The Improvement Of Financial Performance By Asset-light Operation Model

As an important part of China’s national economy,the electronic information manufacturing industry is the key to promoting the development of the national economy.Most Chinese enterprises rely on OEM for overseas enterprises to develop in the electronic information manufacturing industry.With overcapacity and declining gross profit,the traditional asset-heavy operation model based on price and scale has become a bottleneck for the sustainable development of my country’s electronic information manufacturing industry.How electronic information manufacturing enterprises formulate an operation model that suits their own development has become the top priority.This paper takes CVTE,a leading enterprise in the LCD TV board and interactive smart panel business in the electronic information manufacturing industry,as the research object to analyze.First,through the elaboration and analysis of the relevant theories of the asset-light operation mode,combined with the current situation of the case company CVTE,the financial characteristics of the asset-light operation mode of the case company are systematically analyzed: low fixed assets,high current assets,High R&D and selling expenses,high cash reserves and high non-interest bearing liabilities.Next,the financial performance of CVTE was evaluated using the financial performance analysis framework constructed above.Compared with the industry,CVTE has shown higher ROE and higher asset turnover,as well as higher growth capability than the industry.This shows its superiority in an asset-light operation model.Then,combined with the smile curve theory,resource dependence theory,synergy effect theory,and human capital theory,this paper starts from the basic activities and auxiliary activities of value chain theory,and specifically analyzes the four paths of CVTE’s asset-light operation affecting financial performance:(1)Outsourcing production focuses on R&D and marketing;(2)Efficient supply chain management;(3)Strategic alliance and investment(4)Focus on human resource management.Last,according to the path of asset-light operation affecting financial performance,this paper summarizes five inspirations from the case,in order to provide a certain reference for enterprises in the same industry.This paper demonstrates the positive impact of asset-light operations on financial performance from a microscopic perspective through case studies,and creatively builds a theoretical framework for the impact path of asset-light operations on corporate financial performance,which provides reference for other enterprises in the electronic information industry to carry out asset-light operation.