Chapter 1 General Principles
Article 1
To ensure that related party transactions between Huaming Power Equipment Co., Ltd. (hereinafter referred to as "the Company") and related parties comply with the principles of fairness, justice, and openness, and to protect the legitimate rights and interests of the Company and non-related shareholders, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Shenzhen Stock Exchange Listing Rules" (hereinafter referred to as "Listing Rules"), "Enterprise Accounting Standard No. 36 - Disclosure of Related Party Transactions," and other relevant laws, regulations, normative documents, and the provisions of the "Articles of Association of Huaming Power Equipment Co., Ltd." (hereinafter referred to as "the Articles of Association").
Article 2
In addition to complying with relevant laws, regulations, normative documents, and the Articles of Association, related party transactions between the Company and related parties must also adhere to the provisions of this system.
Chapter 2 Related Parties and Relationships
Article 3
Related parties of the Company include related legal entities (or other organizations) and related natural persons.
Article 4
Legal entities or other organizations that meet any of the following conditions are considered related legal entities of the Company:
- Legal entities or other organizations that directly or indirectly control the Company;
- Legal entities or other organizations that are directly or indirectly controlled by the legal entities or organizations mentioned in the previous item, excluding the Company and its holding subsidiaries;
- Legal entities or other organizations that are directly or indirectly controlled by related natural persons listed in Article 5 of this system, excluding the Company and its holding subsidiaries;
- Legal entities (or other organizations) that hold more than 5% of the Company's shares and their concerted actors;
- Other legal entities or organizations recognized by the China Securities Regulatory Commission (hereinafter referred to as "CSRC"), Shenzhen Stock Exchange (hereinafter referred to as "SZSE"), or the Company as having a special relationship with the Company that may or has caused the Company to favor their interests.
Article 5
Natural persons who meet any of the following conditions are considered related natural persons of the Company:
- Natural persons who directly or indirectly hold more than 5% of the Company's shares;
- Directors and senior management of the Company;
- Directors, supervisors, and senior management of legal entities (or other organizations) listed in Article 4(1);
- Close family members of the individuals mentioned in items (1) and (2) of this article, including spouses, parents, parents-in-law, siblings and their spouses, children over 18 years old and their spouses, siblings of spouses, and parents of spouses' children;
- Other natural persons recognized by the CSRC, SZSE, or the Company as having a special relationship with the Company that may or has caused the Company to favor their interests.
Article 6
Legal entities (or other organizations) or natural persons that meet any of the following conditions are deemed related persons of the Company:
- Those who, due to agreements or arrangements with the Company's related persons, have any of the conditions specified in Articles 4 or 5 of this system within twelve months after the agreement or arrangement takes effect;
- Those who had any of the conditions specified in Articles 4 or 5 of this system within the past twelve months.
Article 7
Directors, senior management, shareholders holding more than 5% of shares and their concerted actors, and actual controllers of the Company must promptly submit a list of related persons and explanations of related relationships to the Company's board of directors, which shall manage the registration.