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