SENGDA FREIGHT LTD

Executive Summary

Sengda Freight Ltd is a recently incorporated micro-entity with a healthy balance sheet and compliant filing record, indicating low immediate financial risk. However, limited operating history and ownership concentration warrant closer examination of cash flows and governance practices to fully assess operational stability. Overall, the company currently presents a low risk profile for investors but requires further due diligence on its business fundamentals.

SENGDA FREIGHT LTD - Analysis Report

Company Number: 15022411

Analysis Date: 2025-07-29 13:31 UTC

1. Risk Rating: LOW
   The company exhibits a solid net asset position relative to its size and category, with no overdue filings and current director appointments in good standing. The financials indicate positive net current assets and shareholders’ funds, suggesting an ability to meet short-term liabilities.

2. Key Concerns:

• Limited Operating History: Incorporated in July 2023, the company has less than one full year of trading data, which limits the ability to assess operational stability and financial trends.
• Concentrated Ownership and Control: With one individual holding 75-100% of shares and voting rights, there is a governance risk due to lack of diversified control. This could impact decision-making transparency.
• Current Liabilities Level: Although net current assets are positive, current liabilities (£109,802) are relatively high compared to fixed assets (£26,622), making liquidity dependent on current assets conversion and cash flow management.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statements) are up-to-date, with no overdue returns or accounts.
• Net Assets and Working Capital: The company holds net assets of £57,528 and positive net current assets of £30,906, indicating a healthy balance sheet for a micro-entity.
• Active Website and Contact Details: Presence of an active website and valid contact information supports operational legitimacy and transparency.

4. Due Diligence Notes:

• Verify cash flow and revenue streams given limited trading history to assess sustainability and liquidity beyond the balance sheet snapshot.
• Investigate the business model and contracts underpinning the transportation support activities (SIC 52290) to gauge operational risks and growth prospects.
• Review any potential related party transactions or financial dependencies given the high ownership concentration by Mr. Hongwen Wang and the controlling interest of Hong Kong Marry Technology Limited.
• Confirm adequacy of insurance, licenses, and regulatory compliance specific to freight and transportation support services.