The Evaluation Of Company D's Financial Strategy Under Asset-light Operation

Since the reform and opening up,the urbanization rate in China has increased rapidly.The growth of market economy and people's consumption levels promoted the development of commercial real estate quickly.The kinds of commercial real estate such as complexes,large squares and shopping malls became pluralistic,the scale of commercial real estate was expended.In 2015,the commercial real estate entered an adjustment period.Faced with a series of macro-control by the government over the industry,the heavy asset mode of real estate companies was challenged which rely on hoarding land and loan financing.With the expended of scale,the operating costs grew steadily,and the rental income of stores were affected by the e-commerce retail.Against this state,various commercial real estate companies have begun to carry out asset-light financial strategy.The pluralistic methods of investment and finance can reduce the fund cost and operating risk.The development bottleneck can be break through by asset management.This paper uses case analysis method and financial analysis method,combined with the division of labor theory to analyze the company D with asset-light transformation.Firstly,in the theoretical part,the meaning,characteristics,advantages and disadvantages of the operation mode of heavy and light assets in the commercial real estate industry are explained.Secondly,in the case section,the background and motivations of the transformation of company D under the heavy assets operation mode are introduced.The content of the financial strategy implemented by the asset transformation is sorted out,and its financing strategy,investment strategy,operation strategy and dividend distribution strategy are interpreted in detail.And then the financial status of the five years before and after the transformation of D company is compared through traditional financial indicators and economic value added,analysing the verify the effect of D's financial strategy.Through the research in this paper,it is found that D's asset-light financial strategy has achieved certain results.The company's profitability has increased,the risk of debt has decreased,the proportion of heavy assets has been reduced,and cash flow has been improved.Although it has the effect,due to the short transition time and slow pace,the effect is not very obvious,and there are still some shortcomings that need to be improved.Therefore,this paper also puts forward corresponding suggestions on how Company D can better achieve its transformation goals in the future.The company D should continue to innovate financing methods,clarify the business development path,and also accelerate the pace of capital operation and strengthen the training of asset management talents.