Research On Financial Performance Of GREE Appliances Under The Asset-Light Operation Model

Peter Drucker,the father of modern and contemporary management,once said:"In the 21st century,the operational efficiency of intellectual capital is the top priority of management.",with the rapid and healthy development of the social economy,the advent of the economic age and the Internet era,how to improve the competitiveness of enterprises,continuously improve the operating model of enterprises,and achieve sustainable development of enterprises has become an era challenge that enterprises need to face.Facing the current economic normal,operating difficulties and increasingly fierce competition in the industry,the traditional heavy asset operation model has been unable to meet the requirements of long-term sustainable development of enterprises,a new operating model emerged at the historic moment—the asset-light operating model,this operating model provides a new development path for enterprises to gather core competitiveness and achieve maximum value,has become the focus of attention in the academic and business circles.Therefore,this article selects GREE as the starting point for case analysis,through scientific,reasonable and standardized analysis and evaluation of the current situation and financial performance level of GREE Appliances under the light asset operation model,use this as a benchmark to provide inspiration for China’s home appliance manufacturing industry,and promote the transformation of China’s home appliance manufacturing enterprises’ asset-light operation.This article adopts a literature analysis method,a case analysis method,and a combination of qualitative and quantitative analysis.First of all,the research results of the asset-light operation model and financial performance in the academic world are sorted out and summarized to lay the research foundation for the text.Secondly,introduce the case of GREE’s asset-light operation model from the transformation motivation,judgment of the asset-light operation model,and implementation strategy,analyze the current implementation status of GREE’s asset-light operation model,make the research of this article have practical GREE’s asset-light operation model,make the research of this article have practical significance.Then it is the main part of this article,analyzing the financial performance of GREE Appliances under the light asset operating mode,based on GREE’s financial data from 2009 to 2018,the traditional financial index method combining the characteristics of the asset-light operation model is used to conduct a preliminary analysis of the financial situation of GREE Appliances under the asset-light operation mode;using the Economic Value Added(EVA)method to analyze the value it creates for shareholders,to further clarify the results of GREE’s asset-light operation;at the same time,select asset-light profit-related indicators such as as set-light profit margin and brand value to conduct in-depth analysis of the asset-light operation effect of GREE Appliances,and enhance the desirability of the conclusions of this paper.Finally,by summarizing the results of the case analysis part,the research conclusions of this article are drawn,and the enlightenment for the transformation of China’s home appliance manufacturing enterprise’s asset-light operation model is provided.By analyzing the financial performance of GREE’s asset-light operation model,five conclusions are obtained:1)the asset-light operation model is in line with GREE’s current development needs;2)under the asset-light operation model,GREE’s core competitiveness continues to improve;3)asset-light operation model eases financing pressure on GREE;4)GREE’s profitability continues to rise under the asset-light operating model;5)the asset-light operation model optimizes GREE’s asset structure.Suggestions for China’s home appliance manufacturing industry:Cultivate light assets and form the core competitiveness of enterprises;Reduce the financing cost of enterprises by drawing on the "financial-like" model;Focus on high-value-added industrial chain links and strengthen resource integration capabilities.