Nikkei reported on Wednesday that Suning.com, a leading Chinese seller of home appliances and consumer electronics, plans to sell shares worth around 368 million yuan ($58.2 million) to help paper over losses, and rebuild its core retail business under the guidance of major shareholder Alibaba Group Holding. Alibaba holds around a 20% share in Suning.

The electronics retailer said it expects to sell a 39% stake in Suning Consumer Finance to the Bank of Nanjing. After the shares sale, the retail group will retain a 10% share in the finance unit.

The Bank of Nanjing, which already owns a 15% stake in the company, would become the major stakeholder.

On February 7, Suning saw its shares plunge around 10% when the retailer disclosed it would post one of the most significant losses ever recorded.

Suning said on January 28 that it lost between 42.3 billion yuan and 43.3 billion yuan ($6.65 billion-$6.81 billion) in 2021. The company said it lost about half of its revenue due to two joint ventures.

The retailer said it lost 10.3 billion yuan ($1.62 billion) at Shenzhen Hengning Business Development, a 49/51 joint venture with Hengda Real Estate, Evergrande’s central operating unit.

Shanghai Xingtu Financial Service Group, an online financial provider, is Suning’s second loss joint venture with 8.9 billion yuan ($1.4 billion).

Last year, Suning was also forced to close its stores when its revenue declined due to the Covid-19 pandemic.

Suning.com closed 211 of 2,438 stores over the first nine months of 2021, including Carrefour’s hypermarket brand.

Suning also shut down courier service TTK Express, which it acquired from STO Express in 2017 for 4.25 billion yuan ($672 million).

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