Suning.com reports net profit of 456 million in Q1 2021 
04 29, 2021

Nanjing, China, Apr 29, 2021, Suning.com disclosed its report for the first quarter of 2021. Suning.com achieved operating income of 54.05 billion yuan and net profit attributable to shareholders of listed companies reached 456 million yuan.

Suning.com said that in 2021 the company further focuses on the improvement of core business, aggregate profitability, and efficiency. Its Internet business pursues quality development by gradually changing from the rough and one-sided pursuit of the number of users, to the pursuit of capabilities of profitability growth.

Strengthen management efficiency to achieve profitability in the first quarter

In 2020, Suning.com has a clear strategy of “focusing on retail”, that is, focusing on the main retail business and making it more sophisticated. Suning.com stated that in response to market changes, it actively adjusted its store opening strategy: In first- and second-tier markets, the company focuses on “large stores” – the core business districts are covered by Suning.com Plaza and Suning.com Cloud Store; In third- and fourth-tier markets accelerated, the focus is on the development of Retail Cloud franchise stores in an effort to increase the company’s penetration rate and operational efficiency in lower-tier markets.

At the same time, Suning.com regards openness and  empowerment as an important growth point in the new stage of its development, further integrating supply chain, logistics and retail technology capabilities in the company’s advantageous areas. In rural markets, the company adopts innovative solutions in home appliance retail, enterprise procurement, e-commerce and social media marketing. The Retail Cloud continued to develop in the first quarter, with 584 new stores opened, and the sales scale increased by 69% year-on-year.

With the gradual recovery of the consumer environment, other than the Retail Cloud business, many businesses of Suning.com performed well in the first quarter. Store sales revenue of Suning com’s 3C home life specialty stores (excluding supermarket stores) increased by 18.91% year-on-year. At the same time, the partner system has continued to deepen and improve. In the first quarter of the 3C home life specialty self-operated stores, the internal partner store’s efficiency increased by 19.2% year-on-year.

Focus on profit improvement and achieve long-term, sustainable development

In the first quarter, Suning.com focused on the improvement of profitability, maintained the sustainability of business development, and strengthened cost management and control, and achieved significant results. Suning.com has further improved its internal management efficiency and carried out drastic reforms. In terms of internal expense control, Suning.com pays more attention to marketing input and output and pursues high-quality development. In the first quarter, Suning.com’s sales expenses fell 11.84% year-on-year. At the same time, Suning.com has accelerated the optimization and adjustment of loss-making businesses.

In March 2021, Suning.com’s APP user conversion rate increased by 2.4% year-on-year.

Suning.com said that through active adjustments, the company has gradually entered a more rational and mature stage. Analysts point out that Suning.com, which focuses on retail and profitability, stabilized and rebounded in the first quarter, and the key development in 2021 is worth looking forward to.

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