Asset valuation

Asset valuation for share transfers, collateral and judicial disposal

Enterprise value, individual asset appraisal and impairment testing — prepared to PRC valuation standards and usable for transaction pricing, capital contribution, secured lending and court proceedings.

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Overview

What this is

We value businesses, individual assets and asset groups using the cost, income and market approaches, depending on what the asset is and what the report has to support. Reports are prepared under PRC asset valuation standards and are widely used for share transfer pricing, mergers and acquisitions, asset pledges, in-kind capital contribution, liquidation and judicial disposal. Because our valuation and audit teams work together, the financial data behind the valuation is the same data that has already been audited — which removes a round of reconciliation and a lot of back-and-forth.

Scope

What the work covers

Purpose and value basis — we first define the purpose and the underlying transaction, then fix the value basis: market value, investment value or liquidation value.
Method and parameter selection — income, market or cost approach chosen to fit the asset, with the discount rate, income period and other key parameters documented.
Site inspection and title verification — physical inspection of condition and use, plus verification of title documents, encumbrances, mortgages and seizures.
Valuation and calculation — a reviewable working paper is produced, with the source of every parameter and the full calculation trail.
Special cases — impairment testing, goodwill allocation and equity valuation are handled separately under the standards, with assumptions fully disclosed.
Three-level review and issue — preparer, manager and quality control review, then a report that meets filing requirements.

Deliverables

What you receive

Asset valuation report

Signed and sealed by the valuer, meeting valuation standards and filing requirements; usable for SAMR, tax and judicial purposes.

Valuation schedule

Book value, appraised value, increase or decrease and rate of change, itemised by asset class.

Assumptions and limitations

The assumptions the value rests on and the limits on its use, stated so the report cannot be misapplied.

Method and parameter basis

Which method was used, why, and how each key parameter was derived.

Title and restriction findings

Any restriction, mortgage, seizure or title defect found, and its effect on value.

Filing and query support

Written responses to review questions from SASAC, tax authorities or the court.

Who needs this

Who this is for

Share transferors

Pricing basis for equity transfers, capital increases and share expansions.

Acquirers

Target company valuation in an M&A transaction.

Borrowers

Collateral valuation for bank credit facilities.

Contributing shareholders

Valuation of physical or intangible assets contributed as capital.

Liquidation and judicial

Reserve prices for liquidation disposal and court-appointed valuation.

Listed and annual reporting

Goodwill and asset group impairment testing, and annual report support.

Report uses

What the report is used for

Transaction pricing — fair value reference for equity transfer and capital increase
M&A decisions — target value in an acquisition
Secured lending — collateral value for bank credit
Capital contribution — confirmation of in-kind and intangible asset values
Judicial disposal — court and liquidation valuations
Impairment testing — goodwill and asset group tests for annual reporting

Pricing

How we price it

A written fixed fee, agreed before we start. The figures below are indicative and depend on scope.

Single asset

From RMB 5,000 — a single property, piece of equipment or similar item.

Enterprise value

From RMB 15,000 — whole equity or business value, income or market approach.

Impairment testing

From RMB 10,000 — goodwill and asset group impairment.

Judicial or collateral

From RMB 8,000 — tailored to court or bank requirements.

The final fee is confirmed in writing after we understand the requirement. No hidden charges; rush work is agreed in advance.

Documents

What we need from you

A full checklist is issued after engagement. These are the main items.

Copy of business licence
Financial statements at the valuation base date
Asset title documents (property certificate, vehicle registration, land certificate)
Asset register and depreciation schedule
Material contracts and agreements (leases, procurement)
Financial statements and audit reports for the last three years
Intangible asset documents (patents, trademarks, software)

Process

From first email to finished work

1. Initial call

Scope, timeline and a free indicative quote by phone, WeChat or WhatsApp.

2. Engagement letter

Scope, fee and timeline fixed in writing, with the full document list issued once.

3. Fieldwork

The team performs inspection, verification and calculation; difficult items are examined directly.

4. Report issued

Three-level review, then the sealed report is delivered and follow-up support continues.

Timeline

How long it takes

Standard engagements are issued about 5–10 working days after documents are complete; urgent work can be turned around in 3 working days. The main variables are accounting complexity, whether physical inventory or confirmation is required, how quickly documents move between us, and whether the work has to be coordinated with audit or tax.

FAQ

Questions we get asked

How long is a valuation report valid?

Generally twelve months from the base date, subject to what the receiving party requires.

Does the valuation require a site visit?

Usually yes. Physical assets must be inspected and counted. Purely financial valuations, such as the income approach, are arranged case by case.

What is the benefit of doing audit and valuation together?

One data source and one basis of preparation. The financial data the valuation needs comes straight from the audit team, which is faster and cleaner.

Is the report valid for external use?

It carries the firm seal and the valuer's signature with an anti-counterfeiting number, and is accepted by SAMR, tender panels, banks and the courts.

Can this be handled remotely or from another city?

Yes. Documents can be couriered or sent electronically, and physical counts can be coordinated by video. Where the standards require attendance, we say so in advance.

How is the fee set, and are there hidden charges?

A written quote based on scale, complexity and deadline, fixed on signature. Rush work or scope changes are agreed first. There are no hidden charges.