Some Chinese companies may have a lot of patents, trademarks, and a lot of engineers. They seem to be large companies with qualifications and capabilities. But are these companies necessarily reliable? Not necessarily. In this article, I am going to show you a company called (深圳市金丛智能科技有限公司) Kingsong Intell Co., Ltd. as an example to introduce the risk of doing business with such a company.
Exaggeration on its website
On the company’s website https://www.kingsong.com/, the company claims that it was established in 2012.
However, through investigation, we found out that the company was founded on 2016-08-09 which is 4 years later.
On its website, the company claims that it formed a complete production line: electric unicycle/ E-scooter/two-wheel balance scooters, and keep track of market tendency to keep refresh for its customers, indicating that it has a factory.
However, through investigation we found out that the company is a wholesale and retail company, so we believe that this factory belongs to its business partner.
Except for these two aspects, this company seems to be an experienced company in this field for the following reasons.
1. From the government database in China, we know that the company has 22 patents in total, such as spherical unicycle balance car; balanced car pedal, and so on, as well as 11 trademarks.
2. From the company’s recruitment information, it is looking for mobile power engineers, maintenance technicians and so on. This corresponds with the company’s claim that it has more than 30 employees in the R&D team.
From the above information, Kingsong Intell Co., Ltd. seems to be a reliable company, but in fact, this company has some other problems.
1. In the government database, we found that nearly half of the company’s trademarks had not been approved. In addition, the investigation shows that the company had been sued twice for infringement of patents on inventions, so their number of real patents is suspicious.
2. Through the database we found out that the company was once listed as an Official Dishonest Person Subject to Enforcement because they didn’t pay their employees on time. The Chinese characters “劳人仲案” refer to the case between employees and the legal representative because of unpaid wages.
Although now this company has been removed from the list, we still doubt whether it is an honest company now. If you are going to do business with such a business, you’d better ask it to give you a reasonable explanation.
3. One of the investors of the company is 深圳市金丛运动设备有限公司 (Shenzhen Kingsong Sports Equipment Co., Ltd.), which is officially listed as a dishonest enterprise for not paying back the money.
If a company or Chinese citizen is on the Official List of Dishonest Persons Subject to Enforcement (失信被执行人名单), it means that this company has the ability to perform its duty (such as paying back money) but refuse to do so after official judgment by the court.
4. With such shareholders, we also have doubts about the credibility of Kingsong Intell Co., Ltd.
Whether it is a large company or a small company, before doing business with a Chinese company, you need to gather more information, such as company structure & shareholders, intellectual property, related risks, customs registration information, business registration information, change records.
After you decide to do business with a company, you should sign a contract with it, and keep email and important documents well to avoid failing to protect your own benefits when problems occur.
Besides, you should regularly check the product quality during the production process. In order to avoid property loss, you need to be careful at every stage of importing products from China.