Research On Financial Performance Evaluation Of LZ Pharmaceutical Group Under Asset-Light Operation Mode

As China’s pharmaceutical market grows fast and competition goes fiercer,more and more pharmaceutical firms in China begain to realize the importance of innovation and ho pe to take advantage of product innovation to strength their competitive advantages.On th e operation modes,more and more pharmaceutical firms have shifted from the asset-heavy operation mode,which emphasizing production and ignoring R&D,to the asset-light opera tion mode.Under this context,how the implementing of the asset-light operation mode wil l influence the financial performance of the pharmaceutical firms?It becomes an urgent qu estion to solve.This study takes LZ Pharmaceutical Group as the research object,and based on a review of the concepts and theories related to asset-light,combined with the characteristics of industry development and the development process of LZ Pharmaceutical Group,analyzes the motivation,strategies,and financial characteristics of its asset-light operation mode transformation.In the following section,this study uses a combination of traditional financial indicators(profitability,operational ability,debt paying ability,development ability)and Economic Value Added(EVA)to analyze the financial performance of LZ Pharmaceutical Group over the past decade(2012-2021).The effect of LZ Pharmaceutical Group’s asset-light operation mode was analyzed through horizontal comparison with industry averages level and its own vertical comparison.The research results indicate that:LZ Pharmaceutical Group has significantly improved its financial performance in various aspects such as operation,profitability,development,and debt repayment after implementing the asset-light operation mode,especially in terms of profitability and development capabilities.Meanwhile,after EVA calculation,the results indicate that the economic value creation ability of LZ Pharmaceutical Group has been effectively improved under the asset-light operation mode.Overall,the asset-light operation mode shows a positive impact on the operation and development of LZ Pharmaceutical Group.Finally,this study summarizes the experience and shortcomings of LZ Pharmaceutical Group in implementing the asset-light operation mode,hoping to provide reference value for the pharmaceutical manufacturing industry to use asset-light operation mode.