Chapter One: General Principles
Article 1
To ensure that related party transactions of Huaming Power Equipment Co., Ltd. (hereinafter referred to as "the Company") with 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"), "Accounting Standard for Business Enterprises No. 36 - Disclosure of Related Party Relationships and Transactions," "Securities Listing Rules of The Stock Exchange of Hong Kong Limited" (hereinafter referred to as "Hong Kong Listing Rules"), 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, the securities regulatory rules of the stock exchange where the Company is listed, and the provisions of the Articles of Association, related party transactions between the Company and related parties must also comply with the provisions of this system.
Chapter Two: Related Parties and Related Relationships
Article 3
The Company's related parties include related legal entities (or other organizations) and related natural persons as defined by the Listing Rules, as well as connected persons as defined by the Hong Kong Listing Rules.
Article 4
According to the Listing Rules, the following entities are considered related legal entities (or other organizations) of the Company:
- Entities that directly or indirectly control the Company;
- Entities controlled directly or indirectly by the aforementioned entities, excluding the Company and its subsidiaries;
- Entities controlled directly or indirectly by related natural persons listed in Article 5 of this system, excluding the Company and its subsidiaries;
- Entities holding more than 5% of the Company's shares and their concerted actors;
- Other entities 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
According to the Listing Rules, the following natural persons 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 the legal entities (or other organizations) listed in Article 4(1);
- Close family members of the individuals mentioned in (1) and (2), including spouses, parents, parents-in-law, siblings and their spouses, children over 18 years old and their spouses, siblings-in-law, and parents of siblings-in-law;
- 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
According to the Listing Rules, the following entities (or other organizations) or natural persons are deemed to be related persons of the Company:
- Those who, due to agreements or arrangements with related persons of the Company, have circumstances defined in Articles 4 or 5 within twelve months after the agreement or arrangement takes effect;
- Those who had circumstances defined in Articles 4 or 5 within the past twelve months.