China's Suning Commerce Group published its semi-annual performance report stating that during the first six months of 2013 the company realized total operating revenue of CNY55.454 billion, a year-on-year increase of 17.51%.
But the company's operating profit was CNY837 million, a year-on-year decrease of 61.51%; and its net profit attributable to shareholders was CNY732 million, a year-on-year decrease of 58.24%.
Its e-commerce business was the highlight of the report, achieving a 101% year-on-year increase to CNY10.613 billion.
For chain store development, Suning implemented adjustments by closing ineffective stores and those failed to meet standards. During the first half of 2013, the company opened 28 new chain stores, and closed and exchanged 120 chain stores. By the end of June 2013, the company had 1,614 stores in mainland China, Hong Kong, and Japan.
Commenting on the profit decline, Suning said that with the integration of its online and offline businesses and the enhancement of promotion, the company's gross margin was affected. However, the company still planned to launch a large-scale promotion in August in its over 1,600 stores across the country.
In addition, Suning will reinforce the openness of its e-commerce platform while optimizing the distribution of its physical stores. The company revealed that its e-commerce platform will hold the first open platform alliance conference at the end of August 2013.