Suning.com Smashes Bankruptcy Rumors on Heels of $644.68 Million Q3 Net Loss
On Tuesday morning, Suning.com, a Chinese retail and e-commerce conglomerate, posted a statement on Twitter-like social media platform Weibo, saying that the topic reading “Suning.com to declare bankruptcy at the end of December” was a rumor and that the company was operating normally. It has also reported the incident to public security officials, and the rumormongers will be investigated for legal responsibility according to law.
At the end of October, Suning.com released its financial report for the third quarter of 2021. The report shows that in the period, 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 ($644.68 million), 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.
According to the report, the third quarter of this year was the most difficult period for Suning.com. Since June, a continuous liquidity crisis has caused the inventory scale of the company’s core 3C home appliance business to reach the lowest value in history, and the sales scale has dropped sharply, resulting in a large loss in operating performance.
In addition, the report pointed out that Suning.com is still in a difficult stage, but with the support of provincial and municipal governments and investors from various industries, the management team and all employees have fully promoted to the recovery of production and operations. It is expected by the company that the operating losses in the fourth quarter will be greatly narrowed compared with the third quarter.
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According to public information, Suning.com Co., Ltd. was founded on December 26, 1990, and its business scope covers a wide range of products, including traditional home appliances, consumer electronics, books and virtual products.