How do investors conduct due diligence when investing in a company?

Legal analysis: Due diligence occurs after the investor and the invested enterprise reach the cooperation intention, and the investor conducts on-site investigation and data analysis on the related matters of the invested enterprise. Due diligence is usually carried out in the public offering (listing) or acquisition of enterprises, mainly to investigate the finance and law of the invested enterprises. The most basic content of the survey is the research or business of the invested enterprise in the industry. Investors will visit your company and your employees on the spot and choose to visit them on weekdays.

Legal basis: Article 179th of the Company Law of People's Republic of China (PRC). When a limited liability company increases its registered capital, the contribution of the newly-increased capital subscribed by shareholders shall be implemented in accordance with the relevant provisions of this Law on the establishment of a limited liability company.

When a joint stock limited company issues new shares to increase its registered capital, shareholders shall subscribe for new shares in accordance with the relevant provisions of this Law on the establishment of a joint stock limited company and the payment of shares.