Financial Performance Analysis Of L Pharmaceutical’s Backdoor Listing

With the rapid development of China’s economy,the living standard of the residents is improving,the consumption level is also rising rapidly,the ability to pay is increasing,China’s medical insurance system is also gradually improving and sound,the development prospects of the pharmaceutical industry is very broad.With the gradual maturity of China’s stock market and the increasingly fierce competition in the pharmaceutical industry,more and more pharmaceutical companies want to go public and enter the capital market to improve corporate financing capacity and promote the overall development of enterprises.L Pharmaceuticals,due to the low valuation of Hong Kong shares and repeatedly failed to apply for reboarding,therefore chose to privatize and delist and relist China’s A-share market.The high threshold of IPO discourages many companies,so the threshold is lower,and the time and economic costs are also relatively low.The high threshold for IPO has discouraged many enterprises,so shell listing,which has a lower threshold and relatively lower time and economic costs,has become a popular listing route.Most of the research on shell listing in China is focused on industrial and real estate industries,but there has been a lack of research on shell listing in pharmaceutical industry.This paper selects L Pharmaceuticals’ shelling of D shares as the research object,and briefly analyzes the motivation and listing process of L Pharmaceuticals’ wanting a shell listing based on information signal theory,efficiency theory,and synergistic efficiency theory,and analyzes the short-term financial performance and long-term financial performance and after the shell listing.On the basis of literature research,the views of domestic and foreign scholars on the change of financial performance of shell listing are collated and summarized,and it is found that most scholars use comparative analysis and statistical analysis to analyze long-term financial performance and short-term financial performance;in terms of the change of financial performance,it is found that shell listing has a significant impact on short-term financial performance and can promote long-term financial performance of enterprises to a certain extent.By combing the listing situation of China’s pharmaceutical industry and the transaction plan of L Pharmaceutical’s shell listing of D shares,this paper introduces and analyzes that the external environmental factors of L Pharmaceutical’s shell listing are mainly the repeated failure of Hong Kong stock transfer,the availability of suitable shell resources and the simple procedure of shell listing,and the internal factors are for strategic transformation and broadening financing channels.By analyzing the motivation of the shell listing of L Pharmaceuticals,the short-term financial performance of the shell listing of L Pharmaceuticals is studied by measuring the change in excess return before and after the announcement date of the shell listing event using the event study method in the statistical analysis method;the long-term financial performance of the shell listing of L Pharmaceuticals is studied by comparing the financial indicators before and after the shell listing of L Pharmaceuticals for a total of five years using the comparative analysis method and EVA analysis.The analysis shows that although not all the financial indicators of L Pharmaceuticals have risen,they are still within a reasonable range of variation,but they did improve the financial performance of the company.The analysis of financial performance suggests recommendations that are beneficial to corporate development,such as strengthening accounts receivable management,increasing R&D efforts,optimizing capital structure,stabilizing management structure,and ensuring the progress of new drug launches.