On August 28th, Suning.com released its 2026 semi annual report. Against the backdrop of overall industry pressure, the company achieved a net profit attributable to shareholders of the listed company of 127 million yuan, a year-on-year increase of 161.41%; The net cash flow generated from operating activities was 1.621 billion yuan, a year-on-year increase of 8.75%. After achieving a full year profit in 2025, the company continues its profitability trend with a steady decrease in debt size. The retail base remains stable, key businesses are accelerating breakthroughs, and the foundation for medium - and long-term operations is further consolidated.

In the first half of the year, the domestic home appliance market was under overall pressure. According to data from OviCloud, the retail sales of domestic household appliances in the first half of the year decreased by 9.9% year-on-year, with significant declines observed in major categories such as air conditioning, ice washing, and kitchen appliances. In the face of industry cycle changes, Suning.com actively seizes the opportunity for transformation, conforms to the trend of instant, scenario based, and experiential upgrading of consumption, focuses on offline scenario upgrading and online diversified drainage, and accelerates the layout of high potential tracks such as government and enterprise procurement, going global, service consumption, and AI retail, accumulating endogenous growth momentum in market adjustment and improving sales quarter by quarter.

The company continues to focus on improving the quality and optimizing the structure of core retail channel operations. The layout of experiential stores such as Suning Max and Suning Pro continues to expand, with this type of store accounting for 19.84% at the end of the reporting period. On line, we expanded diversified traffic positions such as Tiktok Life Service, Little Red Book and Meituan, and promoted the transformation to stores with the help of professional services. In the first half of the year, real-time retail orders increased by 46% year on year. The retail cloud business in the sinking market is steadily expanding, with 883 new franchise stores opened in the first half of the year, and sales revenue increasing by 10% year-on-year. The competitive advantage in the county-level market continues to consolidate.

The company is accelerating the layout of growth oriented businesses and cultivating new driving forces for development. The number of procurement entities and order volume on the government enterprise procurement platform Yicai Cloud have significantly increased, with year-on-year growth of 80.48% and 41% respectively, driving a year-on-year increase of 22.6% in government enterprise business revenue. Overseas layout is accelerating, and the company is creating a one-stop overseas service solution for its own brands and high-quality domestic manufacturers. In the first half of the year, sales revenue in China, Hong Kong, Macao, Taiwan, and overseas regions increased by 22.97% year-on-year. At the same time, the manufacturing oriented new retail brand "Super Buyer" is steadily advancing, accumulating momentum for the emerging track. In terms of service ecology, Suning has anchored its positioning as a family full scenario life service provider for customers. The revenue from store channel service products increased by 53% year-on-year, and the revenue from home appliance recycling business increased by 54% year-on-year. The community life service scenarios continue to expand, and the value of full scenario services is fully demonstrated.

While improving the quality of operations, the company took multiple measures to promote systematic debt resolution, resulting in a decrease of 7.738 billion yuan in debt scale compared to the beginning of the period. The continuous improvement of asset liability structure has created favorable conditions for various business sectors to light up and accelerate the implementation of strategies.

Based on the trend of industry transformation and its own resource endowment, the company further clarifies its overall strategic positioning: taking AI+supply chain as the foundation, consumer services as the basic core, domestic and international coordinated development, expanding to technology-based retail service providers, and establishing a core business system of "one body, two wings, one drive, one core". The announcement stated that in the second half of the year, the company will launch the first new generation AI smart store in China, create an industry O2O AI retail practice base, and showcase the achievements of AI landing in the retail field.

Looking ahead to the second half of 2026, the direction of domestic policies to expand domestic demand and promote consumption is clear. The benefits of policies such as trade in and "artificial intelligence+consumption" for household appliances and home furnishings will continue to be released, and the retail industry will usher in an opportunity for structural development. Suning.com stated that it will seize policy trends and industry transformation opportunities, strengthen AI retail empowerment, focus on core business capabilities, and steadily promote the coordinated improvement of enterprise scale and efficiency.