A Study On Financial Performance,Policy And Strategy Of Sanjiu And Tasly

In recent years,the pharmaceutical industry has developed rapidly,the development of Chinese medicine,which embodies the essence of Chinese culture for thousands of years,is also facing unprecedented opportunities and challenges.The paper chooses two start-ups-domestic production of proprietary Chinese medicines as the research object,they are China Resources Sanjiu Medical&Pharmaceutical Co.,Ltd and Tasly pharmaceutical group Co.Ltd.(the following paper referred as the Sanjiu and Tasly),starting from the Sanjiu and Tasly's financial statements,the financial performance analysis,understand the two corporate financial policy,combined with the analysis of the financial strategy matrix,and put forward the discussion suggestions on the financial strategy of the two companies.The paper consists of eight chapters.Chapter 1 is the overview of this paper,mainly on research themes and significance,research methodology and framework.Chapter 2 including pharmaceutical industry and the company introduction.Financial statement analysis about balance sheet,income statement and cash flow statement was presented in chapter 3.In the fourth chapter,concludes individual financial characteristic by executing some analysis methods which establish financial index analysis system,including analysis of profitability,asset efficiency and liquidity,debt management and cash-generating ability.In the next chapter was an evaluation of business model,which concerned about making profit,creating cash,controlling risk,growing and creating value.Chapter 6 studied two companies' debt,dividend,working capital operation and investment policies.Chapter 7 puts forward proposals and recommendations to their financial and strategy in understanding the meaning,characteristic and types of financial strategy and combining financial strategy matrix analysis method.Chapter 8 put forward the conclusion and suggestion for the Sanjiu and Tasly.Through the above research,combining to the development trend of the industry,the paper suggests:1.Financial policy:(1)Debt,SanJiu can raise the debt ratio under the premise of risk control appropriately;Tasly needs to improve the solvency.(2)Working capital management,SanJiu need to improve the efficiency in the use of assets,strengthen the implementation of OPM strategy;Tasly needs to improve the ability of receivables management,enhance corporate liquidity,strengthen the implementation of OPM strategy.(3)In terms of investment,the two enterprises should improve their investment efficiency.(4)The dividend policy,Tasly needs to reduce the dividend payout ratio to meet the need of business growth.2.Future business:SanJiu should continue to pay attention to innovation,attach importance to the introduction and research and development of modern traditional Chinese medicine technology,and strengthen the control of the cost of sales;Tasly should pay attention to the control of the total cost of enterprises,raise the gross interest rate,and pay more attention to the promotion of enterprise inno-vation ability.3.Development strategy:SanJiu should continue to implement the "13th Five-Year" strategic planning,improve the competitiveness in the international market,focus on creating a Chinese "self treatment leader" and "Chinese medicine value creator;Tasly should continue to practice the three strategies of internationalization of Chinese medicine:going out,going up and going in.