Financial Diagnostic Report Of Lanzhou Foci Pharmaceutical Co.,Ltd

Lanzhou Foci Pharmaceutical Co.,Ltd.was founded in Shanghai in 1929.The Securities Regulatory Commission reviewed and approved Lanzhou Foci Pharmaceutical's initial application on October 24,2011,stock code: 002644.With the expansion of the scale and the development of the industry,Foci Pharmaceuticals has built a new plant in the Lanzhou New District with a large investment in fixed assets.It has a large number of advanced large-scale production equipment and strict production workshops.The core competitiveness also seizes the proprietary Chinese medicine market in Gansu,Shaanxi and other regions,with stable sales channels,but the company's overall sales scale has not gradually increased with the market.The company has inherited the traditional expertise of proprietary Chinese medicines,persisted in innovation with the strong support of national policies,and actively responded to national strategies such as "Healthy China" and "Belt and Road" proposed by the Party Central Committee.On the basis of geographical location,the Chinese medicine industry is promoted to develop steadily in international exchanges and cooperation.Based on the financial data of Foci Pharmaceutical from 2014 to 2018,this article compares and analyzes three pharmaceutical companies in the same industry from the four perspectives profitability,solvency,operational capabilities,development capabilities,and combines the financial diagnosis related theories to the four companies.The company conducts diagnosis of operating environment,diagnosis of financial statements,diagnosis of financial indicators and diagnosis of accounting policies,and uses the principal component analysis and DuPont analysis to conduct a comprehensive financial diagnosis of Foci Pharmaceuticals,and believes that the financial situation of Foci Pharmaceuticals is at risk.This paper also uses the correlation analysis and improved efficacy coefficient method to determine the financial risk assessment index system,build a financial risk model suitable for Foci Pharmaceuticals to diagnose the financial risks of Foci Pharmaceuticals horizontallyand vertically,and adopt the company Financial data for 2014-2018 validate the effectiveness of the model.The results show that the financial risks of Foci Pharmaceuticals will increase with the relocation,especially the indicators of 2018 have fallen significantly,and the company needs to pay sufficient attention.In addition,this article points out the diagnosis problems based on the overall risk status of Foci Pharmaceuticals,and proposes corresponding countermeasures for specific financial risks.