the capital reserve is the part that an enterprise receives from investors that exceeds its share of registered capital (or share capital). And gains and losses directly included in owners' equity, etc. Capital reserve includes capital premium (or equity premium) and gains and losses directly included in owners' equity, etc.

1. The reasons for the formation of capital premium (or equity premium) include issuing shares at a premium and investors' excessive capital contribution, etc. 2. Gains and losses directly included in owners' equity refer to those that should not be included in current profits and losses and will lead to changes in owners' equity. Gains or losses unrelated to the owner's investment in capital or distribution of profits to the owner include: (1) when the long-term equity investment of an enterprise is accounted by the equity method, the capital reserve of the investing enterprise is increased or decreased according to its share due to other changes in the owner's equity except the net profit and loss of the invested unit. (2) If the enterprise implements equity incentive according to the relevant provisions of the state, if the granted equity instrument is cancelled during the waiting period, the enterprise shall confirm the remaining waiting period when accelerating the exercise of the equity instrument.