Research On The Profit Model Of Heilan House's Light Asset From The Perspective Of Finance

With China's economic transformation and foreign culture and brand entering the Chinese market,the social division of labor is becoming more and more detailed.Garment enterprises are no longer traditional omnipotent,no longer responsible for fabric textile,dyeing,clothing design,sewing,printing and all other links.The garment industry is faced with many difficulties such as overcapacity.The low cost competitive strategy of the traditional enterprises cannot adapt to the development of the market.In order to seek sustainable development,the enterprises relocates and gradually get rid of the traditional mode of "one-stop service".At the beginning of this century,MC Kinsey of the United States put forward the concept of light assets,light assets and the profit model of light assets are gradually familiar,recognized and applied in various industries.Decision management of an enterprise.The profit model of light assets is the core resource which is difficult to imitate and surpass,strengthens the core competitiveness and promotes the long-term value of the enterprise.First of all,this paper makes a theoretical analysis of light asset profit model,enterprise value and financial strategy,and clarifies the relationship between them.Secondly,it analyzes and summarizes the financial characteristics of Heilan House,No.1 of clothing industry,which implemented light assets profit model in 2009-2016: current assets and cash are high、fixed assets are very low、inventory turnover is low、interest-free liabilities are high.Combined with the value chain,this paper analyzes the specific financial arrangements and financial behavior of the profit model of light assets,including product strategy,purchasing strategy,operation strategy,sales strategy,financing strategy,etc.Compared with other competitors such as Youngor and Hongdou stock,the cash strategy shows that the superiority of light asset profit model ensures the good value creation and management of enterprises.Combined with the business activities and financial environment of the enterprise,this paper constructs an analytical framework of "financial strategy → profit model(light asset model)→ management strategies such as business activities and capital activities → performance and value",which explore the implementation and expansion of the profit model of light assets by Heilan House,take cash flow as the core financial strategy.The implementation premise of this model needs a good financial environment,and the result of implementation is reflected by business performance and enterprise value.Finally,summarize the successful experiences and shortcomings of Heilan House's implementation of the light asset profit model and put forward suggestions to provide practical inspiration for enterprises considering the implementation or implementation of the light asset profit model.