Fosun International: Focused Development, Steady Advancement, Total Revenue for the First Half of 2023 Up 10.9% YoY to RMB97.06 Billion

HONG KONG, Sep. 1, 2023 /PRNewswire/ -- Fosun International Limited (HKEX stock code: 00656, "Fosun International"), together with its subsidiaries ("Fosun" or the "Group"), today announced the interim results for the six months ended 30 June 2023 (the "Reporting Period").

In the first half of 2023, the international political and economic environment remained evolving and complex, while China's economy has recovered modestly. In the face of the complex macro environment, Fosun has stepped up its efforts to focus on household consumption as the top-priority sector, concentrating on the development of core businesses where it boasts clear competitive advantages, the overall business of the Group maintained steady growth. During the Reporting Period, the Group achieved a total revenue of RMB97.06 billion, representing a year-on-year increase of 10.9%. The four core subsidiaries of Yuyuan, Fosun Pharma, Fosun Insurance Portugal, and Fosun Tourism Group (FTG) continued to improve their products and services, yielded a total revenue of RMB70.76 billion, up 12.4% compared to the same period of last year.

The key indicator reflecting the Company's operational capabilities - industrial operation profit reached RMB3.37 billion, representing a year-on-year increase of 5.5%, if excluding the profit of disposed (including transactions yet to be completed) enterprises, representing a significant year-on-year increase of 66%. During the Reporting Period, the Group's profit attributable to owners of the parent during the Reporting Period was RMB1.36 billion.

With the recovery of domestic consumption and the relaxation of travel restrictions worldwide, Fosun's core industries have seized the opportunity of economic recovery. Among them, Yuyuan's revenue grew 21.86% year-on-year to RMB27.44 billion. FTG saw a 38.7% surge year-on-year in its revenue to RMB8.90 billion and turned profits.

In addition, subsidiaries in various segments have been accelerating their deployment in frontier fields to foster growth with high-quality resources. In the first half of the year, the new drug applications for several innovative products (indications) of Fosun Pharma entered the stage of pre-market approval acceptance; the construction of the Grand Yuyuan is on accelerating pace; Club Med launched a new urban resort product line, Club Med Urban Oasis, and Nanjing Resort and Taicang Alps Resort are expected to open soon; Hainan Mining's 20,000-ton lithium hydroxide project is expected to be completed and put into operation in the first half of 2024.

Meanwhile, Fosun continued to optimize its capital and asset structure, and actively explored financing channels, maintaining sufficient liquidity. As of the end of the Reporting Period, cash and bank balances and term deposits were abundant, reaching RMB114.68 billion. The Group has accelerated the disposal of non-strategy and non-core assets, cash inflow from divestment amounted to more than RMB20.0 billion at the consolidated level. Under the consolidated statements of the Group, total debts amounted to RMB220.92billion, compared to the corresponding period in 2022 the amount was RMB261.12 billion. Total debts to total capital ratio was 51.8%, the average cost of debt was 5.32%; the adjusted NAV was HK$20.1 per share.

Through proactive liquidity management, Fosun has navigated through the "maturity wall". During the Reporting Period, it redeemed onshore bonds of RMB6.73 billion as well as USD offshore debt of over USD2.7 billion. As of the end of the Reporting Period, the Group had no material offshore bonds due in one year. The improved credit profile has also been affirmed by the international market. On 30 May 2023, international rating agency S&P Global Ratings issued a report, lifting the Group's rating outlook to "stable".

During the first half of 2023, Innovation and global operational capabilities have been further enhanced. During the Reporting Period, the Group invested a total of approximately RMB4.2 billion in improving its technology innovation capabilities. With the continuous harvest of R&D investment, the revenue and profit of innovative products have been growing steadily. In the first half of 2023, core commercial products such as HANSIZHUANG and HANQUYOU have led to a jump in total revenue, leading the continuous growth of sales revenue and helping Shanghai Henlius turn profitable for the first time in half a year. The globalization journey of Fosun started in 2007 when Fosun International was listed in Hong Kong. After 16 years, Fosun has established business presence in more than 35 countries and regions, and has more than 100,000 employees worldwide. In the first half of 2023, overseas business became the driving force for the Group's development, overseas revenue amounted to RMB44.09 billion, accounting for 45.4% of total revenue.

Guo Guangchang, Chairman of Fosun International, said, "In the first half of 2023, Fosun, which has won out over the 'perfect storm', has set sail for a new journey by firmly implementing the core business-focused strategy to continuously deepen the development of its industries. Centering around the needs of global families in Health, Happiness, Wealth, and with the implementation of the business streamlining and core business-focused strategy, our businesses have been developing steadily. We believe that as the economy continues to recover, Fosun, which is committed to innovation-driven development and global operations, will embark on a new phase of high-quality development. We will provide more good products and services to create happier lives for families worldwide."