First, the object of guarantee is the wholly-owned subsidiary of the company, which is a normal business behavior. The company has absolute control over it, is in good operating condition, and its financial risks are under effective control. The company guarantees that it will not harm the interests of the company and shareholders; At the same time, Yunshikong provided counter-guarantee for this guarantee.
2. The guarantee behavior conforms to the actual business needs of the company and its subsidiaries and will not adversely affect the normal operation and business development of the company. The contents and decision-making procedures of this guarantee comply with the requirements of relevant laws and regulations such as the Guidelines for the Standardized Operation of Listed Companies on Growth Enterprise Market of Stock Exchanges and the Listing Rules on Growth Enterprise Market of Stock Exchanges, and safeguard the interests of all shareholders.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company.
A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.