How to Check A Chinese Company’s Overall Strength

company strength check

Table of Contents

One of our clients encountered two Chinese companies and did not know how to decide which one is better developed. The two companies are Shandong Tianzhan Fitness Equipment Co., Ltd.( 山东天展健身器材有限公司) and Shan Dong Mbh Fitness Co., Ltd. (山东迈宝赫健身器材有限公司).

From their business licenses, we can see the registered capital of Shandong Tianzhan Fitness Equipment Co., Ltd.( 山东天展健身器材有限公司) is 20 million CNY while that of Shan Dong Mbh Fitness Co., Ltd. (山东迈宝赫健身器材有限公司) is 10 million CNY.

Does that mean Shandong Tianzhan Fitness Equipment Co., Ltd.( 山东天展健身器材有限公司) is stronger?

Not necessarily. In China, the registered capital is just a figure that the company claims when registering, not the money that has been deposited in its company bank account. And according to China’s policy, the money can be paid off within 40 years. That is to say, the registered capital can’t reveal a company’s financial strength.

So how do you compare the real strength between two Chinese companies? This article will give you a few useful tips. We will take the aforementioned two companies as an example, and you can make a comparison between the two Chinese companies from the following aspects.

Paid-up Capital

Paid-up capital (or paid-in contribution) is the money that has been paid for the registered capital. It can truly reflect a company’s financial strength.

paidup capital

fitness 2

From the table above, we can learn that Shandong Tianzhan Fitness Equipment Co., Ltd. ( 山东天展健身器材有限公司) only deposited 1 million CNY into its company bank account though it claimed a registered capital of 20 million, while Shan Dong Mbh Fitness Co., Ltd.(山东迈宝赫健身器材有限公司) has paid off all of its registered capital in its bank account.

Thus, with respect to financial strength, Shan Dong Mbh Fitness Co., Ltd.(山东迈宝赫健身器材有限公司) wins with more paid-up capital.

Insured Employees

In China, anyone who is an official (legally-contracted) employee must be insured by the company according to law. That is to say, the number of employees can be estimated from the number of employees insured. To figure out the size of a company’s staff, the number of employees insured is an important indicator.

Let’s see how these two companies perform in this aspect:

Shandong Tianzhan Fitness Equipment Co., Ltd. ( 山东天展健身器材有限公司)

fitness

Shan Dong Mbh Fitness Co., Ltd. (山东迈宝赫健身器材有限公司)

mbh fitness

Comparing the number of employees insured, Shan Dong Mbh Fitness Co., Ltd. (山东迈宝赫健身器材有限公司) has way more insured employees (686) than Shandong Tianzhan Fitness Equipment Co., Ltd.( 山东天展健身器材有限公司) (111). It means Shan Dong Mbh Fitness Co., Ltd. has a larger size of staff.

Patents and Trademarks

Following are screenshots about the patents and trademarks information from our credit reports of the two companies.

Shandong Tianzhan Fitness Equipment Co., Ltd.( 山东天展健身器材有限公司)

Patents:

patent

Trademarks:

trademark

Shan Dong Mbh Fitness Co., Ltd. (山东迈宝赫健身器材有限公司)

Patents:

info-78

Trademarks:

info 59

Both in terms of patents and trademarks, Shan Dong Mbh Fitness Co., Ltd. (山东迈宝赫健身器材有限公司) outnumbers Shandong Tianzhan Fitness Equipment Co., Ltd.( 山东天展健身器材有限公司)which means Shan Dong Mbh Fitness Co., Ltd. (山东迈宝赫健身器材有限公司) is stronger in research and development capability.

Recruitment Information

Sometimes, we can also find a Chinese company’s recruitment information in our database. This record shows what kinds of employees a Chinese company is hiring or used to hire. It can show the focus of a company’s development during a certain period.

Shandong Tianzhan Fitness Equipment Co., Ltd.( 山东天展健身器材有限公司)

recruit info

Shan Dong Mbh Fitness Co., Ltd. (山东迈宝赫健身器材有限公司)

225 jobs

Shandong Tianzhan Fitness Equipment Co., Ltd.

( 山东天展健身器材有限公司)

Shan Dong Mbh Fitness Co., Ltd.

(山东迈宝赫健身器材有限公司)

Number of Recruitment

8

225

Related Job Post Types

Engineer, Sales, Clerk

Engineer, Sales, Assistant, English Translator, Trainer, Cleaner

From their recruitment information, we can see that both companies are hiring salesmen as well as personnel in research & development, which is a good sign.

But in some cases, we may see a company claims to have strong research & development capability, but only recruits salesmen instead of engineers. You will know the company is exaggerating too much.

Related Articles
Need to conduct Due Diligence on a company in Mainland China?