The Impact of Digital Transformation on the Profitability of Listed Companies: Evidence from Haier Smart Home
TL;DR
This paper identifies problems in the process of digitalisation, such as high investment costs, weak business cooperation, weak business cooperation, and data security risks, and Targeted Recommendations are then proposed.
Abstract
With the development of the digital economy, many manufacturing enterprises have begun to promote their own modernisation by going digital to enhance competitiveness. Haier Smart Home is a typical enterprise in the home appliance industry selected as the research object. A combination of case studies and financial indicator analysis will be used to explore the path and results of corporate profitability under digitalisation in this paper. The three areas of change that have reduced unit operating costs and period expense ratios for Haier Smart Home are intelligent manufacturing, supply chain digitalisation and user operation digitalisation. The above measures have increased gross margin and net margin by improving operating efficiency. At the same time, this paper also identifies problems in the process of digitalisation, such as high investment costs, weak business cooperation, and data security risks. Targeted Recommendations are then proposed. This paper adds to the body of research on the effect of digitalisation on corporate performance and provides a reference for manufacturing enterprises' digitalisation efforts.