Engineering Journal: Volume-9, Issue-4, April, 2023

Abstract— In order to measure the credit risk of listed companies in China's pharmaceutical and biological industry, a total of 28 listed companies in the A-share ST category and non-ST category were therefore selected as samples, and the model was improved using genetic algorithms, while the credit risk of 290 listed companies in the A-share pharmaceutical and biological industry in 2019-2021 was analyzed based on the improved model, and the research results showed that: the improved KMV model can effectively identify the improved KMV model can effectively identify the credit risk of listed companies in the industry, and the accuracy of the improved KMV model in determining whether an enterprise is in default reaches 78.57%; the credit risk of the pharmaceutical and biological industry decreases in the year of the outbreak of the new crown epidemic in 2020, and increases and the credit risk of enterprises appears polarized one year after the outbreak of the epidemic.