Suning Commerce Group

"Suning Appliance" redirects here. For other companies, see Suning.
Suning Commerce Group Co., Ltd.
Formerly called
  • Suning Domestic Appliance
  • Suning Domestic Appliance (Group)
  • Suning Appliance Chain Store (Group)
  • Suning Appliance
Public
Traded as SZSE: 002024
Industry Retail
Founded
  • 1990 (predecessor)
  • 15 May 1996 (1996-05-15) (date of incorporation of Suning Domestic Appliance)
Founder Zhang Jindong
Headquarters Nanjing, Jiangsu, China
Area served
 China (including Hong Kong) and Japan
Key people
 Zhang Jindong (chairman)
Revenue Increase CN¥135,547,633,000 (2015)
Increase CN¥1,011,680,000 (2015)
Total assets Increase CN¥88,075,672,000 (2015)
Total equity Increase CN¥30,482,556,000 (2015)
Owner
Divisions Suning Commerce R&D Center USA
Subsidiaries
  • Laox (42.12%)[1]
  • Suning Hong Kong (100%)
Website Suning Commerce Group
Suning E-commerce Site
Footnotes / references
in consolidated basis[2]
Suning Commerce Group Co., Ltd.
Simplified Chinese 苏宁云商集团股份有限公司
Traditional Chinese 蘇寕雲商集團股份有限公司
Suning Commerce
Simplified Chinese 苏宁云商
Traditional Chinese 蘇寕雲商

Suning Commerce Group is one of the largest non-government retailers in China, headquartered in Nanjing, Jiangsu. Suning has more than 1600 stores covering over 700 cities of Mainland China, Hong Kong and Japan and its e-commerce platform, Suning.com ranks among top three Chinese B2C companies. The operation categories include physical merchandise, such as home appliances, 3C products, books, general merchandise, household commodities, cosmetics and baby care products, content products and service merchandise with the total number of SKU exceeding 3 million. It was listed on the Shenzhen Stock Exchange in 2004.[3][4]

Business areas

Suning Commerce Group Co., Ltd. principally operates franchised retail shops of electronics appliances in China.[5] The Company mainly offers colour televisions (TVs), audio and video (AV) players, disc players, refrigerators, washing machines, digital and information technology (IT) products, small household electronics, air conditioners, telecommunications products and other products. The company also provides installation and repair services for electronic appliances. As of December 31, 2010, the company had 1,311 stores in 231 cities across China.[6]

Company history

1990.12.26, the predecessor of Suning was founded in Nanjing as an air-conditioner retail store .[7] On 15 May 1996, 江苏苏宁交家电有限公司 was incorporated (literally Suning Domestic Appliance Co., Ltd.). In 2000 the company was renamed into 江苏苏宁交家电(集团)有限公司 (literally Suning Domestic Appliance (Group) Co., Ltd.) and then Suning Appliance Chain Store (Group) Co., Ltd. (Chinese: 苏宁电器连锁集团股份有限公司).

In July 2004, Suning Appliance Chain Store (Group) was listed on SZSE. As at 31 December 2004, founder and chairman Zhang Jindong owned 35.12% stake, followed by Jiangsu Suning Appliance Co., Ltd. (Chinese: 江苏苏宁电器有限公司), which was the parent company of Suning Appliance Chain Store (Group) Co., Ltd., for 18.29% stake.[8] Chen Jinfeng (Chinese: 陈金凤) owned 8.78% stake. Moreover, Liu Xiaomeng, Zhang Jindong, Sun Weimin (CEO of Suning) and Chen Jinfeng owned 42%, 28%, 18% and 12% stake respectively in 江苏苏宁电器有限公司, as at 2002.[9]

The company renamed into Suning Appliance Co., Ltd. (Chinese: 苏宁电器股份有限公司) in 2005.

In 2009 Suning Appliance purchased Hong Kong based retail chain Citicall (as Citicall Retail Management), which became Hongkong Suning Commerce Co., Ltd., for HK$35 million and not more than HK$180 million for fixed assets.[10]

2011-, Suning's been gradually exploring "online and offline" multi-channel integration.

On 19 February 2013, Suning Appliance announced to change the company name to Suning Commerce Group Co., Ltd. (Chinese: 苏宁云商集团股份有限公司)

On October 2015 PPTV was sold to chairman Zhang Jindong via a subsidiary of Suning Culture Investment Management[11] for US$398.4102 million, making a profit of RMB 1.355 billion.[2] In 2015 financial year the comprehensive income of Suning Commerce Group in consolidated basis was just 1.01168 billion RMB.[2]

In 2016, one of the shareholders of Suning Commerce, Suning Appliance Group,[12] purchased the Chinese football club Jiangsu F.C., which indirectly boosted the brand of Suning Commerce.

