China

Suning Commerce Group Recorded 340% Increase in 1H Net Profit

Summary:

  • Chinese retailer Suning Commerce Group (002024.SZ) recorded a 340% increase in net profit during the first half of 2017 to RMB 291 million, according to Sohu.
  • Revenue increased 21.87% to RMB 83.7 billion.

Why It Matters:

  • Suning Commerce Group attributed the rapid growth in net profit and revenue to the expansion of online sales. During the period, the total sales value of its online platform increased 52.76% to RMB 50 billion.
  • In terms of traditional retail, average store sales increased 5.54% during the second quarter. The company currently operates 3645 stores across China.
  • Founder Securities holds a very positive view on the future development of Suning Commerce Group and its ability to leverage its online and offline capacities. The securities firm highlighted the fast growth of the company’s sales in communications products and home appliances.