With continuous promotion and deepening of urban renewal in China, the competent department has realized that the ‘large-scale demolition and reconstruction’ is not a proper reconstruction mode. Therefore, the mode of ‘micro-transformation’ adopted in recent years has gradually played an important role in optimizing the old urban areas and the villages in city, preserving historical and cultural architecture, inheriting the context, activating the use, realizing functional replacement and improving the living environment of the people. The extension matter-element model is used in this article to evaluate the comprehensive benefit of the urban village project under ‘micro-transformation’ mode. Firstly, based on the extension matter-element model, 32 evaluation index systems including five subsystems of politics, economy, culture, society and ecology have been established. Secondly, taking the micro-transformation project of Donghu New Village in Guangzhou as an example, the benefit evaluation of the project is carried out. The research results show that (1) The micro-transformation project of Donghu New Village is successful, with remarkable results in terms of ecological, political and social benefits. (2) In terms of economy, the investment effectiveness is great and the payback period is short, while the cultural benefit requires a continuous tracking survey.(3) Compared with the economic, ecological, political and cultural influences, the social benefit of the micro-transformation to the renovation project is relatively large, the correlation degree of which accounts for 25%. (4) Cultural benefit is also increasingly important to meet the spiritual needs of the residents. The overall proportion is 13.7%, and the indicators after the transformation are excellent. These findings in the article provide breakthrough points for urban renewal dilemma in Guangzhou, and have practical references for China’s urbanization construction in the future.