Suning.com expects a profit of RMB 450M to 550M in Q1 2021
04 14, 2021

Focusing on the main retail business, Suning.com expects a profit of 450 million to 550 million in the first quarter

First-quarter performance forecast disclosed, Suning.com is expected to make a profit of 450 million yuan to 550 million yuan

The performance continuing to improve, Suning.com expects a profit of 450 million-550 million in the first quarter

On the evening of April 14, Suning.com, the Fortune Global 500 Company owned by Suning Group disclosed its performance forecast for the first quarter of 2021. It is expected that the net profit attributable to shareholders of listed companies will be between 450 million yuan and 550 million yuan in the first quarter of 2021.

According to the announcement, in the first quarter, the company focused on the main retail business and accelerated the opening up and enabling Suning.com’s Retail Cloud business to maintain rapid development. The company continues to pay attention to the internal efficiency management of the enterprise and strengthen the management and control of human resources and advertising and marketing expenses.

Since last year, Suning.com’s performance has continued to improve. In 2020, Suning.com achieved sales of 416.315 billion yuan, and online sales accounted for nearly 70%. In the fourth quarter, the scale of product sales on Yunwang Wandian platform increased by 33.67% year-on-year.

Among them, the development of the Retail Cloud in the first quarter is promising. In the first quarter of 2021, the number of new Retail Cloud stores has surpassed 600. Through the rapid expansion of Retail Cloud franchise stores, Suning.com has established a leading channel advantage in the third and fourth-tier markets. More and more brands choose to strengthen cooperation with the Retail Cloud and develop the lower-tier markets. In 2020, the Retail Cloud business will maintain rapid growth, with 3,201 new stores opened throughout the year, and the annual sales volume will increase by more than 100% year-on-year, and it will be profitable.

Suning.com adheres to its retail strategy and has taken a number of measures from both internal and external aspects to improve retail profitability. Internally, Suning.com actively reduced costs and increased efficiency, strengthened related expense control, emphasized profitability improvement, and achieved certain results; externally, Suning.com introduced strategic investors, reached strategic cooperation with GLP, and promoted coordinated business development.

On February 28, Suning.com introduced two strategic investors, Shenzhen International and Kunpeng Equity. After the state-owned capital injection, the shareholding structure of Suning.com was optimized and the governance structure was further improved. At the same time, Suning.com and Shenzhen International will rely on their respective advantages to strengthen cooperation in logistics infrastructure, integrated logistics service business, etc., to improve the efficiency of both parties’ assets and business operations. More importantly, with the continuous development of the South China market, Suning.com’s performance growth is expected to increase significantly.

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