Study On Gree’s Financial Performance Of Light Asset Operation

At present,traditional Chinese manufacturing enterprises mainly obtain profits through scale effects and price wars.However,under the background of industrial upgrading,the advantages of this kind of business mode have turned less and less obvious while the production consuming too many resources and the cost being unable to get even lower have posed certain impediments on the development of enterprises.How to attain more powerful profitability,faster development speed and more lasting growth impetus has become an urgent key problem for enterprises.Currently there is an asset-light strategy capable of creating more value for enterprises that has attracted a lot of attention;it is also an inevitable result of high-speed development of economy entering an era of knowledge.In the process of asset-light operation,enterprises use core intangible assets to activate fixed assets so as to realize the objective of obtaining maximal profit with minimal inputs.Researching the process and achievements of asset-light strategy can make a positive contribution to effectively facilitating industrial upgrading and development of manufacturing enterprises.GREE has started to employ the asset-light strategy in recent years and has become a forerunner in this respect in the traditional household appliance manufacturing industry.With GREE’s implementation of asset-light strategy as the object of study,this thesis carries out a study using literature research method,case study method,efficiency coefficient method,regression analysis method,and financial indicators-based comparative analysis method.The thesis first elaborates the topic selection background and significance of this study,presenting a literature review from four aspects of category of asset-light,basic concepts of asset-light strategy,typical methods of asset-light strategy,and research status of asset-light strategy at home and abroad.Secondly,the thesis introduces the basic situation,operating conditions and specific implementation of asset-light strategy of GREE Electric Appliances,and explains the financial performance and financial characteristics of GREE Electric Appliances under asset-light strategy.Thirdly,this thesis selects the financial data of GREE Electric Appliances in the past five years and evaluates the overall financial performance of GREE Electric Appliances by reference to related documents issued by the Ministry of Finance.In addition,regression analysis is also introduced to analyze the correlation between performance score and asset-light strategy.By comparing with the itemized financial indicators of Qingdao Haier,the thesis also summarizes the problems of GREE in the process of asset-light strategy and presents a further analysis of the causes.Finally,based on the proposed problems and their causes,some suggestions are put forward from the levels of development strategy and financial management.Through studying this case,this thesis comes to the following conclusions: asset-light strategy has certain negative influence on the financial performance of GREE Electric Appliances,and there are relatively prominent problems arising from the aspects of financial risks and operation efficiency.In the Industrial 4.0 Era,the proposing of the “asset-light strategy” has provided a good line of thought for enterprises conducting industrial upgrading,but how to guarantee asset-light strategy to bring about positive influence on enterprise transformation still is a problem to be further thought and explored by traditional manufacturing enterprises.