Company Number: 13660528

Analysis Date: 2025-07-20 17:55 UTC

1. Risk Rating: HIGH
   The company shows significant deterioration in net assets and working capital from 2022 to 2023, with net assets dropping from £5,707 to £434 and net current assets turning marginally positive but very low (£434). Negative retained earnings and reduced cash balances indicate potential solvency and liquidity concerns. The company relies on parent company support, which introduces risk if that support ceases.

2. Key Concerns:

• Substantial decline in net assets and cash reserves over the last year, with cash falling from £4,146 to £510, indicating liquidity stress.
• Negative retained earnings (£14,566) and small shareholder funds relative to liabilities, suggesting accumulated losses and weak financial buffer.
• Dependence on the parent company (Beijing Xiling Vision Technology Co. Ltd) for working capital support, raising concerns about financial independence and going concern sustainability.

3. Positive Indicators:

• The company is current with all filings and accounts, indicating compliance with regulatory requirements.
• Directors are established and have remained consistent since incorporation without disqualifications noted.
• The company operates in specialised design and research sectors (SIC codes 74100, 72190), which may offer niche market opportunities.

4. Due Diligence Notes:

• Investigate the nature, extent, and terms of financial support from the parent company and the likelihood of its continuation.
• Review the company's revenue generation, profitability trends, and business plan to assess operational sustainability.
• Assess the composition and aging of debtors (£2,499) to evaluate collectability and potential bad debt risk.
• Clarify reasons behind the significant drop in cash and net assets from 2022 to 2023.
• Confirm any contingent liabilities or off-balance sheet risks not disclosed in the accounts.