Research On Technological Innovation Of Wuxi Apptec Under The Background Of Its Privatization

Since the last century,in the mature capital markets abroad,many listed companies will choose privatization to transition in a special period,which is not uncommon in foreign countries,while domestic privatization is mainly concentrated on "Chinese stocks".In recent years,due to changes in the market environment and malicious short-selling by short-selling institutions,"Chinese stocks" have chosen to privatize and delist from the US capital market,changing from public companies to private companies.Becoming a private company means that companies will face narrower financing channels,fewer opportunities for cooperation and reduced brand influence,but at the same time,companies are no longer in a state of relatively transparent information.In addition,there is no need to be strictly supervised by the securities regulatory department,and the risk tolerance of the management will become larger,and the company’s equity will be concentrated in the hands of a small number of major shareholders,and the equity structure will change.However,when the company chooses to privatize and delist,due to the high cost of privatization,it will also lead to a significant increase in the company’s debt and a change in the capital structure,which is not conducive to the company’s subsequent development.It can be seen that privatization also has many drawbacks.For high-tech companies,these advantages and disadvantages are very likely to affect technology research and development investment,and then affect the ability of technological innovation.Therefore,the impact of corporate privatization on the company’s technological innovation ability and the analysis of the reasons are worth paying attention to.Taking Wu Xi App Tec as the object of investigation,this paper analyzes the performance of technological innovation capabilities at various stages in the context of privatization of the company,and tries to reveal the relationship between privatization and the company’s technological innovation capabilities.First of all,the article introduces the profile of Wu Xi App Tec and the process of privatization;then studies the sources of funds and technology sources,R&D funds and innovation achievements related to the company’s technological innovation in the three stages before privatization(2007-2014),privatization period(2015-2017)and post-privatization(2018-2021);and then studies and analyzes its causes from the perspective of equity structure,capital structure and management composition.The study found that the early stage of privatization is in the US listing stage,the initial development is rapid,but with the change of market environment,the malicious short-selling of short-selling institutions,resulting in the company’s value being underestimated,technological innovation capabilities can not be further developed;during the privatization period,other capital forces intervened,the company’s technological innovation and the domestic market integration,the technical level was improved.At the same time,the major shareholders centralized their power and increased their investment in research and development,so that the company’s technological innovation was developed;after privatization,the number of patent applications of the company continued to increase and profitability increased,and the company’s technological innovation ability increased steadily.Based on the above analysis,this paper draws the following research enlightenment:First of all,although privatization makes the company no longer enjoy the advantages of listing,but reasonable choice of privatization timing is more beneficial than harmful to the company.Secondly,once a company decides to privatize,especially high-tech enterprises,it needs to make a detailed and thorough plan to guarantee the source of capital and technology,so as to ensure the subsequent technological innovation and development of the company and lay a solid foundation for the company’s own development.