MIRA INFORM REPORT

Report No. :	499892
Report Date :	23.03.2018

IDENTIFICATION DETAILS

Name :	XINYI ENERGY SMART (MALAYSIA) SDN. BHD.
Registered Office :	Suite 9-13A, Level 9, Wisma Uoa Ii, Jalan Pinang, 50450 Kuala Lumpur, Wilayah Persekutuan
Country :	Malaysia
Financials (as on) :	31.12.2016
Date of Incorporation :	27.11.2014
Com. Reg. No.:	1120141-K
Legal Form :	Private Limited (Limited By Share)
Line of Business :	The Subject is engaged in manufacture of flat glass, including wired, coloured or tinted flat glass.
No. of Employees :	300 [2018]

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

C

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	Moderate
Payment Behaviour :	Slow and delayed
Litigation :	Exist

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

MALAYSIA - ECONOMIC OVERVIEW

Malaysia, an upper middle-income country, has transformed itself since the 1970s from a producer of raw materials into a multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move further up the value-added production chain by attracting investments in high technology, knowledge-based industries and services. NAJIB's Economic Transformation Program is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Domestic demand continues to anchor economic growth, supported mainly by private consumption, which accounts for 53% of GDP. Nevertheless, exports - particularly of electronics, oil and gas, and palm oil - remain a significant driver of the economy. In 2015, gross exports of goods and services were equivalent to 73% of GDP. The oil and gas sector supplied about 22% of government revenue in 2015, down significantly from prior years amid a decline in commodity prices and diversification of government revenues. Malaysia has embarked on a fiscal reform program aimed at achieving a balanced budget by 2020, including rationalization of subsidies and the 2015 introduction of a 6% value added tax. Sustained low commodity prices throughout the period not only strained government finances, but also shrunk Malaysia’s current account surplus and weighed heavily on the Malaysian ringgit, which was among the region’s worst performing currencies during 2015. The ringgit rebounded in early 2016, but hit new lows following the US presidential election amid a broader selloff of emerging market assets.

Bank Negara Malaysia (the central bank) maintains adequate foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments, although it remains vulnerable to volatile global capital flows. In order to increase Malaysia’s competitiveness, Prime Minister NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program, policies that favor and advance the economic condition of ethnic Malays.

Malaysia signed the 12-nation Trans-Pacific Partnership (TPP) free trade agreement in February 2016, although the future of the TPP remains unclear following the US withdrawal from the agreement. Along with nine other ASEAN members, Malaysia established the ASEAN Economic Community in 2015, which aims to advance regional economic integration.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.

:

1120141-K

COMPANY NAME

:

XINYI ENERGY SMART (MALAYSIA) SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/11/2014

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 9-13A, LEVEL 9, WISMA UOA II, JALAN PINANG, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BUSINESS ADDRESS

:

PLOT 23A & NB, ELKAY INDUSTRIAL PARK LIPAT KAJANG,, 77000 JASIN, MELAKA, MALAYSIA.

TEL.NO.

:

06-5306888

FAX.NO.

:

N/A

MOBILE NO.

:

01110970427

CONTACT PERSON

:

LEE SHING KAN ( DIRECTOR )

INDUSTRY CODE

:

231

PRINCIPAL ACTIVITY

:

MANUFACTURE OF FLAT GLASS, INCLUDING WIRED, COLOURED OR TINTED FLAT GLASS

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 20,000,000.00 DIVIDED INTO
ORDINARY SHARES 20,000,000 CASH OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

MYR (27,462,261) [2016]

STAFF STRENGTH

:

300 [2018]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

TRACED

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

SLOW AND DELAYED

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject shall have a minimum one director. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) manufacture of flat glass, including wired, coloured or tinted flat glass.

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

The immediate holding company of the Subject is XINYI INTERNATIONAL INVESTMENTS LIMITED, a company incorporated in HONG KONG.

The ultimate holding company of the Subject is XINYI GLASS HOLDINGS LIMITED, a company incorporated in CAYMAN ISLANDS.

