Study On Financial Performance Of Asset-light Operation Model Of WK Real Estate Group

For a long time,China’s real estate enterprises have been guided by the operation mode of Hong Kong real estate enterprises,and have taken the asset-heavy operation mode integrating investment,construction and management as the general direction to obtain all profits in the project development process.However,the oversupply in the property market has led to a huge backlog of inventories,while the government has stepped up market controls.Various signs show that China’s real estate enterprises should not stick to the traditional asset-heavy operation mode,and the rapid transformation of asset-light operation mode can solve the immediate pressing problems.Under the asset-light operation mode,real estate enterprises no longer undertake all aspects of the project,and project funds are provided jointly by the society and many partners.Through cooperation,enterprises can occupy a key part of the whole value chain,become managers and integrators of the whole value chain,and obtain great benefits with small investment.This paper hopes to explore the asset-light operation mode of China’s real estate enterprises and gradually improve the theory and application of this mode.And evaluate the financial performance of the asset-light operation mode of real estate enterprises from the perspective of EVA,which helps to clarify the value and applicability of the asset-light operation mode in the application of real estate enterprises in China.Based on a large number of literature studies,this paper adopts the case study method to select WK real estate group,a leading real estate enterprise in China,as the research object,and conducts an in-depth study on its motivation,advantages and strategies for transforming its asset-light operation model.Based on the perspective of EVA,the longitudinal analysis of EVA before and after the transformation is conducted through the financial index analysis method,and the comparative analysis between EVA and traditional financial indicators is also the innovation of this paper.The findings are as follows :(1)asset-light operation mode can speed up the level of asset turnover,improve profitability,and relieve the pressure of financing and cash flow.(2)the transformation of the asset-light operation model of WK real estate group has significant value and development potential,and achieved good financial performance.On the whole,the transformation is successful.(3)EVA evaluation index can not only reflect the enterprise’s profit more truly,objectively and comprehensively,but also is not easy to be manipulated artificially,which also guides the direction of the enterprise’s business strategy.At the same time,this paper summarizes the corresponding experience and enlightenment for other enterprises to learn from the transformation of WK real estate group into asset-light operation,but the uniqueness of the enterprise itself should not be ignored and the operation mode should be blindly changed.