Research On Jindalai Financial Strategy Under The Light Assets Operation Mode

Water is closely related to human production and life,and is the material basis of human survival.In recent years,as industrialization and urbanization continue to advance,the pollution of industrial and residential water has become a major concern,which poses a serious challenge to the construction of a beautiful China.As one of the public service industries that affect the livelihood of the country,the existence of the environmental protection water industry to protect the safety of human water.However,as the environmental protection water industry needs to invest in a large number of fixed assets and equipment,it is a typical capital-intensive industry with high exit costs.In the national vigorous deleveraging background,the environmental protection water industry how to transform the development of much attention.Enterprises through the reduction of fixed asset investment,with the value chain smile curve principle,increase investment in research and development,the formation of intangible assets to cultivate exclusive competitive advantage,improve the added value of enterprises,enhance innovation capabilities to seize market opportunities and thus obtain long-term competitiveness.This light asset operation model of reducing fixed asset investment and increasing intangible asset investment provides many traditional environmental water companies with new ideas to reduce corporate leverage through business model transformation.However,the asset-light operation is closely related to the financial strategy of the enterprise,and the financial strategy is inseparable from how the environmental protection and water industry can play a mainstay role in building a beautiful China through asset-light operation.Based on this,the article takes Jindalai,a company that has always adopted the asset-light operation model in the environmental protection water industry,as an example to study the impact of the asset-light operation model on the financial strategy of the environmental protection water industry and its impact effect,in order to provide reference for the transformation of the environmental protection water industry.The article analyzes the internal and external motivations and specific paths of Jindalai’s asset-light operation model,and uses the financial strategy matrix to analyze the impact of Jindalai’s adoption of this model on corporate financial strategy.Through an in-depth study of the case,it is found that: in terms of financing strategy,Jindalai adopts a combination of financing strategies such as endogenous financing,listing on the Science and Technology Board,and obtaining interest-free debt with the advantage of supply chain.In terms of investment strategy,the investment strategy of low investment in fixed assets,increasing investment in R&D to forge competitive advantages,integrating industrial chain,and focusing on core business investment was adopted.In terms of operating strategy,the company has adopted the operating strategy of increasing investment in period costs,focusing on multi-channel marketing,increasing cash reserves and building an operation center.To provide insight into the impact of the adoption of this model on the financial strategy of companies in the environmental water industry,the article selects the environmental water industry leader,Bi Water,and compares its key financial indicators with those of Jindalai for 2017-2021,and finds that Jindalai is generally better than Bi Water in the framework of financial strategy analysis.In addition,the article also evaluates the effectiveness of the implementation of Jindalai’s financial strategy based on the financial strategy matrix.The following conclusions were drawn:(1)the choice of financial strategy should match the asset-light operation model;(2)increasing the investment in high value-added segments can improve the core competitiveness of enterprises;(3)enterprises adopting the asset-light operation model should increase their brand management efforts.In response to the problems of implementing financial strategies under the asset-light operation model of Jindalai,the article proposes the following countermeasures:(1)continue to dig deeper into the core business and stabilize the competitiveness of the main industry;(2)improve the asset management level;(3)optimize the dividend distribution policy.These suggestions and insights are equally relevant to other enterprises.