Financial Performance Analysis Of YUN NAN BAI YAO CO.ITD’s Asset-light Operation Model

As the industry closely related to national life,the development of the pharmaceutical industry has been receiving a lot of attention.The reality is:on the one hand,the fact that China ’s population is getting older and the people’s material level is constantly improving has promoted the development of the pharmaceutical industry;on the other hand,the national medical reform has continued to deepen,and various policies have been issued to support the development of pharmaceutical companies.The rapid development of the pharmaceutical industry is accompanied by fierce market competition.The number of pharmaceutical companies in China has increased from 6,075 in 2012 to 7,697,an increase of 1,622 in just a few years.Due to the generally low investment in research and development in China’s pharmaceutical industry,coupled with fluctuations in the prices of raw materials for pharmaceutical products,and insufficient protection of patents for pharmaceutical products,pharmaceutical companies must continue to explore their own operating models in order to adapt to market changes and maintain their long-term development of.As a strategy different from the traditional asset-heavy form,the asset-light operation model has become the choice of many pharmaceutical companies,and it also presents its unique advantages.Chinese medicinal materials have a long history in China.As one of the outstanding Chinese medicine companies,Yunnan Baiyao has a very light asset operation model that is also very representative and of great research value.This article takes Yunnan Baiyao as the main research object,and uses the literature research method,case analysis method,and financial analysis method to analyze the Yunnan Baiyao’s asset-light operation model and its impact on financial performance.Through reading and researching relevant literature,I learned about the development of the asset-light model and its impact on business operations.This article first introduces the theoretical foundations needed to analyze cases,including the theory of division of labor,value chain theory,"smile curve" theory,and financial performance evaluation methods.Then it introduces the development of the pharmaceutical industry and Yunnan Baiyao.Next,a detailed analysis of Yunnan Baiyao’s asset-light model:analyzed the financial characteristics of Yunnan Baiyao’s performance after adopting an asset-light operation model,the reasons for Yunnan Baiyao’s transformation under various pressures,and introduced the strategy adopted by Yunnan Baiyao for the transformation.Then The traditional financial index analysis and economic value-added analysis were used to evaluate the financial performance of Yunnan Baiyao after the transformation.Finally,the effects of these strategies on the company were analyzed.Although it has positively affected Yunnan Baiyao,it also There are some potential problems,and some optimization suggestions are proposed for these problems.Yunnan Baiyao is a typical representative of traditional Chinese medicine enterprises.Its strategy of light asset transformation and existing problems have certain reference value for other traditional Chinese medicine enterprises.This article hopes to have a reference for them.