Suning.com divests Carrefour China units for CNY 8, boosts profit

Suning.com has divested eight Carrefour China subsidiaries to Shanghai Qishu Jiafu Enterprise Services Partnership for a total of CNY 8. This transaction is expected to increase Suning.com's net profit by approximately CNY 992 million. The divestiture results in passive financial assistance totaling CNY 1.85 billion to the divested companies. These subsidiaries, including Carrefour China Holdings N.V., have ceased operations and face significant liabilities.

In a related move, Suning.com is abolishing its supervisory board, transferring its functions to the board's audit committee. This restructuring aligns with updated corporate governance requirements and aims to enhance operational efficiency. Additionally, the company adjusted its independent director subsidy to CNY 250,000 per year (including tax), effective from the approval of this proposal at the 2025 Fifth Extraordinary General Meeting of Shareholders.

The divested entities were valued at negative equity, with total assets significantly lower than their liabilities, indicating severe financial distress and a lack of repayment capacity. Suning.com will continue to monitor the repayment plans of these companies. The company states that the transaction helps reduce its debt burden and management risks.