Research On Vanke’s Financial Risk Management Under Asset-Light Strategic Transformation

According to the data form the Bureau of statistics,the economic added value of the industry has reached 7455.25 billion yuan in 2020.However,in recent years,the development has gradually slowed down.From market’s point,the reasons are as follows: at present,the housing stock in the market exceeds the demand;From the perspective of the government’s attitude: in order to protect people’s livelihood and ensure residents’ housing,the government put forward the principle of "no speculation in housing",continuously regulated the housing market,introduced a series of tax,credit,purchase restriction and land policies,and promoted the reform of real estate enterprises.Over the past few decades,real estate enterprises have generally adopted the asset heavy mode of "borrowing money,buying land,development and sales".Enterprises bear an ultra-high debt ratio and face high financial and operational risks.In addition to market changes and government policy intervention in recent years,enterprises that have not yet transformed are facing the situation that they must adjust their asset structure.Vanke has started to implement the asset light strategic transformation since 2014,moving forward in exploration and making multiple improvements.At present,most of the real estate enterprises are facing the asset light transformation.As a typical example,Vanke can provide reference experience for enterprises that are trying to implement the transformation.This paper is done after studying a series of relevant literature and in-depth study of Vanke’s cases.From the perspective of professional knowledge and the current academic definition of asset light,asset heavy and financial risk,this paper discusses the background,reasons,self conditions and specific measures of Vanke’s asset light transformation.Then,the financial risks during the transformation period are identified and analyzed from four aspects of debt repayment,profit,operation and cash flow.Combined with the financial risk control measures taken,it is concluded that the change trends of different types of financial risks during Vanke asset light transformation are different.On the whole,although there is a certain decline in the initial stage of transformation,in terms of the current situation of the industry,Not optimistic.This paper analyzes the financial risks of Vanke during the asset light transformation,which can be used as a reference for other enterprises to better pass the transformation period.