The Motivation And Performance Analysis Of Corporate Backdoor Listing

With the increase of the elderly population and the improvement of the social and economic development level,people's demand for the quantity and quality of drugs is increasing day by day.At the same time,foreign pharmaceutical giants are taking advantage of their own financial advantages,management advantages and patent technology advantages to participate in the competition in China's pharmaceutical market.Chinese pharmaceutical enterprises are facing both opportunities and challenges in the process of survival and development.Due to the continuous growth of the pharmaceutical market and the increasing strength of its competitors,pharmaceutical enterprises need to continuously upgrade their production equipment and research and development technology in the process of their development.Pharmaceutical enterprises need a large amount of financial support in the operation process to be able to remain invincible in the international competitive environment.Under this background,many enterprises attempt to expand financing channels and reduce capital costs by listing.However,at present,China still implements the audit system for IPO of enterprises,which hinders the pace of listing of many enterprises.Therefore,many pharmaceutical enterprises have chosen the backdoor method to realize listing in order to speed up financing and avoid audit risks.This paper studies the motivation and performance of Jialin Pharmaceutical's backdoor listing.On the one hand,it supplements and perfects the motivation of the backdoor listing of enterprises,and on the other hand,it supplements the case of whether backdoor listing can improve the performance of enterprises,providing case support for this debate in academia.In addition,the lessons learned from Jialin Pharmaceutical's backdoor listing are summarized to provide reference for other similar enterprises.Based on the case of Jialin pharmaceutical backdoor tianshan textile co.,ltd.,this article first elaborates the backdoor background and backdoor process of pharmaceutical companies before backdoor listing.through the actual situation of Jialin pharmaceutical co.,ltd.,it analyzes the motives behind Jialin pharmaceutical backdoor one by one from threeaspects: financing motives,motives of avoiding listing risks and motives of reducing listing costs,and finds out the real purpose of Jialin pharmaceutical backdoor.Secondly,Dupont analysis method,EVA evaluation method and Z-value analysis method are used to compare and analyze the performance of Jialin Pharmaceutical before and after backdoor listing,and whether Jialin Pharmaceutical can improve its own performance and the advantages and disadvantages of various performance evaluation methods through backdoor listing are summarized and analyzed.Finally,through research,it is found that although Jialin Pharmaceutical has maintained the increase of shareholders' wealth and the relatively leading rate of return on investment after backdoor listing,the financial risk of the enterprise has not decreased after backdoor listing,especially the underutilization of monetary funds has led to the decline of the total asset return rate and the total asset turnover rate.In view of this phenomenon,this paper puts forward relevant suggestions in the aspects of backdoor timing,backdoor object,capital utilization and risk assessment for reference to other enterprises in the same industry.