Chapter 1 General Provisions
Article 1 To strengthen the management of subsidiaries of Zhejiang Double Arrow Rubber Co., Ltd. (hereinafter referred to as "the Company," "the Company," or "the Parent Company"), standardize internal operating mechanisms, protect the legitimate rights and interests of the Company and investors, and promote standardized operations and healthy development, these Measures are formulated in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as "the Company Law"), the "Securities Law of the People's Republic of China," the "Stock Listing Rules of the Shenzhen Stock Exchange," the "Shenzhen Stock Exchange Main Board Listed Company Self-Regulatory Management Guidelines No. 1 - Standardized Operation of Main Board Listed Companies," and other laws, regulations, normative documents, and the "Articles of Association of Zhejiang Double Arrow Rubber Co., Ltd." (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2 For the purposes of these Measures, a subsidiary refers to a company established in accordance with the law with independent legal person status, including wholly-owned subsidiaries and controlling subsidiaries. (1) A wholly-owned subsidiary refers to a subsidiary in which the Company invests and holds 100% of the equity. (2) A controlling subsidiary refers to a subsidiary jointly established by the Company and other companies or natural persons, in which the Company holds more than 50% of the equity, or holds less than 50% but can determine the composition of more than half of the members of its board of directors, or can actually control the company through agreements or other arrangements.