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
29/09/2016	MYR 25,000,000.00	MYR 20,000,000.00
23/06/2015	MYR 1,000,000.00	MYR 1,000,000.00
08/01/2015	MYR 1,000,000.00	MYR 500,000.00
27/11/2014	MYR 400,000.00	MYR 2.00

The major shareholder(s) of the Subject are shown as follows :

Current Shareholder(s) :

Name	Address	IC/PP/Loc No	Shareholding	(%)
XINYI INTERNATIONAL INVESTMENTS LIMITED	3/F, HARBOUR VIEW 2, 16, SCIENCE PARK EAST AVENUE PHASE 2, HONG KONG SCIENCE PARK, PAK SHEK KOK TAIPO HONG KONG HONG KONG	754129	20,000,000.00	100.00
			---------------	------
			20,000,000.00	100.00
			============	=====

+ Also Director

DIRECTORS

DIRECTOR 1

Name Of Subject	:	SZE KAM PUI
Address	:	7-9, LAY MANSION HARMONY CONDOMINIUM, JALAN UJONG PASIR, 75050 MELAKA, MELAKA, MALAYSIA.
IC / PP No	:	K03786663
Date of Appointment	:	27/11/2014

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	1120141K	XINYI ENERGY SMART (MALAYSIA) SDN. BHD.	Director	27/11/2014	0.00	-	MYR(38,812,497.00)	2016	-	26/12/2017
2	1120127D	XINYI SOLAR (MALAYSIA) SDN. BHD.	Director	27/11/2014	0.00	-	MYR(27,793,964.00)	2016	-	26/12/2017

DIRECTOR 2

Name Of Subject	:	LEE SHING KAN
Address	:	7-9, LAY MANSION HARMONY CONDOMINIUM, JALAN UJONG PASIR, 75050 MELAKA, MELAKA, MALAYSIA.
IC / PP No	:	KJ0245752
Date of Appointment	:	08/12/2014

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	1120141K	XINYI ENERGY SMART (MALAYSIA) SDN. BHD.	Director	08/12/2014	0.00	-	MYR(38,812,497.00)	2016	-	26/12/2017

DIRECTOR 3

Name Of Subject	:	MR. SIN KET HIN
Address	:	2017 (ATAS), BUKIT BLOSSOM, JALAN TOK UNGKU, 70100 SEREMBAN, NEGERI SEMBILAN, MALAYSIA.
IC / PP No	:	A0432517
New IC No	:	660727-05-5461
Date of Birth	:	27/07/1966
Nationality	:	MALAYSIAN
Date of Appointment	:	03/12/2015

INTEREST CHECK

Interest in companies	:	see below
Interest in business	:	none in our databank
Former interest	:	none in our databank

INTEREST IN COMPANY

No	Local No	Company	Designation	App Date	Shareholding		Profit/(loss) After Tax	Financial Year	Status	As At
					No.	%
1	1120141K	XINYI ENERGY SMART (MALAYSIA) SDN. BHD.	Director	03/12/2015	0.00	-	MYR(38,812,497.00)	2016	-	26/12/2017

FORMER DIRECTOR(S)

Name	Address	IC/PP No	Appointed Date	Withdrawn Date
YANG JIANJUN	7-9, LAY MANSION HARMONY CONDOMINIUM, JALAN UJONG PASIR, MELAKA, MELAKA, MALAYSIA	KJ0332488	27/11/2014	08/12/2014

Note : The above information was generated from our database.

MANAGEMENT

1)	Name of Subject	:	LEE SHING KAN
	Position	:	DIRECTOR

AUDITOR

Auditor	:	O.L. YEO & CO.
Auditor' Address	:	110 A&B JALAN MELAKA RAYA 25, TAMAN MELAKA RAYA, 75000 MELAKA, MELAKA, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MR. ONG TEE KEIN
	New IC No	:	570101-10-7187
	Address	:	85, MEDAN ATHINAHAPAN 2, TAMAN TUN DR ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

2)	Company Secretary	:	MS. LIM YUEN LEE
	New IC No	:	810619-14-5620
	Address	:	28A, LORONG 6, KAMPUNG SUNGAI TERENTANG, 48000 RAWANG, SELANGOR, MALAYSIA.

3)	Company Secretary	:	MS. CHOONG BEE BEE
	IC / PP No	:	A0458930
	New IC No	:	660613-07-5376
	Address	:	C1106, PUNCAK DAMANSARA CONDO, JALAN TERATAI, PJU 6, DAMANSARA, 47400 PETALING JAYA, SELANGOR, MALAYSIA.

BANKING

Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

ENCUMBRANCE (S)

No encumbrance was found in our databank at the time of investigation.

LITIGATION CHECK - SUBJECT COMPANY AS A DEFENDANT

* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.


