Photo: Visual China
Chinese online retailer Suning.com has anticipated a loss of between 141 million yuan ($20.1 million) and 241 million yuan in the first half of 2020, in a stark contrast to net profit of 2.14 billion yuan during the same period last year, according to a filing to the Shenzhen Stock Exchange Tuesday.
Suning.com, the buyer of French retailer giant Carrefour’s Chinese business, attributed losses to lack of consumer demand as the Covid-19 pandemic caused an economic downturn in China.
In a bid to offset coronavirus-induced losses, Suning.com has taken a series of measures including expanding its online shopping business, improving its supply and logistics chains and reducing its expenditure, the company said in the filing.
Despite the expected gloom in the first half of 2020, Carrefour China, of which Suning.com bought an 80% stake last year for $699 million, reported operating profits and positive operating cash flow during the period, according to the filing.
In the first quarter of 2020, Suning.com achieved 88.7 billion yuan in gross merchandise volume (GMV), nearly 30% of which came from its online shopping platforms, according to the company’s quarterly earnings report.
Contact reporter Ding Yi (firstname.lastname@example.org)