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Suning Appliance: Operating Profit Down 36% YoY In 12H1; Online Business Up 106%

Source: Company Disclosure, ChinaScope Financial (Data)

+ According to the interim report released by Suning Appliance Co., Ltd. (002024.SZ), company operating revenue was CNY 47.19 billion in 12H1, up 6.7% year-on-year, operating profit was CNY 2.18 billion, down 36.0% year-on-year and net profit attributable to shareholders was CNY 1.75 billion, down 29.5% year-on-year.

+ In 12H1, revenue derived from the online sales platform "suning.com" surged 105.53% year-on-year to CNY 5.28 billion (tax included).

Challenged by online retailers, Suning has decided to focus on the development of Suning.com. However, the management might have underestimated the market competition. In first half of 2012, gross transaction value on Suning.com was CNY 5.28 billion, only half of the semi-annual guidance.(click to enlarge)Click to enlarge

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