Suning sells 23% shares to state-owned investors to enhance logistics

Shenzhen state-owned assets take over 23 percent of Suning's shares for 14.8 billion yuan. /CFP

Suning.com, a leading retailer in China, sold 23 percent of its shares to state-owned investors in a bid to enhance comprehensive cooperation in logistics and infrastructure.

Shenzhen International Holdings, a logistic services company, acquired 8 percent of Suning's stake and Kunpeng Capital under the Shenzhen municipal government acquired 15 percent of its stake, according to a statement by Suning.com on Sunday.

The transaction worth 14.8 billion yuan ($2.29 billion), and Zhang Jindong, the billionaire founder of Suning, remains the largest shareholder of the group.

The retailer's revenue in 2020 came in at 258.46 billion yuan, a year-on-year decrease of 4 percent. It also reported a 3.9-billion-loss in net profit last year amid temporary store closures during the COVID-19 pandemic.

The news came after Suning announced that it would

cease

the operation of Jiangsu Football Club due to financial reasons.

Jiangsu Sunning, which is owned by Suning Holdings Group, has faced a precarious financial situation since last season, when it was reported that it owed its players wages and title-winning bonuses.