Research On The Effect Of Greentown Management Holdings Company Limited Light Assets Operation

With the new development stage of socialism with Chinese characteristics,the economic system in China has undergone tremendous changes,from a centrally planned economy to a gradually transitioning market economy.The socialist market economic system is being further established and improved,and China’s economy is constantly undergoing transformation and upgrading.Against this backdrop,commercial real estate developers have faced rare historic opportunities but also great challenges.Meanwhile,the policy related to the real estate sector in China is undergoing a tight tendency.Under the new normal,the economy is demonstrating a stable growth pattern,structural adjustment,and promotion of innovation.In this context,various regions in China have begun to vigorously promote the supply-side structural reform in order to further unleash and release the productive forces of society,while also bringing tremendous impact to the commercial real estate industry.Facing the severe market situation,real estate companies have adapted to the new conditions and formed their unique competitiveness,turning to the innovative model of light-asset operation.Greenland Holdings started exploring light asset development models at an early stage,with distinct features and abundant experience in light assets.This paper employs literature review and case study methods to explore the effectiveness of Greenland’s light asset operations.Firstly,the paper reviews literature on domestic and foreign light asset operations,light asset operations of real estate enterprises and the effectiveness of light asset operations.Secondly,adopting a case study method,the paper takes Greenland Holdings,a light asset operation enterprise,as the research object,and briefly expounds on its current situation and the mode of light asset operation,in order to clarify the entire process of Greenland’s light asset operation.Then,the effectiveness of light asset operations is analyzed based on the case study,from the perspectives of financial and non-financial effects.Finally,the analyzed results are summarized and constructive suggestions are proposed for Greenland Holdings and real estate enterprises planning to implement light asset operations.The study found that,firstly,Greenland Holdings has a high degree of light asset management,and its light asset characteristics are particularly evident in the real estate industry,making it a typical case of real estate enterprises implementing light asset operation mode.Secondly,implementing light asset operations has improved Greenland’s overall operational level to a certain extent.In the real estate industry,where there is an oversupply and competition for funding,Greenland’s zero inventory and sufficient cash reserves give it a clear advantage in debt repayment capability and asset management level,and it also has significant brand influence and market share.Lastly,there are also some problems in Greenland’s light asset operation,such as insufficient revenue stability,lack of cost control,and intense industry competition.This paper hopes to play a role in improving Greenland’s light asset operation and provide valuable experience for the selection of operational models and the vigorous development of the real estate industry.