This structure enables the parent company to control the equity and management rights of its subsidiaries, thus realizing the control and operation of the whole enterprise group. The holding company system is generally applied to complex enterprise groups, which can make the parent company make full use of the resources, technology and knowledge of its subsidiaries and improve the efficiency and management level of the whole enterprise group. In addition, the holding company system can also bring some financial advantages, such as reducing repeated investment and management costs and reducing tax burden. However, this structure also has limitations, such as the need to invest a lot of manpower and material resources for unified management and control, as well as the possible challenges such as operational risks and policy risks.