Research On The Performance Of The Financialization Of Homa Electric

As China’s economy has entered a critical period of transformation from gross expansion to structural optimization,combined with international trade frictions and fierce international competition,many traditional industries have suffered from overcapacity and declining business performance,and the profit space of the real economy has been shrinking.At the same time,the virtual economy represented by finance and real estate has been developing rapidly,and its profit margin far exceeds that of other industries.Driven by the pursuit of profit by capital,many real enterprises set their hands in the financial field one after another by means of stock investment,entrusted financial management and acquisition of financial companies to allocate financial assets,showing a significant trend of "financialization".At present,China’s economy has entered a "new normal",replacing old drivers of growth with new ones and preventing and resolving major risks have become a major task facing China’s economic development.The Communist Party and the state have also introduced a series if policies to matain the stable development of the country’s financial system,while making greater efforts in the development of the real economy.This paper takes the case of Homa Electric’s financialization as an example,the financialization of Homa electric appliance is roughly divided into two stages: the non-over-financialization stage and the over-financialization stage.And in this paper,the motivation of financialization behavior in two stages is analyzed by stages,and the practical research method is used to analyze its short-term performance,and the comparative analysis method of financial indicators is used to analyze its long-term performance.The analysis results show that Homa’s original purpose of developing financial business is to coordinate resource allocation and improve profitability,but due to the dual risks of uncorrelated diversification and financial industry,the performance of the enterprise declines,and even weakens the main business.Through the analysis of this case,it is suggested that when developing financial business,manufacturing enterprises should match their own resources and strategies,avoid blindly following the trend,rationally analyze and control risks,and pay attention to market and policy changes at any time,so as to further optimize the allocation of the resources and improve its profitability.The innovation points of this paper are mainly as follows: First,this paper starts with the typical case of the financialization process of Homa Electric Appliance and analyzes the motivation and performance of the financialization of entity enterprises from the perspective of case study.Secondly,based on defining the concept of excessive financialization and not excessive financialization,through the case company’s constrastive analysis of the two phasis:not overly financialized and overfinancialization,to study the different consequences of not overly financialized and overfinancialization of the case enterprise,and further analyzes the main reasons for the declining performance caused by financialization,so as to provide reference for manufacturing enterprises to avoid the risk of performance decline caused by financialization when they acquire financial companies or carry out financial business.Finally,this paper puts forward some effective suggestions on how to prevent the negative impact of financialization on manufacturing enterprises,so as to avoid the occurrence of events that hurt their main business.