Kairuide Holdings Co., Ltd. Subsidiary Management System (May 2021 Revision)
Chapter 1 General Provisions
Article 1 To strengthen the management of Kairuide Holdings Co., Ltd. (hereinafter referred to as "the Company") subsidiaries, standardize their operational management, protect the interests of the Company and investors, and in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as "Company Law"), the "Securities Law of the People's Republic of China" (hereinafter referred to as "Securities Law"), and other laws, regulations, normative documents, and the "Articles of Association of Kairuide Holdings Co., Ltd." (hereinafter referred to as "Articles of Association"), this system is formulated.
Article 2 This system applies to the subsidiaries under the Company.
Article 3 For the purpose of this system, a subsidiary refers to a company legally established by the Company based on its overall strategic planning, industrial structure adjustment, and business development needs, which possesses independent legal person status. Its establishment forms include: (1) Wholly-owned subsidiaries established solely by the Company; (2) Controlled subsidiaries established by the Company jointly with other companies or natural persons. A controlled subsidiary refers to a company in which the Company directly or indirectly holds more than 50% of its shares, or holds less than 50% of its shares but is able to determine the composition of more than half of its board of directors, or actually controls it through agreements or other arrangements.