The words "affiliated" and "subsidiary" you chose are close to you what you mean in your Chinese statement. However, they do have some difference in ownership:
Affiliate:
has a minor share of its stocks controlled by the main company.
Subsidiary:
its parent company is a majority shareholder, can even own the entire subsidiary company.
With the above explanation the difference in ownership, your #2 sentence is what you want. After all, in such a situation, this elementary school will fully own and operate its subsidiary preschool.
Affiliate:
has a minor share of its stocks controlled by the main company.
Subsidiary:
its parent company is a majority shareholder, can even own the entire subsidiary company.
With the above explanation the difference in ownership, your #2 sentence is what you want. After all, in such a situation, this elementary school will fully own and operate its subsidiary preschool.
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