Suning.com divests Carrefour China units to reduce debt

Suning.com's wholly-owned subsidiary, Carrefour China Holdings N.V., entered into an equity transfer agreement to sell 100% equity in 12 "target companies" to Shanghai Qishu Jiafu Enterprise Services Partnership (Limited Partnership) for a total of RMB12. The transaction, approved by the board, is subject to shareholder approval and is expected to increase Suning.com's net profit attributable to the parent company by approximately RMB383 million. The divestment is part of Suning.com's strategy to focus on its core home appliance 3C business and reduce its overall debt levels, as Carrefour China's large-scale hypermarket operations have been impacted by market changes and liquidity issues since 2023.

The transaction will result in Suning.com passively providing financial assistance totaling CNY145,679.85 to the target companies. This is due to existing claims from the acquisition and subsequent operations, which will continue to be monitored by Suning.com to ensure debt recovery. The board has approved the resolution and will present it to the shareholders for a vote.