The Financial Analysis About YA BAO YAO YE, INC.

The rapid development of modern biotechnology made a revolutionary effect on the pharmaceutical industry. The deeper understanding of incurable diseases brings us lots of new biotech drugs. Using biological technology to transform traditional industries greatly changed the face of the pharmaceutical industry. Pharmaceutical industry has always been a high-tech, high investment, high risk, high return industry. It is the focus of competition among developed countries. It has been a long time that developed countries has used the advantages of capital, technology and market, implementation of the monopoly monopolized the market. Financial crisis and the new medical reform make China’s pharmaceutical launched a new competition with developed countries in the field of biotechnology. That’s why all of the listed companies of the pharmaceutical industry pay more attention to their financial situation changes from there internal to external. The financial analysis has become an important way of getting news.Relying on the rich biological resources of Ya Bao Pharmaceutical Group and the positive macro-economic policies as the background, we qualitatively analyzed the problems of lacking sluggish exports and industry funds, problems of it’s own products do not been received by the European market, and the problems of not able to form effective clusters. At the same time, we qualitatively analyzed the problems of solvency, profitability, operational capabilities, ability to grow and integrated capabilities of Ya Bao Pharmaceutical Co., Ltd.,which is followed by the annual report of the last five years. From the above analysis we pointed out that, Ya Bao should seize the introduction of talents, and rapidly achieve the transformation of innovations; accelerate the product innovation, and adjust the product structure; shorten the marketing channels, and enter the retail market; grasp the opportunity of the new medical reform, and developing the rural market; improve the competitiveness of their products, and expand the overseas market; adjust the liability structure, and enhance the firms’ solvency; strengthen the asset management, and enhance the operational capabilities; enhance the cost-control capabilities to enhance the profitability. Linking theory with practice, we gave out the ways of improving Ya Bao Pharmaceutical Group’s financial ability. Followed by the qualitative analysis and quantitative analysis.