1. The parent company is the owner of the wholly-owned subsidiary and has absolute control over it, and can manage and supervise it at any time.
2. A wholly-owned subsidiary is a subsidiary of the parent company, and its management and financial status are controlled and influenced by the parent company.
3. The parent company and its wholly-owned subsidiaries can enjoy resources such as capital, technology and talents, so as to improve the comprehensive strength and competitiveness of the whole enterprise group.
4. The operating performance and financial status of wholly-owned subsidiaries directly affect the financial status and reputation of the parent company, so the parent company usually strictly supervises and manages the operating management and financial status of wholly-owned subsidiaries to ensure their steady development.