1, by controlling the import and export prices of spare parts and raw materials, affecting the costs of affiliated enterprises;

2. The parent company directly affects the product cost of the subsidiary through the sales price of the fixed assets of the subsidiary. The depreciation of fixed assets stipulated by the parent company, the length of the term and the amount of depreciation expenses per period will all affect its profits;

3. Different royalties collected by the parent company through the transfer of intangible assets such as patents, know-how, trademarks and manufacturers' names exert influence on the costs and profits of subsidiaries;

4. Influence the product cost by providing loans and interest;

5. Labor costs such as technology, management and advertising consultation are used to affect the costs and profits of subsidiaries;

6. Give higher or lower commission and kickback to the subsidiary system sales organization when selling products, so as to affect the company's sales revenue;

7. The parent company uses the transportation system controlled by it to influence the sales cost of the subsidiary by charging higher or lower transportation fees, handling fees and insurance premiums to the subsidiary;

8. We can reduce the company's income by asking the subsidiary for more management fees to spread into the product cost of the subsidiary.

Company Law of the People's Republic of China

Article 5

Companies engaged in business activities must abide by laws, administrative regulations, social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities. The legitimate rights and interests of the company are protected by law and shall not be infringed.