As part of the IntegraCheck® | Integrity Due Diligence background check on a distributor in China, we discovered that the Company recorded and reported zero revenue, and zero profits, to the local authorities in 2016 even though our research indicated businesses conducted that year.
Our researcher, Harvey Xu, observed that the financial results recorded at the Administration for Industry and Commerce may not be an accurate reflection of the subject company’s true operational status. With in-depth knowledge of how the local taxation authorities manage annual income tax filings and declaration procedures, Harvey was able to present to the Client how there may be a substantial impact on the business continuity of the third party. In addition, using his experience and insight of companies operating in China, he was able to highlight how this type of issue could indicate there are other unethical behaviour occurring.
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Harvey Xu, Research & Analysis Team (Shanghai).
With a background in finance and business operations, Harvey has outstanding abilities in financial risk analysis and has provided insights to clients via examining financial irregularities in third parties and business partners. Harvey is primarily responsible for due diligence engagements for Greater China, and is involved in cybercrime investigations as well as providing insights of cross-border transfers and of directorships in China.