Sample Supplier Due Diligence Report: What You Receive

PRELIMINARY SUPPLIER DUE DILIGENCE REPORT

Supplier	[Name withheld] Machinery Technology Co., Ltd. The real report gives the registered Chinese name, the English trading name and the unified social credit code (the company's official registration number).
Review type	Preliminary legal due diligence, from public records
Transaction	One custom-made equipment component, quoted on delivered terms
Overall rating	LOW RISK: proceed after some basic checks before payment

Executive conclusion. The supplier appears to be a genuine Chinese trading and industrial-equipment business that is still operating. Its company registration is active. It has an ongoing online presence, it is recruiting staff, it has a history on supplier platforms, and export shipments have been reported. The searches found no significant public lawsuit, enforcement action or regulatory red flag. On the evidence available, I rate the transaction as lower risk. Before payment, ask for a revised pro forma invoice (the formal invoice a seller issues before you pay). It should still confirm the usual points: the selling company, the bank account, the final specification and the delivery obligations.

Who is who in this purchase

• Linked Recruitment ads name the same registered company, address and legal representative (the person registered to act for the company).
• Mismatch The email and mobile number on the quotation differ from other pages.
• Open The manufacturing arrangement has not been confirmed.

Sections 1 to 5 give the detailed findings. Open any section to read it in full.

1. Scope and method

This review is designed for a low-value, cross-border equipment purchase. It looks at who the company is, who owns it, and where and how it operates. Public court and regulatory records, websites, marketplace listings and signs of export activity are checked too. So are the quotation terms and the safeguards this particular purchase needs.

It draws on public government search sites, supplier and recruitment platforms, company websites, trade-data summaries and archived catalogues. It also uses the quotation and the messages the buyer supplied. Searches used the Chinese company name, the English trading name and the unified social credit code.

Important limitation. This is not an official Chinese credit report, an audited financial review, a sanctions opinion, a site inspection or a legal opinion. Chinese public databases may be incomplete or out of date. Some cannot be used without a login. Records can be removed, and searches have limits. If a search finds nothing negative, that does not prove there is no hidden problem.

2. Company identity and ownership

Field	What public records show
Registered name	Shown in full in Chinese, with an English translation
Trading identity	A different English trading name used on the website, the quotation and supplier platforms
Unified social credit code	18-character code, shown in full
Status and date of establishment	Active; established more than five years before the review
Legal representative	Named. This is the person with legal power to act for the company.
Registered capital	Stated, with its history
Paid-in capital	As reported in the company's public annual reports
Customs registration	Registered as an import and export consignor and consignee, so it can send and receive goods through customs. The registration number was not public. Ask the supplier for it.
Registered address	An office unit in a prefecture-level city in eastern China
Registered activities	Machinery manufacturing and sales, metal products, industrial design, import and export
Ownership	One company and two individuals hold the shares. The record lists each one's stake and subscribed capital (the capital it promised to put in).

Notable company changes. Two years before the review, the company cut its registered capital by a large amount. A capital cut does not show that a company is insolvent. But it leaves less capital on paper to stand behind its debts. Keep this in mind before you give unsecured credit or pay large advances. Later, the registered address moved to an office unit. The legal representative changed once in the past five years.

3. Business activity and credibility

Indicator	What was found	What it means
Recruitment	Current job ads name the same company, address and legal representative. The jobs are mechanical, electrical and international-trade roles.	A good sign the business is operating
Supplier platforms	The English trading name appears on two B2B platforms. One shows an audited supplier profile. The other shows past transactions and reviews.	Positive, but a platform badge does not guarantee your payment
Export activity	Trade-data summaries show repeated export shipments under the English trading name.	Supports real export activity. The values are estimates by third parties.
Web presence	Several websites and catalogues showing the same kinds of products.	Positive and consistent. Still check that the same company is behind each website.
Registered scale	Annual filings show a small number of insured employees. Recruitment sites describe a larger employer.	Fits a small business
Factory claims	Marketing material describes a larger workforce and site than public records suggest.	Treat this as marketing

Do the contact details match? The landline on the quotation also appears in earlier catalogues. That links the quotation to the known trading name. But the quotation's email address and mobile number differ from those on other pages, old and current. It is normal for an exporter to have several sales contacts. Even so, before payment, check independently that the receiving bank account (the beneficiary account) belongs to the contracting company.

