As Nikkei Asia reported, the electronics retailer Suning.com’s shares plunged around 10% on Monday as China’s domestic stock market reopened following a week-long Lunar New Year break but rebounded to close at 3.63 yuan (US$0.57), down about 3%. Since the beginning of 2021, the retailer’s stock has already lost half of its worth.

Suning.com, based in Nanjing, said on Jan. 28 that it expects a net loss of between 42.3 billion yuan and 43.3 billion yuan (US$6.65 billion—US$6.81 billion) in 2021.

Earlier, It recorded a loss of 4.27 billion yuan ($0.67 billion) in 2020.

Suning expects to lose about half of its revenue due to two joint ventures. One of them is Shenzhen Hengning Business Development, a 49/51 joint venture with Hengda Real Estate, Evergrande’s central operating unit.

The retailer said it expects to record a loss of 10.3 billion yuan (US$1.62 billion) from the performance last year, while Suning valued its investment in the joint at 10.8 billion yuan (US$1.7 billion) in its 2020 annual report.

Shanghai Xingtu Financial Service Group, an online financial provider, is Suning’s second loss joint venture.

Suning said it would lose a net 8.9 billion yuan (US$1.4 billion) due to Xingtu’s losses and impairment in the value of its 41 percent ownership in the partnership, Due to an “adjustment cycle” prompted by stricter internet financing restrictions.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.