Company Number: 14764385

Analysis Date: 2025-07-20 16:08 UTC

1. Risk Rating: MEDIUM
   While the company shows positive net assets, the significant net current liabilities relative to current assets indicate liquidity stress. The business is newly incorporated with limited operational history, adding uncertainty.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£208,911) far exceed current assets (£7,184), resulting in net current liabilities of approximately £201,727, which poses short-term cash flow risk.
• Limited Operating History: Incorporated in March 2023 with first accounts filed for the year ending March 2024, the lack of historical financial performance data limits ability to assess operational stability.
• Small Scale and No Employees: Categorised as a micro-entity with no employees and minimal current assets, indicating limited operational scale and resource base.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Despite liquidity challenges, net assets and shareholders’ funds stand at £5,384, suggesting some residual value in fixed assets.
• Timely Filing Compliance: Accounts and confirmation statements are filed on time with no overdue filings, reflecting good regulatory compliance and governance.
• Full Ownership and Control by Director: Single controlling shareholder/director (Mr Lei Zou) simplifies governance and decision-making.

4. Due Diligence Notes:

• Investigate nature and liquidity of fixed assets (£207,471) to determine if they can be leveraged or sold to alleviate current liabilities.
• Review detailed creditor composition and payment terms to assess urgency and potential refinancing risks.
• Obtain management commentary or strategic plans to understand business model, revenue generation, and plans to improve liquidity.
• Confirm absence of audit and P&L details limits insight into profitability and cash flow; consider requesting supplementary financial information.
• Verify regulatory compliance beyond filings, including any director conduct records or unresolved legal matters.