Study On The Financial Performance Of Greentown China Under The Light-asset Operation Mode

In recent years,affected by real estate tightening policies,such as "State eight" and “National five”,the real estate industry is in a slump.The real estate enterprises are facing increasing pressure on financing.In addition,the economic recession in the whole industry has increased competition within the industry and risen the price of land.Under this background,with the accumulation of industry capital and the expansion of scale,traditional asset-heavy business model for real estate enterprises has become increasingly inadaptable to the change of market environment.In order to get rid of this predicament,some real estate enterprises have begun to explore new path of transformation.Headed by Greentown,Vanke and Wanda,some real estate enterprises have begun to draw lessons from the mature industrial development model of foreign countries and attempted the transformation of asset-light business model at the earliest,which have achieved some effects and gained recognition in the industry.This paper,taking Greentown China as the case study object,adopts the literature review method,case study method and comparative analysis of horizontal and vertical combination method to conduct in-depth analysis.First of all,by referring to a large number of references,this paper introduces the research status of the asset-light business model in real estate industry at home and abroad,summarizes its relationship with performance,and elaborates theories related to asset-light business model and financial performance evaluation methods.Secondly,the paper analyzes the present situation of the real estate industry,introduces main problems facing with the real estate enterprises,and puts forward the necessity of transformation to the asset-light business model.Thirdly,taking Greentown China as the research object,this paper analyzes the reasons for its transition to asset-light business model,introduces closely the asset-light business model under its construction agent and evaluates its financial performance based on DuPont analysis and Factor analysis.Finally,the research conclusions are drawn from the whole case analysis,and relevant suggestions about asset-light strategy for real estate enterprises are provided.Through in-depth research and analysis on the transition to asset-light business model of Greentown China and its financial performance before and after the transition,this paper draws the following conclusions: Firstly,after the transition to asset-light business model,Greentown China not only alleviates the financial pressure effectively and controls the financial risks of enterprises,but also further improves theturnover rate of assets and its operation ability.Secondly,in order to get through the capital bottleneck period facing with the transformation,by speeding up sales,Greentown China has widened its capital source on the one hand,on the other hand,however,it has led to the decrease of profit scale somewhat.Thirdly,as a pillar industry of the national economy,the real estate industry is affected significantly by the national policy regulations and the macroeconomic situation.For real estate enterprises,when carrying on transition to asset-light business model,the influence of the policy environment and industry economic change on the financial performance should not be ignored.Combined with a comprehensive analysis of Greentown China,for real estate enterprises,to implement the transformation to asset-light business model,this paper suggests that in the early stage of the transformation,enterprises should do a good job in the addition and subtraction of the various business sectors within the enterprise,so as to cultivate the core competitiveness and find a suitable operation mode of light-asset transformation.When implementing the asset-light business model,enterprises should pay attention to improving the efficiency of assets operation and the ability of resisting risks,so as to enhance the performance strength.Finally,real estate enterprises should pay close attention to the changes of the industry environment and the policy direction,adjust the strategic plan according to the development of the industry,and seek long-term development.