090 to evaluate market risks and competitive positioning.