A Case Study On The Yunnan Baiyao Mixed Ownership Reform

The mixed ownership reform was put forward in 1990s.The aims of reform are introducing the private capital,increasing the productivity,enlarging the function of state capital and stimulating the vitality of enterprises.Along with many state-owned enterprises launched mixed ownership reforms,the 19^th session of national congress of the CPC pointed out that the mixed ownership reform is an important innovation and practice of effective institutional supply in supply-side structural reform.It is necessary to deepen the reform,cultivate first-class enterprises and realize the preservation and increment of state capital.Yunnan Baiyao is a landmark listed company in Yunnan province.It has successively introduced Xinhuadu and Jiangsu Yuyue by increasing capital and buying shares.It established the modern enterprises system based on equity to make the private enterprise become the largest shareholder of state-owned enterprise.The SASAC of Yunnan province relies on system breakthrough to stimulate the vitality of state-owned enterprises,enhance the competitiveness of enterprises by promoting the system innovation to push Yunnan Baiyao to play an exemplary role in the national pharmaceutical industry and the health industry.The case study has certain realistic significance and practical value.The mixed ownership reform of state-owned enterprises is often accompanied by changes of ownership structure,corporate governance structure,etc.Based on expounding the background,path,significance and achievements of scholars at home and abroad,this paper adopts the case analysis method combined with the key financial index method,the inductive method and the deductive method as well as the incident research method.This paper takes Yunnan Baiyao as the research object.First,this paper introduces the company profile and the process and motivation of the reform.Secondly,this paper combs the changes of ownership structure,corporate governance structure and mechanism of incentive and constraint to probe into the influence of mixed ownership reform on corporate governance.Meanwhile,this paper analyzes the effects of the reform from the perspectives of capital preservation and appreciation and market effect,then analyzes the potential risks.The results show that the mixed ownership reform is helpful to optimize the ownership structure,improve the corporate governance structure,stimulate the enthusiasm of managers,protect the interests of small and medium-sized investors and enhance the efficiency of corporate governance.Plus,the mixed ownership reform can strengthen the ability of preservation and increment of capital,optimize the capital structure and expand the scale of production and operation.Meanwhile,the state-owned enterprises can make the market performance,market competitiveness and market prospect better.Finally,we sum up the following revelations:It is essential to select appropriate way to carry out the mixed ownership reform,keep improving the mechanism of corporate governance,integrate the resource advantages of strategic investors fully,evaluate and cope with potential risks and exert the function of management control.Hope this study can provide some reference to the mixed ownership reform of state-owned enterprises.