This case analyses CY Company’s rationale for strengthening its investments in marketing and research and development (R&D) in an increasingly competitive market environment. It comprehensively evaluates the company’s financial performance to help students understand the underlying reasons for the company’s changing financial performance and learn methods of systematically assessing corporate financial performance. Furthermore, the case emphasizes evaluating the reasonableness of executive compensation policies through financial performance assessment and discusses how to formulate appropriate financial strategies based on a company’s operational performance.