Suning.com issued a letter to all of its employees on Monday, saying that it will strive to attain a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the month of November. The internal letter also revealed that Suning.com had rewarded 2,464 employees who achieved their sales targets in October.
Suning.com said that their sales target of the Double Eleven shopping festival had been fully achieved, with goals reached by all major channels such as physical appliances stores, Retail Cloud, Suning.com and the official Suning flagship store on Tmall (shortened to “Maoning Store”).
Suning.com’s Chairman Huang Mingduan and President Ren Jun said that in the past six months, the group had encountered unprecedented difficulties, but they called on all employees to “not avoid problems nor believe in rumors.” Instead, employees should devote all of their energy to customer service and sales promotion. Only by doing so would the company be able to make solid progress towards their goal.
Suning.com has been struggling with bankruptcy rumors for a while now. On November 16, Suning.com posted a statement on its Twitter-like social media platform Weibo, saying that the trending topic regarding a possible bankruptcy for the company was just a rumor and that operations were continuing as usual. The company has also reported the incident to public security officials and the rumor-mongerers will be investigated for legal responsibility according to law.
On the evening of October 29, Suning.com said in its third-quarter performance report released that day: “The third quarter of 2021 has been the most difficult period in the 30-year development of Suning.com, and we have encountered unprecedented difficulties.”
Financial data shows that in the third quarter of this year, Suning.com’s revenue was about 21.968 billion yuan ($344.06 million), down 64.82% year-on-year, and its loss was 4.116 billion yuan, down 676.73% year-on-year. In the first three quarters, the revenue was 115.57 billion yuan, down 36.1% year-on-year. Total losses reached 7.568 billion yuan, down 1483.29% year-on-year.