Study On Financial Strategy Under The Heavy Assets Model Of Poly Real Estate

The paper mainly studies the application of the asset-light model in the transformation of state-owned real estate enterprises.As the backbone force of the Chinese real estate market,state-owned real estate enterprises are of great research value either in development strength or macro guidance.However,problems like debt burden,weak profit growth etc.caused by development of the asset-heavy model all year round have become even more serious among state-owned real estate enterprises.This paper combines specific problems of state-owned real estate enterprises in China to come up with effective strategies for asset-light transformation.In order to demonstrate the viewpoint of this paper,the author plans to use four methods: quantitative and qualitative analysis,case analysis,induction and comparative analysis.Through the existing advantages and disadvantages of state-owned real estate enterprises,the necessity of their transformation is obtained.Through the analysis of the specific situation of poly real estate,it is concluded that the strategy of "small stock trading" is more suitable as the main method of transformation.Through the analysis of its specific practice,the conclusion and Suggestions are drawn.After analyzing the above cases and problems,the paper arrives at the following conclusions:(1)State-owned real estate enterprises have gradually lost various advantages they previously had,for the operation mode they have habitually used for years to reach the goal of enterprise development by expanding the production scale has also encountered problems like high debt ratio,weak profit growth etc;(2)There are no absolute advantages or disadvantages about the asset-light or asset-heavy model.Enterprises should implement corresponding operation strategies according to different meaning of different assets to operating profit under the current operation environment;(3)As for the transformation and application of the asset-light model,compared with real estate financial means commonly used by foreign real estate development enterprises,asset-light development modes like the “small stock trading” model,property capitalization etc.are more suitable for Chinese real estate development enterprises currently caught in the asset-heavy predicament.On the one hand,it can relieve the financial crisis of operation and development.On the other hand,it can optimize the current profit models used by enterprises;(4)The asset-light transformation requires real estate development enterprises to be equipped with some specific conditions.