Country for PR: China
Contributor: PR Newswire Asia (China)
Wednesday, February 03 2021 - 00:31
AsiaNet
Suning.com Finishes 2020 Strong with 33.61% Growth in Sales on its Retail Cloud Platform
SHANGHAI, Feb. 2, 2021 /PRNewswire-AsiaNet/ --

Suning.com (002024.SZ), China's leading smart retail service provider and a 
Fortune Global 500 company owned by Suning Holdings Group, has released its 
annual performance preview report for 2020. According to the report, Suning.com 
achieved an annual operating income of between 257.562 billion RMB and 259.52 
billion RMB between January and December 2020. Suning.com also reported that Q4 
product sales conducted through its retail cloud platform increased by 33.61% 
year-on-year, while sales from self-operated stores increased by 45.28% 
year-on-year. 

Suning.com sees significant uptick in users and sales 

As Suning.com's smart retail capabilities mature, the company has actively 
evolved its retail cloud platform strategy. Suning.com has conducted 
comprehensive benchmarks of online retail platforms, integrated eCommerce 
businesses and introduced strategic investments, delivered plans to increase 
employee equity incentives, and explored an independent business listing.

These developments have resulted in a large spike in user activity in the 
fourth quarter, with the number of shoppers increasing by 52% year-on-year. In 
December alone, monthly active users on Suning.com increased by 68% 
year-on-year.

Revenue from Suning.com's self-operated merchandise retail and logistics arm is 
also poised to achieve rapid growth, brought about by reducing the share of 
listed companies on its platform and increasing the share of small, medium and 
micro-retailers.

Furthermore, Suning.com's financial position and external resources have been 
enhanced with a string of new strategic partnerships. In 2020, Suning.com's 
retail cloud franchise stores expanded rapidly, with 3,201 new stores opened 
throughout the year. The business has also maintained rapid growth with annual 
sales volume increasing more than 100% year-on-year.

Benefitting from the rapid development of business, Suning.com's cash flow has 
continued to recover in 2020. Net cash flow from operating activities in Q4 are 
expected to improve Suning.com's position and bring annual net cash flow into 
the green for 2020.

Revenue projected to achieve a compound growth rate over 20% in the next three 
years

Suning.com also released phase four of its employee share scheme plans, which 
include the company's development goals and performance indicators at a company 
and individual level. 

The evaluation period will span three fiscal years from 2021 to 2023, with 
performance evaluations tied directly to Suning.com and the scale of revenue 
linked to the deduction of gross profits. Suning.com has issued an announcement 
stating it intends to use up to 1 billion RMB of its own funds to repurchase 
shares for employee share schemes and equity incentives.

Enhancing efficiency and streamlining business to accelerate retail development

Suning.com has further clarified its logistics development strategy, with a 
focus on providing integrated warehousing and distribution services for 
suppliers and merchants on its platform. This move saw Suning.com rank first on 
a list of the top 50 Chinese logistics companies in 2020. 

At present, the company's warehousing and support facilities cover an area of 
over 12 million square meters with different models, ranging from large 
warehouses to smaller facilities, cold-chain storage, cross-border logistics 
and community-based facilities. To expand its footprint, Suning.com has 
established a three-tiered warehouse network, which includes a centralized 
regional warehouse group, forwarding warehouse group and front-line warehouse 
group. This layout covers over 20,000 outlets and terminals, enabling 
Suning.com to reach 95% of the country in under 24 hours.

In 2020, Suning.com has also implemented a series of actions focused on 
reducing costs, enhancing efficiency and strengthening business focus in light 
of the effect COVID-19 has had on offline sales. Before releasing the report, 
Suning also announced its strategy for the next 
decade(https://en.prnasia.com/releases/global/suning-sets-out-strategy-for-its-f
ourth-decade-transforming-from-a-retail-franchise-to-global-retail-service-provi
der-305386.shtml) pledging to focus on its major retail business. With plans in 
place to further optimize and adjust its existing storefronts, and the steady 
recovery of the market, sales and profits are expected to rebound in 2021.

Source: Suning Group
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