Research On The Financial Strategy Of Vanke Light Asset Operation

With the prosperity of the Chinese economy,the real estate market has also entered a period of prosperity.Due to the rough economic development in the real estate industry,the state has begun to strengthen the supervision of real estate companies.Faced with many problems in the real estate industry such as high housing prices,high vacancy rates,and unbalanced supply and demand relations,the state has formulated a series of policies such as restrictions on purchases,limited loans,and higher tax rates to adjust the real estate economic structure.In 2017,the Chinese government proposed to “keep the principle that houses are used to live,not used for speculation,and accelerate the establishment of a housing system that provides multi-subject supply,multi-channel guarantees,and rent-purchase measures to allow all people to live and live.” Faced with the country's policy control,real estate companies are facing opportunities and challenges,and the transformation of the real estate industry's heavy asset operating model is imminent.If an enterprise wants to achieve the long-term stability and development goals,it should,based on a thorough understanding of the external market environment,find a suitable operating model and financial strategy according to its own development needs.If real estate companies want to obtain high returns under the new operating model,they need a strategic strategy to help them achieve their goals.Therefore,when adopting the asset-light operating model,the real estate company's choice of financial strategy is critical to the achievement of its profitability goals.At present,Chinese scholars are not perfect about light asset operations and corporate financial strategies.Research on light asset operating models and financial strategies in the real estate industry is still in its infancy.Scholars still need to explore and research in this field to enrich related theoretical systems.Vanke,a research object chosen in this article,has a certain representativeness.Vanke Group is a large-scale real estate benchmarking company with a good development prospect.In 2013,Vanke began to shift from a heavy asset operating model to a light asset operating model.Vanke was the pioneer in the exploration of the light asset operating model in the real estate industry.Its financial strategy under the light asset operating model improved the company's profitability,operating capability and resilience to risks.This article uses literature analysis,case analysis and other methods combined with the life cycle theory toVanke as the case study object of this article,through Vanke's financial indicators and the relevant real estate company's financial data for comparative analysis to verify Vanke light asset operating mode of finance strategy.First of all,this paper introduces the background and significance of studying the light asset operating mode and financial strategy,and summarizes the relevant definitions and characteristics of the light asset operating model and financial strategy;secondly,it describes the status dilemma,trends and existing problems of the real estate industry development.The selection and implementation of the business operation mode of the enterprise provides the analysis basis for the macro situation.Through the analysis of the industry environment and the actual situation of China Vanke,we pointed out the importance of Vanke's asset-light operation model;Thirdly,this article studies the financial strategy of Vanke Light Assets operation mode,and conducts research and analysis from the four dimensions of financing strategy,investment strategy,operation management strategy and dividend distribution strategy,and summarizes its success.Then,the effectiveness of the implementation of financial strategies is studied,mainly from the four aspects of profitability,ability to withstand risks,operational capacity and sustainable growth Analyze the effectiveness of the company's financial strategy;Finally,after analyzing the financial strategy of Vanke's light asset operating model,the case of this article is revealed.This paper finds that Vanke has developed a financial strategy under its light asset operating model that suits its own development in combination with the external market environment and its own internal reality.Vanke used equity,bills and bonds to finance,actively explored overseas markets,and launched internet finance to enrich the capital channels and maintain a good capital structure;adhered to the principle of cash flow,maintained high-speed turnover and low profit margins,and used small-scale stock trading.Disk model to achieve its own management and the output of the brand,reduce operating risks to achieve a stable investment;timely development of diversified new business,the rational use of cash flow to improve the company's operating income;the use of scientific and efficient operational management strategy,reduce production costs,period cost,And strengthen the management of cash flow to ensure the sustainable development of the company.Finally,after a comprehensive analysis of the case,the case is revealed that Vanke may have certain risks and deficiencies in the initial stages of light assets.However,the financial strategies adopted by Vanke Light Assets' operating model include diversity financing strategy,stable investment strategy,efficient operational management strategies and dividend distribution strategiescan provide some experience for real estate companies that plan to implement light asset transformation.