Fosun's Management Decodes 2022 Interim Results: Consolidate Globalization Capabilities to Create Greater Value

HONG KONG, Sept. 2, 2022 /PRNewswire/ -- Fosun International Limited (HKEX stock code: 00656, "Fosun International"), together with its subsidiaries ("Fosun" or the "Group") held its 2022 interim results presentation on 31 August in the form of online webcast. The management of Fosun International introduced Fosun's corporate strategies, operational indicators, ESG performance and other topics of investors' concern.

"Globalization is not just about exporting Chinese products overseas, nor just importing overseas products to China, but it is more about using global resources to create greater value for customers worldwide." Guo Guangchang, Chairman of Fosun International, said that Fosun's globalization strategy aims to take the world as a whole, through deepening its global business presence and building a diverse talent pool, use the most suitable resources to deeply cultivate key areas, and achieve mutual empowerment and rapid growth within the ecosystem. "In the future, Fosun will unswervingly consolidate its globalization capabilities and create more value for customers."

Against the backdrop of the complex and volatile external environment, Fosun achieved steady revenue growth in the first half of the year, with total revenue reaching RMB82.89 billion, representing an increase of 17.7% over the same period in 2021; enterprise operation profit amounted to RMB2.33 billion, representing a year-on-year increase of 35.5%; profit attributable to owners of the parent amounted to RMB2.70 billion, representing a year-on-year decrease of 32.6%; industrial operation profit was RMB3.61 billion, representing a year-on-year decrease of 35.9%

"The decline in the Group's net profit attributable to owners of the parent in the first half of the year was mainly affected by the pandemic, rising commodity raw material prices and fluctuations in the capital market." said Gong Ping, Executive President and Chief Financial Officer of Fosun International, "We also noticed that after entering the second half of the year, the financial and operational indicators of companies in multiple segments have rapidly shown a steady recovery, thanks to the Group's long-term adherence to profound industry operations."

In the interim results announcement, Fosun disclosed its enterprise operation profit, which includes the profit contribution of the major members of the Group, of which the profit of A-share listed members is adjusted to exclude the gain/loss of the non-recurring items. "The enterprise operation profit excludes the influence of secondary market investment and other factors in the industrial operation profit disclosed in the same period. When the market entered a period of severe fluctuations, this indicator increased significantly, reflecting the Fosun's continuous consolidation of the industry operations of its member companies over the years, which is also the driving force for Fosun's long-term sustainable development." Gong Ping said.

Fosun continued to strengthen its presence in four major segments of Health, Happiness, Wealth and Intelligent Manufacturing and achieved steady business development. In the first half of the year, all segments achieved revenue growth. The total revenue of the Health segment was RMB23.37 billion, representing a year-on-year increase of 21.2%. The total revenue of the Happiness segment was RMB32.07 billion, representing a year-on-year increase of 12.5%. The total revenue of the Wealth segment was RMB22.97 billion, representing a year-on-year increase of 16.9%. The total revenue of the Intelligent Manufacturing segment was RMB5.13 billion, representing a year-on-year increase of 43.6%.

In the first half of the year, Fosun Tourism Group in the Happiness segment delivered outstanding results, its revenue nearly increased by two-fold year-on-year. "This was mainly due to the lifting of travel restrictions in major overseas tourism destinations. The business of Club Med has rebounded strongly, its business volume recovered to 90% of the same period of 2019, and subsequent bookings have also shown a growth momentum." Xu Xiaoliang, Co-CEO of Fosun International said, with the rising winter sports and the Chinese market, Fosun Tourism Group will increase investment and accelerate its development in such area. From the beginning of this year to the end of 2024, Club Med has signed contracts and planned to open a total of 17 new resorts.

While developing its businesses, Fosun emphasizes the use of ESG criteria to assess its own sustainable development capability. Fosun has achieved remarkable ESG performance. As at the end of the reporting period, Fosun International was the only conglomerate in the Greater China region with a MSCI ESG rating of AA. Wang Qunbin, Co-Chairman of Fosun International, said: "Fosun has established a comprehensive top-down ESG governance structure and management system, including the incorporation of ESG performance into KPIs of executive directors, the establishment of an ESG committee to strengthen ESG management of the board of directors, etc. to integrate sustainability into its industry operations, and continue to practice the original aspiration of Self-improvement, Teamwork, Performance, and Contribution to Society."

This year, Fosun enters into the 30 years of establishment. It has developed into a global innovation-driven consumer group, dedicated to creating happier lives for families worldwide. Guo Guangchang said that looking ahead, Fosun will adhere to its strategic leadership and leverage the advantages brought by its long-term accumulation of core competencies to stimulate potential, promote faster and better development of the Group, and join hands with customers, partners, investors and all parties in the society to create a happy ecosystem and share happiness and value of Fosun.

About Fosun

Founded in 1992, Fosun is a global innovation-driven consumer group dedicated to providing high-quality products and services for families around the world in Health, Happiness, Wealth, and Intelligent Manufacturing segments. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). As of 30 June 2022, Fosun International's total assets amounted to RMB849.7 billion. Fosun International ranks No.589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.

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