In April 2016 Suning Commerce acquired 4.90% stake in Nubia Technology from chairman Zhang Jindong for 283.7 million RMB, proportional to Zhang's subscription in the capital increase of Nubia in December 2015.[13]

On 3 June 2016 Suning Commerce Group issued about 1.86 billion new shares to Taobao (China) Software Co., Ltd., a subsidiary of Alibaba Group, for about 28 billion RMB.[14][15][16]

On 6 June 2016 chairman Zhang Jindong, via his own holding company Suning Holdings Group, purchased the majority stake in Italian football club Inter Milan, which again indirectly advertised Suning Commerce into global media.

logo of Suning e-commerce

Acquisitions and Partnerships

Number Acquisition date Company Business Country Price Ref(s).
1 June 2009 Laox Duty-free shop  Japan $121,000,000 [17]
2 December 2009 Citicall Consumer Electronics  Hong Kong HK$215,000,000 [10][18]
3 September 2012 Redbaby E-commerce  China $66,000,000 [19]
4 October 2013 PPTV Streaming Media  China $250,000,000 [20]
5 January 2014 manzuo.com E-commerce  China $10,000,000 [21]
6 December 2014 Allyes Marketing communications  China $15,000,000 [22]
7 April 2016 Nubia Technology Mobile phones  China RMB283,700,000

Shareholders

As of 3 June 2016[14]
  1. Zhang Jindong
    1. direct ownership (20.96%)
    2. via Suning Holdings Group (Chinese: 苏宁控股集团有限公司) (3.33%)
  2. Taobao (China) Software Co., Ltd. (19.99%)
  3. Suning Appliance Group (Chinese: 苏宁电器集团有限公司) (15.62%)
  4. Chen Jinfeng (1.98%)
  5. others

See also

References

  1. ↑ Laox 2015 Annual Report (in Japanese)
  2. 1 2 3 2015 Annual Report Suning Commerce Group (in Chinese)
  3. ↑ Suning Appliance Co., Ltd.
  4. ↑ Profile of Suning Appliance
  5. ↑ "PROFILE-Suning Appliance Co Ltd". Bloomberg. Retrieved 18 February 2013.
  6. ↑ "Suning Appliance Co Ltd (002024.SZ) Company Profile | Reuters.com". reuters.com. 2011. Retrieved 19 May 2011.
  7. ↑ "苏宁电器--家电--人民网". homea.people.com.cn. Retrieved 2016-05-09.
  8. ↑ "二○○四年年度报告" [20014 Annual Report] (PDF) (in Chinese). Suning Appliance Chain Store (Group) Co., Ltd. March 2005. Retrieved 6 June 2016.
  9. ↑ "苏宁电器连锁集团股份有限公司关联交易公告" [Announcement on related deal] (in Chinese). Suning Appliance Chain Store (Group) Co., Ltd. 6 August 2004. Retrieved 6 June 2016.
  10. 1 2 "关于收购香港CITICALL 业务及资产的公告" [Announcement of the purchase of the business and assets of Hong Kong based Citicall] (PDF). Suning Commerce Group. 31 December 2009. Retrieved 6 June 2016.
  11. ↑ "关于拟出售 PPLive Corporation股权暨关联交易的公告" [Announcement of proposed sales of PPLive Corporation and related-party transaction] (PDF) (in Chinese). Suning Commerce Group. 31 October 2015. Retrieved 8 June 2016.
  12. ↑ "足协公示江苏舜天更名为江苏苏宁 股权100%转让" [FA announces Jiangsu Sainty becomes Jiangsu Suning, 100% stake has transferred] (in Chinese). China FA. 4 January 2016. Retrieved 6 June 2016.
  13. ↑ "关于受让股权的关联交易公告" [Announcement on related-party transaction for buying equity stake in a company] (PDF) (in Chinese). Suning Commerce Group. 30 April 2016. Retrieved 7 June 2016.
  14. 1 2 "非公开发行A 股股票发行情况报告书暨上市公告书（摘要）" [Report on Non-public offering of A shares] (PDF) (in Chinese). Suning Commerce Group. 3 June 2016. Retrieved 6 June 2016.
  15. ↑ Gerry Shih (11 August 2015). "Alibaba to invest $4.6 billion in China electronics retailer Suning". Reuters. Retrieved 6 June 2016.
  16. ↑ "Alibaba and Suning Commerce Enter into Strategic Alliance". Alibaba Group. 10 August 2015. Retrieved 6 June 2016.
  17. ↑ "China's Suning to take controlling stake in Japan's Laox". Reuters. 29 June 2011. Retrieved 6 June 2016.
  18. ↑ "Suning to Acquire Citicall Retail Management". JARN. 13 February 2010. Retrieved 6 June 2016.
  19. ↑ Wang Zhuoqiong (26 September 2012). "Suning acquires Redbaby to broaden product lines". China Daily. Retrieved 6 June 2016.
  20. ↑ "China's Suning Invests in Video Site PPTV". Wall Street Journal. 28 October 2013. Retrieved 6 June 2016.
  21. ↑ "Suning Acquires Group Buying Site Manzuo.com". China Tech News. 5 February 2014. Retrieved 6 June 2016.
  22. ↑ "苏宁云商1500万美元收购好耶" (in Chinese). Retrieved 6 June 2016.

Further reading

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