Research On The Performance Of Asset-light Operation Of Commercial Real Estate

On the one hand,commercial real estate can stimulate the prosperous development of the consumer market,and on the other hand,it is also pivotal to the transformation and upgrading of the economic structure.With the introduction of the new target of "14th Five-Year Plan",China’s commercial real estate industry has a broad development prospect in the future.Therefore,in order to better grasp the inner rules of commercial operation and promote the realization of the value of commercial operation,it is necessary for us to We need to analyze the commercial real estate market in depth and thoroughly understand the various subjects involved in it.In recent years,the enthusiasm for home purchase in the residential market has been rapidly cooled by the regulation of national macro policies,and the pattern of supply and demand has undergone subtle changes,and the development of commercial real estate has also been subject to certain restrictions.The commercial real estate industry in China has been adopting an Asset-heavy development and operation model,which means that real estate developers not only need to spend a lot of money to reserve land in the early stage,but also have to be responsible for the project development,construction and building,as well as property sales and operation after completion,which makes the real estate development enterprises have a huge capital demand.In the past,under the Asset-heavy operation mode,many commercial real estate companies have made a lot of money thanks to the huge dividends brought by the rapid development of the industry.However,with the implementation of the national policy of "no speculation in housing",the property market is gradually cooling down,and it is no longer appropriate to continue to use traditional Asset-heavy operation,which gradually reveals many problems: the enterprise’s capital is heavily occupied by the project,and the market demand is declining,resulting in a large backlog of inventory,which makes the return of funds difficult,and the cash flow of the enterprise is tight.In addition,China’s government macro-control efforts are gradually increasing,land costs and financing costs are rising,and the dual role of the two has led to a steep increase in the total cost of real estate development and operation.Looking at the whole real estate industry,under the new situation,the previous Asset-heavy development model has revealed many drawbacks: high inventory pressure,high financing risk,declining sales gross margin and other financial problems have come to the fore,and in the face of the dual pressure from national regulation and market cooling,enterprises are in urgent need of change and transformation to find a new way of development.Since the Asset-light operation model can help enterprises focus on their core business,thus consolidating their competitive advantages and ensuring their sustainable development,this emerging operation model is gradually being adopted by some commercial real estate enterprises embarking on transformation.Since the application of Asset-light operation model in China is still immature,it is meaningful to explore the transformation paths of real estate enterprises and evaluate their performance.In this context,the author uses a combination of literature research method,comparative analysis method and case study method to analyze the financial performance level of Dalian Wanda Commercial Management Group before and after the Asset-light transformation,to analyze the mechanism of the effect of Asset-light transformation on the financial performance of the enterprise,and then to draw the research conclusions and insightful suggestions of this case study.Firstly,this article reviews the related studies on Asset-light operation and financial performance at home and abroad,sorts out the main motives for real estate enterprises to carry out Asset-light transformation,and briefly introduces the corresponding theoretical basis.Second,this article briefly introduces the case of Wanda Commercial Management Group’s transformation to Asset-light operation.Under the deterioration of internal and external environment,Wanda Commercial Management under the Asset-heavy operation mode has fallen into certain financial difficulties,firstly,the return on net assets has been declining year by year;secondly,the proportion of income from sales of properties is too large and the income structure is unbalanced;thirdly,the Asset-liability ratio is high and the solvency of the enterprise is weak;fourthly,the cash flow of the enterprise pressure has increased.Based on the above reasons,Wanda gradually implemented a five-step Asset-light transformation: the first step was to divest heavy assets and lighten operations;the second step was to build Asset-light financing channels and reduce financing costs;the third step was to export brand,operation and management and focus on improving intangible assets;the fourth step was to implement "turnkey projects" and carry out engineering Fourth,implement "turnkey project" to slim down the project management;Fifth,develop "Huiyun" management system to promote intelligent business management.Furthermore,in order to study the changes in financial performance before and after the transformation of Wanda Commercial Management into an Asset-light operation,this article uses a combination of financial index analysis and EVA analysis to conduct a comparative analysis,and analyzes the mechanism of the effect of Asset-light operation on corporate performance from three levels: optimizing corporate financing structure,enhancing corporate profitability,and improving corporate operational efficiency.Finally,relevant research conclusions and insights are drawn with case studies.This article argues that,in the context of strong national regulation and strict control of the real estate industry,it is reasonable and necessary for commercial real estate to transform into Asset-light operation.In order to successfully achieve Asset-light transformation,enterprises must develop deeper and further consolidate their competitive advantages,so as to explore more light assets that can help their long-term development.For other commercial real estate companies that are planning to transform into Asset-light companies,they should pay attention to two issues: firstly,they should pay attention to optimizing the reasonable allocation of enterprise resources and rationally choose the appropriate Asset-light operation method for themselves;on the other hand,they should pay attention to strengthening the division of labor and collaboration among multiple parties,so as to better enhance the benefits of Asset-light operation of enterprises.