Study On The Motivation Of BL Real Estate’s Asset-light Transformation And Its Corporate Performance

The real estate industry has always been a major concern in China’s economic development and has witnessed the prosperity of China’s national economy.Since the reform and opening up,real estate enterprises have developed like a mushroom.Initially,all real estate enterprises used the typical asset-heavy operation model,which is to imitate the "Hong Kong model",and this model requires a large amount of capital in all aspects,and the recovery cycle of the invested capital is very long.With the development of the real estate market,many companies are looking for asset-light operation,especially the large real estate enterprises with high market share,and they urgently need to get rid of the homogeneous situation.Therefore,if real estate companies want to develop further in the current market environment,they must make innovations and breakthroughs and change their original operation models.This thesis firstly explores the background of the current development of real estate industry and proposes the topic of applying asset-light operation mode to real estate enterprises,and selects BL Real Estate,which is typical of the transformation,as the case study object;secondly,compiles relevant domestic and foreign literature and theories as the research basis;then briefly explains the current situation of the industry and its characteristics of applying asset-light operation mode;then analyzes the transformation of the case company,focusing on its application of asset-light operation mode.Then,the analysis of the case company’s transformation is conducted,focusing on the motivation of its asset-light transformation and the financial effects brought by its transformation initiatives,in which the motivation is divided into external motivation based on industry background and internal motivation based on corporate operation,and the specific path of BL Real Estate’s transformation to asset-light operation mode is elaborated with the analysis of the motivation.In addition,the effects of non-financial indicators are also discussed,and it is concluded that BL Real Estate’s asset-light transformation has a positive impact on financial performance,but there are also certain risks.Finally,the sixth part puts forward the shortcomings of the process of developing asset-light operation model through the previous analysis and proposes corresponding suggestions,and then concludes the insights obtained from the previous analysis process: the asset-light transformation of real estate enterprises is meaningful,which helps to improve the profitability of enterprises,helps to relieve capital pressure,and enhances the sustainability of enterprises.Therefore,the purpose of this thesis is to hope that the risks and shortcomings that real estate enterprises will face in the process of transformation can be taken seriously by other companies in the industry and learn from their experiences in the light of their own situations,so as to promote the prosperous development of China’s real estate industry.