Lei Jianping reported on October 29
Suning Tesco released its earnings report today. According to the financial report, Suning's revenue in the third quarter of 2021 was 21.968 billion yuan, down 64.82% from the same period last year; the net loss was 4.116 billion yuan, and the net loss after deducting non-profit was 4.192 billion yuan.
Suning Tesco's revenue in the first three quarters of 2021 was 115.574 billion yuan, down 36.1% from the same period last year; the net loss was 7.558 billion yuan, and the net loss after deducting non-profit was 9.215 billion yuan.
Suning Tesco's net cash flow from operating activities decreased by RMB4.456 billion from the beginning of the year to September 30, 2021.
In July 2021, suning Tesco's meeting elected Huang Mingduan as the chairman of the seventh board of directors of the company and agreed to appoint Ren Jun as the president of the company. Hou Enlong, president of the company's retail business line, no longer performs the duties of the company's president.
Prior to this, Suning founder Zhang Jindong stepped down as chairman and only served as honorary chairman. Recently, the Hurun Report was released, which pointed out that Zhang Jindong's wealth shrank from 102 billion in 2020 to 24 billion.
It is still in a difficult phase
Suning Tesco said that the third quarter of 2021 is the most difficult period in the development of Suning Tesco in the past thirty years, encountered unprecedented difficulties, since June the continuous liquidity is seriously insufficient, making the company's core electrical appliances 3C business inventory commodity scale hit a record, the sales scale fell sharply, bringing a large loss of operating performance, the third quarter of the company's operating income fell by 64.82% year-on-year, gross profit fell sharply, and the net profit attributable to the shareholders of the listed company was 4.116 billion yuan.
On July 29, the company completed the election of a new board of directors, under the leadership of the new board of directors, the company sought a breakthrough in the predicament and worked hard to promote various work to restore normal production and operation. 1) Restore confidence, resume bank-enterprise cooperation in an orderly manner, and supplement liquidity.
In August, Suning Tesco Joint Credit Committee was established, the banks stabilized the scale of stock credit, and actively promoted the bank of Jiangsu, Bank of Nanjing and other incremental credit, since the end of August liquidity gradually recovered, with the support of major brand owners, the company's inventory scale slowly increased.
2) Implement the three major strategies of "doing a good job as a retail service provider, strengthening the supply chain, and optimizing the quality of operation" within the enterprise, and promote the work of reducing costs, improving efficiency and increasing income.
Suning Tesco pointed out that strict and refined management, vigorously promote the adjustment and optimization of business and organization, accelerate the adjustment of loss-making stores and store lease reduction and sublease investment. Taking into account the optimization time of personnel and the payment of compensation, etc., the one-time fee has increased, but it has contributed to the continuous decline in costs. Overall, the expenses in the third quarter further decreased by about 10.63% compared with the second quarter and decreased by about 26.73% from the same period last year.
3) Suning Tesco's retail cloud business continued to maintain rapid development, continued to expand the home and quick repair track, has opened 78 fast repair stores, expanded 547 home format stores, opened 2,085 new franchise stores in the first three quarters, and the retail cloud commodity sales scale in the third quarter GMV increased by 33.38% month-on-month.
Suning Tesco pointed out that it is still in a difficult stage, but with the active support of investors in various industries, the management and all employees work together to promote the recovery of production and operation and the solution of problems in the process of zero supply cooperation, and it is expected that the operating loss in the fourth quarter will be greatly narrowed compared with the third quarter, and strive to achieve a monthly EBITDA (interest- depreciation and amortization before the end of the year) to turn positive, so that Suning Tesco will come out of the darkest hour and usher in a new stage of development.
Taobao replaced Zhang Jindong as the single major shareholder
As of September 30, 2021, the largest shareholder of Suning Tesco is Taobao, holding 19.99% of the shares, and Zhang Jindong, founder of Suning Tesco, holds 17.62%;
As of September 30, 2021, Suning's shareholding structure
Jiangsu New New Retail Innovation Fund Phase II (Limited Partnership) holds 16.96%; Jiangsu New Retail Innovation Fund (Limited Partnership) holds 5.59%, Li Songqiang holds 3.02%, Suning Holding Group Co., Ltd. holds 2.73% of the shares, and Hong Kong Securities Clearing Company Limited holds 1.9%;
Suning Electric Appliance Group Co., Ltd. holds 1.39%, Jinming holds 1.34%, and Central Huijin Asset Management Co., Ltd. holds 0.79%.
Zhang Jindong and Suning Holding Group Co., Ltd. constitute a consistent actor relationship, and Zhang Jindong holds 50% of the equity of Suning Electric Appliance Group Co., Ltd.
As of March 31, 2021, Zhang Jindong held 20.96% of the shares, Taobao held 19.99%, Suning Electric Appliance Group Co., Ltd. held 19.88%, Suning Holding Group Co., Ltd. held 3.98%, and Li Songqiang held 1.94%;
As of March 31, 2021, Suning Tesco's shareholding structure
Hong Kong Securities Clearing Company Limited holds 1.93%, Jin Ming holds 1.34%, Lin Yiling holds 0.93%, Central Huijin Asset Management Co., Ltd. holds 0.79% and Chen Jinfeng holds 0.78%.
In contrast, it can be found that in the past six months, Suning's equity structure has undergone drastic changes, among which Taobao replaced Zhang Jindong as the largest single shareholder of Suning Tesco, in addition, Jiangsu New New Retail Innovation Fund Phase II (limited partnership) and Jiangsu New Retail Innovation Fund (limited partnership) have become important shareholders of Suning Tesco, and Suning Electric Appliance Group Co., Ltd. and Zhang Jindong's shareholding has dropped sharply.
The reason is that in July 2021, Suning Tesco issued an announcement that Zhang Jindong and his co-actors transferred 16.96% of the total share capital of the listed company to Jiangsu New New Retail Innovation Fund Phase II (Limited Partnership).
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