RICHEN(SH:603755) Zheng Quan Zhi Xing·2025-08-22 16:28General Principles - The purpose of the management system for related party transactions is to standardize related party behaviors and protect investors' interests, based on relevant laws and regulations [1][2] - Related party transactions should be fair in pricing, compliant in decision-making procedures, and standardized in information disclosure [1][3] - The company should minimize related party transactions and avoid unnecessary ones [1][3] Definition of Related Parties - Related parties include related legal entities, natural persons, and entities deemed as related [3][4] - A related legal entity is defined as one that directly or indirectly controls the company or is controlled by the same entity [3][5] Types of Related Party Transactions - Related party transactions encompass various activities such as asset purchases or sales, external investments, financial assistance, guarantees, leasing, and more [4][5] Principles for Related Party Transactions - Related party transactions must adhere to principles of honesty, fairness, and transparency, with prices generally aligning with market standards [9][10] - Written agreements are required, and the board of directors must assess whether the transaction harms the company's interests [9][10] Pricing and Management of Related Party Transactions - Pricing for related party transactions should follow market prices, cost-plus pricing, or negotiated prices if market prices are unavailable [12][13] - The board can hire independent financial advisors to assess the fairness of transaction prices [13][14] Approval and Disclosure Procedures - Transactions exceeding certain thresholds must be submitted for board approval and disclosed to shareholders [8][18] - Related party transactions that benefit the company without any obligations can be exempt from the usual approval and disclosure processes [19][20] Information Disclosure Requirements - Companies must disclose details of related party transactions, including pricing policies, transaction agreements, and their impact on the company's financial status [51][52] - The disclosure must include cumulative transaction amounts with related parties up to the disclosure date [51][52] Governance and Oversight - The board of directors is responsible for overseeing related party transactions, ensuring compliance with the established management system [53][54] - Independent directors must review significant related party transactions and provide opinions in annual reports [15][16]