According to the laws of our country, all the income of a wholly-owned subsidiary belongs to the parent company. The main purpose of the parent company to set up a subsidiary is to expand its business scope, which is beneficial to the parent company in theory. But the final result depends on its operating conditions.
Legal objectivity:
Article 14 of the Company Law stipulates that a company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.