Does the board of directors of the parent company audit the financial statements of the subsidiaries?

Yes According to the first paragraph of Article 37 of the Company Law of People's Republic of China (PRC), it can be known that the annual financial budget and final accounts of a subsidiary shall be audited by the financial department of the parent company before being submitted to its board of directors for deliberation. Therefore, as of July 17, 2023, the board of directors of the parent company reviewed the financial statements of the subsidiaries. Financial final accounts report refers to a written summary compiled according to the budget implementation results of state organs, enterprises, institutions and other economic organizations in a certain year or a construction project.