Case Study Of Jialin Pharmaceutical's Backdoor Listing

Pharmaceutical manufacturing is a basic and strategic industry supported by Chinese government.With the continuous improvement of the living standards of Chinese residents and the aging of the population,the development of the medical and health industry has attracted more and more attention.At the same time,Pharmaceutical companies have also entered a track of rapid development.However,pharmaceutical manufacturing is a capital-intensive industry,and the rapid development of pharmaceutical manufacturing enterprises cannot be sustained without sustained high amounts of capital invested in research and development and production.Therefore,there is a general lack of funds in this industry.In this context,many pharmaceutical manufacturing companies have begun to seek other ways to raise funds.Compared with IPOs,backdoor listing has fewer restrictions and lower thresholds.Therefore,many pharmaceutical manufacturing companies are planning to backdoor listing,hoping to obtain funding support by backdoor listing and meeting its own long-term development,Jialin Pharmaceutical is one of them.This article selects the case of Jialin Pharmaceuticals backdoor Tianshan Textile as the research object.Jialin Pharmaceuticals is a leading company in the domestic lipid-lowering drug industry.Relying on its good efficacy and affordable prices,it has maintained stability in the domestic lipid-lowering drug market.At the same time,this case is also the backdoor listing case with the largest transaction value in the pharmaceutical manufacturing industry so far.It is hoped that the analysis and research of this case in this article can provide some reference and reference for future backdoor listing.This article first introduces the research background and significance of this case with an introduction,and summarizes the main contributions and deficiencies of this article by reading and summarizing existing literature.Second,this article introduces the basics of the parties involved in this transaction.The situation and the scheme of this backdoor listing and the analysis of the motivation of both parties to the transaction and the role of the merger and acquisition fund in this backdoor listing;then this article uses an event research method to pass a short-term perspective on the extraordinary returns and cumulative abnormalities after the incident.The calculation of income is used to analyze the performance of this backdoor listing.At the same time,this article uses 114 listed companies in the same industry as a sample to select the financial data of the two years before and after the backdoor listing as a research object.and uses factor analysis to evaluate the performance of this backdoor listing from a long-term perspective;Finally,this article concludes that this backdoor listing has created positive returns for shareholders in the short term,and the market is generally optimistic about the transaction,but in the long run,it does not improve the performance of Jialin Pharmaceuticals.On the contrary,Jialin Pharmaceutical's operating situation has deteriorated significantly after the backdoor listing.Of course,this article also draws the following inspiration from this backdoor listing: First,selecting high-quality shell resource;second,accurately grasp the opportunity of backdoor;The third is to actively encourage other capital operation;Fourth,focus on resource integration and utilization of the backdoor.