Analysis On The Economic Consequences And Mechanism Of The Mixed Reform Of Private Enterprises In Pharmaceutical Industry

The third plenary session of the 18 th Communist Party of China Central Committee pointed out that the mixed ownership economy is an important form of realization of China’s basic economic system.Therefore,the reform of mixed ownership began.However,the current research on the mixed reform mainly focuses on the mode of state-owned enterprises introducing private capital,while the research on private enterprises introducing state-owned capital is relatively few.The opinions on the development of mixed ownership economy by state-owned enterprises issued by the State Council stressed that state-owned capital should be encouraged to take shares in non-state-owned enterprises in various ways,especially in key areas such as public services,high-tech and strategic industries.As an important part of China’s national economy,pharmaceutical industry is closely related to the national economy and the people’s livelihood.It is also a strategic emerging industry in China.However,after years of development,private listed companies in China’s pharmaceutical industry still have deep-seated structural problems,such as large number of enterprises but small scale,weak innovation ability,large number of products but low technical content,weak overall competitiveness and so on.Since 2020,novel coronavirus pneumonia and the policy of centralized purchasing and medical insurance reform have made the pharmaceutical industry upgrade obviously.Many private listed companies in the pharmaceutical industry began to introduce state-owned assets for mixed reform,optimize the company’s resource allocation and governance structure,improve the competitiveness of enterprises and help realize the optimization of industrial structure by taking advantage of the complementarity of different economic properties.Therefore,this thesis takes the case of KEB,a private listed company in the pharmaceutical industry,introducing state-owned assets to implement the mixed reform as the research object,analyzes and expounds the economic consequences and the action mechanism of the mixed reform,and summarizes the experience of the mixed reform in this case,in order to provide reference experience for other private listed companies in the pharmaceutical industry.This thesis mainly uses the methods of literature research,case analysis and chart research to analyze the case of KEB’s introduction of state-owned capital.Firstly,starting from the research background and significance,this thesis summarizes the research on the motivation,economic consequences and action mechanism of the mixed reform of private enterprises by domestic and foreign scholars,and combs the research ideas and methods of this thesis.Secondly,it summarizes the theory of mixed reform of private enterprises in pharmaceutical industry,mainly including the concept of mixed reform of private enterprises,the characteristics,motivations and economic consequences of mixed reform of private enterprises in pharmaceutical industry,and focuses on corporate governance theory,synergy theory and political relevance theory,which lays a theoretical foundation for case analysis.Thirdly,taking the mixed reform of KEB as an example,this thesis introduces the ownership structure and operation of both parties,and analyzes the motivation,process and changes after the mixed reform of KEB.The study found that KEB is mainly for the purpose of obtaining technical resources,improving financing capacity and boosting capital market confidence.Fourth,by analyzing the financial performance,non-financial performance and market reaction before and after the mixed reform of KEB,it is found that the mixed reform has brought a positive impact on KEB.After the mixed reform,not only the company’s financial indicators have been improved,but also the company’s innovation ability and financing ability have been significantly improved.At the same time,the mixed reform has also been recognized by market investors,and KEB’s stock market performance has been improved in the short term.Fifthly,based on corporate governance theory,synergy theory and political relevance theory,this thesis analyzes the mechanism of KEB’s mixed reform from multiple angles.Through the analysis,it is found that in terms of corporate governance,the participation of state-owned shareholders breaks the ownership structure of KEB,and promotes the optimization of the company’s ownership structure.After the mixed reform,the supervision of the Party committee over the board of directors and the board of supervisors was strengthened by establishing a two-way entry and cross appointment leadership system between the Party committee and the board of directors,the board of supervisors and the management.In terms of synergy,the mixed reform has promoted the mutual integration of different ownership capital.After the mixed reform,by integrating the advantageous resources of both parties,the synergy between both parties in business,management and finance has been stimulated.In terms of political relevance,the introduction of state-owned assets has improved the political relevance of KEB,and the relationship between government and enterprises has been optimized,which is conducive to enhancing the company’s comprehensive perception of the current policy environment,promoting it to more sensitively capture new investment opportunities and improving its willingness to carry out R & D and innovation.In addition,the good relationship between government and enterprises also enables KEB to obtain more government subsidies.Combined with the above analysis results,this thesis finally summarizes the positive effects of the mixed reform of the KEB,and proposes three points of inspiration.First,after the mixed reform,the private enterprises of the pharmaceutical industry should focus on building a reasonable corporate governance structure;Second,after the mixed reform,the private enterprises of the pharmaceutical industry should attach importance to the integration of resources and exert the synergy effect;Third,the private enterprises participating in the mixed reform should correctly recognize the value of political correlation.It is hoped that the research of this article can provide some experience in the pharmaceutical industry’s mixed reforms that can be used for reference,and then contribute to the booming development of medical care.