Case Study On Sustainable Growth Of Vanke

Today,China's economic situation presents a new normal,economic growth will change from high to medium speed.As a real estate industry in the traditional industry,it shows the supply and demand imbalance,low profitability and low efficiency.If the real estate enterprises themselves want to achieve steady and continuous growth,they need to use the theory of sustainable growth to straighten out the relevant growth rate,and effectively deal with the financial problems caused by their differences.The financial indicators of Chinese mature enterprisesoften show the coexistence of stability and volatility.In this paper,for Vanke as an example,a comprehensive sustainable growth analysis method is proposed,which is based on the general analysis of the sustainable growth of the enterprise under the condition of constant financial indicators,and then on the basis of changes in the actual financial condition index on the sustainable growth of enterprises' further analysis.The organic analysis of the two together has important theoretical and practical significance for the effective promotion of the structural reform of the supply side of the real estate industry.In this paper,based on the relevant data at home and abroad,we have adopted the comparative analysis and the way of selecting the case.In the general analysis of the sustainable growth of Vanke using the sustainable classical model,we find that the defects,which require the reconstruction of the classical model to further analyze the sustainable growth of enterprises on the basis.Specifically,in this paper we first use the classical model: Higgins model and the Rappoport model to carry on the general analysis of the growth status of Vanke in the last ten years.As the application of the classic model is too strict,this analysis has some limitations.Then under the condition of actual changes in financial indicators,we must use the reconstruction model to further analysisof sustainable development of Vanke.That is,on the use of sensitivity analysis of the relevant factors,we can find the trend of change,and then analyze the reasons for the sustainable growth of Vanke growth.The conclusion is that the applicability of theclassical model is not strong.The growth analysis of the reconstructed model reveals the law of diminishing marginal returns and the law of scale returns,which Well reflect the actual growth of Vanke to show that the reason that actual growth rate of Vanke is higher than that of the reconstructed model is mainly related to the decrease of the net profit margin and the asset turnover ratio of the enterprise,also the enterprise's high debt ratio and the dividend distribution play an important role.Accordingly,we put forward suggestions for Vanke's growth management which are during destocking,deleveraging and improving weak links we can focus on key points,but also try to optimize the comprehensive elements to hope to bring beneficial enlightenment to the healthy and stable development of the industry.