Study On Financial Performance Evaluation Of Yunnan Baiyao Under The Background Of Mixed Ownership Reform

In 2013,the "Decision" of the Third Plenary Session of the Eighteenth Central Committee proposed "develop mixed ownership economy actively".Since then,the reform of mixed ownership has become an important measure for the reform of state-owned enterprises in China.Gradually it forms a comprehensive development situation from "point to surface" and "central to local".Mixed reform of state-owned enterprises has also become a hot topic at the moment.The pharmaceutical industry has always been a pillar industry in China’s national economy that is related to national economy and people’s livelihood,and its reform and development have attracted much attention.As a leading company in the pharmaceutical industry,Yunnan Baiyao actively introduced private capital and carried out mixed ownership reform under the background of continuous economic deepening reforms,and thus became a classic case of mixed reform of state-owned enterprises.And what exactly is the result of the mixed ownership reform,whether it has effectively realized the integration of resources,complementary advantages,and whether it has improved the operating efficiency of the enterprise is a subject worthy of further study.This paper takes Yunnan Baiyao Group’s mixed ownership reform as the background,comprehensively compares the advantages and disadvantages of DuPont analysis system,EVA,Balanced Score Card and other systems,Combined with the requirements of China’s "State-owned Capital Performance Evaluation Rules" and "Enterprise Performance Evaluation Operation Rules(Amendment)",the four more commonly used and more classic financial ability indicator systems were selected: debt serviceability indicators,profitability indicators,operating ability indicators,and growth ability indicators as indicators to evaluate the financial performance of Yunnan Baiyao.With regard to the selection of specific refinement indicators,this paper will combine the development characteristics and industry characteristics of Yunnan Baiyao to select more appropriate evaluation indicators for analysis and research.Through a longitudinal comparative analysis of related financial indicators before and after the Yunnan Baiyao mixed ownership reform,and Beijing Tongrentang,which has a similar development path and ranking with the same industry that has not yet implemented the mixed ownership reform,it also conducts a horizontal comparison of the average value of the target pharmaceutical industry.This paper explores whether the financial performance of Yunnan Baiyao has been improved through a case study.According to the research in this paper,it is found that the financial performance of Yunnan Baiyao has not improved significantly after the mixed ownership reform,and the positive effect of the mixed ownership reform on the financial performance of Yunnan Baiyao has not been outstanding for the time being.However,it should be noted that after the mixed reform,the decline rate of many financial indicators of Yunnan Baiyao has slowed down.Its debt-paying ability,profitability and operating ability have remained at a high level in the industry,and its leading position has not been shaken.Since the time for Yunnan Baiyao to completely complete the mixed ownership reform is relatively short,the strength of private capital such as Xinhuadu and Jiangsu Yuyue has not yet been fully demonstrated.The specific impact of mixed ownership reforms on corporate financial performance requires double inspection of time and the market.Based on the current research results,this article puts forward three suggestions: strictly control costs and improve operating efficiency;increase R & D investment to enhance core competitiveness;promote capital preservation and growth and prevent the loss of state-owned assets;further improve the professional manager system and improve the incentive mechanism.It is hoped that the research in this paper can form a certain reference for how other pharmaceutical companies can improve financial performance through mixed ownership reform.