UK JINFANGDI TRADING LIMITED
Executive Summary
UK JINFANGDI TRADING LIMITED is currently in a dormant state with minimal financial activity, reflected by net assets equal to initial share capital only. While administratively compliant and legally active, the company lacks operational data to assess profitability or liquidity. To improve its financial health score from a baseline, initiating trading activities and establishing rigorous financial controls are essential.
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This analysis is opinion only and should not be interpreted as financial advice.
UK JINFANGDI TRADING LIMITED - Analysis Report
Financial Health Assessment: UK JINFANGDI TRADING LIMITED
1. Financial Health Score: Grade D
Explanation:
The company is currently classified as dormant, with minimal financial activity and net assets of only £1,000 (the nominal share capital). While this status suggests no operational distress, it also indicates a lack of measurable financial performance or growth. The company's financial "vital signs" are essentially at baseline, reflecting a start-up or inactive state rather than an active, thriving business.
2. Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Status | Active / Dormant | The company is registered and active legally but dormant operationally (no trading activity) |
Net Assets | £1,000 | Reflects initial share capital only; no accumulated profits or losses |
Shareholders' Funds | £1,000 | Equity limited to initial capital injection, indicating no growth or retained earnings |
Account Category | Dormant | No significant transactions during the financial year; minimal financial risk |
Directors and Control | Single director with full control | Clear governance, but concentrated control could pose risks if issues arise |
Filing Status | Up to date | Compliant with regulatory filing deadlines—positive administrative health |
Industry Classification | Retail via internet, wholesale, agency, and manufacturing in food/beverage/tobacco sectors | Diverse SIC codes but no trading activity yet |
3. Diagnosis
"Vital Signs" Analysis:
- The company's financial "pulse" is very weak—no revenues, expenses, or trading activity have occurred, which is consistent with a dormant company.
- The balance sheet reflects only the initial share capital, so there are no "symptoms" such as debt pressure, cash flow problems, or asset impairments to analyze.
- The absence of trading means there is no "blood flow" in terms of cash or operational income, which is typical for a newly incorporated or inactive company.
- The fact that the company has complied with filing deadlines indicates good administrative health and governance discipline.
- Control is centralized in one individual who holds full ownership and director responsibilities, which simplifies decision-making but concentrates risk.
Underlying Business Health:
- The dormant status means the company has yet to start commercial operations or generate financial data to assess profitability, liquidity, or solvency.
- The company’s potential is untested; it has neither symptoms of financial distress nor signs of operational strength.
- Its sector mix (retail internet sales, wholesale, agency, manufacturing) suggests a diverse business model awaiting activation.
4. Recommendations
To transition from dormancy to financial wellness and operational health, the company should consider the following:
- Commence Trading Activities: Begin commercial operations to generate revenues and build financial history—this will provide vital signs such as cash flow and profitability.
- Financial Planning and Budgeting: Develop a clear business plan with financial projections to ensure healthy cash flow and avoid liquidity issues once trading starts.
- Maintain Regulatory Compliance: Continue timely filing of accounts and confirmation statements to preserve administrative health and avoid penalties.
- Governance Review: Consider adding additional directors or advisors to diversify control and reduce concentration risk.
- Monitor Industry Trends: Given the multiple SIC codes related to food and beverage sectors, stay informed on regulatory and market changes to position the business competitively.
- Prepare for Audit Requirements: Once trading volume increases and thresholds are passed, anticipate audit and reporting obligations under the Companies Act.
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