A Study On The Financial Performance Of Real Estate Deleveraging

The reform and opening up has helped shape the image of China as an economic power,and China has successfully transformed from an economic power to an economic power.However,since 2015,with China’s economic development entering a new stage,the economic problems represented by "high leverage" have begun to highlight.In order to expand demand,at the same time,reduce production capacity,inventory,leverage,cost,and weakness,and achieve long-term and stable growth of China’s economy,the "supply side structural reform" system has begun to enter the economic stage.Among them,as the pillar industry of China’s economy,the real estate industry is particularly serious.Its leverage ratio has soared year by year,which has exceeded the warning line of "70%".Therefore,deleveraging in real estate industry is the main task of deleveraging in China’s economic development.It is necessary to study the ways of deleveraging in real estate enterprises and its impact on the financial performance of the company,and make suggestions for the whole industry based on the case company’s deleveraging experience,which is also conducive to the sustainable development of the national economy.This paper uses case analysis and other research methods to study the influence of real estate industry deleveraging on financial performance,and puts forward corresponding suggestions for the whole real estate industry.First of all,the paper introduces the background,purpose,significance,content and methods of the research.Secondly,the article combs and summarizes the relevant research of domestic and foreign scholars,and expounds the related concepts and theories involved,so as to make theoretical preparation for the later research.Thirdly,the paper analyzes the current situation of China’s real estate industry,mainly from the sales and investment of China’s real estate industry.This paper sums up the ways of deleveraging in the real estate industry,selects sample enterprises as the representatives of the real estate industry,arranges and calculates the relevant financial indicators,and analyzes the changes of the overall financial performance of the real estate industry before and after deleveraging from the four aspects of profitability,operation ability,debt paying ability and development ability.Thirdly,this paper selects r company as the case study object,introduces the sales situation of the case company in recent years,the motivation of deleveraging and its unique way of deleveraging,and analyzes the changes of financial performance of the company before and after deleveraging.Finally,according to the previous analysis,it summarizes the impact of real estate industry deleveraging on financial performance,and expounds the impact of non-financial enterprise leverage,government finance and debt leverage of the residential sector.In this paper,the real estate enterprises themselves as the starting point,according to the relevant experience of the case company,put forward suggestions on the real estate industry deleveraging,hoping to improve the theoretical research related to the real estate industry deleveraging,promote the improvement of the real estate industry deleveraging system,and help the healthy and stable development of the real estate industry.