(Yicai Global) Jan. 31 -- Suning.Com said the Chinese retailer expects to have shrunk its annual net loss, the company’s third in a row, by a much as 78 percent last year.

The net loss was likely between CNY9.5 billion and CNY11.5 billion (USD1.4 billion and USD1.7 billion) in the 12 months ended Dec. 31, the Nanjing-based company said late yesterday. Revenue probably fell by more than 47 percent to CNY73 billion (USD10.8 billion).

Weak consumer demand and a cash crunch at the company persisted last year, Suning said. This year, the retailer expects to increase its sales thanks to the Chinese government’s measures to boost consumption.

Shares of Suning [SHE: 002024] fell 1.3 percent to close at CNY2.23 (33 US cents) today. The benchmark Shenzhen Component Index retreated 0.8 percent.

Suning has been in the red since the second half of 2020, when its liabilities were also in excess of CNY100 billion (USD14.8 billion). In July 2021, the firm sold almost 17 percent of its shares to a local government-backed fund, Alibaba Group Holding, Xiaomi, and others, since when it has not had a controlling shareholder.

Suning had 969 self-operated home appliance stores in first- and second-tier cities last year. In lower-tier cities, it added 769 franchised stores to its network. Operating costs in the period fell about 40 percent from a year earlier.

In terms of liquidity recovery, commercial bills payable fell by about CNY4.5 billion, as Suning raised funds by selling some assets and equities.

Editor: Futura Costaglione