Research On The Influence Of The Similar Financial Model On The Profitability Of Gree Electric Appliances

In recent years,as a new way of financing,similar financial model has been used and promoted by many enterprises,especially home appliance enterprises,because of its lower cost and less restrictions than debt financing and equity financing.However,the long-term occupation of the funds of upstream and downstream enterprises will easily lead to the breakdown of win-win cooperation with retailers and suppliers,and increase the financial risk.In practice,many enterprises just because of the improper use of financial model,resulting in risk out of control,and finally the capital chain fracture.For a while,this once sought after model began to be strongly questioned by relevant industries and enterprises.It can be seen that the similar financial model is actually a "double-edged sword".However,the existing relevant research either focuses on the analysis of its advantages,or only reveals its risks,lack of dialectical and systematic.In addition,the existing research focuses more on the general theoretical analysis of the connotation and characteristics of the similar financial model,and most of the research tends to the vertical analysis of the profitability of enterprises,but lacks the horizontal comparative analysis and the analysis of the impact path.In view of this,this paper is going to take Gree Electric Appliances as the main research object,through the horizontal and vertical dimensions of comprehensive and dialectical analysis of the positive and negative impact of financial model on its profitability,summarizes the corresponding experience and lessons,and puts forward corresponding suggestions,in order to provide some reference and reference for the effective application of financial model in China’s enterprises.Through case study method,this paper selects the financial data of Gree Electric from 2013 to 2018,compares the profitability of Gree Electric with that of Midea and Haier,and finds out that the positive impact of similar financial model on the profitability of Gree Electric lies in promoting the productivity of enterprises,forming a strong ability to occupy funds,and improving the flexibility of working capital of enterprises,bringing huge interest free liabilities to the enterprise,and the negative impact is mainly due to the impact of supplier relationship,the decline of sales channel control,the decline of operation efficiency and other related issues.Finally,the paper summarizes the experience and Enlightenment of Gree appliance’s financial model,and puts forward some concrete suggestions on how to optimize the financial model of the enterprise,such as setting up incentive fund clauses to reduce the upstream and downstream inhibition,accelerating the financing turnover of financial model,adopting flexible financing to reduce the risk of capital rupture,and strengthening the control of e-commerce channels.The main innovation of this paper is that the previous literature on financial model is mainly general theoretical analysis,and mostly involves the research of corporate financing ability and financial management,ignoring the positive and negative effects and Path Research of corporate profitability of financial model.Therefore,this paper takes Gree Electric Appliance as an example to study the operation of its financial model and its impact on profitability.Combined with the six-year financial indicators of Gree Electric Appliance from 2013 to 2018,it improves the data research,so as to provide corresponding enlightenment and reference for Gree Electric Appliance and other non-household appliance retail enterprises.