Financial Risk Management Research Of Qianhong Pharmaceutical

There is a close relationship between the pharmaceutical manufacturing industry and the quality of life of the people.With the rapid economic and social development,the people pay more and more attention to their own life and health problems.Therefore,the development of pharmaceutical manufacturing industry has also entered the vision of the country and the people.At this stage,with the breakthrough of life science and technology,the pharmaceutical industry has ushered in unprecedented opportunities for development.However,with the deepening of the reform of the medical system,the competition in China's pharmaceutical market is increasingly fierce,and the financial risk of the pharmaceutical industry is increasingly prominent.Under the environment of both opportunities and challenges,how to manage financial risks is an important problem faced by Chinese pharmaceutical manufacturing companies at this stage.Changzhou Qianhong Biochemical Pharmaceutical Co.,Ltd.,referred to as Qianhong pharmaceutical,was listed on the small and medium-sized board of Shenzhen Stock Exchange in February 2011.This paper takes the company as the research object.Firstly,the definition and classification of financial risk,the concept and procedure of financial risk management are defined,which lays the theoretical foundation for the following paper.Secondly,according to the 2014-2018 financial data of Qianhong pharmaceutical,financial risk identification is carried out from four aspects of financing,investment,operation and income distribution.The identification results show that Qianhong pharmaceutical has financial risks such as single financing mode and investment mode,poor management of inventory and accounts receivable,and unreasonable income distribution ratio.Then the entropy weight method and efficiency coefficient method are used to evaluate the financial risk level of Qianhong pharmaceutical.The results show that: the financing risk and investment risk of Qianhong pharmaceutical are at a slight level,but they are increasing year by year;the higher level of operational risk is the primary financial risk faced by the company;there is a slight risk in income distribution.Finally,in view of the specific situation of financial risk of Qianhong pharmaceutical,the paper puts forward that the financial risk control of Qianhong pharmaceutical should take measures such as establishing reasonable credit sales standard,strengthening inventory management,implementing diversified investment strategy,broadening financing channels,paying attention to the trend of interest rate change and establishing reasonable income distribution proportion.In order to provide reasonable suggestions for financial risk control of Qianhong Pharmaceutical Co.,Ltd.,and provide reference for financial risk management of other pharmaceutical manufacturing companies.