4. Public legal and regulatory records

Area reviewed	What public searches found	Caveat
Corporate status	Active registration found under the exact Chinese name and code.	Check again just before payment.
Litigation and court notices	No significant public court case, hearing notice or published judgment found under the exact company name.	Not every judgment is published.
Enforcement and dishonesty lists	No current enforcement case found. Not listed as a dishonest judgment debtor (someone who ignores a court order to pay). No consumption restriction (a court ban on high spending).	Official systems may ask for ID details or a login.
Regulatory penalties	No significant administrative, environmental or tax penalty found.	A clean public record is not a legal clearance.
Business abnormality	Not listed for abnormal operations or serious violations.	Check again before any later purchase.
Tax and customs	Described in public records as a general VAT taxpayer and a registered import and export consignee.	Ask for current certificates if they matter to the deal.
Intellectual property	Trademark registrations and several equipment-related patent filings in the trading name.	IP ownership does not prove product quality or factory ownership.

Public-record conclusion. For now, the public legal and regulatory record shows low risk. That helps, but it is not conclusive. The company is private, its financial statements are not public, and Chinese court databases are incomplete.

5. What to confirm with the supplier

• The exact delivery place. Does the delivered price include import clearance, broker fees, duties, taxes and final delivery at the destination?
• The payment method, the receiving bank account and the contracting company named on the pro forma invoice.
• The quotation date and number, and how long the quote is valid.
• The lead time, the warranty, packing details, and the terms for accepting or replacing the item.
• The final manufacturing drawing for the exact item ordered, with all dimensions and connection details.
• The material of every part that touches the product, with written evidence where the use requires it. Also the allowed cleaning method.
• For each certificate: its number, who holds it, what it covers, and how it relates to this product.

Price context. Online prices for similar items vary widely. Several are below the quoted price. They are not exact matches. Still, they give you grounds to ask for a package discount or something extra. The report lists points to raise on price.

6. Risk assessment

Risk area	Rating	Why	What to do
Entity existence	LOW	Registration, job ads, platforms and websites are consistent.	Check the current business licence and the contracting name.
Seller identity and bank	LOW to MODERATE	The trading name differs from the registered name. There are several websites and contacts.	The account holder should be the contracting company. Clear up any difference before payment.
Factory claims vs public records	LOW to MODERATE	Few staff on record and an office address. Marketing claims vary.	Confirm the manufacturing arrangement and the final specification in the pro forma invoice.
Legal and regulatory	LOW	No significant negative public record, within the limits of the databases.	Run the exact-name and code searches again before payment.
Financial information on record	LOW to MODERATE	The private accounts are not available. Registered capital was reduced.	Use a payment method suited to a small custom order.
Specification and acceptance terms	MODERATE to HIGH	The drawing is generic. Material, cleaning and acceptance details are still open.	Sign a final drawing and specification. Require inspection evidence.
Delivery terms	MODERATE-HIGH	The named place and the destination charges are not clearly written down.	Rewrite the delivery term with the full address. State which charges the price includes.
Overall transaction	LOW	Signs of a genuine supplier and no significant public red flags. The usual paperwork is still to be done.	Proceed after the checks in section 7.

7. Conditions before payment

1. Get a current colour copy of the business licence that shows the unified social credit code.
2. Have the revised quotation and pro forma invoice issued in the Chinese company’s legal name. The trading name may appear only as an extra identifier.
3. Confirm that the receiving bank account belongs to the contracting company. Do not pay a personal account or an unrelated company unless there is a documented reason.
4. Write the delivery term with the full delivery address and the Incoterms edition (which version of the standard trade terms applies). List the destination charges it includes.
5. Attach a signed final drawing for the exact item, with dimensions, connection details and everything supplied with it.
6. List the material of every part that touches the product, and get evidence suited to the use.
7. Require photos and video before shipment. They should show the finished unit with its serial number, its measurements, the unit working, and its packing.
8. Include a warranty of at least 12 months. State clearly that the supplier will repair, replace or refund in three cases: wrong dimensions, material that does not match, or damage in transit.
9. Where possible, order through a marketplace that protects your payment. If the supplier will not do that, negotiate a deposit. Pay the balance only after you have seen satisfactory evidence before shipment.

8. Overall conclusion

On the available evidence, the supplier is more likely than not a genuine exporter that is still operating. It is reasonable to go ahead, on one condition. The pro forma invoice must confirm the contracting company, the receiving bank account, the final specification and the delivery terms.

The main risks are practical ones. One is making sure the company and the bank account match. Others are incomplete delivery wording, paying in full before shipment and a generic specification. There are also no enforceable acceptance and warranty terms.

Recommendation. Proceed only after you have negotiated the price and received a revised pro forma invoice that meets the conditions listed above. The seller may refuse to let you verify the company or match the bank account. It may refuse a final drawing, a written split of delivery charges, or evidence before shipment. If so, do not proceed just because the quoted value is low.

Appendix: public sources used

National Enterprise Credit Information Publicity System; Credit China; China Judgments Online; China Enforcement Information Disclosure; the CNIPA public service platform; the supplier’s own websites; two B2B supplier platforms; a recruitment platform; a commercial trade-data provider.