The Mismatch Between Internal Expenditure Structure And Main Business Of Enterprises

On July 15,2018,the National Medical Products Administration pointed out that Changchun Changsheng Bio-technology Co.,Ltd.had falsified records in the production of lyophilized rabies vaccine for human use,which aroused widespread concern from all sectors of society.The National Medical Products Administration took a series of measures against Changsheng Bio-technology Co.,Ltd.and subsidiaries,including fines,suspension of production and recovery of GMP certificates,filing a case for investigation of its illegal behaviors.In December,ST Changsheng announced that the company had received a major illegal forced delisting notice from the Shenzhen Stock Exchange.At this point,ST Changsheng may be the first major illegal forced delisting shares.The "Vaccine Counterfeiting Incident" partly reflects the mismatch between internal expenditure structure and main business of the vaccine industry.According to the financial annual report disclosed by ST in the past years and the comparison with other listed companies in the same industry,we can see that the ratio of its sales expenses and R & D expenditure,per capita R & D expenditure and other indicators are far higher than the average level of the industry as well as the excessive use of other funds in monetary funds are particularly prominent in the same industry,which is likely to cause the overall internal investment of the enterprise to deviate from the development goal,thus hindering the realization of the growth and value of the enterprise.The occurrence of "Vaccine Counterfeiting Incident" is also closely related to the implementation of this mode.Taking case analysis as the research method,this paper selects ST Changsheng as the case study object,referring to the internal expenditure structure of Tiantan Biology,Hualan Biology,Kangtai Biology and Watson Biology,taking the whole vaccine industry as the research background,by analyzing the concrete performance of internal expenditure structure dislocation in the financial statements.Combining with related materials,this paper expounds the drawbacks and provides the basis and suggestions for the enterprise audit of listed companies and the supervision of related departments.First of all,ST Changsheng,"Vaccine Counterfeiting Incident" and the entire vaccine industry related listed companies for the overall introduction.Secondly,from the analysis of the listed companies in the vaccine industry,we can conclude that,with the exception of Watson Biology,all vaccine enterprises have more or less sales costs than R & D expenditure.According to the analysis of its reasons,the 2016 sales model reform played a key role,and "Heavy sales with light R & D" internal spending patterns have developed a common phenomenon within the vaccine industry,so vaccine incidents have proliferated in recent years.Through the comparison of the five listed companies,we find that the dislocation situation is different,and the dislocation performance and consequences of different modes are different.The consequences are very serious.First of all,it is not conducive to the development of new products and the realization of enterprise value.Second it's easy to form a bad atmosphere within the industry,and finally reduce the regulatory efficiency of the relevant departments.Through the study of cases,this paper puts forward some suggestions to promote the matching of internal expenditure structure and main business: first,paying attention to the loopholes of enterprise financial statements,finding the basis of dislocation of enterprise input and main business in financial statements,and combining internal control with external audit;second,to ensure the strategic decision of enterprises.Because the formation of internal expenditure structure is often closely related to the formulation of enterprise management strategy,it is necessary to take into account the growth factors of enterprises and how to realize the value of enterprises in enterprise decision-making.Third,it is necessary for the relevant institutions to strengthen supervision,establish an effective supervision mechanism,and adopt strict sanctions for the enterprises involved,so as to protect the lives of people.