Which is more important, the financial statements of the parent company or the consolidated financial statements?

The consolidated financial statements are more important because: the consolidated financial statements offset the internal transactions and the creditor-debtor relationship between the parent and subsidiary companies of the group, reducing the transmission of potential internal interests, so for the majority of shareholders and group stakeholders, understanding the consolidated financial statements can better understand the composition of the assets, liabilities and owners' equity of the whole group.

Consolidated financial statements refer to the statements prepared by the parent company, with the enterprise group established by the parent company as the accounting entity, which comprehensively reflect the overall financial status, operating results and cash flow of the enterprise group. Parent company refers to an enterprise with one or more subsidiaries; A subsidiary refers to an enterprise controlled by the parent company. The parent company shall be a holding enterprise registered in accordance with the law and with the qualification of enterprise legal person.