Suning.Com Puts Insolvent Carrefour China Business up for Sale at CNY1 Starting Price

(Yicai) May 19 -- Chinese retailer Suning.Com plans to sell its insolvent Carrefour China business for no less than CNY1 (15 US cents) as the company accelerates efforts to dispose of non-core assets and reduce debt burdens.The Nanjing-based firm said yesterday that its wholly owned subsidiary, Suning International Group, will sell a 100 percent stake in Cacious China Holdings through a property exchange. Registered in Amsterdam, the Netherlands, Cacious China is the operating entity for Carrefour China.Suning.Com [SHE: 002024] shares closed up 1.6 percent at CNY1.24 today, although the stock has still fallen 27 percent this year.Suning.Com acquired an 80 percent stake in Carrefour’s China business from French retail giant Carrefour for CNY4.8 billion (USD705.6 million) in 2019. The two companies later disagreed over the sale of the remaining 20 percent stake. Suning.Com ultimately spent another CNY220 million (USD32.4 million) last year to gain full ownership of Carrefour China.Carrefour China’s operations steadily deteriorated after the acquisition amid mounting competition from e-commerce platforms and the impact of the Covid-19 pandemic. The retailer has been shutting stores since 2022 and is now fully closed.Suning.Com said it will continue streamlining non-core operations while focusing on its core computer, communications, and consumer electronics businesses to lower debt levels and reduce operational and management risks.As of Dec. 31 last year, Cacious China had consolidated total assets of CNY1.3 billion and total liabilities of CNY7.7 billion, leaving the company insolvent. The assessed value of shareholders’ equity stood at negative CNY782 million, the announcement showed.Suning.Com has also faced prolonged financial difficulties in recent years. The company accumulated losses of about CNY68 billion (USD10 billion) between 2020 and 2023 before returning to profitability in 2024 with net income of CNY611 million. However, net profit plunged 90 percent to CNY58 million (USD8.5 million) last year.The retailer’s revenue has declined for six consecutive years. Total revenue fell 14 percent from a year earlier to CNY49 billion last year, down 82 percent from its 2019 peak.Editors: Dou Shicong, Emmi Laine