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Suning Releases 2019 Fiscal Year Financial Preview: Full Integration of All Scenarios with GMV of RMB 379.7 Billion.

2020-03-16 14:30:59

According to the fiscal year financial preview released on the night of March 13 by Suning.com, the leading smart retail company in China (002024.SZ), its integration with the all-scenario retail layout has achieved outstanding results: the GMV was RMB379.673 billion, LTM revenue was RMB270.315 billion and net income attributable to shareholders was RMB11.016 billion.

Especially since the fourth quarter 2019, Suning.com has adjusted its business strategy, stabilized its operating performance while raising the gross profit margin. Meanwhile, operating cash flow has improved significantly, compared with the previous quarter. Carrefour China achieved its first quarterly profit among the last seven years after joined Suning for just one quarter.

The preview shows that with the completion of the acquisition of the Wanda Department Store and Carrefour China in 2019, Suning's retail format has been further enriched, and the integration of all-scenario operations has also accelerated. By December 31, 2019, Suning.com has opened 8,216 O2O stores, including 4,586 retail cloud franchised stores for lower-tier markets. In 2019, the company realized the online platform commodity transaction of RMB 238.753 billion (with tax), and the number of registered members rose to 555 million.

In 2019, Suning.com increased its development of fast-moving consumer goods. With the gradual reorganization of Carrefour stores, Suning has established an FMCG supply chain model that integrates Suning Convenience stores, Carrefour stores and warehouses, achieving all-scenario, high-efficiency, and low-cost to drive the sales of FMCG.
After the outbreak of COVID-19 this year, Carrefour's home delivery business achieved a leapfrog development with the orders in February increased by 412%. Recently, to upgrade home services, Carrefour launched the "Happiness Communities Circle" project, which provides a variety of service timeliness for 350,000 communities in 51 cities.
At the end 2019, Zhang Jindong, Chairman of Suning Holdings Group, emphasized the two major business directions of "opening from 1 to N and converging from N to 1" at the 2020 annual work deployment meeting. Judging from the latest disclosed financial preview, Suning has achieved certain results in accelerating the construction of an open platform and increasing logistics performance capabilities.

In 2019, through open traffic resources, warehouse allocation service capabilities and various Internet social tools to continuously empower merchants, the company’s open platform transaction was RMB 80.314 billion, a year-on-year increase of 37.14%.

In terms of the logistics business, Suning Logistics has a leading self-built logistics facility network in the retail industry. As of December 2019, Suning Logistics owned 12.1 million square meters of warehousing and related supporting areas and 25,881 express delivery outlets. During the reporting period, the number of cities with integrated delivery and installation service increased to 318 cities. 1,500 Suning helper county-level service centers were established. And a terminal transportation network has been developed to upgrade home business services.

According to GF Securities, "At present, Suning.com has a complete whole-category, omni-channel retail layout". It also believes that with the improvement of the Suning FMCG system, the gradually connected supply chain of Carrefour, Suning Convenient stores, and online platforms, the company’s operational efficiency will continue to improve.

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