On the evening of July 30, Suning.com (002024.SZ), China’s leading O2O smart retailer, owned by Suning Holdings Group, released its 2019 semi-annual performance report. According to the report, the company achieved an operating income in the first half of the year of RMB 134.618 billion, saw a year-on-year increase of 21.63%; the sales volume of omni-channel commodities was RMB 184.215 billion, increased by 21.80% year-on-year, and the net income attributed to shareholders is RMB 2.139 billion.
Suning.com continues to enhance the ability to acquire customers online and offline. As of June 30, the number of registered members of Suning.com retail platform reached 442 million; Suning.com has a total of 7,503 self-operated and franchised stores, and 5,368 stores of Suning Xiaodian (neighborhood store) and Diatiantian.
In the first half of the year, the overall performance of domestic consumer market was flat. According to the National Bureau of Statistics, from January to June, the national total retail sales of consumer goods reached RMB 19.5 trillion however, the growth rate dropped by 1 percentage year-on-year, among which the growth rate of online retail sales dropped significantly by 8.2%.
Despite the softer market environment, Suning.com’s online and offline businesses maintained relatively rapid growth. With the continued roll out of the strategic plan to grow its full-scenarios and all-categories retail layout.
As of the end of June, the company has 7,503 self-operated and franchised stores. Especially in urban community and rural market, Suning Xiaodian and Suning.com retail cloud franchise stores grow rapidly. The total number of Suning Xiaodian and Diatiantian self-operated stores reached 5,368, while the Suning.com retail cloud franchise stores reached number of 5,108, which formed a comprehensive online and offline integrated consumption ecosystem in the domestic retail industry.
In terms of supply chain construction, in order to promote the professionalization and refined operation, Suning.com announced the establishment of five major commodity groups at the beginning of the year, namely, Home Appliances Group, Consumer Electronics Group, FMCG Group, Fashion Department Store Group and International Group. In the meanwhile, the company acquired the nationwide 37 stores of Wanda Department Store and an 80% equity stake in Carrefour China, which will quickly strengthen the capabilities of its department store business development and fast-moving consumer goods operations.
At the same time, Suning.com established and improved the supply mode of direct overseas procurement. It is reported that Suning International has a number of overseas direct supply chain warehouses in the United States, Australia, Germany, Japan and other countries, and the company will complete the construction of “15+15 warehouses” (15 overseas warehouses, 15 domestic warehouses) by 2020.
In the first half of the year, Suning.com continued to increase investment in logistics, finance, technology and building of other core capacities to lay a solid foundation for growth over the next decade.
In terms of logistics infrastructure, by the end of June 2019, the total area of warehousing and related support facilities for Suning Logistics and TTK Express was over 10 million square meters. Suning.com accelerated the development of fresh food business, and invested in 46 fresh cold chain warehouses covering 218 cities. In order to further improve the logistics and after-sales service capacity of the county and town market, Suning.com has set up a comprehensive service network for customers in those markets, integrating distribution, installation, maintenance and express delivery services. By the end of June, 950 county-level service centers have been established.
In the first half of the year, the amount of consumer finance business of Suning Finance increased by more than 100% year-on-year, and the amount of supply chain finance business saw a 41.3% year-on-year growth. The offline mobile payment business developed rapidly, and the number of transactions was up 231% year-on-year. During the reporting period, Suning Bank maintained rapid development. By the end of June 2019, the total assets of Suning Bank increased by 68.20% compared with the beginning of the year.
About Suning
Founded in 1990, Suning is one of the leading commercial enterprises in China with two public companies in China and Japan. In 2018, Suning Holdings ranked second among the top 500 non-state owned enterprises in China with annual revenues of 80.85 billion USD (557.9 billion RMB). With the mission of “Leading the Ecosystem across Industries by Creating Elite Quality of Life for All”, Suning has strengthened and expanded its core business through eight vertical industries: Suning.com, Logistics, Financial Services, Technology, Real Estate, Sports, Media & Entertainment, and Investment. Suning.com is listed on the 2019 Fortune Global 500. For more information see www.suningholdings.com
SOURCE: Suning Holdings Group
