Analysis Of Financial Performance And Insights Under The Asset-Light Operation Model Of NANJIDS

Textile and garment industry has been an important economic pillar industry in China,with the deepening adjustment of the national economic structure and increasing competitive pressure in the industry,the textile and garment industry is facing problems such as slowing sales revenue growth,increasing costs,overcapacity and capital constraints.Under this circumstance,some enterprises in the industry are in crisis,while others have started to plan a new way out before the crisis emerges.In order to get rid of the crisis or to find a better way out,many enterprises have chosen to transform their business model,that is,to transform from the previous asset-heavy business model to an asset-light business model.This thesis takes the typical transformation of NANJIDS as the research object,summarizes the financial performance of NANJIDS and provides insights for the future development of NANJIDS and the subsequent development of companies with similar transformation experience in the apparel industry.This thesis applies methods such as literature research,case studies.and comparative analysis to specifically analyze the effect of the asset-light operation model implemented by NANJIDS from the financial perspective.First of all,this thesis composes and summarizes previous researches about asset-light operation model and financial performance,define concepts such as asset-light operation model,and takes smile theory,division of labor theory,value chain theory and amoeba business model as the theoretical basis.Secondly,this thesis analyzes the transition process and operating status of NANJIDS.Due to the financial crisis and the lack of core competitiveness,NANJIDS tried to implement the asset-light operation model,and it successfully transformed its operation strategy through measures such as brand authorization,building a flexible supply chain platform and adjusting enterprise management mode.Thirdly,this thesis evaluates the asset-light degree of financial data of NANJIDS from 2013 to 2021,and concludes that NANJIDS meets the conditions of an asset-light enterprise from 2014.Finally,this thesis adopts the comparative analysis method,follows the principles of financial performance evaluation system design,adopts the indicator analysis method to analyze the enterprise’s financial performance from four aspects: profitability,operating capacity,solvency,and growth capacity,and combines the efficacy coefficient method to analyze the horizontal comparison between NANJIDS and similar light-asset enterprises,and makes a comprehensive evaluation of its financial performance to explore the impact of the light-asset operation model on NANJIDS.The final research results indicate that the financial performance of NANJIDS is superior to other similar light asset enterprises.Under the asset-light operation model,the company has good profitability,volatile operating capacity,excellent debt paying ability and declining growth capacity.In order to improve the financial performance of the company and to inspire similar companies accordingly,four relevant suggestions were proposed: 1.Intensifying quality control efforts of authorized products;2.Improving the efficiency of fund utilization and increasing R&D investment;3.Strengthening accounts receivable management and reducing the risk of bad debts for enterprises;4.Exploring light asset resources and expanding other profit growth points.It aims to provide suggestions and reference for the future development of enterprises and other enterprises that want to complete their own business transformation.