Research On The Impact Of BEWG’s Light Assets Operation Model Transformation On Financial Performance

As the core industry of China’s environmental protection industry,in recent years,China’s environmental protection water industry has developed very rapidly.It no longer blindly pursues quantity,but focuses on quality control.With the improvement of residents’ requirements for environmental protection and the pressure of "deleveraging" on enterprise financing,the operation and management of water companies is more difficult.As a basic service-oriented heavy asset operation industry,water enterprises often need to build a large number of facilities in the early stage of project operation,such as water plants and sewage treatment plants.They pay more funds in the early stage and are easy to bear heavy debts.However,in the operation stage after the completion of the project,the cost is relatively fixed,which leads to the increase of asset liability ratio,the decrease of gross profit margin and the increase of business risk.At the same time,the competition within the industry intensifies.In order to maintain the competitive advantage in the market,the heavy asset water enterprises have also transformed the light asset operation mode.This thesis select BEWG,a leading enterprise in the water industry,as the research object.Firstly,it puts forward the background of this thesis,and combs the relevant literature and theories at home and abroad by using the method of literature analysis,which lays a solid foundation for the later writing.The next is the specific case analysis.Based on the introduction of the industry background and enterprise profile,it analyzes the transformation motivation from both internal and external aspects.Externally,it is affected by national policies and industry competition,while internally,there are problems such as low operation efficiency and difficult financing.For the above reasons,BEWG began to implement the corresponding transformation path.Establish profit growth points by optimizing business layout.In view of the problems of large external market competition,implement ecological strategy,build an ecological system with enterprises in the same industry,and improve the competitiveness of enterprises.At the same time,the overall platform division of the enterprise is carried out to form a "asset + operation" dual platform to improve the operation efficiency of the enterprise.Finally,in order to solve the problem of financing,innovate financing methods and improve the financing ability of enterprises.Finally,in order to analyze the feasibility of the above transformation path,the comparative analysis method is used to make a vertical analysis of the basic financial data before and after the enterprise transformation.At the same time,four different types of enterprises in the same industry are selected for horizontal comparative analysis to calculate the data of economic added value.The comprehensive comparative analysis makes the research more convincing.Through the study of case enterprises,it is found that after BEWG transformed into asset light operation mode,its financial performance has been improved.The profitability has increased steadily and the solvency has been improved.At the same time,the asset light mode helps enterprises broaden financing channels,obtain low-cost financing funds for enterprises through innovative financing methods,and meet a large number of financing needs in the process of production and operation.However,due to a large number of stock assets caused by a large number of mergers and acquisitions in the early stage,the asset liquidity of the enterprise is poor,which seriously affects the operation ability of the enterprise.At the same time,the asset liability ratio caused by a large number of liabilities in the early stage is still too high,which is also a problem that needs to be paid attention to in the later stage of enterprise transformation.In view of the above problems,the author puts forward some corresponding optimization suggestions and obtains some corresponding enlightenment.This thesis analyzes the first company in China’s water industry to carry out the transformation of asset light operation mode,in order to test whether the application of this mode in the water industry is applicable through financial performance analysis,which can provide some reference for other water enterprises who want to transform asset light operation mode and help the development of China’s water enterprises.