What is the purpose of "there is no horizontal competition among controlling shareholders, actual controllers and other enterprises controlled by them"?
Article 19 The issuer's business is independent. The issuer's business should be independent of the controlling shareholder, actual controller and other enterprises controlled by them, and there is no horizontal competition or obviously unfair related transactions with the controlling shareholder, actual controller and other enterprises controlled by them. I understand that the purpose is simple: to prevent the transmission of mutual benefits. For example, the parent company sells milk powder, and listed companies also sell milk powder. If the performance of the listed company is good, the parent company will rob the customers of the listed company to balance the interests, because most of the control and management rights of the company are in the hands of the parent company (controlling shareholder). If the performance of listed companies is not good, the parent company will find ways to convey profits. And they will also make costs for each other and so on. All in all, this is a terrible thing. When I met a listed company, I brought a set of food processing lines that could not be produced by another subsidiary of the shareholders, saying that I built them myself. Spent 1 over 100 million. Just because this listed company also has the same food processing business.