2020 Annual Results Summary and Recent Highlights:

• Total revenue amounted to RMB136.6 billion. Net profit attributable to owners of the parent was RMB8.02 billion. Industrial operating profit reached RMB8.15 billion.
• Global collaboration has been conducted to develop COVID-19 mRNA vaccine. The first round of vaccination in Greater China region has been completed. Application for approval for the public use of the vaccine in Chinese Mainland was simultaneously accelerated.
• Actively seizing opportunities for investments in complementary businesses, acquired leading brands such as DJULA, WEI Beauty, Shede Spirits and Jinhui Liquor.
• Accelerating businesses to go online and refining businesses through digital transformation, prioritizing customer operations (C-end) resulted in a cumulative total of 358 million registered members.

HONG KONG and SHANGHAI, March 30, 2021 /PRNewswire/ — Fosun International Limited (HKEX stock code: 00656), together with its subsidiaries (“Fosun International”, “Fosun” or the “Group”), today announced its financial results for the year ended 31 December 2020 (the “Reporting Period”).

During the Reporting Period, the Group achieved a total revenue of RMB136.6 billion, RMB8.02 billion in profit attributable to owners of the parent and RMB8.15 billion in industrial operating profit. As of 31 December 2020, the total debt to total capital ratio was 54.3%; the average financing cost was 4.80%, which decreased by 0.26 percentage point as compared to that of the full year of 2019; cash, bank balance and term deposits amounted to RMB106.8 billion.

Guo Guangchang, Chairman of Fosun International, said, “The year 2020 might be the most challenging year for Fosun, yet it was also the best year. After the pandemic, we continue with the “wartime mechanism” and maintain the fighting spirit that we have developed during the global combat against COVID-19. This has resulted in our resilient business performance throughout the year. The pandemic has also allowed us to refine further our capabilities of the Company accumulated over the years for “Industry Operations + Industrial Investment”, Client to Maker (C2M) model, technology innovation and globalization. Fosun has thus evolved and become even stronger.” 

Operations and innovation thrive against the trend, Seizing opportunities for investments in complementary businesses

Faced with the COVID-19 pandemic outbreak at the beginning of 2020, Fosun quickly switched itself into the “wartime” mode, mobilized its global employees, and industrial resources to work around the clock. Fosun has altogether deployed 3 million pieces of medical supplies and over 50 million pieces to China and overseas countries respectively to support the frontline battle against the pandemic and fulfill its corporate social responsibility. Fosun’s efforts were extensively recognized and supported by the governments and public both at home and abroad.

In March 2020, Fosun Pharma and Germany’s BioNTech reached an agreement to jointly promote the R&D and commercialization of the COVID-19 mRNA Vaccine in Greater China region. On 27 February 2021, the first batch of Fosun COVID-19 mRNA Vaccine (Chinese trade name:  復必泰^TM;English trade name: COMIRNATY®) arrived in Hong Kong and Macau, and vaccination was successively launched in Macau and Hong Kong in early March 2021. 

Although Fosun’s globalized businesses underwent a number of tests due to the pandemic, Fosun’s diversified and globalized business portfolio, the development model of “Industry Operations + Industrial Investment”, its investment in technology innovation in various industries over the years, and the “wartime” mode that it has upkept since the battle against the pandemic, have together effectively defended the impact brought by the external environment and brought the Group a resilient performance.

During the Reporting Period, the jewelry and fashion business of Yuyuan under the Group expanded its retail business by opening over 600 new sales networks despite the downtrend. It also introduced the “Ancient Gold” series, a hot-selling product series that has become the first of its kind of which sales exceeded RMB1 billion. The development of Songhelou Noodle Restaurant chain stores has been accelerated with a total of 18 new stores opened in Shanghai, Suzhou, Nanjing and Beijing. AHAVA has achieved record-breaking sales of RMB100 million in China, representing a year-on-year increase of over 50%. At Atlantis Sanya, revenue in the second half of 2020 has increased by 36.5% year-on-year, average daily room rate has increased by 18.1% year-on-year, occupancy rate by room rose by 14.7 percentage points to 89.7%, and adjusted EBITDA for the full year reached RMB610 million, representing a year-on-year increase of 7.6%, which was the highest growth since its opening. The Bund Financial Center (“BFC”) launched a number of marketing activities in succession, rapidly attracting a large number of customers. The “BFC Fengjing Weekend Market”, in particular, attracted over 600,000 visits within the first month of its launch and attracted a cumulative total of 6 million visits since its launch.

