| Since the 1990 s,China’s real estate industry has experienced vigorous development,with a large number of real estate developers participating in market competition.In the early stage of the development of the industry,the land price was low,the market was extremely broad,and the government supported the industry.So the real estate enterprises made huge profits.However,with the continuous development of the industry,this stage has become the past.With the rapid growth of housing prices,the state has issued a number of policies to regulate housing prices in order to protect the housing of residents.At the same time,the process of urbanization is nearing the end,the real estate market tends to be saturated,and the land cost remains high.With the profit space being constantly compressed,real estate enterprises have begun to seek transformation.Compared with the traditional asset-heavy model,the asset-light model has the advantages of low investment,high income,high flexibility and high resource utilization efficiency,and has become the choice for some real estate enterprises to transform.The real estate industry is a pillar industry in China.How real estate enterprises can continue to adapt to the already different environment,open up new roads,and continue to develop healthily in the new economic normal and new situation is very important for the real estate industry,and even for the overall environment of China’s economy and people’s livelihood.Studying the motivation,path and performance of the asset-light model transformation of real estate enterprises can systematically summarize the whole process of the transformation of real estate enterprises,and provide feasible reference and suggestions for subsequent real estate enterprises that adopt the asset-light model transformation.After reviewing the research results on asset light and asset light models at home and abroad,this article defines the relevant concepts of asset light,asset light,asset heavy,and asset heavy models,evaluates their advantages and disadvantages,introduces relevant theories,introduces Gemdale Corporation,which is undergoing the transformation of the asset light model,and analyzes its financial characteristics,transformation path,and transformation motivation.Subsequently,the financial indicators of Gemdale Corporation from 2013 to 2021 were selected for vertical comparison,and the Seazen Holdings and Greenland Holdings that were also undergoing transformation were selected for horizontal comparison,with a view to evaluating the financial performance of Gemdale Corporation ’s transformation of the light asset model more comprehensively.Subsequently,this article conducts a further financial performance analysis based on economic value added.After analyzing financial performance,non-financial performance is analyzed.Finally,based on the previous analysis,summarize and evaluate the positive effects and shortcomings of Gemdale Corporation ’s transformation into an asset light model,and draw relevant inspiration.This paper believes that the reasons for Gemdale to adopt the asset-light model transformation include: the restrictions and impact of the policy environment,the compelling rise in land prices,the slowdown in the growth of the real estate industry and the high pressure of competition,the driving force of the industry’s asset-light model transformation,the improvement of cash flow and profitability,and addressing operational difficulties caused by decision-making errors.The path of Gemdale transformation mainly includes: cooperative development,small share trading mode,agent construction business,real estate finance,related diversification,etc.After analysis,this paper concludes that Gemdale has basically achieved the effect of coping with internal and external pressure and improving the quality and competitiveness of the enterprise t0 hrough asset-light mode transformation,but there are still some problems that need to be improved.The transformation has brought new profit growth points with high added value,improved the profitability and cash flow of Gemdale,also contributed to the improvement of Gemdale ’s solvency and growth ability,and improved the asset structure of Gemdale.However,the benefits of Gemdale’s operating capacity in the transformation of asset-light model are not obvious,and the cooperative development in the transformation also brings great risks to it.At the same time,there is still much room to improve the quality of cash flow.This paper summarizes and analyzes the experience and shortcomings of Gemdale ’s asset-light model transformation,hoping to have some reference for Gemdale and other real estate enterprises that intend to transform the asset-light model. |
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