Suning.Com Co.Ltd(002024) (hereinafter referred to as: Suning.Com Co.Ltd(002024) , 002024. SZ) released the performance forecast for 2021, saying that the company expects to achieve a net profit attributable to shareholders of listed companies of -43.3 billion to -42.3 billion in 2021, a year-on-year decrease of 912.94% to -889.54%.
In the announcement, Su Ningyi explained the reasons for performance changes from six aspects:
1. In combination with the changes in the external environment and the company’s own operation, the company, based on the principle of prudence, made provision for impairment of relevant assets and recognized investment losses, which is expected to reduce the company’s net profit attributable to shareholders of listed companies by 25.475 billion yuan in 2021 (of which 443 million yuan has been reflected in the first three quarters).
2. Since June 2021, company has been seriously short of commodity inventory due to the continuous lack of liquidity, and the sales and procurement scale have decreased significantly at the same time, resulting in the increase of procurement cost and the corresponding sharp decrease of operating profit ; At the same time, for the deductible losses that can be carried forward to the following years, the company recognizes the deferred income tax assets to the extent that it is likely to obtain the taxable income used to offset the deductible losses in the future. In combination with the changes of the external environment and the company’s own operation, the business operation strategies of some subsidiaries have been adjusted, As a result, the amount of taxable income that is likely to be obtained to offset deductible losses in the future will decrease, and the deferred income tax assets will be reversed accordingly. the foregoing events are expected to reduce the company’s net profit attributable to shareholders of Listed Companies in 2021 to 8.5-9 billion yuan .
The above 1 and 2 reduce the company’s net profit attributable to shareholders of listed companies by 33.975 billion yuan to 34.475 billion yuan in 2021. A series of impairment events of the company in 2021 will not affect the current cash flow level of the company, nor the current daily operation and the development of various business cooperation. The company will continue to recover funds through various paths and methods to minimize the loss to the company as much as possible.
3. If does not consider the impact of the above impairment provision, investment loss, deferred income tax reversal and other factors, the company expects the net profit loss attributable to the shareholders of the listed company to be RMB 1.2 billion-1.7 billion in the fourth quarter, the net profit loss attributable to the shareholders of the listed company is expected to be RMB 8.768 billion-9.268 billion in 2021 . The net profit attributable to the listed company is expected to be 42.3 billion yuan in 2023.
4. During the reporting period, the impact of the company’s non operating profit and loss items was about 1.6 billion yuan, mainly including the impact of Zhuhai Puyi logistics industry investment partnership (limited partnership) acquiring the company’s logistics assets company and the second bond discount repurchase of 18 Suning bonds. After deducting the impact of the non operating profit and loss item, the company expects the net profit loss attributable to the shareholders of the listed company after deducting the non recurring profit and loss in 2021 to be 43.9 billion yuan to 44.9 billion yuan .
5. In early July 2021, with the support of Jiangsu provincial and Nanjing municipal governments, the enterprise introduced new strategic investors. Under the leadership of the new board of directors, the enterprise actively resumed production and operation. The enterprise implemented the three strategies of “doing a good job in retail service providers, strengthening the supply chain and improving business quality”, and promoted the work of increasing income, reducing cost and improving efficiency. In March 2021 The operating performance improved month on month in the fourth quarter, and the enterprise gradually resumed operation. In late August 2021, with the stability of bank enterprise cooperation and Bank Of Jiangsu Co.Ltd(600919) (600919), Bank Of Nanjing Co.Ltd(601009) incremental credit, with the support of major brands, liquidity gradually recovered and sales revenue gradually increased. From September to November, the average monthly sales increased month on month, and the sales stabilized. The scale of commodity sales revenue in the fourth quarter is expected to increase by 25.48% month on month compared with the third quarter. At the same time, the company strictly refined management, strictly controlled various expenses, streamlined organization and improved human efficiency. The total expenses of the company in the fourth quarter continued to decrease by 13.6% month on month compared with the third quarter. Without considering the impact of a series of impairment and other matters, the net profit attributable to shareholders of listed companies is expected to decrease by 59% – 71% in the fourth quarter compared with the third quarter. 2021 is the beginning of the transformation of Suning.Com Co.Ltd(002024) retail service providers, facing great difficulties, but the team is still seeking a breakthrough in the dilemma, continuously improving the channels and sinking the market, so as to accumulate strength for the recovery of enterprise sales and sustainable growth. In 2021, the retail cloud business continued to maintain a rapid development. During the reporting period, 2678 new franchise stores were opened, home furnishings and fast track repair were expanded, and 9178 Suning.Com Co.Ltd(002024) retail cloud franchise stores had been opened by the end of the reporting period. With the support of all parties and the unremitting efforts of all employees of the company, the operation of the company has gradually improved. In order to more intuitively evaluate the recovery of the company’s operating cash flow, without considering the influence of factors related to non operating cash flow, according to the statistics of the company’s financial department, the company’s monthly EBITDA in November was 20 RMB 800 million, which has become positive, and it continued to be positive in December .
6. In 2022, with the support of provincial and municipal governments and under the leadership of the new board of directors, the company will implement the three strategies of “being a good retail service provider, strengthening the supply chain and optimizing the operation quality”. The enterprise will continue to promote revenue growth, reduce costs and improve efficiency and revitalize assets. At the level of revenue growth, focus on the core business of 3C home appliances, give full play to the company’s Wuxi Online Offline Communication Information Technology Co.Ltd(300959) (300959) integration ability in scene experience, strengthen the supply chain integration ability in customizing specially supplied goods, and highlight the service performance ability in overall solutions; The channel side will further tap the sinking market potential and continue to accelerate the development and efficiency improvement of retail cloud business. In terms of cost reduction and efficiency improvement, the company will vigorously promote the decline of store rent level and the improvement of store floor efficiency through store model optimization in combination with the current market situation; Through the construction of incentive system and internal empowerment system, further improve the organizational efficiency and team output efficiency, and reduce the level of various expenses; Through more effective cross empowerment cooperation, further improve the accuracy and input-output level in user acquisition and marketing. At the level of asset revitalization, the company systematically established various special work organizations to continuously promote the fund operation of commercial property and logistics assets, strengthen the withdrawal and collection of foreign investment equity, accelerate the recovery of the company’s cash flow, and promote the recovery of zero supply relationship and the improvement of income scale and operating performance. In 2021, after completing the phased goal of monthly EBITDA confirmation in November, combined with the above measures, without considering the influence of factors related to non operating cash flow, the company expects EBITDA confirmation in the first quarter of 2022.