There is/are CLOSED litigation case(s) on the Subject in our database as below:
- 1 case(s) filed in year 2017


According to the Credit Reporting Agencies Act 2010, consent from the Subject is required for the disclosure of this credit information. In order to have the consent from the Subject, we need to serve a notice to the Subject by disclose the following according to the Act Section 23(1) :

1) Enquirer or Company who request for this credit information.
2) Contact person of Enquirer
3) Purpose of this credit information being used.
4) Contact person of the Subject.

We shall appreciate if you can furnish us the above in order for us to serve a notice or inform the Subject accordingly. Otherwise, we are prohibited to disclose this credit information if there is no consent from the Subject according to the Act Section 24(1)(a).

No winding up petition was found in our affiliate's company databank.

DEFAULTER CHECK AGAINST SUBJECT

* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	YES
Overseas	:	YES

CLIENTELE

Local	:	YES
Domestic Markets	:	MALAYSIA
Overseas	:	YES
Export Market	:	ASIA
Credit Term	:	30 - 60 DAYS
Payment Mode	:	CHEQUES TELEGRAPHIC TRANSFER (TT)

OPERATIONS

Products manufactured

:

FLAT GLASS, INCLUDING WIRED, COLOURED OR TINTED FLAT GLASS

Competitor(s)

:

JG CONTAINERS (MALAYSIA) SENDIRIAN BERHAD
MALAYSIAN SHEET GLASS SENDIRIAN BERHAD
NIPPON ELECTRIC GLASS (MALAYSIA) SDN. BHD.
OHARA OPTICAL (M) SDN. BHD.
PERNIAGAAN YEW LUM SDN. BHD.

Total Number of Employees:
YEAR	2018	2017
GROUP	N/A	N/A
COMPANY	300	300

Branch

:

NO

Other Information:

The Subject is principally engaged in the (as a / as an) manufacture of flat glass, including wired, coloured or tinted flat glass.

The Subject is the global leading glass manufacturer.

The Subject is the automobile glass manufacturers, mainly produces SOLAR-X heat-reflecting automobile glass, HUD head-up display glass, laminated front windshield, tempered glass, Laminated glass with heating elements

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	06-5306888
Match	:	N/A
Address Provided by Client	:	PLOT 23 A & B, ELKAY INDSTRIAL PARK LIPAT KAJANG, 77000 JASIN MELAKA
Current Address	:	PLOT 23A & NB, ELKAY INDUSTRIAL PARK LIPAT KAJANG,, 77000 JASIN, MELAKA, MALAYSIA.
Match	:	YES
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from the Subject and he provided some information.

The Subject does not use fax facility.

The Subject and its Company Secretary refused to comment anything on its nil turnover for the year 2015-2016.

FINANCIAL ANALYSIS

Overall Assessment :

The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. The Subject's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of MYR -27,462,261. Therefore, the Subject as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations.

Overall financial condition of the Subject : N/A

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2014	2015	2016	2017*	2018**
Population ( Million)	30.0	31.0	31.6	32.1	32.9
Gross Domestic Products ( % )	6.0	4.6	4.2	5.5	5.3
Domestic Demand ( % )	6.4	6.2	6.3	-	-
Private Expenditure ( % )	7.9	6.9	7.8	10.6	10.0
Consumption ( % )	6.5	6.1	5.1	-	-
Investment ( % )	12.0	8.1	10.0	12.0	-
Public Expenditure ( % )	2.3	4.2	3.3	-	-
Consumption ( % )	2.1	4.3	2.0	-	-
Investment ( % )	2.6	(1.0)	1.1	-	-
Balance of Trade ( MYR Million )	82,480	91,577	88,145	94,593	96,993
Government Finance ( MYR Million )	(37,414)	(37,194)	(38,401)	(39,887)	(39,790)
Government Finance to GDP / Fiscal Deficit ( % )	(3.4)	(3.2)	(3.1)	(3.0)	(2.8)
Inflation ( % Change in Composite CPI)	3.2	4.0	2.1	3.5	3.0
Unemployment Rate	2.9	3.1	3.4	3.4	3.3
Net International Reserves ( MYR Billion )	417	390	391	-	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	4.00	3.50	-	-	-
Average 3 Months of Non-performing Loans ( % )	2.10	2.00	1.90	-	-
Average Base Lending Rate ( % )	6.85	6.79	6.81	-	-
Business Loans Disbursed( % )	18.6	2.2	-	-	-
Foreign Investment ( MYR Million )	43,486.6	43,435.0	-	-	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	49,203	45,658	43,255	-	-
Registration of New Companies ( % )	6.1	(7.2)	(5.3)	-	-
Liquidation of Companies ( No. )	11,099	7,066	-	-	-
Liquidation of Companies ( % )	(19.5)	(36.3)	-	-	-
Registration of New Business ( No. )	332,723	364,230	376,720	-	-
Registration of New Business ( % )	1.0	9.0	3.0	-	-
Business Dissolved ( No. )	21,436	-	-	-	-
Business Dissolved ( % )	18.0	-	-	-	-
Sales of New Passenger Cars (' 000 Unit )	588.3	591.3	514.6	527.8	-
Cellular Phone Subscribers ( Million )	44.0	44.2	44.0	-	-
Tourist Arrival ( Million Persons )	27.4	25.7	30.2	30.1	-
Hotel Occupancy Rate ( % )	63.6	58.8	61.2	-	-
Credit Cards Spending ( % )	5.8	6.8	6.3	-	-
Bad Cheque Offenders (No.)	-	-	-	-	-
Individual Bankruptcy ( No.)	22,351	18,457	-	-	-
Individual Bankruptcy ( % )	1.7	(17.4)	-	-	-

