I am looking at a target that the owner calls itself a manufacturer but what they really do is outsource the production to a Chinese company.  This isn't a political question and I get the argument about offshoring.  My question is how to characterize the business - I don't see any R&D expense in the financials so they can't say they are doing the design work and having their contract manufacturer just build it and the target has about $25k in fixed assets on $5M in sales..  To me it looks like a distributor.  I'm interested in any one else's thoughts.

Thanks in advance

-Tim