A Study On The Financial Effect Of Asset-light Operation In Real Estate Enterprises

The real estate industry forms an essential component in promoting our national economic development.Over a period of time,this industry has promoted national economic growth,with a high-speed development in its initial infancy and growth stages.However,some real estate enterprises recently have experienced slowness and stagnation in their growth of development,on account of the state control in terms of policies,continuous fluctuation of market house prices as well as higher demand from consumers for the quality of products.Under such situation,it becomes clear that there are disadvantages in the traditional management pattern.The business pattern of heavy asset has easily led enterprises to facing the crisis of capital chain rupture and difficulty in the severe inventory consumption.Therefore,with ambitions to achieve a healthy and long-term development,some real estate enterprises attempt to change this unfavorable situation and adopt the asset-light strategy.Based on the comprehension of relevant academic documents and theoretical knowledge,we will refer to BGY Company,a large-scale domestic real estate listed company with good brand effect,as the case object to thoroughly analyze and discuss its asset-light strategy by means of literature analysis method,case study method and data analysis method.Oriented with the asset-light strategy of BGY Company,this paper mainly presents the analysis,evaluation and discussion on its feasibility in real estate enterprises from several aspects,including the motives for its transformation,specific implementation plan and the comparison of financial situation before and after the implementation.According to the analysis and research on the asset-light strategy of BGY Company,it proves to be a successful transformation under the asset-light strategy that the company's various financial indicators have been improved,cash flows more sufficient and stable,financing costs gradually decreased,market share and stock market value also increased.Finally,with an expectation to provide valuable experience and reference for other real estate enterprises in the same industry,we will conduct a conclusion and assessment for BGY's asset-light strategy and accordingly offer some suggestions for this business pattern.