Study On The Financial Evaluation Of Sharing Bicycle Light Assets Mode

The Asset-light business model was initially founded by Nike.Inc in the early 80s.By outsourcing the production,corporations could locate more resource at the stage of R&D and products promotion to enhance brand establishment,maximizing financial performances and ultimately increase value of the firm.With the development of social division of labor and'The Smiling Curve' theory,it was evident that the value added to the firm are centralized at the stage of R&D and merchandises publicity,which proved the feasibility of the Asset-light business model.In recent years,the shared bicycles has been industrialized as one of the most important short-distance transportation vehicle in China.Both urban public rental bike and pile-free shared bike have soring expansion in supply and usage,however some small scale bicycle-sharing firms have gone bankrupt due to bike oversupply and inefficiently fund control.Meanwhile,Some Asset-light bicycle-sharing firms such as YONGANXING was profiting in recent years and successfully gone public.This thesis aims to give bicycle-sharing businesses some constructive guidance with pertinence based on YONGANXING's Asset-light business model,with in-depth examination of its financial performance.This thesis will be utilizing literature review and case study method to analyze various perspectives of the company.First of all,wide range literature of Asset-light system's definition,profitability model and financial performance model will be illustrated;secondly,based on Asset-light operations and profitability model as well as the Harvard Analytical Framework,firm's financial data from 2013 to 2016 will be evaluated to draw conclusions from several viewpoints.Research have found that under the Asset-light business model,YONGANXING's financial performance was favorable at a conclusive level as a result of outsourcing the main products,which lower its production cost;convert its bike rental revenue to stable operational contract income,avoiding the financial risk brought by the seasonal change.In sum,refining market operations,promoting brand acknowledgment should be the focus for other Asset-light bicycle-sharing firms,so that the firms could invest more for R&D and brand construction.With the brand value appreciation,firms' profitability would be considerably improved.On the contrary,firms with low brand appreciation would suitable for the conventional operating methods,which is lower its cost and strength its profit.