During the Reporting Period, Fosun’s long-term investment in pharmaceutical research and development continued to achieve fruitful results. Following the approval for the launch of China’s first biosimilar HLX01 (trade name in Chinese Mainland: 漢利康®) into the market, Shanghai Henlius’ second product, HLX02 trastuzumab injection (trade name in European Union (EU): Zercepac®; trade name in Chinese Mainland: 漢曲優®) received approvals for its launch into the markets of China and the EU between July and August last year, and thus became China’s first biosimilar to have received approvals for launch into both China and the EU; at the end of 2020, Shanghai Henlius’ third product, HLX03 adalimumab (trade name in Chinese Mainland: 漢達遠®) was launched in Chinese Mainland and became China’s first biosimilar to have received two “Certificates of GMP Compliance of a Manufacturer” in both China and Europe. In the field of small-molecule innovative drugs, Fochon Pharma has finally achieved breakthroughs in a decade of profound development. Its self-developed anti-tumor drug FCN-338 was out-licensed to US’s Eli Lilly & Co. at the highest amount of USD440 million for the exclusive commercialization in all countries and regions, excluding Chinese Mainland, Hong Kong and Macau. 

While focusing on endogenous growth, Fosun has continued to leverage its global investment capabilities to deploy, strengthen and consolidate its businesses. During the Reporting Period, Yuyuan successively acquired French light luxury jewelry brand DJULA and American technology driven-Chinese herbal skincare brand WEI Beauty. It also established a joint venture with Italian high-end jewelry group DAMIANI which have achieved good initial results in the launch and expansion in Chinese Mainland. Yuyuan also acquired two leading domestic listed liquor companies, Jinhui Liquor and Shede Spirits, strategically developing its business presence in the liquor industry, which is an important industry that symbolizes contemporary Chinese culture. The move would enable Yuyuan to attain better synergy in terms of its reserves of different types of premium base wines, coordination of various distribution channels and the formation of the brand matrix.

Prioritizing C-end’s operations, Accelerating organizational evolution

Since the outbreak of the pandemic in 2020, Fosun has further accelerated the online and digitalization of its businesses, promoted the implementation of the C2M strategy, and formally proposed the “C-end Top Priority” strategy in early 2021.

During the Reporting Period, the Group successively established several vertical platforms to integrate online and offline consumption scenes and build a membership scheme. Among them, FTG’s “Thomas Cook Lifestyle Platform” achieved a total of nearly 550,000 APP downloads and a turnover of over RMB183 million by the end of 2020 since its launch in July last year.

Fosun’s entire ecosystem has brought customer traffic for both online and offline of 470 million visits in 2020, and accumulated 358 million online and offline registered members. In the future, on the basis of continuing to create more good products, Fosun will also put the C-end customers as one of the top priorities. Through digital-driven refined management, the Group will gather, connect and activate customer bases throughout Fosun’s entire ecosystem, thereby unlocking the multiplier growth of its FC2M ecosystem.

The accelerating business recovery and digital transformation cannot be done without the comprehensive mechanisms on organizational evolution. After the resumption of work and production in Chinese Mainland, the Group has established mechanisms such as “Job Rotation”, the “Transparent Appraisal” strategy and timely incentives to motivate the staff and enhance their execution capabilities. In terms of appointment of talents, Fosun announced the promotion of over 60 new global partners in January 2021, bringing the total number to more than 110. The majority of the new batch of global partners work in their respective industries, which will bring strong organizational supports to Fosun’s profound industry operations, breakthroughs in innovation and integration of businesses within its ecosystem in various regions and industries across the globe.

Guo Guangchang said, “Having steered through the once-in-a-century global crisis, we firmly believe Fosun not only can calmly cope with all kinds of unexpected challenges but also turn adversities into opportunities by evolving our strategy continually, upgrading our technology innovation and our organization. With vision and our globalized resources, Fosun will emphasize on creating excellent products and also focus on our customers. Meanwhile we will also identify good opportunities in the market to accelerate our asset optimization and integration to our businesses, so as to become a world-class family-oriented consumer group.”

Summary of Financial Figures

2020 Annual Results Announcement

Full details of the annual results announcement of the Fosun International can be found on the Company’s website www.fosun.com and on the website of the Hong Kong Stock Exchange.

The management will present Fosun International’s 2020 annual financial results and strategic outlook in Shanghai via online streaming on 31 March 2021, 9:30 a.m.-11:30 a.m. (Beijing time). The live webcast is available in the links below. The latest PPT presentation of the Group is also available for download on Fosun’s website.

Chinese live webcast: http://z-mz.cn/2HmFt

English live webcast: http://z-mz.cn/2HmFl

About Fosun

Fosun was founded in 1992. Fosun’s mission is to provide high-quality products and services for families around the world in health, happiness, wealth and intelligent manufacturing segments. Fosun International Limited is an innovation-driven consumer group that has been listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK) since 2007, with total assets of RMB767.7 billion (c. US$117.7 billion) as of 31 December 2020. Fosun International ranks No.371 on the 2020 Forbes Global 2000 List.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Fosun International Limited (the “Company”) expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. The Company’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, and other risks and factors beyond our control. In addition, the Company makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements. The financial figures of 2020 in this press release are calculated using the average exchange rate for 2020 (USD/CNY=6.89923 HKD/CNY=0.88949), and period-end exchange rate as of 31 December 2020 (USD/CNY=6.52490 HKD/CNY=0.84160), unless otherwise stated.

Media Contact
pr@fosun.com

*Note: Industrial operating profit includes the profit contribution of the Group’s industrial operating subsidiaries, associates and joint ventures calculated by the equity method.