Research On The Financial Performance Of The Transformation Of Beijing Origin Water Technology Co.,Ltd. Asset-Light Operation Mode

China’s social economy keep on develop,and pollution issues began to attract attention.Against this background,the environmental protection industry attracted the attention of many parties,faced many opportunities and problems.Driven by many factors,it began to look for new mode of corporate development to reply the major changes.Environmental protection industry is a traditional industry,it usually faces problems such as low asset profitability and a long recovery period,as well as with guidelines such as reduced financial leverage and strict risk control of PPP projects implemented in 2018.Over the years,industy’s shortcomings of the operation mode for heavy-assets have been exposed,and the risks of it have increased.Therefore,it is important for environmentally companies to find a mode that is suitable for economic development to work out difficulties and increase strength.Origin Water is selected to be a case company for research.It conducted the transformation of asset-light operation mode in 2019,and by 2021 it had implemented for three years.As a key enterprises,it has reference value for the industry to examined the transformation process,the impact,and the financial performance of Origin Water in the new mode.First,read the literature and theories of scholars from various countries on the asset-light operation mode,and study on this.Secondly,basing on the smile curve theory and core competitiveness theory to shows development of the industry and Origin Water.At the same time,examines the internal and external motives of the Origin Water transformation,and shows that three ways to transform.One is to change the core business foucs;the second is to increase investment in research and development;the third is to take advantage of Zhongjiao shareholding.Finally,evaluates the financial performance of Origin Water before and after the transformation horizontally and vertically through entropy weight-TOPSIS method and company comparative analysis,as well as identifies issues and give advice in the transformation process.In terms of the transformation effect,the financial situation of Origin Water has been some advancement but is not obvious.The transformation has only improved the debt paying ability and partial operating ability,but has not promoted the profitability and growth ability,which is influenced by a large number of the maintenance of large-scale investment projects and financial growth.Therefore,research conclusions are drawn on the transformation effect:company’s main business is not thorough and there are still potential risks;but it focus on research and development innovation,and its transformation conforms to the industry development trend.In conclusion,offer some proposals:quicken the transformation of core business;take active measures to combat risks;break through basic technologies;understand the trend and promote transformation.This paper believes that the transformation of Origin Water fits the current environment.Finding and solving difficulties can better the financial performance and provide experience for others.