A Study On The Financial Performance Of Environmental Enterprises In Their Asset-light Transformation

As the concept of green development and sustainable development has been deepened in China,the rapid development of China’s environmental protection industry has been promoted,and the internal competition within the industry is also increasingly intensified.Due to the environmental protection enterprise management features are often need to build a large number of facilities,is a typical rely on heavy assets operating enterprises,therefore,the early stage of the enterprise capital and cash payments are large,lead to long-term asset-liability ratio at higher levels,and it is difficult to reduce business operating costs,in the late makes enterprise overall operating efficiency is not high in the industry.In addition,the deleveraging policy and the liquidation policy of PPP projects put forward by the state have increased the pressure on environmental protection enterprises.Many environmental protection enterprises are actively seeking to transform to the asset-light operation mode under the multiple pressures of national and industrial policy changes and intensified industry competition.Beijing Enterprises Water Group Limited as the leading enterprise of environmental protection enterprises in China,a large number of mergers and acquisitions and the pressure from the external environment of large dimension to the huge challenges of operational efficiency,internal cause such as capital demand increase,from 2014 began to explore to light asset operation mode transformation,mainly through optimizing business layout,the innovation of financing mode,establish the platform of specialization,The gradual and gradual transformation is still in the process of transformation.At present,there are few researches on the asset-light aspect of environmental protection enterprises,and there are few experiences that enterprises can use for reference.Therefore,this paper studies the case of Beijing Enterprises Water Group Limited,and specifically analyzes the motivation,path,and changes in financial performance of its asset-light operation mode before and after the transformation,which can provide reference for enterprises in the same industry and help them find a suitable way to transform,so as to improve their competitiveness and corporate performance.This paper reviews the researches of scholars on asset-light operation mode in the past decades.Based on the analysis of the development status of the environmental protection industry,the development history of Beijing Enterprises Water Group Limited and the operation mode in the early stage of transformation,this paper further analyzes the motivation and path of the asset-light transformation of Beijing Enterprises Water Group Limited.Finally,through the longitudinal analysis of its financial indicators before and after the asset-light transformation,the horizontal analysis of industry comparison and the analysis of its EVA value,exploring the changes of its financial performance before and after the asset-light transformation,and putting forward corresponding suggestions to improve the subsequent transformation.In this paper,through case analysis and financial performance analysis,combined with theoretical knowledge of asset-light transformation,It is believed that the financial performance of Beijing Enterprises Water Group Limited has been significantly improved after its transformation to asset light,and the transformation strategy has many places that are worth learning from other enterprises in the industry.In addition,the asset-light transformation of Beijing Enterprises Water Group Limited is still in progress.In the future development,it should strengthen the revitalization of its stock assets,pay attention to R&D investment and talent training,strengthen the core competitiveness of the enterprise,and strengthen the cooperative management of asset-light operation projects.Other enterprises in the industry can learn from the asset-light transformation model of Beijing Enterprises Water Group Limited and develop a transformation path that suits their own development.