The Financial Effects Analysis Of Greentown's Light-asset Strategy Transformation

With the advancement of reform and opening and the booming economy,the real estate industry of China which has experienced over 30 years of development is exercising ever deeper influence on the national economy as one the most important pillar of it.The development status and trends of the industry are closely related to the whole economic growth.However,in recent years,the national macro-control is intensifying the management of the real estate industry,the relationship between market supply and demand is changing.A large number of property companies can not respond promptly to the current crisis of decreasing of revenues,depression of market demands and losses of funding.Many large-scale companies struggle to make ends meet,and the others in this industry have to close down.Chinese real estate industry is pushed into a difficult time,transformating and upgrading to find out a new way becomes a potential demand of this industry.On the basis of relevant literature and theoretical knowledge,this paper tries to use Greentown which survived from several times of financing dilemmas as the analysis obeject,and analyses its results achieved during its light-asset strategy transformation,and also the deficiencies in this process,by using Greentown's financial datas.Firstly,the paper will analyse the environmental factors that affect the whole industry by using PEST theory,according to the results,the necessity of light-asset transformation of those companies will be discussed.Secondly,it will summarize the financial characteristics of the real estate enterprises which is in the process of transformation,it can present a reliable standard for the financial data comparison later.Then I made a detail presentation of the activities and strategies of Greentown about operation,financing and investment in the process of light-asset transformation.After that.this paper chooses reasonable financial data from Greentown's annual reports of past years.I compared the different financial performance before and after the light-asset transformation of Greentown by using proper ratios,so that we can check whether the patterns of transition are right and if there are any weaks.Based on the analysis above,I concluded the deficiencies of Greentown's transition and offered proper suggestions for each activities.At last,the paper points out the weakness and the field of research in the future.