china-dd-checklist

name	china-dd-checklist
description	Due diligence checklists for A-share investments and M&A transactions. Adapted from the original dd-checklist skill for Chinese market due diligence requirements, regulatory filings, and business practices. Triggers on "A股尽调清单", "尽调清单", "due diligence China", "DD checklist A-share", "尽调checklist [company]", or "due diligence questions [company]".

china-dd-checklist

Purpose

Provide comprehensive A股及中国市场尽调清单 — structured checklists for investment and M&A due diligence.

DD Categories

1. 商业尽调 (Commercial DD)

Industry & Market:

• Market size and growth trajectory
• Competitive landscape (5-10 peers mapped)
• Market share trends
• Customer concentration
• Supplier concentration
• Pricing power assessment
• Barriers to entry
• Technology disruption risk

Business Model:

• Revenue model clarity and sustainability
• Customer acquisition channels
• Unit economics (if applicable)
• Revenue recognition policy
• Seasonality patterns
• Geographic diversification
• Product pipeline
• Dependency on key customers/suppliers

Operations:

• Capacity utilization
• Supply chain resilience
• Quality control systems
• Operational efficiency benchmarks
• Key operational metrics
• Technology infrastructure

2. 财务尽调 (Financial DD)

Historical Financials:

Item	Source	Verification
审计报告 (Audit reports)	巨潮	Check audit opinion
财务报表 (Financial statements)	巨潮	Cross-check against filings
关联交易 (Related party)	年报附注	Identify and quantify
政府补助 (Subsidies)	利润表附注	Normalize earnings
资产减值 (Impairments)	利润表	One-time vs recurring
收入确认	年报附注	Policy assessment

Quality of Earnings:

• Revenue quality (cash vs accrual)
• Operating cash flow vs net income
• One-time items identified and quantified
• Non-recurring gains/losses
• Accounting policy changes
• Earnings management indicators

Balance Sheet:

• Cash and cash equivalents confirmed
• Receivables aging and adequacy of allowance
• Inventory valuation and obsolescence
• Fixed asset verification
• Intangible assets and goodwill
• Debt schedule (all borrowings)
• Off-balance sheet items
• Contingent liabilities

Cash Flow:

• Operating CF reconciliation
• CapEx sustainability
• Free cash flow calculation
• Working capital trends
• Non-recurring CF items

3. 法律尽调 (Legal DD)

Corporate:

• 营业执照 (Business license) validity
• 公司章程 (Articles of association)
• 股权结构 (Shareholding structure) — clean cap table
• 历史沿革 (Corporate history) — any irregularities
• 子公司/分公司 (Subsidiaries/branches) — complete list
• 对外投资 (External investments)

Compliance:

• Tax compliance (税务合规) — past 3 years
• Social insurance (社保) compliance
• Environmental compliance (环保)
• Industry-specific licenses (行业资质)
• Import/export licenses
• Quality certifications

Contracts:

• Material contracts (>5% revenue)
• Customer contracts (concentration risk)
• Supplier contracts
• Loan agreements
• Lease agreements
• IP licensing agreements
• Joint venture agreements
• Guarantees and commitments

Litigation:

• Pending litigation (诉讼)
• Arbitration cases (仲裁)
• Administrative penalties (行政处罚)
• Labor disputes
• IP disputes

IP:

• Patent portfolio (专利)
• Trademark registrations (商标)
• Copyright registrations (著作权)
• Domain names
• Software licenses

4. 税务尽调 (Tax DD)

Area	Checklist
企业所得税	Filing compliance, deductions, incentives
增值税	Filing compliance, input VAT
附加税	Surcharges compliance
个人所得税	Withholding compliance
社保/公积金	Payment compliance
税收优惠	Qualification for 高新技术企业 etc.
转让定价	Related party pricing
历史欠税	Outstanding tax disputes

5. 人力资源尽调 (HR DD)

Area	Checklist
劳动合同	Employment agreements standard
社保/公积金	Compliance and amounts
股权激励	ESOP schemes, vesting, dilution
核心员工	Key person dependencies
竞业限制	Non-compete agreements
裁员历史	Any mass layoffs or disputes
工会/协会	Union affiliations

6. 环境尽调 (Environmental DD)

Area	Checklist
环评批复	Environmental impact assessment
排污许可	Discharge permits
环保处罚	Past violations
土壤/地下水	Contamination risk
能耗指标	Energy consumption, efficiency
碳中和	Carbon footprint, compliance

7. IT / 网络安全尽调

Area	Checklist
系统架构	IT infrastructure overview
数据安全	Data protection measures
网络安全	Cybersecurity assessment
等保合规	Level of protection compliance
数据隐私	PIPL compliance
业务连续性	Disaster recovery plans

8. 行业特殊尽调

Industry	Special DD Items
医药	GMP, clinical trial data, drug approvals
金融	Regulatory licenses, capital adequacy
房地产	Land ownership, 预售证, land reserves
新能源	Technology patents, subsidy dependency
互联网	ICP license, data compliance, user agreements
制造	Quality certifications, supply chain

China-Specific DD Considerations

Regulatory Environment

Regulation	DD Relevance
公司法	Corporate governance
证券法	If considering public listing
反垄断法	M&A approval thresholds
数据安全法	Data handling compliance
个人信息保护法	Privacy compliance
环保法	Environmental liability
税法	Tax compliance and optimization

Common Red Flags

Red Flag	Investigation Required
实际控制人不明	Ownership verification
大量关联交易	Related party transaction analysis
大股东高比例质押	Share pledge risk
频繁变更审计师	Accounting quality concern
大额政府补助依赖	Earnings quality concern
商誉占净资产 >30%	Impairment risk
行政处罚频繁	Compliance culture
核心人员流失	Management stability

Quality Checks

Before delivering DD report:

• All categories addressed
• Sources verified (巨潮, filings)
• Red flags identified and investigated
• Material risks quantified
• Recommendations clear
• All findings documented