INDUSTRIES ( % of Growth ):	2014	2015	2016	2017*	2018**
Agriculture	2.0	1.3	(5.1)	5.6	2.4
Palm Oil	6.7	7.0	8.2	-	-
Rubber	(10.4)	(11.0)	(12.3)	-	-
Forestry & Logging	(4.2)	(7.2)	(4.8)	-	-
Fishing	2.7	2.1	2.9	-	-
Other Agriculture	6.2	6.0	6.8	-	-
Industry Non-Performing Loans ( MYR Million )	303.8	343.7	420.3	-	-
% of Industry Non-Performing Loans	1.4	1.5	1.8	-	-
Mining	3.3	5.3	2.2	0.5	0.9
Oil & Gas	3.0	3.5	4.5	-	-
Other Mining	46.6	47.1	42.6	-	-
Industry Non-performing Loans ( MYR Million )	63.5	180.1	190.0	-	-
% of Industry Non-performing Loans	0.3	0.8	0.8	-	-
Manufacturing #	6.1	4.9	4.4	5.5	5.3
Exported-oriented Industries	7.1	6.5	3.3	21.1	-
Electrical & Electronics	11.8	9.2	7.0	-	-
Rubber Products	(1.3)	5.1	3.9	-	-
Wood Products	7.8	7.0	7.0	-	-
Textiles & Apparel	10.8	7.5	6.7	-	-
Domestic-oriented Industries	7.7	4.7	3.0	-	-
Food, Beverages & Tobacco	6.1	8.9	7.5	-	-
Chemical & Chemical Products	1.4	3.5	5.1	-	-
Plastic Products	2.7	3.9	5.1	-	-
Iron & Steel	2.8	1.6	2.2	-	-
Fabricated Metal Products	2.8	4.6	5.1	-	-
Non-metallic Mineral	6.9	6.8	5.5	-	-
Transport Equipment	14.4	5.2	(3.1)	-	-
Paper & Paper Products	4.7	3.2	3.9	-	-
Crude Oil Refineries	13.0	14.3	13.7	-	-
Industry Non-Performing Loans ( MYR Million )	5,730.8	4,243.7	4,214.1	-	-
% of Industry Non-Performing Loans	25.6	19.0	18.5	-	-
Construction	11.7	8.2	7.4	7.6	7.5
Industry Non-Performing Loans ( MYR Million )	1,666.4	1,638.0	1,793.9	-	-
% of Industry Non-Performing Loans	7.5	7.3	7.9	-	-
Services	6.6	5.1	5.6	5.9	5.8
Electric, Gas & Water	3.8	3.6	5.4	2.5	2.6
Transport, Storage & Communication	7.70	7.55	6.85	7.35	7.30
Wholesale, Retail, Hotel & Restaurant	7.70	6.65	6.65	7.05	6.65
Finance, Insurance & Real Estate	5.15	2.90	4.70	5.70	5.90
Government Services	6.3	4.0	4.9	4.4	4.5
Other Services	4.8	4.7	4.8	5.3	5.3
Industry Non-Performing Loans ( MYR Million )	5,373.5	6,806.6	7,190.6	-	-
% of Industry Non-Performing Loans	24.1	30.5	31.5	-	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index

