The Analysis Of The Transformation Of Asset-light Operation In Wanda Commercial Property

Asset-light strategy has an important feature: Using lower capital investment to obtain higher return,companies do not care asset scale,but pay attention to the use of knowledge.In the context of the slowdown of Chinese real estate’s economic growth rate,the operation of heavy assets is difficult to achieve sustainable development,so the companies began to seek transformation in order to change a profit model to match the current market.The real estate industry is a capital-intensive industry,which includes commercial real estate enterprises.The commercial real estate needs the huge amount of money and long payback period.The heavy asset operation model led to commercial real estate enterprise in the project precipitation a lot of money,while affecting the normal operation of the necessary cash flow.On the other hand,Chinese commercial real estate enterprises’ equity funds are not adequate,and the project development requires a lot of money,so the company can only use bank credit loans or mortgages to support the project development.With the issue of bank loan policy,the loan conditions are more and more stringent,which resulted in difficult corporate loans,so the capital pressure is also growing.If such an industry environment will not change in a short time,how can enterprises maintain the normal pace of development? If you want to change the profit model,how to change? Chinese commercial real estate business should consider these problems.To solve above problems,this article first analyzes the commercial real estate enterprise strategy,and explores commercial real estate assets operation and asset-light operating characteristics and the advantages and disadvantages from a financial perspective.Secondly,the paper analyzes the financial situation of Chinese commercial real estate enterprise in the current market environment and its development prospect,and then elaborates the theoretical basis of the operation of light assets,in order to provide a theoretical framework for light asset operations in the commercial real estate industry.Wanda commercial properties company is not only the most outstanding enterprise in Chinese real estate industry but also the first one to attempt to asset-light operation in the degree of decline in the economy of the real estate industry background.Wanda Group has experienced four transformations since its inception,the recent one is Wanda business-oriented light asset restructuring.The transformation of light-asset strategy was announced in early 2015.This paper will take Wanda commercial real estate company as an analysis object,research and evaluate the effect on the company and the reason why Wanda can have a successful transformation of light-asset strategy.In this process,you can see that Wanda commercial real estate company reasonably chooses asset light path and expands financing channels in the process of light asset operation.By expanding the financing channels,such as the introduction of a third-party organization investors,launching financial products,etc.,Wanda successfully dispersed the risk of financing structure,and the problem of investment funding sources had been solved.Light operation greatly reduces the operating risk of enterprise assets and operating costs,improves the stability of the cash inflows,and ample cash flow also has provided the safeguard for Wanda commercial expansion,and allows it to have a healthy and sustainable development.According to the case study of Dalian Wanda commercial properties transformed to asset-light strategy,we can dig more deep reason behind the successful transformation,and explore the ability that they should develop and the problem on the transforming that they should pay attention to.For example,the commercial real estate company in our country who want to transform to asset-light strategy should be clear of their own core expertise,so as to provide safeguard to the success of asset-light transformation,and to keep the sustainable development.At the same time,the author hopes that this paper can be a reference for the managers of other asset-heavy enterprises.