Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens Wu Yanzu in South China for the delivery of clues! CTOnews.com news on October 28, SUNING today released the third quarter report of 2022. In the third quarter, the operating income was 18.328 billion yuan, down 16.57% from the same period last year; the net loss was 1.805 billion yuan, and the net loss after deducting non-recurring profit and loss was 2.463 billion yuan.

SUNING's operating income in the first three quarters was 55.538 billion yuan, down 51.95 percent from the same period last year; the net loss was 4.545 billion yuan, and the net loss after deducting non-recurrent profit and loss was 5.219 billion yuan.

CTOnews.com learned that SUNING said that during the reporting period, the consumer market fluctuated greatly, the household appliance industry where enterprises were located recovered slowly, and the external development environment was relatively weak. Since June, policies to stimulate consumption in various places have been introduced one after another, but the market growth rate slowed down in September due to the spread of the epidemic. Overall, according to Ovi data, the overall retail sales of the home appliance market fell 1.4% from January to September compared with the same period last year, of which the overall retail sales of the home appliance market fell 4.2% in September.

With the strong support of the governments of Jiangsu Province and Nanjing, and with the full support of suppliers and partners, although the company is externally affected by market fluctuations such as the impact of the epidemic and the downturn in the real estate market, and internally still affected by lack of liquidity, however, enterprises focus on the 3C core business of home appliances, promote the transformation and adjustment of Carrefour's business, and further stabilize its operation.

In July and August 2022, the company's 3C core business of household appliances has achieved year-on-year sales growth, and it was affected by the epidemic control policy in September. Although enterprises have stepped up promotion efforts, the sales scale is still declining a lot. In the third quarter, the sales of the 3C core business of home appliances were basically stable, and the operating income increased by 3.20% over the same period last year.

Home appliances 3C home life professional stores continue to speed up the transformation and upgrading and enhance the consumer experience. The company focuses on the development of large stores, and aiming at the first and second-tier market, the company launched the "SUNING Yijia" storefront model in the third quarter, providing integrated solutions for home appliances and home decoration, integrating commodity supply chain and service capabilities, and realizing scene management. drive the promotion of middle and high-end products. The sales income of comparable stores in 3C home appliances stores became positive following the growth in June, with an increase of 12.18% in the third quarter compared with the same period last year, and offline store sales continued to recover.

The retail cloud business has maintained steady development, the multi-track has been continuously extended, the retail capacity of household and home appliance business has been steadily improved, and the fast repair track is gradually on the right track. As of September 30, 2022, the number of Suning Tesco retail cloud stores reached 9796. In the third quarter, the total retail cloud sales increased by 6.72% year-on-year and 20.62% compared with the same period last year.

In the aspect of online business, focusing on the 3C business of home appliances, consolidating its own characteristics, and obtaining traffic through the extensive opening and cooperation with the platform through the advantages of supply chain and service, the commodity proprietary income of the main station of Tesco gradually recovered. SUNING Tmall flagship store in the third quarter commodity sales increased by 47.81% compared with the same period last year. With the help of offline store brand awareness and mobile phones, computer store network, professional management ability, the company and Meituan try to carry out local business in the same city, the trend is better.

In the third quarter, the company's overall commodity sales fell 5.43% from the same period last year, and the decline in commodity sales was significantly smaller than the 55.88% year-on-year decline in the first half of the year; operating income fell 16.57% from the same period last year; and the decline in operating income was significantly narrower than the 60.25% year-on-year decline in the first half of the year. In the first three quarters, the overall commodity sales scale of the company decreased by 46.50% compared with the same period last year, and the company's operating income was 55.538 billion yuan, down 51.95% from the same period last year, and the net cash flow generated by operating activities was 250 million yuan.

The company focuses on home appliances and promotes the sales and promotion of middle and high-end products, with a year-on-year increase of 6.30% in the first three quarters of the year. The company continued to optimize the organization and improve human efficiency, the personnel expense rate continued to decline, and other advertising and logistics expenses continued to strengthen control and maintain low-cost operations. in the first three quarters, operating expenses decreased by 44.13% compared with the same period last year. The increase in financial expenses over the same period was mainly due to the increase in interest expenses caused by the increase in interest-bearing liabilities during the reporting period and the increase in exchange losses during the reporting period. As a result, the company's total expenses fell by 36.82% in the first three quarters compared with the same period last year. The company achieved a net profit of-4.545 billion yuan in the first three quarters, a loss reduction of 39.94% over the same period last year, of which the net profit in the third quarter was-1.805 billion yuan, a loss reduction of 56.16%.

According to the company's statistics, without considering the influence of non-operating cash flow related factors 2, the company achieved a total of EBITDA311.82 billion yuan in the first three quarters, of which EBITDA reached 323 million yuan in the third quarter, continuing to maintain EBITDA profits.

Overall, the company's operation further stabilized in the third quarter. Although the scale of commodity sales still decreased by 5.43% compared with the same period last year, the comparable store sales revenue of 3C home appliances stores increased by 12.18% compared with the same period last year. On the one hand, it is affected by the quarterly market environment, on the other hand, it is the sales impact brought about by the store closure. With the basic completion of the adjustment of the company's poor performance stores and the gradual maturity of the "SUNING Yijia" model, the company will gradually open the development of SUNING's high-quality stores, which can be controlled at the current rent level. as well as the integration of high-quality Carrefour and SUNING department store resources to increase the scale of the incremental market. At the same time, the company also sees that the company is still in a state of net profit loss, and the very important factor is that Carrefour's business is affected by multiple factors, which leads to a rapid decline in scale and the difficulty of apportionment of higher fixed rental costs. The company has comprehensively carried out Carrefour business adjustment in the third quarter, on the one hand, closing some regional stores, focusing on the operation of advantageous cities, and improving economies of scale; on the other hand, increasing the integration of the 3C business of electrical appliances in Carrefour stores, with the help of the advantage of the flow of people in the hypermarket, improve the profitable household appliance business income and share the fixed costs. In addition, Carrefour itself speeds up the adjustment of commodity structure, local e-commerce and community e-commerce operation, speed up to adapt to market changes and achieve scale-to-month improvement.

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