INDUSTRY ANALYSIS

MSIC CODE
231 : Manufacture of glass and glass products
INDUSTRY :	MANUFACTURING
The manufacturing sector is forecast to increase 5.3% in year 2018 (2017: 5.5%). Output of export-oriented industries is projected to expand on account of sustained demand for E&E, refined petroleum and woods products. Growth in the domestic-oriented industries is anticipated to remain resilient supported by ongoing construction of infrastructure projects as well as strong demand for consumer products, especially food and transport equipment.
Value added of the manufacturing sector expanded further by 5.8% during the first half of 2017 (January – June 2016: 4.4%) with expansion across a wide range of outputs in both the export- and domestic-oriented industries. During the first eight months, production increased 6.4%, while sales rebounded significantly by 15.6% to RM500.2 billion (January – August 2016: 4%; -0.7%; RM432.8 billion). Output of export-oriented industries rose 6.5% (January – August 2016: 4.3%) led by an upturn in global electronics cycle and further enhanced by strong demand for resource-based products. Meanwhile, domestic-oriented industries expanded 6.2% (January – August 2016: 3.4%) benefiting from vibrant consumption and construction activities.
Within the export-oriented industries, E&E output expanded 9.3% while sales surged 16.3% to RM169.5 billion (January – August 2016: 6.8%; 9%; RM145.8 billion). Growth emanated mainly from the expansion in output of printed circuit boards, semiconductor devices and electronic integrated circuits which strengthened further by 24.4%, 11.9% and 16.9% (January – August 2016: 11.9%; 5.9%; 15%), respectively. This is in line with the trend in global semiconductor sales which is expected to expand 11.5% in 2017, the highest level since 2010. On the contrary, the output of computers and peripheral equipment contracted 7.7% (January – August 2016: 3.1%) as a result of lower demand for notebooks and personal computers following rising preferences for smartphones and tablets. Meanwhile, consumer electronics grew at a moderate pace of 2.6% (January – August 2016: 5.3%) partly due to lower demand for in-car entertainment, portable media players and digital cameras.
Output of wood and wood products grew 7.3% (January – August 2016: 7.8%). The growth was primarily supported by output of sawmilling and planning of wood which expanded 14.7% (January – August 2016: 16.8%) in response to strong demand from Australia, Japan and the US. Meanwhile, production of wooden and cane furniture remained steady at 10.9% (January – August 2016: 10.9%), benefiting from greater adoption of technology and diversification of export markets.
Manufacture of food products rose 11.2%, largely attributed to a significant increase in refined palm oil at 26.1% (January – August 2016: 6.3%; -3.3%), following higher production of CPO. Meanwhile, output of other food products grew 7% supported by production of bread, cakes and other bakery (15.6%) as well as biscuits and cookies (12%) to meet the rising demand from households (January – August 2016: 11.1%; 19.2%; 19.1%).
For the year, the manufacturing sector is projected to expand further by 5.5% (2016: 4.4%) mainly attributed to an upturn in global semiconductor sales as well as higher demand for consumer products and construction materials.
OVERALL INDUSTRY OUTLOOK : Marginal Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 2014, the Subject is a Private Limited company, focusing on manufacture of flat glass, including wired, coloured or tinted flat glass. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. Presently, the issued and paid up capital of the Subject stands at MYR 20,000,000. The Subject has a strong support from its holding company.

We found that, the Subject has penetrated into both the local and overseas market. The Subject is a fairly large and rapidly growing company with over 300 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. The Subject's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of MYR -27,462,261. Therefore, the Subject as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations.

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

Based on the above unfavourable condition, we regard granting credit to the Subject to be quite risky. Hence, credit is not recommended.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

XINYI ENERGY SMART (MALAYSIA) SDN. BHD.

