Research On The Performance Of China’s Environmental Protection Enterprises Transforming Into An Asset-light Strategy

Since 2018,with the tightening of PPP regulation and the restriction of financing sources,the operating crisis accumulated under the extensive development of the environmental protection industry has gradually surfaced,and many enterprises have encountered financing challenge and faced difficulties in transformation.At the same time,in recent years,the central government has issued a series of supporting policies for the environmental protection industry,increasing the emphasis on environmental governance effects.Therefore,the environmental protection industry has entered the stage of transformation from ’quantity’ to’quality’,forcing environmental protection enterprises to shift and upgrade,with strategic reorientation.Therefore,an asset-light strategy that emphasizes the export of technology and services and promotes business development with a small capital investment has become a new trend in the environmental protection industry.However,whether the environmental protection industry is suitable for the assetlight strategy,and how the enforcement of the asset-light strategy will affect the environmental protection enterprises,are issues that still need to be addressed.In response to the above questions,combining with the existing research findings,this paper focus on ’the impact of transformation asset-light strategy on the performance of environmental protection enterprises’.First of all,this paper sorts out the implementation of asset-light strategy in the environmental protection industry,and empirically tests the relationship between the implementation of assetlight strategy and the overall performance of environmental protection enterprises by taking A-share environmental protection listed enterprises from 2014 to 2019 as research samples;on this basis,this paper introduces the case of Beijing Enterprises Water Group Limited,analyzing its pre-transformation asset-heavy model and related problems,and sorting out the process of its transformation into an asset-light model.Then,based on DuPont analysis,this paper analyzes the specific impact and driving factors of BEWG’s transformation of asset-light strategy on its financial performance through hierarchical and phased research.Finally,this paper analyzes the impact of BEWG’s transformation of asset-light strategy on its non-financial performance in terms of market,industrial chain and innovation output..According to the industry and case analysis,this paper draws a conclusion:the implementation of asset-light strategy has a positive effect on the financial performance of BEWG and other environmental protection enterprises,and the improvement of financial performance of BEWG is mainly attributed to higher profitability,and its short-term debt paying ability and early operation ability are also improved.In addition,in terms of non-financial performance,the market scale,market value,value chain construction,innovation output and growth of BEWG are above historical level and comparable enterprises,which further confirms the positive significance of BEWG transformation on its performance.Therefore,this paper aims to enhance the transformation confidence of environmental protection enterprises through the successful experience of the case enterprises,to provide reference for other environmental protection enterprises facing transformation problems to help the transformation and upgrading of the environmental protection industry.