Light Asset Transformation Of Vanke And Realization Of Enterprise Value

Since the beginning of the 12 th Five-Year Plan,our country has conducted a series of regulation and control for the real estate industry.In the face of opportunities and challenges,many real estate companies choose transformation.Real estate industry was a typical heavy asset model which is a collection of investment,construction and management in the integration.Because of it,real estate companies get a huge profit.In the recent years,in the face of declining industry profit margins,real estate companies seek operation mode innovation to light asset operation mode transformation.At present,the part of real estate enterprise start light asset operation mode,and this kind of light is really suitable for China's real estate and how to transformation,all the problems still need to be solved.To solve problems above,this article uses method of case study and comparative study, otherwise, selection Vanke which is the real estate industry giants as a case, this article contrasts the realization ways of light and heavy assets operation mode through selecting the point that how to improve the value. And combined with the characteristics of the different operation mode, contrasted the relevant financial indicators of Vanke in recent 5 years from two aspects of horizontal and vertical.Try to analysis the light asset operation mode for the effectiveness of Vanke to realize value. Researches show that light asset operation mode is more in line with the value improvement in theory.In fact,after the transformation,Vanke's ability of value-added profit,return of investment and asset management capabilities are appeared a certain degree of decline,but it reduces the cost of capital, and maintains the high positive cash flow.So the transformation of Vanke does can realize value to a certain extent,but it can do better in aspect of ability of value-added profit,return of investment and asset management capabilities.Through the study of this article,hope to fill some blank in theory.In practical,expected by the case of Vanke' transformation,for other real estate companies and heavy industry assets in its road to maximize the enterprise value for provide some experience and reference.