Research On The Impact Of Vanke's Transformation Of Light Assets Business Model On Enterprise Performance

Affected by a series of factors,such as the accelerated aging of the population in China,the reduction of land resources,and the containment of speculative investment in real estate,the management model of heavy assets which gains income through capital appreciation not only has high investment cost and long payback period for real estate enterprises in China,but also is easy to be impacted by government macro-control.In the future,new business models need to be explored for the sustainable development for real estate enterprises.This thesis takes the light assets transformation of Vanke Enterprise Co.,Ltd.as the main body of the case to analyse the influence of the transformation of Vanke's light assets on the enterprise performance from the view of financial indicators,non-financial indicators and the economic value added.It is found that light-assets operation model has a positive effect on Vanke's enterprises performance:Under light-asset operation model,the structure of heavy assets and light assets has been adjusted,which lead to the improvement of the asset turnover.Besides,the "Rui service" property management mode make the profitability of the property business be significantly improved,also the profit structure of the enterprise has been optimized because of the extension business of the real estate.And the light assets operation mode of "small stock trading" not only enables enterprises to leverage more profits under the same capital investment,but also releases a large number of long-term occupied funds from substantial heavy assets,which make the free cash flow of enterprise more abundant as well as creating more economic value added for investors.In addition,Vanke pays more attention to the discovery and utilization of light assets such as brand value,customer resources,management,technology and so on.Vanke is devoted to establish a good corporate image.Meanwhile,through the cooperation with Internet companies,it has achieved technological innovation and customer resources sharing,which make its brand influence,the technological innovation ability as well as the market share has a certain increase.It can be said that the light-assets operation mode of Vanke has provided a new option for the real estate enterprises and is of great significance for the real estate enterprises to be transformed to achieve sustainable development.