- Net Profit Rises 1,957.38 percent YoY to RMB 5.99 billion
- Commodity Sales Volume Rises 44.63 percent YoY to RMB 151.3 2 billion
Suning.com (002024.SZ,) ("the Company"), the Fortune Global 500 company and China's largest online-to-offline (O2O) smart retailer owned by Suning Holdings Group ("the Group"), has released its half-year performance report for January to June 2018, showing that the Company has generated operating revenue totaling RMB 110.786 billion (US$16.374 billion [1]), up 32.29% year-on-year. The report demonstrates that the Company has continued to thrive thanks to its online-to-offline ("O2O") smart retail strategy.
Suning's Headquarters in Nanjing, China
In addition, Suning.com generated a net profit of RMB 5.997 billion (US$886 million), tax included, a year-on-year increase of 1957.38%. Commodity sales volume reached RMB 151.319 billion (US$22.365 billion), up 44.63% year-on-year.
"We are very pleased with our first half results. They are a testament to our team's commitment to the Company's smart retail strategy," said Hou Enlong, COO of Suning.com. "The pure e-commerce era has come to an end. In the coming decade we'll see more online-to-offline businesses entering the marketplace, connecting different consumption scenarios. Suning will continue to serve customers with more 'visible' and 'touchable' omni-channel online and offline services and meet the needs of our consumers regardless of time and space."
Suning.com has been making efforts to strengthen its marketing strategy to create a more integrated experience, leading to a surging speed in its online business growth. In the first half of 2018, the Company's online goods transaction volume reached RMB 88.322 billion (US$13.05 billion), a 76.51% year-on-year increase. As of June 30, 2018, Suning.com had about 357 million registered users. Through June 2018, Suning.com's app saw a 64.34% year-on-year increase in the number of monthly active users.
With the help of its O2O businesses and cloud system, the Group owns a total of 4,813 direct-sale physical stores and 765 Suning retail cloud franchise stores, as of June 30, 2018. Additionally, Suning has opened 732 internet-connected convenience stores in a bid to further expand its business in lower-tier cities and rural areas in China.
According to figures from the National Bureau of Statistics, in the first six months of 2018, China has seen slower growth in the consumer goods market with a total of RMB 18 trillion (US$2.660 trillion) in retail sales volume of consumer goods, up 9.4% year-on-year. Despite a relatively negative industry outlook, Suning has seen great success incorporating its smart retail strategy into the Company's overall online and offline operations across the country.
In addition to Suning's retail subsidiary, Suning's Logistics and Financial Services divisions also continued rapid growth. As of June 2018, Suning Logistics and Tian Tian Express owned a total of 7.35 million square meters of warehouses and storage facilities with over 23,416 distribution locations. Suning Logistics' revenue (excluding Tian Tian Express) saw a 118.49% year-on-year increase. In the reporting period, Suning Financial Services (payment business, supply chain finance, etc.) saw 48% year-on-year growth in the number of registered members who linked bank cards with their accounts.
About Suning
Founded in 1990, Suning Holdings Group (Suning) is one of China's leading commercial enterprises with two public companies in China and Japan. In 2017, Suning ranked second among the top 500 privately-owned enterprises in China with annual sales of US$65.7 billion (RMB 412.95 billion). Following its mission to "Lead the Ecosystem across Industries by Creating An 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, Media & Entertainment, Sports, and Investment, among which Suning.com was listed on the Fortune Global 500.
For more information, visit www.suningholdings.com .
[1] Calculated at an exchange rate of 6.7656 RMB to 1 USD
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