Analysis Of The Tnfluence Of Quasi-Financial Model On The Profitability Of Haier Group

With the deepening of China's reform and opening up and the rapid development of the market economy,the competition in the manufacturing industry is becoming increasingly fierce.In the large market environment of survival of the fittest,in order to occupy a place in the market,most enterprises have launched a price war,hoping to attract more consumers with lower prices,reduce the gross profit of a single commodity to achieve the goal of expanding the total sales,so as to expand the market share.However,the price war will often intensify the vicious competition between enterprises,and even make the whole industry into a development dilemma.To some extent,the emergence of financial mode like this can be said to break the embarrassing situation of the manufacturing industry.As an innovative financing mode for home appliance enterprises,financial mode like this mainly uses the funds of upstream suppliers and downstream dealers to realize a large amount of low-cost and high-quality floating cash in the book.The existence of these current assets has important practical significance for home appliance enterprises to expand business scale,expand sales channels and improve business level.On the other hand,although the financial model can in a short period of time for the enterprise to raise a large number of low cost or even zero cost of cash,alleviate the pressure of the enterprise operating funds,and use the resulting huge financial leverage effect,produce a higher return on equity,so as to improve the competitiveness of enterprises,but also accompanied by a variety of financial risks.Therefore,the quasi-financial model is like a double-edged sword,and the scientific and reasonable use of the quasi-financial model is crucial to the benign development of enterprises.This paper takes the application of Haier Group's financial model as anexample,conducts vertical comparison analysis by combining the financial data of Haier Group in the recent five years,and briefly makes horizontal comparison with other household appliance manufacturers and retailers,so as to more comprehensively and truly reflect the impact of such financial model on the profitability of Haier Group.This paper first summarizes the domestic and foreign scholars to study on the model of financial dynamic,secondly introduces the concept of financial mode and related theory,and taking the characteristics and operation status of Haier Group's financial model as the starting point,this paper analyzes the impact of Haier Group's financial model on its profitability from both positive and negative perspectives.Finally,by analyzing the relationship between Haier Group's industry position,cash holding capacity,working capital demand,marketing mode,financial expenses,financial leverage and high return on net assets,the paper analyzes the positive impact of financial mode on enterprise profitability,and puts forward relevant suggestions from brand operation,capital structure,supply chain management,resource integration,market construction and other aspects in view of the risks existing in Haier Group financial mode.