Research on the motivation and economic benefit of LBX Pharmacy Chain Joint Stock Company

Abstract

In recent years, with the relaxation of policies, private placement has gradually become the main channel of corporate financing. Taking LBX Pharmacy Chain Joint Stock Company as an example, this paper studies the motivation and economic benefits of its two private placement. The purpose is to provide experience reference for the company and other listed companies in the same industry to choose financing methods. This paper finds that although private placement can improve the company's financial index and bring many benefits, such as improving the equity structure, enhancing the company's reputation, meeting the expansion needs and even promoting intelligent transformation, in the short term, if the company cannot make efficient use of the raised funds, it cannot really optimize the company's development index in the long run. Therefore, this paper holds that for the managers of the company, improving the core competitiveness of the company is the fundamental way, and issuing fixed increase can only be used as an auxiliary means to alleviate the urgent needs.