LUAN XIANG TRADING CO., LIMITED

Executive Summary

LUAN XIANG TRADING CO., LIMITED is a dormant private limited company with no trading history or financial activity since incorporation. The company’s financial position is limited to initial share capital with no assets or cash flow, presenting a high credit risk. Credit extension is not recommended until there is evidence of active trading and demonstrable financial performance.

LUAN XIANG TRADING CO., LIMITED - Analysis Report

Company Number: 12841940

Analysis Date: 2025-07-19 11:55 UTC

1. Credit Opinion: DECLINE
   LUAN XIANG TRADING CO., LIMITED is a dormant company with no trading activity or financial transactions reported since incorporation in 2020. The company has not generated any revenues or incurred expenses, indicating no operational cash flow or business activity. Given the absence of trading history and financial performance, there is no evidence of ability to service debt or commercial obligations. From a credit perspective, extending credit to a dormant entity is high risk due to lack of business substance and cash flow.

2. Financial Strength:
   The company’s balance sheet is minimal and static, showing only £10,000 in called-up share capital consistently over the years. There are no assets, liabilities, retained earnings, or reserves beyond the initial share capital. Net assets and shareholders' funds remain at £10,000, reflecting no business growth or financial activity. This indicates a very weak financial position with no buffer or working capital.

3. Cash Flow Assessment:
   As a dormant company, LUAN XIANG TRADING CO., LIMITED has no reported cash inflows or outflows. Liquidity is limited to the initial share capital, with no evidence of cash generation or operational cash management. The company’s dormant status means it cannot demonstrate any capacity to meet short-term liabilities or fund operations.

4. Monitoring Points:

• Monitor any change in company status from dormant to active trading, including filing of full accounts showing operational results.
• Watch for any changes in financial structure such as capital injections or incurrence of liabilities.
• Track timely filing of statutory returns and accounts to ensure compliance and transparency.
• Monitor director appointments and any changes in ownership or control that may impact credit risk profile.