Company: TCOM
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001193125-25-078429
Chunk: 173

Company: Trip.com Group Ltd
Filing Date: 2025-04-11
Form: 20-F
Item: Item 7
Chunk 173
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ITEM 7.   MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
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 A.  Major Shareholders
Please refer to “Item 6. Directors, Senior Management and Employees—E. Share Ownership.” 
 B.  Related Party Transactions
Arrangements with the VIEs 
 Current PRC laws and regulations impose restrictions on foreign ownership of certain businesses in China. Therefore, we conduct part of our businesses through a series of contractual arrangements between our PRC subsidiaries, the VIEs, and/or their respective shareholders. The VIEs hold the licenses and approvals for operating the travel agency and value-added telecommunications businesses in China. As a result of the contractual arrangements, we (i) have the power to direct activities of the VIEs that most significantly affect their economic performance, and (ii) receive the economic benefits from the VIEs that could be significant to them. Accordingly, for accounting purposes, the contractual arrangements provide Trip.com Group Limited with a “controlling financial interest” in the VIEs as defined in FASB ASC 810, making Trip.com Group Limited the primary beneficiary of these companies, and Trip.com Group Limited thus has consolidated the financial results of operations, assets, and liabilities of these companies in its consolidated financial statements under U.S. GAAP. Moreover, we plan to enter into the same series of agreements with all of the future variable interest entities. As of the date of this annual report, Bo Sun, Maohua Sun, Hui Cao, and Hui Wang, all being our employees or senior consultants, are the principal record owners of the VIEs. Neither Trip.com Group Limited nor its investors has an equity ownership (including foreign direct investment) in, or control through such equity ownership of, the VIEs, and the contractual arrangements are not equivalent to an equity ownership in the business of the VIEs. 
 As of the date of this annual report, the equity holding structures of each of the significant VIEs and VIEs’ subsidiaries are as follows: 
 

•   Maohua Sun and Bo Sun owned 10.2% and 89.8%, respectively, of Ctrip Commerce (VIE).
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•   Ctrip Commerce (VIE) owned 100% of Shanghai Huacheng (VIE).
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•   Hui Cao and Hui Wang owned 60% and 40%, respectively, of Qunar Beijing (VIE).
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