Research On The Motivation And Performance Of Backdoor Return Of Luo Xin Pharmaceutical

The pharmaceutical industry is significant in our country’s economy.With the support of national policies in recent years,the competition in the pharmaceutical industry is gradually fierce and development is faster,forcing part of generic pharmaceutical enterprises to transform into innovative pharmaceutical enterprises.The transformation of pharmaceutical enterprises cannot be separated from the strong support of capital.More and more pharmaceutical manufacturing enterprises want to obtain stable financing channels.In addition,the vigorous development of the A-share capital market has also triggered return of the scale of Hong Kong companies.In this thesis,Luo Xin Pharmaceutical is selected as the research object.It is not only pharmaceutical company in the transition from generic drugs to innovative drugs,but also the first company to take the initiative to be privatized and delisted from the Hong Kong capital market and successfully return to A-shares through backdoor.This thesis will focus on this case and provide feasible suggestions for similar pharmaceutical enterprises to solve the problem of financing difficulties.This thesis first introduces the current financing situation of the pharmaceutical industry and the case of backdoor return.The case includes the basic situation of both sides of the transaction and the implementation process of backdoor return.The motivation of backdoor return of Luo Xin Pharmaceutical is analyzed from the perspectives of external motivation and internal motivation.The performance of backdoor return of Luo Xin Pharmaceutical is analyzed emphatically.The financing effect evaluation part analyzes the financing scale,structure,time cost and capital operation of Luo Xin Pharmaceutical.The comprehensive performance is analyzed by combining financial and non-financial indicators.The financial index method is used to analyze the debt paying ability,operation ability,profitability and development ability of Luo Xin Pharmaceutical.Combined with non-financial indicators,the principal component analysis method is used to calculate the comprehensive score forming the comprehensive score trend chart and reflecting the comprehensive performance of Luo Xin Pharmaceutical.Based on the above performance analysis,the outstanding problems and reasons affecting the performance of Luo Xin Pharmaceutical are summarized.Finally,the thesis provides some valuable suggestions and hopes to provide beneficial help to the development of pharmaceutical enterprises.Through the research,it is found that the external motivation of Luo Xin Pharmaceutical’s backdoor return is to adapt to the policy changes,seek a favorable financing environment,reduce financing difficulty and shorten financing cycle.The internal motivation is to promote the process of R&D,increase market share,solve financial problems and accelerate transformation and upgrading.From the perspective of financing effect,the financing scale is significantly higher than that before the backdoor and the financing time cost is shorter.But the financing structure is unstable.From the perspective of financial performance,backdoor return greatly improved the solvency capacity,profitability capacity and operating capacity of the year of backdoor return.Subsequently,the company’s solvency capacity,operating capacity,profitability capacity and development capacity all declined to a certain extent.Combined with nonfinancial indicators,backdoor return event has a positive promoting effect on the performance of Luo Xin Pharmaceutical.The case of Luo Xin Pharmaceutical’s successful backdoor return to A shares has brought some successful experience to the pharmaceutical industry.The pharmaceutical industry needs to combine its own situation and find suitable financing channels for itself.It should have reasonable selection of high-quality shell resources when backpacking.In addition,it is necessary to strengthen business capacity in the late stage of backdoor return.