Research On Financial Performance Evaluation And Promotion Strategy Of Jiuzhitang Co., Ltd

At present,China’s healthcare reform and transformation process is accelerating,and the phenomenon of aging population is also becoming increasingly prominent,bringing new challenges and opportunities to the development of China’s healthcare industry.In the "14th Five Year Plan for the Development of the Pharmaceutical Industry" issued in 2022,China confirmed the development goals and plans of the pharmaceutical industry in terms of scale efficiency,innovation transformation,and industrial chain development,promoting the rapid development and optimization of the pharmaceutical industry in China;At the same time,due to the inherent characteristics of the pharmaceutical industry,such as high cost investment,long cycles,and high risks,the pharmaceutical industry is facing challenges.So how to face opportunities and challenges and maximize the interests of every investor is an important issue.Listed companies in the pharmaceutical industry need to conduct comprehensive and scientific predictions and evaluations,and corporate financial performance is a key indicator for a company to make scientific predictions.Good financial performance provides reference for enterprise managers and external investors.This article takes Jiuzhitang as the research object,and uses data from 2017 to 2021 as a sample to evaluate the financial performance of Jiuzhitang.Based on the results,specific suggestions are proposed.Firstly,an outline of the research paper is proposed based on its background,purpose,and significance.At the same time,domestic and foreign references are consulted to investigate the relevant current situation and explain the main theories and concepts.Secondly,based on the financial statements of Jiuzhitang from 2017 to 2021,this article introduces the basic situation of Jiuzhitang and analyzes its financial situation,mainly analyzing the company’s assets and liabilities,owner’s equity,operating results,and cash flow.Once again,based on the characteristics of the pharmaceutical industry,five indicators were selected,including debt repayment,operation,profitability,growth,and cash ability.Based on the trend of changes in various indicators of Jiuzhitang from 2017 to 2021,a longitudinal evaluation of Jiuzhitang’s financial performance was conducted.61 traditional Chinese medicine enterprises were used as research samples,and factor analysis was used to calculate the scores of various factors and comprehensive scores of the sample enterprises,Based on this,a horizontal evaluation was conducted on the financial performance level of Jiuzhitang.Based on the financial performance evaluation results,it was found that the company has shortcomings in profitability,debt repayment ability,and growth ability.The reasons for unfavorable cost control,unreasonable capital structure,slow growth of operating revenue,and insufficient resistance to market risks were analyzed.Finally,based on the shortcomings found in financial performance evaluation,measures such as strengthening cost management,optimizing capital structure,improving the quality of operating revenue,and doing a good job in risk response are proposed.