The Financial Performance And The Mixed Ownership Reform Path Optimization Of Yunnan Baiyao

Since the reform and opening up,China’s state-owned enterprise reform has continued to progress steadily.Although it has made great achievements,it still has problems such as lack of business subject status,unclear principal-agent relationship,and lack of effective incentive mechanism.At the same time,in some industries,some state-owned enterprises rely on monopoly positions to occupy the private enterprise market,forming bad competition,which greatly limits the healthy development of China’s market economy.Some state-owned enterprises rely on monopoly positions to occupy the private enterprise market and form bad competition,which greatly limits the healthy development of China’s market economy.Until 2015,the Third Plenary Session of the 18 th CPC Central Committee pointed out the existing contradictions and problems of state-owned enterprises,clarified the attitude and direction of mixed ownership reform,and pointed out the necessity and urgency of state-owned enterprises to carry out mixed ownership reform.In 2018,the National Development and Reform Commission further improved the path of mixed ownership reform and promoted the formation of a new situation in the reform of state-owned enterprises.It can be seen that the reform of state-owned enterprises’ mixed ownership has entered a stage of in-depth development.This paper takes the literature research method and case study method as the main research methods,selects the mixed ownership reform of Yunnan Baiyao as a case,studies the financial performance and the path optimization.This paper takes Yunnan Baiyao as the main process of mixed ownership reform,sorts out the motivation and reform path of Yunnan Baiyao mixed ownership reform,analyzes the financial performance of mixed ownership reform,identifies the problems in the reform of mixed ownership system,and optimize the reform path.First of all,this paper analyzes the path of mixed ownership reform.The reform mainly went through the following two stages: the introduction of Xinhuadu as a strategic investor,the equity ratio showed 50%:50%;and then Jiangsu Yuyue Technology joined.Secondly,this paper analyzes the financial performance of Yunnan Baiyao mixed ownership reform.Combined with the basic path of this mixed ownership reform,this paper points out four problems in the introduction of strategic investors’ mixed ownership reform path.First,the salary growth level of employees is significantly lower than the industry average and operating income growth.At the same time,with the introduction of a large-scale core employee stock ownership plan in the pharmaceutical industry,Yunnan Baiyao did not take this measure,which is extremely unfavorable to the improvement of employee enthusiasm.Second,the reform has not changed the fact that the two operating entities compete in the same industry.There is a large internal competition risk and the problem of inefficient decision-making.Third,the management did not have obvious improvement.Through the analysis of financial performance in Chapter 3 and the analysis of strategic investors introduced in Chapter 4,this paper finds that the role of strategic investors in this mixed ownership reform is very limited.Forth,the investment efficiency of enterprises has not significantly improved.After analyzing the annual investment scale and investment opportunities before and after the reform of Yunnan Baiyao ownership system,this paper finds that the reform has not provided significant assistance to the company’s investment.In view of the above problems,this paper puts forward suggestions based on three perspectives.First,based on the reform path,introduce the core employee stock ownership plan,promote the enthusiasm of employees,and enhance the research and development vitality of enterprises.Take the reform path of the overall listing,and absorb the risks caused by the coexistence of the two major business entities through the absorption of Baiyao Holdings by Yunnan Baiyao.Second,based on internal governance perspective,rationally utilize the advantages of strategic investors.Xinhuadu’s main business is concentrated in the retail industry.Therefore,Yunnan Baiyao should focus on the use of sales links,rather than the R&D and cost management links.Improve the company’s management capabilities.In recent years,Yunnan Baiyao’s research and development vitality is declining,and on the other hand,the company’s product quality control ability is insufficient.Therefore,Yunnan Baiyao should solve the problems and upgrade the efficiency.Third,based on a governmentled perspective,strengthen the government’s guidance.The government’s guidance should be combined with supply-side reform,do top-level protection and external supervision,and protect the interests of external investors.Promote the development of mixed ownership reform.The conclusions of this paper mainly include the following two points.Firstly,the reform of mixed ownership is not only a formal reform and equity change,but a fusion of public ownership and private ownership,which will provide a positive impact on the enterprise.Secondly,the path of mixed ownership reform is not singular,enterprises should analyze the path of mixed ownership reform and make optimal choices based on actual conditions.The main innovations of this paper are as follows.Firstly,this paper conducts a more systematic and comprehensive study on the financial performance before and after the reform in the case of specific mixed ownership reform.Secondly,this paper points out the problems in the reform through case analysis,and proposes path optimization for enterprises and government policy layers.