Hi Xiaosheng,

On 20/09/16 16:31, 谭晓生 wrote:
> Qihoo 360 is a company valued at USD$9.99B as it finished the
> privatization on July 15th 2016, we have invested in more than 200
> companies across the world, Wosign is just a very small one and we
> even do not have any people sent to this company after the
> investment, the major businesses of Qihoo 360 are security software
> for consumer, we are the largest player of anti-virus software in
> China, No.2 search engine in China and one of the top gaming platform
> in China, No.1 PC browser in China, the total revenue is about
> USD$1.6B last year, that’s might help to understand that why the
> layers don’t think Wosign is a "significant subsidiary".

Well, if we were using a dictionary definition of "significant" as used
in normal English conversation, that would make sense :-) However, the
SEC's definition is not related to the size of the company compared to
its parent, or related to whether the parent company's employees start
running the subsidiary company, or whether the company's activities are
supporting the parent's key business areas. The SEC cares about what
percentage of the subsidiary company is owned or controlled by the
parent. And 84%, which appears to be the correct figure here, is much
more than the minimum thresholds set out in the part of the regulations
you helpfully quoted.

But again, this is for you and the SEC to sort out :-)

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