Suning.com Releases Financial Performance Preview with Net Profit Achieving 670 million to 920 million RMB in Q3 2020
Oct 16, 2020, 09:03 ET
NANJING, China, Oct. 16, 2020 /PRNewswire/ -- Suning.com (002024.SZ), China's leading O2O smart retailer owned by Suning Holdings Group, has released its financial performance preview for the first three quarters of 2020. The projection demonstrates the continued improvement of its profitability, with the net profit attributable to shareholders of listed companies expected to reach 670 million to 920 million RMB.
Driven by the strong demand for air-conditioning during the peak season and 818 sales promotions, the online business of Suning.com has witnessed impressive growth, with commodity transactions on the open platform surging 56.83% year-on-year during the reporting period.
From January to September, Suning.com also leveraged the advantages of its online and offline retail channels to help steadily increase its online sales volume, with transactions volume hitting a 18.15% growth year-on-year.
Suning.com has optimized its online platform with intelligent marketing tools, improved logistics and warehousing services, empowering merchants to enhance traffic distribution and conversion efficiency all with a broader product offering.
Through the power of digital, Suning.com's retail cloud franchise stores broke down the distinction between online and offline stores to create a new business model that combines the supply chain with offline stores and social eCommerce. As a result, the total sales volume of Suning.com's retail cloud franchise stores grew by 77.5% year-on-year, with 2,432 new retail cloud franchises opening from January to September. Among them, 871 stores were opened in the Q3, which helped increase sales volume by 108%.
In addition to actively responding to the pandemic, Suning.com accelerated the shift from being a retailer to a retail service provider. Meanwhile, Suning.com continued to drive out-of-store sales in Q3 through push orders, group buying and live streaming promotions. The Group further integrated Carrefour China's supply chain and seized market opportunities to develop its to-home business. During the reporting period, the platform experienced a steady expansion in product ranges with the number of active users in August up by 22.49% year-on-year.
Through cost reduction measures and boosting operational efficiency, Suning has also optimized its product supply chain, user management and services. The Group will continue to focus on the construction of mid-platform systems, accelerate the transformation of its offline outlets into retail cloud stores and strengthen integration.
With a priority on improving the user experience, the business has reinforced its plans to increase its openness to external suppliers, optimize specialized operations across all product categories and ramp up efforts to consolidate its logistical capacity through infrastructure expansion.
About Suning Holdings Group
Founded in 1990, Suning is one of the leading commercial enterprises in China with two public companies in China and Japan. In 2020, Suning Holdings Group ranked second in the top 500 non-state owned enterprises in China with annual revenues of RMB 665.259 billion (approximately US $97 billion) and continued to top the list of Internet retailing category. Adhering to the enterprise mission of "Leading the Ecosystem across Industries by Creating Elite Quality of Life for All", Suning has strengthened and expanded its core business as retail through a corporate ecosystem comprised by multiple vertical industries, including commercial real estate, financial services and sports. Suning.com, the main subsidiary pioneering in online and offline retailing, has been listed in the Fortune Global 500 for four successive years from 2017 to 2020.
SOURCE Suning Holdings Group
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