YAN ZHANG & ASSOCIATES LTD

Executive Summary

Yan Zhang & Associates Ltd is a micro-entity with a short operating history but currently demonstrates a solvent and compliant financial position supported by director funding. While initial liquidity appears adequate, the company’s small scale and reliance on shareholder loans warrant further scrutiny of ongoing cash flow and operational sustainability. No regulatory or governance concerns are evident at this stage.

YAN ZHANG & ASSOCIATES LTD - Analysis Report

Company Number: 15613773

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: LOW
   The company is newly incorporated (April 2024) and classified as a micro-entity with a modest asset base but positive net assets and net current assets. There are no overdue filings or indications of financial distress. Directors have made interest-free loans to the company, which supports liquidity. Overall, there is no immediate solvency or liquidity risk evident.

2. Key Concerns:

• Limited operating history: Incorporated less than two years ago, so financial and operational track record is minimal.
• Director loans: £13,780 interest-free loans from directors may indicate dependence on shareholder funding rather than operational cash flow.
• Single employee and limited scale: With only one employee and micro-entity status, business sustainability and growth potential may be constrained.

3. Positive Indicators:

• Positive net current assets (£10,950) and net assets (£12,429) indicate the company is solvent as at the reporting date.
• No overdue statutory filings or compliance issues reported, demonstrating good governance and regulatory compliance.
• Clear shareholder structure with majority control by Mr. Yan Zhang and involvement of a second director, suggesting stable leadership.

4. Due Diligence Notes:

• Review the nature and terms of director loans to assess repayment likelihood and impact on cash flows.
• Obtain updated management accounts or cash flow forecasts to understand ongoing liquidity beyond the first financial year.
• Investigate the company’s business plan and client pipeline given limited operational history and scale.
• Confirm no related party transactions or contingencies not disclosed in the accounts.