Financial Research On Xiaomi's Light Asset Operation Model

As the domestic economy enters the "secondary transformation",the company's external operating environment is constantly changing,market competition is becoming increasingly fierce.In recent years,due to rapid changes in the market,product life cycles have become shorter and shorter,and consumer demand for products has gradually increased.Therefore,in the process of transformation and upgrade,the company must find the best operating model.In order to respond to market changes,many companies have opted to use an asset-light operation model,that is,the lightest investment in exchange for the greatest benefits,and more attention to intangible assets such as corporate culture,brand,human resources and product value.However,in the existing literature,there is still a lack of research on the relationship between the asset-light business model and corporate performance,as well as the possible risk management and control,which is also the significance of this article.How to increase the value of the implementation of the asset-light business model is the main research question of this article.As a company established in 2010,Xiaomi was able to quickly break the monopoly of the mobile phone market in just a few years and became the industry leader first.It opened a new road through its unique asset-light operation model.Therefore,this article takes it as the research goal to analyze its asset-light operation model and financial strategy.First,it introduces Xiaomi's company and industry background.Second,it takes Xiaomi as the research object and combines its motivations for adopting the asset-light operating model,and analyzes in detail the strategy adopted by Xiaomi under the asset-light operating model.Third,this article will analyze the impact of the asset-light operating model on its financial performance by analyzing Xiao mi 's financial indicators,debt solvency,profitability,operating capacity,and profit quality.Finally,through the research in this article,it is found that Xiaomi's asset-light operating model helps it reduce costs,increase corporate value,and maintain sufficient cash flow.And it also puts forward corresponding suggestions for its possible risk problems,such as product quality and insufficient R & D investment.