Research On Business Model,Financial Strategy And Enterprise Value Of PDD

The current digital economy,represented by 5G,artificial intelligence and Internet+,is rapidly sweeping through many fields such as shopping,social networking,education,finance and healthcare because of its efficiency and convenience.The healthy development of the digital economy has become a top priority in building a modern economic system.As an important support in the digital economy,the emergence of e-commerce has not only broken the limits of traditional offline transactions,but more importantly,brought about innovation in business models.Since January 1,2019,the first comprehensive law in the field of e-commerce,the E-Commerce Law,has been implemented.The promulgation of this law has brought institutional protection for the development of the e-commerce industry and provided a legal environment for the innovation and transformation of business models.Based on the principle of "business-financial-value",the choice and innovation of business model will inevitably bring about financial changes,which requires enterprises to match appropriate financial strategies to achieve the goal of maximizing enterprise value.In this paper,we choose Jindo as a case study not only because of the special nature of its business model,but also because Jindo has been listed in just four years after its establishment,which is far ahead of other e-commerce companies of the same type,so the logic mechanism behind the growth of Jindo is worth studying.Therefore,this paper aims to analyze the process and effect of the business model that drives the financial strategy of the company,and finally determine the impact of the financial strategy on the value creation of the company.The paper combines theoretical analysis and case studies to investigate the business model-driven financial strategy and financial strategy-driven corporate value from a financial perspective.Firstly,the paper compares relevant domestic and international literature and theoretical foundations,and provides an overview of the internal and external environment of China’s e-commerce industry and the basic situation of PDD,while analyzing the choice of business model under the financial perspective of PDD using a case study method.Secondly,based on portfolio theory and capital structure theory,the selection and implementation of investment strategy and financing strategy are studied from three dimensions of business model.Finally,the mechanism of financial strategy affecting enterprise value is analyzed from three aspects of free cash flow,weighted average cost of capital and growth,in which the longitudinal data of enterprises and horizontal data of enterprises in the same industry are used for comparison and analysis.Through the specific case study of PDD,it can be found that the business model of PDD exhibits an asset-light and growth-driven model,and the matching investment strategy exhibits asset-light,long-term,and specialized characteristics,as well as a financing strategy based on equity financing.The effect of the implementation of this business model and financial strategy is shown in the increase of enterprise value,which is specifically through the impact paths of free cash flow,weighted average cost of capital and sustainable growth rate.The purpose of this paper is to analyze the impact and mechanism of the development of PDD’s business model and financial strategy on enterprise value,and to provide relevant reference and reference for other related enterprises to transform or upgrade.