YIWU TRADE CITY LTD

Executive Summary

YIWU TRADE CITY LTD is a dormant, newly formed company with minimal financial substance and no trading history. Given the lack of operating results or assets, credit approval is not recommended at this stage. Monitoring should focus on evidence of trading commencement and financial performance before reconsidering credit facilities.

YIWU TRADE CITY LTD - Analysis Report

Company Number: 15265869

Analysis Date: 2025-07-29 14:07 UTC

1. Credit Opinion: DECLINE
   YIWU TRADE CITY LTD is a newly incorporated private limited company (Nov 2023) with dormant company accounts filed to date. Its net assets and shareholders’ funds stand at a nominal £1,000, indicating no trading activity or operational cash flow. The lack of financial history and absence of revenue or profit data makes it impossible to assess its ability to service debt or honor commercial obligations. Without evidence of trading performance or liquidity, extending credit is high risk.

2. Financial Strength:
   The company’s balance sheet is minimal, showing only the initial issued share capital of £1,000 and no other assets or liabilities. This reflects a dormant status with no operational activities recorded during the reported financial year. There are no fixed or current assets, no working capital, and no reserves. The financial position is extremely weak, offering no cushion against financial stress.

3. Cash Flow Assessment:
   No cash flows, revenues, or expenses have been reported, consistent with dormant status. The company has no working capital or liquidity to draw upon. There is no evidence of cash generation or operational cash inflows to support creditor repayments. Any lending would be solely reliant on the owner’s external financial strength or future capital injections.

4. Monitoring Points:

• Confirmation of commencement of trading and subsequent financial performance (turnover, profit margins).
• Timely filing of first full trading accounts after the dormant period.
• Changes in net assets and working capital that indicate operational activity.
• Director and shareholder financial standing as potential support sources.
• Any related party transactions or guarantees that may mitigate credit risk.