On the evening of October fourteenthSUNINGIssue a forecast of results for the first three quarters of 2021. The forecast shows that SUNING has passed the most difficult stage, with sales revenue growing month-on-month in late August and September, and is expected to continue to grow in the fourth quarter compared with the third quarter, and strive to achieve the core electrical appliance 3C business EBITDA (profit before tax, interest depreciation and amortization) in the fourth quarter.
In the third quarter, the cooperation between SUNING and financial institutions was resumed and carried out in an orderly manner. SUNING's joint credit committee was established in August, and enterprise liquidity gradually recovered. With the gradual improvement in liquidity, SUNING's sales revenue increased month-on-month in late August and September, with commodity sales GMV up 24 per cent in September and 3C sales of core electrical appliances up 30 per cent month-on-month. It is expected that the fourth quarter will continue to grow compared with the third quarter, and strive to achieve the core electrical 3C business EBITDA (profit before tax, interest depreciation and amortization) in a single month in the fourth quarter.
SUNING continued to strictly control various expenses, streamlined the organization to improve human efficiency, and the cost in the third quarter further decreased by about 10% compared with the second quarter, and by about 27% compared with the same period last year. Among them, personnel costs decreased by about 35% month-on-month compared with the second quarter, down about 37% year-on-year; to speed up the adjustment of loss-making stores and store rent reduction and sublease investment, leasing fees decreased by about 13.5% month-on-month, down about 18% from the same period last year; marketing expenses decreased by about 70% month-on-month, down about 80% from the same period last year.
SUNING said that with the active support of the provincial and municipal governments and investors in various industries, the management and all employees make concerted efforts to promote the recovery of production and operation and business development. It is expected that the fourth quarter will continue to grow compared with the third quarter, and strive to achieve the core electrical 3C business EBITDA (profit before tax, interest depreciation and amortization) in a single month in the fourth quarter.
SUNING continues to promote the retail service provider strategy, and the retail cloud continues to maintain a relatively fast store opening speed. 2085 new franchise stores will be opened in the first three quarters and will remain fast in the fourth quarter. SUNING said that it will continue to promote cost reduction, efficiency improvement and income increase, promote the improvement of liquidity and the rebound of inventory levels, and further enhance the core capacity building of various channels in the direction of valuable sales recovery and sustainable growth.
Industry insiders pointed out that SUNING has built the most complete online and offline retail service system in China, and with the continuous promotion of the three strategic paths of "doing a good job of retail service providers, strengthening the supply chain, and improving the quality of operation," it is expected to release new potential energy for growth and achieve sustained and healthy development of enterprises.
On October 12, SUNING officially launched the merchant conference to prepare for Singles Day. Focusing on the main position of home appliances, the integration of two-line scenes, and the introduction of a number of preferential policies and marketing methods, SUNING will work with brand merchants to achieve synergy of resources and complementary advantages, enhance consumer shopping experience, and promote the high-quality development of the real economy.