A Study On The Motivation And Financial Effectiveness Of Wanda Commercial Management Group’s Asset-light Transformation

For a long time,China’s commercial real estate industry has long adopted an asset-heavy operating model,whereby developers need to reserve land and take full responsibility for the project’s development,construction,sales,and operation.However,the implementation of the national "housing is for living,not for speculation" policy and the decline in demand for the real estate market have gradually exposed problems with the heavy-asset operation model,such as capital being tied up in projects,large inventory levels,and tight cash flow.Therefore,in order to address these challenges,real estate companies have begun to shift towards a light-asset operation model.Compared to heavy-asset operation,light-asset operation allows companies to focus more on their core business,improve their competitive advantages,and ensure sustainable development.However,there are not many cases in which China’s commercial real estate industry has employed the asset-light operating model,so it is of significance to conduct in-depth research on case studies of commercial real estate companies’ transformation towards light-asset operation and the effects obtained through this transformation.This study takes the motive and financial effect of Wanda Commercial Management’s implementation of light asset operation transformation in 2015 as a case study object.Based on division of labor theory,industry value chain theory,and smile curve theory,the study uses methods such as literature research,case study,and financial index analysis to first introduce the research background and significance of Wanda Commercial Management’s implementation of light asset operation transformation;secondly,the study investigates the motive,path,and financial effect of Wanda Commercial Management’s light asset operation transformation;finally,the study evaluates the Wanda Commercial Management’s light asset operation transformation case and draws relevant inspirations.Through the study of Wanda Commercial Management’s implementation of light asset operation transformation,it was found that the motives can be divided into external and internal factors.The external factors include macro-control effects,intensified industry competition risk,and high industry financial risk.The internal factors include declining profitability,increased cash flow pressure,and single type of income.The effect of Wanda Commercial Management’s implementation of light asset operation transformation includes both financial and non-financial effects.The financial effects include optimizing the company’s financing structure,innovating profit models,and improving operational efficiency.The non-financial effects include increasing market share,improving resource integration ability,and enhancing the company’s ability to resist market risks.Finally,this study reveals some inspirations that commercial real estate companies should pay attention to in the process of light asset transformation,including strengthening financing channel construction,paying attention to capital liquidity,and improving core competitiveness to increase revenue distribution.By analyzing the case of Wanda Commercial Management’s implementation of light asset operation transformation,this study hopes to provide reference value for enterprises in the same industry who desire to implement light asset operation transformation,helping them smoothly complete the transformation.