Analysis Of The Financial Effect Guangzhou Pharmaceutical’s Overall Listing

Spin-off listing as the mainstream listing method in the initial stage of China’s securities development has brought certain development space for listed companies.However,with the promulgation of China’s Securities Law,the development of the securities industry is constantly in line with international standards.The drawbacks gradually emerged,the competition in the industry increased,and the existence of a large number of related transactions threatened the better and faster development of enterprises.As a major institutional change in China’s securities market,the overall listing has become an important way to solve various drawbacks of spin-off listing.TCL took the lead in completing the overall listing in 2003,which undoubtedly provided a new development opportunity for listed companies.The wave of overall listing has also ignited a climax in the pharmaceutical industry with the arrival of new medical reforms.In the face of favorable policies and increasingly competitive markets,Guangzhou Pharmaceuticals is a leading company in the pharmaceutical industry,in order to consolidate its position in the industry.Consolidate the competitiveness,through the exchange of shares to the group companies,the absorption of the merger of Baiyunshan Pharmaceutical to achieve the overall listing.This article starts with the case of Guangzhou Pharmaceutical Co.,Ltd.to absorb and merge Baiyunshan Pharmaceutical to achieve the overall listing.Through the definition of relevant concepts,it sorts out the context of the overall listing of Guangzhou Pharmaceutical,understands the internal and external motivations for its implementation of the overall listing,and selects the whole Four years before and after the listing(a total of 9 years)combined with the data of 47 pharmaceutical manufacturing companies listed on the Shanghai Stock Exchange,the market effects,scale effects,financial effects and synergies of the companies before and after the listing were carried out.The comparison between the two aspects analyzes the benefits and shortcomings of the overall listing to the enterprise.Combining property rights theory,scale economy theory,synergy effect theory and principal-agent theory,the article summarizes the financial effects of Guangzhou Pharmaceutical before and after the overall listing,and finds that the overall listing through the company announcement can bring short-term market effects to the company and will provide quality resources.Injected into Guangzhou Pharmaceutical,expanding its scale,enhancing scale effect,enriching the structure of products,optimizing the industrial chain of listed companies,forming economies of scale,reducing the occurrence of connected transactions,avoiding potential competition in the same industry,and improving The shareholding ratio of the controlling shareholder has played a synergistic effect in management,operation and finance.By studying the case of Guangzhou Pharmaceutical’s successful completion of the overall listing,it is hoped to provide a new investment proposal for the pharmaceutical manufacturing industry that is in the midst of the flood season or the wait-and-see period,and promote the rapid development of the pharmaceutical manufacturing industry.