The Research On Financial Risks Of The Listed Companies Of Traditional Chinese Medicine

The listed companies face the stricter regulatory environment and bear more responsibilities than the unlisted companies, especially for the Traditional Chinese Medicine industry, which is one of the national brands. It has attracted much attention of domestic and foreign investors. However, a company cannot be built for one day. A healthy financial condition is the cornerstone for the long-term development of a company. In this paper,combined with the recent development of Traditional Chinese Medicine industry in China,the financial risk of this industry will be analyzed. First of all,a full picture of Traditional Chinese Medicine industry is elaborated, including the government policy and marketing environment. Secondly the Chinese medicine industry's risk characteristics are summarized.Then the financial performances of these companies are analyzed, using the method of qualitative analysis, for an overview of the risk of China's listed company of Chinese medicine. From the financial data of last 3 years from 63 listed companies of Traditional Chinese Medicine industry, through the analysis of those financial and non-financial indicators, the general characteristics of the financial risk of Traditional Chinese Medicine industry are summarized. At last, the financial risk of Taiji Group is disclosed according to the capital flow process, from financing, investment, recovery of funds to the income distribution. Combined with the stock performance of Taiji, investment advices are provided in conclusion.