A Study On The Profitability Of Listed Companies In The Light Asset Model

Since the mid-1990-s,the Internet industry has experienced more than 20 years of rapid development.Today,the Internet has become the basic elements of Chinese society and the basic support.The rapid development of Internet economy,naturally accompanied by Internet companies play a more and more important influence in the capital market.But since the bubble burst in 2002,people more and more clearly realized that with high return on investment of the properties with the Internet industry,and high investment risk.Therefore,how to evaluate asset light mode Internet profitability and development prospects of listed company has become investors and other stakeholders focus on the problem.This paper analyzes the profitability of Internet listed companies combined with the light assets characteristics of China's Internet listed companies,this study can enrich the research content of light assets listed Internet companies,improve the comprehensive evaluation system of the profitability of China's listed Internet companies in theory and will provide reference and help to improve the earnings quality of Internet companies for enterprise stakeholders in the industry to make the correct financial decisions,and promote the Internet industry healthy development in practice.Literature study of Internet businesses at home and abroad mainly focused on the influence factors on the growth of Internet companies,enterprise value,financial risk evaluation system research,merger and acquisition risk research,risk of listed abroad,etc.,or only from a perspective of the Internet enterprise surplus quality to study.Light the operation of the assets listed on the Internet for less comprehensive profit ability research.The operation mode of light assets is characterized by less fund occupation,less physical assets,scientific and technological concentration,and high staff quality.As companies focus on the core areas of innovation,research and development,and building quality sales channels,businesses often get good results.Then,compared with the traditional business model,the impact of the light asset model on the profitability of Internet companies must be judged by scientific and rational profit evaluation system and methods.At home and abroad,this paper has been involved in enterprise management mode,assets operation mode,enterprise profitability analysis of theoretical results and analysis method,combining the characteristics of listed companies,using the analytic hierarchy process(AHP)designed the Internet listed corporate profitabilityevaluation model.In this article build profitability evaluation model for indicators made certain innovation:(1)from different dimensions to measure the profitability of the company,such as surplus stability,growth,etc.(2)the specific index selection is considering the general indicators of corporate profitability,and according to the characteristics of the listed companies choose some indicators related to stock price or market value.Focus Technology Co.,Ltd.is a China's A-share listed companies.The company has developed a comprehensive B2 B e-commerce platform-China manufacturing network,which has a large scale of operation and great industry influence in the B2 B field.It is a typical Internet enterprise.Since its establishment in 1996,the company has always been devoted to serving small and medium-sized enterprises in our country,and has conducted guidance and services to our enterprises in international market operations.From the company's business model,shaping corporate focus on technological innovation,improve service level and corporate brand image,and not too much plant,equipment and inventories and other tangible assets,the business has the typical characteristics of the asset light.In this paper,with Focus Technology Co.,Ltd.as a case,focus on technology companies,financial reporting and public information released by profitability evaluation model,using ratio analysis and trend analysis method of combining the obtained the profitability of the company for five years the comprehensive evaluation value.Data analysis results,with the domestic authority agencies released by the company annual reports and financial information,can better to analysis the profitability of listed companies in the Internet.According to this article research found that:(1)using the analytic hierarchy process(AHP)to determine the profitability of the comprehensive evaluation model to consider the impact of light assets of listed companies on the Internet side of the profitability of each side,comprehensive,universal strong.(2)Light asset management of Focus Technology Co.,Ltd.is conducive to enhance profitability.(3)the company's research and development spending less input relative to the operating expenses.(4)The company's operating cost and management cost ratio is higher.(5)The company's main business growth.According to the above problem,this paper puts forward the following Suggestions:(1)Asset light internet companies should pay more attention to the cultivation of customer resources.(2)Internet companies should increase investment in R & D investment and actively promote the transformation of inputs to the results in order to obtain the corecompetitive advantage.(3)Internet companies should pay more attention to talent.(4)Although the cash assets of light asset companies are sufficient,they should continue to invest in non recurring investments on the basis of strengthening the main industry,so as to ensure the sustained and stable profitability.At the same time to do a good job in asset management,effectively reduce the cost.