Research On L Corp. Financial Strategy Based On Profit Pattern Optimization

Offering traditional products and services no longer ensure the survival anddevelopment of enterprises. It is effective, creative and improving profit pattern that is theoverall solution for enterprises value creation. Successful profit pattern is an updatingmechanism which could guide and guarantee enterprises for their excess profit. In thebackground of deepening medical and health care reform in China, pharmaceuticalmanufacturers must quickly convert business ideas and build profitable profit patterns, andselect and implement appropriate financial strategies in order to ensure stable andsustainable profits.As one of the fist listed companies at the Shenzhen Stock Exchange GrowthEnterprises Market (GEM) board, Chongqing L Pharmaceutical Co. Ltd (L Corp.) setinnovation as the core profit pattern of its own. However, in the process of development, LCorp. faced a sharp earnings decline. By using literature research method and case studyetc., we first examine L Corp.’s profit pattern and find the problems through financialstatement analysis. Then in the process of optimizing its profit pattern and enhance theprofitability, we could chose and propose appropriate financial strategy to ensure itsoptimized profit pattern.In this thesis, there are six parts: Part1is an introduction; Part2is theoretical analysisand review of the literature of financial strategies and profit pattern; Part3analysis thecurrent profit pattern of L company mainly through financial perspective, finding out theproblems which existing in the four elements of its profit pattern; Part4provides thesuggestions of profit pattern’s optimization; Part5discusses the company’s financialstrategies selection in terms of investment strategy, financing strategy, working capitalstrategy. Part6is a conclusion.This thesis firstly builds a theoretical framework for the relationship of profit patternand financial strategies, and set high-tech pharmaceutical enterprise as the research objectby analyzing its profit pattern. On the base of its profit pattern optimization, then choosingthe profitable financial strategies, which could offer better reference value to thepharmaceutical manufacturing companies...