Research On Wanda Group’s Light Assets Transformation Path And Economic Consequences

With the rapid development of China’s economy and the promotion of urban modernization,China’s real estate industry has also entered a golden age of rapid development,and real estate enterprises have gained huge profits during this period due to the land dividend and policy support.However,in recent years,due to the changes in the real estate industry environment and the introduction of a series of national macro-control policies,the drawbacks of the asset-heavy operation model adopted by traditional real estate enterprises have been emerging,and the operating risks and capital chain pressure have been increasing,the profit margins of enterprises have been compressed,and the value-added of land on which survival depends cannot cover the financing costs of enterprises.Against this backdrop,China’s real estate companies have had to adjust their development strategies and seek new operating models to mitigate any negative consequences.Unfortunately,the number of successful asset-light operating models in China is limited.Therefore,this study chooses to take Wanda Commercial Management Group,a pioneer in effectively implementing asset-light transformation,as an example.The main objective of this study is to provide an academically rigorous analysis of the implementation path and economic consequences of Wanda Commercial Management Group’s asset-light transformation.Specifically,we aim to shed light on the methodology,execution and results of this transformation process.Through this investigation,it is hoped to make a significant contribution to the body of knowledge on asset-light operating models in China,which may benefit real estate firms encountering economic challenges.This paper employs a diverse research methodology in order to comprehensively address the research questions at hand.The research methods used in this study include literature study,case study,and event study.The concepts and theoretical foundations of asset-light and asset-light operation models are summarized and organized through a comprehensive review of relevant theoretical research results at home and abroad.In the case study section,this paper first briefly introduces China’s commercial real estate industry,followed by an overview of Dalian Wanda Group,and then uses a SWOT analysis model to analyze the feasibility of Wanda commercial real estate to carry out asset-light transformation,aiming to analyze The purpose of the analysis is to analyze the motivation of Wanda commercial real estate to carry out asset-light transformation,and to conclude the motivation of Wanda commercial real estate to carry out asset-light strategy in response to the changing competition and demand.The paper then summarizes the two paths of Wanda Commercial Group’s asset-light transformation in terms of financing channels and business models.Again,this paper selects two aspects of financial indicators and non-financial indicators to evaluate the economic consequences of Wanda’s asset-light transformation,and finds that after the transformation,Wanda Commercial Group’s interest-bearing liabilities are significantly reduced,its asset structure is more reasonable,and its value creation capacity is greatly improved,but its profitability and sustainable development capacity are not stable enough,and overall the development prospect of the enterprise after the asset-light transformation is good.In addition,the asset-light transformation conducted by Wanda Commercial Real Estate has not adversely affected the company’s brand influence.On the contrary,the company’s R&D and innovation capabilities have been improved,leading to a gradual increase in market share and optimization of revenue quality.Finally,based on the above analysis,this paper still finds a series of problems in Wanda Commercial Real Estate’s asset-light transformation process and puts forward corresponding suggestions for improvement.Through the above analysis of Wanda commercial real estate asset-light transformation as a case study,the following conclusions are drawn: the asset-light model is indeed more conducive to the business development of real estate enterprises under the current situation,but there are still many problems and challenges on the road of asset-light transformation implementation,and enterprises need to grasp their own advantages and further enhance their core competitiveness in order to make the asset-light operation model play a considerable role.In addition,for an enterprise to successfully carry out asset-light transformation,it must carefully consider the timing of such transformation and choose a development path that fits its unique corporate background.It is worth noting that certain applicable conditions must be in place to implement an asset-light operating model,and these conditions must be taken into account when developing an appropriate strategy.