Research on the Motivation and Effect of Longfor Group's Transformation to Asset-light Operation Mode

Abstract

Since the real estate marketization reform in 1998, China's real estate industry has continued to focus on asset operation mode, at that time in the golden period of the industry, real estate enterprises only need to hoard a lot of land, wait for the appreciation of the land and then resell, you can get considerable returns. However, in the context of the current slowdown in the economic growth of China's real estate industry, it is difficult for commercial real estate enterprises to continue to operate with heavy assets, so such enterprises begin to seek transformation, and want to change a profit model to match the current market. As a new way for enterprises to accumulate core competence and maximize value, "asset-light operation" model has been highly valued by the academic and business circles. This paper takes Longfor Group, a representative real estate enterprise, as the research object, and makes an in-depth analysis of the company's finance from the perspective of its financial characteristics and financial performance, in order to provide certain theoretical references for the successful application of the transformation and development of similar companies.