Research On The Financial Effect Of XCMG’s Servitization Transformation

At present,the competition in domestic and international manufacturing industry is increasing,and the profit space is constantly compressed.In this context,made in China 2025 came into being.It can be seen that promoting manufacturing enterprises to develop producer services is not only the general trend,but also an important measure to achieve high-quality development.XCMG is one of the leading enterprises in China’s machinery manufacturing industry.It was awarded the "national servitization manufacturing pilot demonstration" enterprise in 2017.Taking XCMG as an example,this paper studies how enterprises carry out servitization transformation from the two aspects of input servitization and output servitization,and analyzes its financial effect,so as to find the advantages and disadvantages,draw conclusions and suggestions,and provide corresponding enlightenment for other enterprises carrying out servitization transformation.Firstly,this paper sorts out XCMG’s basic situation,and its organizational structure,transformation process and motivation of servitization;Secondly,this paper analyzes the realization path of XCMG’s servitization transformation through input servitization and output servitization respectively.According to the "smile curve" theory and combined with the value activities of the value chain,this paper mainly studies the input servitization of XCMG from the input of R＆D,finance,logistics and marketing service elements.At the same time,based on the theory of scope economy,the output servitization of XCMG is explored in three aspects: financial leasing service,spare parts service and information technology service;Finally,combined with transaction cost theory,this paper evaluates the effect of servitization transformation from a financial perspective,including the impact of servitization transformation on enterprise income and cost,comparative analysis of financial indicators of enterprises in the same industry and enterprise value analysis.The study finds that XCMG’s output servitization leads to the transformation of income structure,which mainly used financial services to drive the increase of operating income.At the same time,the cost control in the input servitization becomes better,and the profitability,solvency,operation ability and enterprise value of enterprises have been improved.However,compared with other advantageous enterprises in the same industry for servitization transformation,XCMG’s servitization transformation has some problems,such as insufficient depth of financial services including financial leasing,weak digital construction and customer expansion ability of post market services including spare parts services and some traditional products are weak in servitization and it is difficult to greatly improve profits,which makes some of its financial indicators perform poorly,The servitization level still needs to be improved.Based on the above research,this paper believes that XCMG should not only continue to increase the investment in servitization elements such as R＆D for enhancing the competitiveness of core products,but also strengthen financial services such as financial leasing and expand post market services including spare parts services,so as to enhance customer service quality and expand customer groups.At the same time,XCMG should further promote the transformation and upgrading of service by using information technologies such as digitization,Accelerate the improvement of enterprise financial performance and promote the high-quality and sustainable development of enterprises.