The parent company's absorption and merger of wholly-owned subsidiaries is a special reorganization, which belongs to "business combination under the same control without paying consideration" and meets the special reorganization conditions. Because enterprise reorganization is basically the circulation of all assets, the essence is capital operation, which has no influence on the production and operation of entity enterprises.
The parent company's absorption and merger of wholly-owned subsidiaries is equivalent to the cancellation of wholly-owned subsidiaries, and all its assets, liabilities, business and personnel are transferred to the parent company.