Research On Financial Performance Of GREE Electric Appliances Under Asset-light Operation Mode

With the rapid development of social economy and the advent of the Internet era,today’s consumers have undergone important changes from consumption concept to consumption habits and needs.From the pursuit of high-quality and low-cost products in the past to the pursuit of personalized and intelligent products,which also urges enterprises to accelerate the change of competition mode,improve their competitiveness and achieve sustainable development by continuously optimizing the operation mode.As an important part of China’s economic system and a pillar industry of the national economy,manufacturing industry has strong competitive strength to ensure the security of the national economy.In recent years,with the influx of foreign home appliance brands into the domestic market,China’s home appliance industry tends to be saturated,and the competition between home appliance manufacturing industry has shown a fierce trend.How to change the operation mode to improve the core competitiveness of enterprises has become an urgent problem to be solved by China’s home appliance manufacturing enterprises.At present,the economic system reform has entered the deep-water area.Facing China’s New Normal,the traditional asset-heavy operation mode oriented by scale has many potential risks,and it is difficult to meet the requirements of long-term sustainable development of enterprises.Therefore,asset-light operation mode emerges as the times require.This operation mode helps enterprises evade the crucial point,condense core competitiveness,win development opportunities,seek opportunities for long-term and stable development in the competitive boom of home appliance market,and provide a new development path for enterprises to maximize value.Therefore,this paper selects GREE as the object of case analysis,uses scientific and standardized methods to analyze and evaluate the current situation and financial performance level of GREE asset-light operation mode,and on this basis,provides experience for China’s home appliance manufacturing enterprises to transform the asset light operation mode,and promotes the asset light process of China’s home appliance industry.This paper makes comprehensive use of literature research,case analysis,qualitative and quantitative analysis methods.Firstly,this paper combs and summarizes the academic research results on asset-light operation mode and financial performance evaluation.Then the paper takes GREE as the research object,and explores the motivation and implementation path of GREE transformation of asset-light operation mode based on the background introduction of the current situation of home appliance industry and the judgment of GREE asset-light operation mode.The main part of the article is to analyze and evaluate the financial performance under the asset-light operation mode of GREE.Based on the financial data of GREE from 2009 to 2019 and combined with its financial characteristics,this paper makes a preliminary analysis on the financial performance of GREE under the asset-light operation mode;Then,the indexes of market share and R&D expense rate are introduced,and the factor analysis method is used to process and analyze the average value of the financial data of 25 home appliance listed companies from 2017 to 2019,so as to further prove the positive effect of asset-light operation mode on enterprise financial performance and enhance the reliability of the research conclusion of this paper.Finally,the analysis results of the case are summarized and the research conclusions are drawn.Three suggestions are put forward for GREE to improve the asset-light operation mode: developing diversification strategy,optimizing capital structure and innovating marketing mode.At the same time,it provides enlightenment for China’s home appliance manufacturing enterprises to transform the asset-light operation mode,mainly including the following points: deeply tap the asset-light potential of enterprises,clarify their own core competitiveness,pay attention to the maintenance of relations with customers and suppliers,and build a community of interests connecting the upstream and downstream of the supply chain.In addition,they should also focus on high value-added links in the industrial chain and strengthen the ability of enterprise resource integration.It is hoped that these experiences and enlightenment can provide ideas and reference for other home appliance manufacturing enterprises to transform the asset-light operation mode and explore the mode suitable for its own development.