Comparative Research On Financial Performance Of Company H’s Transformation To Asset-light Management Model

Manufacturing is pillar industy of our country,the stable development of manufacturing is very important to the national economy and the people’s livelihood.But nowadays,because of the defects like the poor industrial and disjoint between production and demand.China’s manufacturing industry presents a decline in sales and profit margins.Manufacturing transformation is imminent.As the asset-light management model is known by more people,more and more scholars and entrepreneurs believe that through the transformation of asset-light management model the manufacturing industry structure can be optimized.market resources can be allocated rationally,and enterprises can develop core-competitiveness.So,this paper chooses company H,a home appliance manufacturing industry company which started its transformation to asset-light management model in 2009 as a case,to research it’s financial performance before and after transformation.At present,home appliance manufacturing industry companies hav e a crisis of overcapacity,and difficulty in cost reduction.As the same time.they also faces the threaten of foreign competitors.Cause H company is a leading enterprise of home appliance manufacturing industry,to research the financial performance of H company’s transformation of asset-light management model.,we can conclude the experience and shortcomings of H company,in order to provide useful experience for the transformation of household appliance manufacturing industry and even the entire manufacturing industry.After systematically describes the ways H company transformation of asset-light business model combines the value chain analysis method,this paper research company H’s financial performance horizontally and vertically,from the traditional financial performance index,economic value added index and other angles.It creatively introduced the event study method to analyze the impact of the transformation on the company from a short and long term perspective.The research shows that the positive effects brought by transformation to the company are very significant in inventor management.fixed assets utilization efficiency and company profit level,and the economic value added of the company has b een improved through transformation.At the same time,the company also has the problem in short-term debt paying ability and the efficiency of the integration post-merger.At the end of this paper.suggestions are be given on how to maintain the existing advantages and to improve its shortcomings and hidden dangers.Hope these suggestions can prov ide references for other companies in manufacturing industry which are taking or planning transformation.