Suning.com Co., Ltd. 2025 Board of Directors Work Report
In 2025, the Company's Board of Directors strictly followed the "Company Law," "Securities Law," "Shenzhen Stock Exchange Stock Listing Rules," and the "Articles of Association," "Board of Directors Meeting Rules," and other relevant regulations. With a commitment to the Company and all shareholders, the Board diligently performed its duties, made prudent decisions, strictly implemented all resolutions of the shareholders' meeting, actively carried out all board work, continuously standardized corporate governance, and promoted the Company's sound operation and sustainable development.
The Company's Board of Directors' work in 2025 is hereby reported as follows:
I. Company's Overall Business Performance
In 2025, facing complex market changes, the Company actively seized the "trade-in subsidy policy" and participated in market competition. While operating revenue saw a slight year-on-year increase in the first three quarters, it experienced a significant decline in the fourth quarter due to industry impacts and a high base from the previous year, resulting in a year-on-year decrease in overall operating revenue for the year. Due to the diminishing marginal effect of policies leading to insufficient consumer willingness and fierce industry price competition, the Company increased its subsidies, leading to a decline in its gross profit margin. Concurrently, the Company continued to strengthen cost control, with management and financial expenses decreasing year-on-year. However, to enhance the retail service capabilities of physical stores and upgrade the consumer experience, the Company appropriately increased investment in store upgrades during the reporting period, leading to an increase in sales expenses. Furthermore, the Company actively pursued debt settlement and the disposal of risk assets, achieving significant debt restructuring gains and investment income.