What do you mean by holding a subsidiary?

A holding subsidiary is an investment of one company or a 50% share controlled by another company, instead of 100% share. According to the requirements of relevant national laws, regulations and normative documents on the standardized operation and asset control of listed companies, the company, as the controlling shareholder or actual controller, exercises the power of supervision and management over the major issues of its holding subsidiaries, and exercises the right of decision on the investment income and major issues of investment enterprises according to law. At the same time, it is obliged to provide guidance, supervision and related services to the holding subsidiaries.

Do the profits of holding subsidiaries belong to the parent company?

The part of the profit of the holding subsidiary flowing to the parent company is the proportion of the equity held by the parent company multiplied by the profit of the subsidiary. The profits of the holding subsidiaries are distributed in proportion to the equity. If the subsidiary is a wholly-owned subsidiary of the parent company, the parent company will share and control the equity amount of the subsidiary. In this case, all the profits of the subsidiary company belong to the parent company. If the subsidiary is not a wholly-owned subsidiary, the profits of the subsidiary shall be distributed according to the shareholding ratio.