1. If the subsidiary is a listed company and the group company does not participate in the operation, then the group company should be an investment holding company, and the group company is only responsible for capital operation and resource allocation, so that the capital in its hands will continue to increase. For example, Legend Holdings Limited (unlisted company of Chinese Academy of Sciences) and Lenovo Group (listed company of Hong Kong Stock Exchange) are the same. If Legend Holdings is not satisfied with Lenovo Group's business, or Legend Holdings wants to develop mobile phone business instead of PC business, then Legend Holdings can sell all the shares of Lenovo Group and buy shares of a company with promising mobile phone business. Through this operation, Legend Holdings' capital can be continuously optimized and increased. Buffett's famous company Berkshire Hathaway is such a company.
2. If the subsidiary is a listed company, the group company also has its own main business, and the business is consistent. In order to avoid horizontal competition, there is no need to form two companies. Direct absorption and merger into a company is more efficient in management. In fact, the subsidiary and the parent company merged into a listed company to become a company.
It's time to give you a serious and original answer, and it's time to add points, hehe ~ ~ ~