In addition to meeting the above conditions, the state-owned holding company is also a wholly state-owned company. According to the provisions of the Company Law, "a wholly state-owned company as mentioned in this Law refers to a limited liability company which is solely funded by the state and authorized by the State Council or the local people's government to perform the responsibilities of the investor.
According to the relevant provisions of Accounting Standards for Business Enterprises No.33-Consolidated Financial Statements.
"Article 2 Consolidated financial statements refer to financial statements that reflect the overall financial position, operating results and cash flow of an enterprise group composed of the parent company and all its subsidiaries. The parent company refers to the entity that controls one or more entities (including the separable part of the enterprise, the investee and the structured entity controlled by the enterprise, the same below). A subsidiary refers to the subject controlled by the parent company. "
"Article 4 The parent company shall prepare consolidated financial statements. If the parent company is the main investor and there is no subsidiary to provide relevant services for its investment activities, consolidated financial statements should not be prepared. The parent company's investment in all subsidiaries in accordance with Article 21 of these Standards is measured at fair value, and changes in fair value are included in the current profit and loss. "