A Case Study On The Light Asset Operation Model Transformation Of Vanke Co.,Ltd.

Since the real estate marketization reformed from 1998,real estate companies have been heavy asset operation model in our country.In the golden period of rapid growth of the industry,many companies have developed and sold large amounts of land reserves,and they have obtained excessive profits.At the same time,there have been problems such as the rapid rise in house prices and serious real estate speculation.Since 2010,As the national economic growth slowed down,the government has increased its supervision of the real estate industry,real estate market met increasingly fierce competition,loss of product profit,land bonus disappearance,and the overall growth rate of the industry has been gradually declining.As a result,many problems have become increasingly prominent under the heavy asset operation model of the past.These problems include the large initial investment in capital,the decline in inventory turnover,the decline in profits.Faced with the plight of the industry,some real estate companies have quit the industry,but there are some real estate companies,such as Vanke,Green land,etc.,began to try to transform themselves into light asset operation model,and have achieved good results.Therefore,researching and exploring the transition of light asset operation model of real estate companies,real estate companies in China can effectively solve problems such as capital accumulation,slow inventory turnover,low sales net interest rate,high financial leverage,which is of great significance in promoting the healthy development of the real estate industry.The article studies the motivation and performance of Vanke light asset operation model transformation through the method of combining theoretical analysis with typical case analysis,and summarizes the successful experience of Vanke's transformation in order to provide reference for other real estate enterprises.First of all,after introducing the connotation and characteristics of light asset operation model,this paper introduces the operating characteristics of real estate enterprises in detail and comparative analysis of advantages and disadvantages of between light and heavy asset operation models,analyzes the motivation of light asset operation model transformation in real estate industry,and introduces three theoretical bases of light asset operation model.In the case analysis part,first,this article briefly introduces the operation model and development status of Vanke before the transition.For the purpose of mitigating financing pressure,reducing operation risk,improving enterprise competitiveness and achieving strategic development goals,Vanke started to transform the light asset operation model since 2013,the specific strategies including the use of small-cap cooperation model development and the establishment of a partnership system;achieving business "Internet +" with the Internet companies;actively exploring financing channels,entering into the financial banking,and striving to achieve asset securitization.As the leader in the real estate industry,Vanke has experienced a smooth transition from its light asset operation model to other businesses due to its leading technology research development strengths,mature management system and strong brand power.Based on the financial indicators and non-financial indicators,this article analyzes the effects of Vanke light asset operation model transformation.In terms of financial performance,the financial performance of the company was good,the solvency of the company maintained relatively stable,the operating efficiency of internal assets increased,and the company maintained its high profitability despite the downturn of the industry and maintained a good prospect of development.In terms of non-financial performance,through the transformation of light asset operation model,Vanke not only improved the quality of its products and services,expanded its market share and gained competitive advantages,but also promoted the transformation of internal organizational management and enhanced its brand reputation.Based on the above research,this paper concludes that the transformation of light asset operation model reduces the financing costs and operating risks of Vanke,creates sufficient cash flow for the company and maintains high profitability,which enhances the value and competitiveness of the company.The successful transformation of Vanke has brought some enlightenment for the development of other real estate enterprises.In the course of implementing the transformation of light asset operation model,firstly,it is necessary to pay attention to exporting its own brand and management model,and at the same time,it is necessary to strengthen the management and integration capabilities of the partners by utilizing the small stock market.Secondly,using Internet thinking,and actively expanding their business,can help the real estate business achieve restructuring.Finally,real estate financialization can effectively achieve the diversiform and low-cost financing.