Analysis Of The Motivations And Financial Performance Of Luoxin Pharmaceutical's Backdoor Listin

With the improvement of China’s economic strength and social progress,people’s living standards and ability to pay have been greatly improved,and health awareness has been generally strengthened,and higher requirements for physical health have also been put forward.The state has also paid more and more attention to the health of the people.From the Fifth Plenary Session of the 18 th CPC Central Committee to the 19 th CPC National Congress to the 20 th CPC National Congress,promoting the construction of a healthy China has risen to the national strategic level.The state has indicated that people’s health should be given priority to the strategic position of development.The development of the medical industry will be promising.In recent years,with the rapid development of the A-share capital market,its scale has become larger and its protection system has become more sound.Therefore,the privatization trend of Hong Kong stocks has become more evident,coupled with the higher stock value and larger financing scale in the A-share capital market,more H-share companies hope to return to A-shares.At the same time,the Science and Technology Innovation Board is also attracting H-share companies to privatize and try to seek higher value in the transition board.Luoxin Pharmaceutical is the first company in recent years to successfully privatize the Hong Kong stock market and then go through a backdoor listing on the A-share market.Analyzing and researching this company will be of great help to those who want to go through a backdoor listing.This article takes Luoxin Pharmaceutical’s backdoor listing of Dongyin Co.,Ltd.as an example,collects,organizes,and summarizes the research results of domestic and foreign scholars on backdoor listing through literature research methods,summarizes the theoretical basis related to this,and based on this,conducts a detailed analysis and research on the case.Then,a case study method was adopted.Firstly,an overview of Luoxin Pharmaceutical and Dongyin Co.,Ltd.was introduced,and a brief explanation of Luoxin Pharmaceutical’s backdoor process was provided.Secondly,a detailed analysis was conducted on the reasons why Luoxin Pharmaceutical borrowed the shell and why Dongyin Group sold the shell.Finally,the financial performance of Luoxin Pharmaceutical before and after the success of backdoor listing can be fully and reliably analyzed from three aspects: market,finance and enterprise value,using the event study method,financial index method and EVA evaluation system method respectively.On the basis of analyzing the reasons for Luoxin Pharmaceutical’s backdoor listing and financial performance,a preliminary discussion was conducted on Luoxin Pharmaceutical’s backdoor behavior,and relevant insights were drawn,such as cautious selection of shell sources,formulation of feasible performance commitments,and establishment of long-term development strategies.And propose suggestions that can effectively improve financial performance in the daily business process in the future,pay attention to market development trends,conduct reasonable research and development,actively carry out M&A activities,fully utilize resources after going public,and seize national macro policy opportunities.Through the study of the case of Luoxin Pharmaceutical’s backdoor listing,it has certain reference value for H-share companies wanting to return to A-shares and pharmaceutical companies’ backdoor listing.