Comparative Study Of Vanke And Evergrande's Financial Performance,Financial Policies And Financial Trategies

After experiencing the development in 2“golden ages",China's real estate industry has made remarkable and important achievements,and has become a model for the national pillar industrnes.Since 2016,the Chinese government has drastically deepened reforms,and how the real estate industry should establish a long-term mechanism to maintain sustainable development has gradually become a thought-provoking event.Under the complicated adjustment of supply and demand structure,and the strict control of macro policies,how can real estate enterprises implement strategic adjustments,make financial decisions,establish risk control systems,and ensure financial security and access to financial resources,not only concerns whether the real estate enterprises can have a unique core competitiveness,but also determines the stable development of the real estate industry.This paper selects two benchmarking real estate enterprises,"Vanke and Evergrande",9 as the research objects,to deeply study the effective application of financial strategic management in the operation and management of real estate enterprises,further improve the financial risk management and control mode of the real estate enterprises in China,and provide overall thinking and coping strategies for the adjusting direction of the real estate industry.This paper contains six chapters.Chapter I is the Study Overview,including the development status of the real estate,industry,Vanke and Evergrande,the comparative analysis of the operation status of Vanke and Evergrande,the main issues faced by the real estate industry and the main significance of the research.Chapter II is the three-dimensional analysis of Vanke and Evergrande's financial statements,including the balance sheet,the profit and loss statement,trend analysis of cash flow statement and the structural analysis.Chapter III is a comparative analysis of the main financial indicators of Vanke and Evergrande,including the comparative analysis of profitability,asset use efficiency,asset liquidity,liability status and solvency,value creation,and capital market performance.Chapter IV is a comparative analysis of Vanke and Evergrande'^business models,including the analysis of the two companies'profit-making modes,cash-generating modes,rnsk control modes,growth modes,and value-creation modes.Chapter V is the financial policy evaluation and financial strategy matrix of Varnke and Evergrande,including the financial policy evaluation and matrix comparison analysis of the two companies.Chapter VI is the recommendations and conclusions.From this paper,it is found that:(1)The financial performance of the two housing enterprises matches their respective development strategies,and their financial situation is very effective.In contrast,Vanke has strong profitability,better cash creation ability,better risk control,better asset use efficiency and better overall operating quality than Evergrande.(2)The financial policies of the two housing enterprises are highly in line with their respective financial strategies.The implementation of financial policies has been relatively successful.Relatively speaking,Vanke is more efficient in operating policy,more robust in debt policy,more efficient in investment policy and more reasonable in dividend policy.(3)The financial strategy matrix shows that Vanke is mainly in the first quadrant and develops towards the second quadrant,belonging to the"Value Creation + Fund Surplus1",while Evergrande is in the fourth quadrant,belonging to"Business Regrouping + Capital Demand".Obviously,Vanke'^strategic model is even better.Combined with the development trend of the industry and the basic situation of the company,this paper suggests:(1)In terms of finance,the two enterprises should optimize the capital structure,reduce the level of total assets and liabilities,and improve the use efficiency of invested capital.In particular,Evergrande should appropriately reduce the proportion of cash dividends to ensure a stable level of growth.(2)In terms of operation,the two enterprises need to optimize their own business models and pay attention to controlling and preventing risks.Vanke needs to continue to maintain the existing operating efficiency and maintain steady growth,while Evergrande needs to consolidate and improve the'existing operating efficiency,strengthen the speed of asset turnover,and ensure sustainable development.(3)In terms of strategy,the two housing enterprises adjust their growth levels appropriately,focus on the long-term development of the industry and the upgrading and transformation of housing enterprises.Vanke resolutely implements the strategic positioning of"Urban and Rural Construction and Life Service Providers',,appropriately acquires new business,enhances added value,consolidates and maintains its unique advantages,while Evergrande implements the double-engine development strategy of”Scale + Efficiencyn' tries to restructure its business,focuses on the quality of growth,and strengthens and creates competitive advantages.