/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