Q：
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How to determine the related relationship arisen from nominating and appointing senior management?
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A：
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Under any of the following circumstances, the two parties shall constitute a related relationship: First, more than half of the directors or more than half of the senior management personnel of one party (including the secretary of the board of directors of the listed company, the manager, the deputy manager, the chief financial officer and other personnel stipulated in the company's articles of association) are nominated or appointed by the other party, or serve as the director or senior management personnel of the other party at the same time; Second, more than half of the directors or more than half of the senior management personnel of both parties are nominated or appointed by a third party.
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Q：
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How to determine a related relationship arisen from the family, relatives’ relations?
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A：
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Two natural persons have husband and wife, biological relatives, brothers and sisters and other supporting relationships, and an enterprise that has a related relationship with one party (including the holding relationship, financing relationship, production and operation franchise control relationship, purchase and sales or labor control relationship, nomination or appointment of senior management, etc.) is considered a related party with the other party and the enterprise that has a related relationship with the other party. For example, if the husband and company A form a related relationship, the husband and company B, the wife and company A, and company A and company B all form a related relationship.
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Q：
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How to determine other common interest relationships?
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A：
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The two parties form a related relationship if they have other common interests in substance. For example, between an enterprise and other enterprises, organizations or individuals, one party can control the relevant activities of the other party through contract or other forms and therefore enjoy the rewards as a result, the two parties constitute a related relationship.
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Q：
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What is an ultimate holding company?
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A：
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An ultimate holding enterprise refers to the enterprise that meets both the following two conditions: one is being able to combine the financial statements of all the member entities of its enterprise group; the other is being not allowed to be included in the consolidated financial statements of other enterprises.
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Q：
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When should an enterprise make declaration on related transactions?
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A：
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For enterprises that should make declaration on related transactions, the Annual Report Form of Related Business Transactions of Enterprises of the People's Republic of China (2016 Edition) shall be attached when submitting the annual enterprise income tax return. For example, companies' 2022 related transactions filing should be completed by May 31, 2023.
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