JIAHUI YUNG KEE LIMITED

Executive Summary

JIAHUI YUNG KEE LIMITED is an early-stage micro-entity in the takeaway food sector showing negative net assets and working capital deficits after its first accounting period, indicating significant solvency and liquidity risks. However, regulatory filings are current and the company has begun employing staff, suggesting initial operations. Further due diligence on cash flow, capitalization, and market viability is recommended before investment.

JIAHUI YUNG KEE LIMITED - Analysis Report

Company Number: SC781396

Analysis Date: 2025-07-29 19:53 UTC

1. Risk Rating: HIGH

Justification: The company exhibits negative net current assets (-£6,238) and negative net assets (-£8,061) within its first financial year, indicating an insolvency risk. The small scale and micro-entity status limit financial resilience. The short operating history (incorporated Sept 2023) provides no track record of operational stability.

2. Key Concerns:

• Negative working capital position: Current liabilities nearly double current assets, suggesting cash flow constraints.
• Negative shareholders’ funds/net assets: Indicates that liabilities exceed assets, raising solvency concerns.
• New company with limited financial history and unproven business model in a competitive takeaway food sector.

3. Positive Indicators:

• No overdue filings for accounts or confirmation statements, evidencing regulatory compliance so far.
• Sole director and majority shareholder (Mr. Jiahui Lin) is resident locally with direct control, potentially enabling agile decision-making.
• Employment of 3 staff suggests initial operational activity and some business scale beyond sole trader.

4. Due Diligence Notes:

• Review detailed cash flow and management accounts to assess liquidity beyond balance sheet snapshot.
• Investigate source of negative equity: initial losses or shareholder loans, and plans for capital injection.
• Analyze market positioning and revenue generation potential within takeaway food industry.
• Confirm absence of director disqualifications or regulatory issues beyond Companies House filings.
• Monitor upcoming filings and trading performance to detect trends in financial health.