Chinese appliance retail giant Suning.com announced that it has received 14.8 billion yuan (2.29 billion US dollars, 1.89 billion euros) from state investors to alleviate its problems of debt.
According to the local newspaper Shine today, several investors – including the founder of Suning, and the parent of the distributor – have sold 23% of the company’s shares to state-owned companies Shenzhen International Holdings and Kunpeng Capital.
The company is experiencing liquidity problems that have been aggravated during the pandemic, since in 2020 it lost 3.9 billion yuan (603 million dollars, 499 million euros) when in 2019 it had earned 9.8 billion yuan (1.516 million dollars, 1,255 million euros).
The company’s shares will be listed again on the Shenzhen Stock Exchange from today after the firm itself requested its temporary suspension while negotiations were carried out for the sale of up to 25% of the shares.
“The investment of state assets in Suning.com recognizes our strategic model and our investment value so that we can focus on our key retail businesses,” Suning.com said in a statement issued last night in which it assured that the operation will help the company in their attempt to improve their efficiency and profitability.
Now, Suning.com will open a headquarters in the southeastern city of Shenzhen, where its two new investors come from.
Beyond its strong national presence, the Suning group gained prominence outside of Chinese borders by carrying out a series of acquisitions that led to it being the owner of the Japanese retailer Laox or the Italian soccer team Inter Milan.
It also bought the operations of the French Carrefour (PA: CARR ) in the Asian country.