Financial Year End	2016-12-31	2015-12-31
Months	12	12
Consolidated Account	Company	Company
Audited Account	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES
Financial Type	FULL	FULL
Currency	MYR	MYR
PROFIT/(LOSS) FROM OPERATIONS	(38,792,266)	(8,649,764)
	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	(38,792,266)	(8,649,764)
Taxation	(20,231)	-
	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	(38,812,497)	(8,649,764)
	----------------	----------------
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	(8,649,764)	-
	----------------	----------------
As restated	(8,649,764)	-
	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	(47,462,261)	(8,649,764)
	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	(47,462,261)	(8,649,764)
	=============	=============
INTEREST EXPENSE (as per notes to P&L)
DEPRECIATION (as per notes to P&L)	438,904	212,831
	----------------	----------------
Total Amortization And Depreciation	438,904	212,831
	=============	=============

BALANCE SHEET

XINYI ENERGY SMART (MALAYSIA) SDN. BHD.

ASSETS EMPLOYED:
FIXED ASSETS	362,917,313	24,749,114
	----------------	----------------
TOTAL LONG TERM ASSETS	362,917,313	24,749,114
Stocks	2,389,433	-
Other debtors, deposits & prepayments	64,524,176	45,923,494
Cash & bank balances	9,583,884	44,344,639
	----------------	----------------
TOTAL CURRENT ASSETS	76,497,493	90,268,133
	----------------	----------------
TOTAL ASSET	439,414,806	115,017,247
	=============	=============
Other creditors & accruals	131,005,726	1,481,060
Amounts owing to holding company	238,948,957	120,438,675
Amounts owing to subsidiary companies	96,905,368	747,276
Provision for taxation	17,016	-
	----------------	----------------
TOTAL CURRENT LIABILITIES	466,877,067	122,667,011
	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	(390,379,574)	(32,398,878)
	----------------	----------------
TOTAL NET ASSETS	(27,462,261)	(7,649,764)
	=============	=============
SHARE CAPITAL
Ordinary share capital	20,000,000	1,000,000
	----------------	----------------
TOTAL SHARE CAPITAL	20,000,000	1,000,000
Retained profit/(loss) carried forward	(47,462,261)	(8,649,764)
	----------------	----------------
TOTAL RESERVES	(47,462,261)	(8,649,764)
	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	(27,462,261)	(7,649,764)
	----------------	----------------
	(27,462,261)	(7,649,764)
	=============	=============

FINANCIAL RATIO

XINYI ENERGY SMART (MALAYSIA) SDN. BHD.

TYPES OF FUNDS
Cash	9,583,884	44,344,639
Net Liquid Funds	9,583,884	44,344,639
Net Liquid Assets	(392,769,007)	(32,398,878)
Net Current Assets/(Liabilities)	(390,379,574)	(32,398,878)
Net Tangible Assets	(27,462,261)	(7,649,764)
Net Monetary Assets	(392,769,007)	(32,398,878)
PROFIT & LOSS ITEMS
Earnings Before Interest & Tax (EBIT)	(38,792,266)	(8,649,764)
Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)	(38,353,362)	(8,436,933)
BALANCE SHEET ITEMS
Total Borrowings	0	0
Total Liabilities	466,877,067	122,667,011
Total Assets	439,414,806	115,017,247
Net Assets	(27,462,261)	(7,649,764)
Net Assets Backing	(27,462,261)	(7,649,764)
Shareholders' Funds	(27,462,261)	(7,649,764)
Total Share Capital	20,000,000	1,000,000
Total Reserves	(47,462,261)	(8,649,764)
GROWTH RATIOS (Year on Year)
Revenue	-	-
Proft/(Loss) Before Tax	(348.48)	-
Proft/(Loss) After Tax	(348.71)	-
Total Assets	282.04	-
Total Liabilities	280.61	-
LIQUIDITY (Times)
Cash Ratio	0.02	0.36
Liquid Ratio	0.16	0.74
Current Ratio	0.16	0.74
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0
Debtors Ratio	0	0
Creditors Ratio	0	0
SOLVENCY RATIOS (Times)
Gearing Ratio	0	0
Liabilities Ratio	(17.00)	(16.04)
Times Interest Earned Ratio	0	0
Assets Backing Ratio	(1.37)	(7.65)
PERFORMANCE RATIO (%)
Operating Profit Margin	0	0
Net Profit Margin	0	0
Return On Net Assets	141.26	113.07
Return On Capital Employed	141.26	113.07
Return On Shareholders' Funds/Equity	141.33	113.07
Dividend Pay Out Ratio (Times)	0	0
NOTES TO ACCOUNTS
Contingent Liabilities	0	0

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.06
UK Pound	1	INR 92.06
Euro	1	INR 80.37
MYR	1	INR 16.61

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	TRU

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.