Financial Performance Analysis Of Commercial Property Moving To Light Asset Operation Mode

As an important part of the real estate industry,commercial real estate has long used the "Hong Kong model",which focuses on heavy asset operations.It has a large amount of funds and a long period of investment recovery.With the pressure from both the market and itself,many commercial real estate companies have begun to transition and gradually explore the light asset operating model.First,this paper refers to domestic and foreign advanced knowledge systems,defines light assets and their operating models,analyzes the characteristics and functions of light asset operations,and describes the main financial performance evaluation methods for light asset operations.Second,China’s commercial real estate requires large capital for general investment,complex operations and management,and diverse business models,with associated high risks and high returns.Under the heavy asset model,commercial real estate has also added features such as emphasis on land reserves,a single financing structure,and high interest-bearing liabilities.However,the light assetization of commercial real estate helps to achieve financial diversification by focusing on financial operations,helps to decentralize market risks to ensure stable profitability,and helps clear division of labor to highlight competitive advantages.In practice,China’s commercial real estate is facing great pressure from industry competition,financing pressure and cash flow pressure.Combining the theory of contingency,industrial value chain theory and smiling curve theory,it logically proves the necessity and feasibility of realizing the transformation of China’s commercial real estate needs.Once again,China’s Wanda Commercial,as a leading enterprise in the real estate industry,has been actively practicing the asset-light operation model and preparing to use asset-light assets as its main operating model and development direction.Therefore,this paper takes Wanda Business as an example to analyze and discuss in detail.Light asset operating model.The case study is divided into two parts,and related performance evaluation is performed from the perspective of financial indicators and EVA.The first part: Combine the 2011-2014 financial data of Wanda Business,analyze the financial performance under heavy asset operating mode from four perspectives: decrease in net assets yield,sustained high proportion of main business income,high asset-liability ratio,and high cash flow pressure It also explains the need for the transformation of Wanda’s business heavy asset operating model.The second part: Based on the specific goals and plans of Wanda’s business transformation and asset-light operations,and combined with Wanda Commercial’s 2013-2016 financial data,the short-term solvency,asset-liability ratio,net profit margin,cash flow and other financial indicators The combination of evaluation and EVA evaluation compares and analyzes Wanda’s financial performance towards light asset operating model.Finally,summarize the relevant points of this paper and use the asset-light development model of Wanda Commercial Real Estate as a model,and put forward some suggestions for the light asset operation model,with a view to perfecting the light asset operating system and solving the existing problems,and promoting the commercial real estate in China in an all-round way.The rapid development of the industry.