What does it mean to own 5 1% equity?

Legal analysis: owning 5 1% equity means absolute control and absolute decision-making power, because it usually takes more than half to pass the resolution at the shareholders' meeting, so holding 5 1% equity is equivalent to controlling the adoption of the resolution at the shareholders' meeting and thus controlling the company.

Legal basis: People's Republic of China (PRC) Company Law.

Article 4 Shareholders of a company shall enjoy the right to return on assets, participate in major decisions and choose managers according to law.

Article 42 At the shareholders' meeting, shareholders shall exercise their voting rights in proportion to their capital contribution; However, unless otherwise stipulated in the articles of association.

Article 43 The discussion methods and voting procedures of the shareholders' meeting shall be stipulated in the articles of association of the company, unless otherwise stipulated in this Law. The shareholders' meeting shall make resolutions on amending the Articles of Association, increasing or decreasing the registered capital, and on the merger, division, dissolution or change of corporate form of the company, which must be approved by shareholders representing more than two thirds of the voting rights.