ZHONGLIANG TECH LIMITED

Executive Summary

ZHONGLIANG TECH LIMITED is a start-up entity currently dormant with minimal financial substance and no trading history, presenting no basis for credit approval. The company’s balance sheet is nominal, and there is no cash flow to support debt repayment. Credit facilities should be withheld until demonstrable operational activity and financial performance are evidenced in future filings.

ZHONGLIANG TECH LIMITED - Analysis Report

Company Number: 14896647

Analysis Date: 2025-07-29 20:18 UTC

1. Credit Opinion: DECLINE
   ZHONGLIANG TECH LIMITED is a newly incorporated private limited company that has filed dormant accounts, showing no trading activity or financial transactions during its first financial year. The company’s net assets and shareholders’ funds stand at £1, indicating no operational or financial substance to support credit exposure. The company has also failed to timely file its confirmation statement, which raises procedural compliance concerns. Given the absence of trading history, revenues, or financial data demonstrating the ability to generate cash flow or service debt, extending credit at this stage would be unjustified and high risk.

2. Financial Strength:
   The balance sheet reflects a purely nominal capital structure with net assets of £1 and no recorded liabilities or assets beyond the issued share capital. The dormant status means there are no fixed assets, current assets, or liabilities reported. This lack of financial depth indicates the company has no equity cushion or working capital to support business operations or absorb financial stress.

3. Cash Flow Assessment:
   With no trading activity reported, there is no cash inflow or outflow to analyze. The company’s liquidity position is effectively non-existent since it holds no cash or current assets. This means it cannot meet any short-term obligations or operational expenses without additional capital injection.

4. Monitoring Points:

• Confirm the company’s transition from dormant status to active trading and review subsequent filed accounts for revenue generation and profitability.
• Monitor compliance with statutory filings, especially overdue confirmation statements, to assess management’s governance and procedural discipline.
• Evaluate any future financial statements for evidence of working capital funding and debt servicing capability.
• Scrutinize director activities and related party transactions if the company begins trading, given the sole director’s limited occupational background in carpentry unrelated to their stated business SIC codes.