Research On The Financial Performance Of Chutian Technology’s Cross-border Merger And Acquisition Of ROMACO Group

In recent years,with the acceleration of the global aging process,the pharmaceutical industry has become the top priority to ensure people’s livelihood.At the same time,due to the impact of the new crown epidemic in 2020,medical demand has become rigid demand,which further highlights the importance of the pharmaceutical industry.At present,my country’s pharmaceutical industry still has problems such as difficult transformation,intensified international homogeneous competition,and insufficient innovation and R&D capabilities.Not only that,but with the introduction of my country’s volume-based procurement policy in 2018,the profit margins of pharmaceutical companies have been compressed.All these factors have brought enormous pressure to the survival of pharmaceutical companies.Therefore,in order to break the ceiling of the pharmaceutical industry,improve the research and development capabilities of enterprises,and seize high-potential market segments,pharmaceutical companies actively conduct cross-border mergers and acquisitions,in order to embark on the "fast track" of development by merging advanced foreign companies.As a leading enterprise in my country’s medical equipment industry,Chutian Technology has conducted mergers and acquisitions many times in recent years,but this cross-border merger is not only the first attempt of Chutian Technology,but also the first major restructuring case under my country’s gem registration system.Therefore,the study of its financial performance after mergers and acquisitions can provide some reference for other pharmaceutical companies in my country to conduct cross-border mergers and acquisitions.This thesis takes Chutian Technology’s cross-border M&A as the research object,and analyzes its financial performance after cross-border M&A on the basis of systematically summarizing relevant theories and literature.First of all,through the analysis of its M&A motivation,process and integration situation,it is found that the main reason for Chutian Technology to implement the cross-border M&A strategy is that it hopes to acquire foreign advanced pharmaceutical companies through the government’s industrial support policy,so as to expand foreign market share,The purpose of enhancing scientific and technological research and development capabilities and improving financial performance.Secondly,the overall analysis of the post-merger financial performance is carried out,and the financial performance is divided into three aspects:short-term,long-term,and comprehensive,and evaluated by event research method,financial index method,data envelopment method and factor analysis method.The reason for using the above four methods is that each method has different evaluation periods and focuses,and can learn from each other’s strengths and weaknesses,so that it can more comprehensively and accurately evaluate the financial performance of Chutian Technology after cross-border mergers and acquisitions.The specific financial performance evaluation results are as follows:First,using the event research method to analyze the short-term financial performance of Chutian Technology,it is found that its stock price and cumulative excess return rate have increased significantly after the merger,indicating that this cross-border merger has enhanced short-term market effects and improved Second,using the financial index method and the data envelopment method to analyze the long-term financial performance of Chutian Technology,through the financial index method,it is found that the solvency of Chutian Technology has declined after the merger,but the operating ability and growth ability have declined.,profitability increased significantly.Through the data envelopment method,it is found that its operating efficiency will decline in a short period of time after the completion of mergers and acquisitions,but with the deepening of mergers and acquisitions integration,the operating efficiency will continue to improve.On the whole,this cross-border merger has effectively improved the long-term financial performance of Chutian Technology;thirdly,using factor analysis to analyze the comprehensive performance of Chutian Technology,it is found that the industry ranking of Chutian Technology has risen significantly after the merger compared to before the merger.,indicating that this cross-border M&A is of great help in enhancing the comprehensive capabilities of Chutian Technology.To sum up,the overall financial performance of Chutian Technology has been greatly improved after the cross-border M&A.Through the above analysis and evaluation,the following enlightenments and suggestions are put forward for the cross-border mergers and acquisitions of other pharmaceutical companies in my country: select appropriate merger and acquisition targets,reasonably evaluate corporate value,focus on post-merger integration,maintain independent research and development capabilities,and strengthen ties with the government.