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Q&A Regarding Related Parties (1)

Answer
Q:
What is a related relationship?
A:
There are three types of related relationships between enterprises and other enterprises, organizations, or individuals. Firstly, there is a direct or indirect control relationship in terms of funds, operations, purchases, and sales. Secondly, they are directly or indirectly controlled by a third party simultaneously. Thirdly, there are other related relationships in terms of interests.

Q:
What types of related relationships are specifically refined into?
A:
The specific types of related relationships can be divided into 7 types: A related by holding control relation, B related by financing relation, C related by production and operation franchise control relation, D related by purchase and sales, labor control relation, E related by appointment of senior management relation, F related by family and relatives relations, G related by other relations.

Q:
What types of related party transactions are there?
A:
The types of related party transactions mainly include: transfer of ownership or use rights of tangible assets, transfer of ownership or use rights of intangible assets, transfer of financial assets, financing, and labor transactions.

Q:
Do related parties only refer to enterprises?
A: No. Related parties can be enterprises, organizations, or individuals.

Q:
How to determine the controlling relations?
A: One party directly or indirectly holds more than 25% of the total shares of the other party; If both parties are directly or indirectly held by a third party more than 25% of the shares, it constitutes a controlling relationship

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