(Yicai) Oct. 12 -- Citic Trust and China Huarong Asset Management, a state-owned bad loans manager, will inject up to CNY5 billion (USD685.1 million) into Suning.Com over the course of 10 years to help the struggling retailer overhaul its business.

The bailout is intended to provide financial relief to the more than 30-year-old company, enabling Suning to restructure its debts and equity as well as isolate its trust assets, Beijing-based Citic Trust said in a statement posted on WeChat yesterday. 

The Nanjing-based electronics retailer has been laboring under tight liquidity since the second half of 2020 when cash flow was insufficient to cover maturing bonds after the firm had expanded aggressively in recent years, according to publicly available information.

Citic Trust and China Huarong first plan to bail out Suning’s delivery business, targeting its logistics park projects in Shaoxing, Hangzhou, Nanjing, and Chengdu.

Suning narrowed its first-half net loss 30 percent to CNY1.9 billion from a year ago, according to its interim trading report. Revenue fell 9 percent to CNY34 billion (USD4.7 billion).

Editor: Emmi Laine