HONG KONG and SHANGHAI, Aug. 27, 2020 /PRNewswire/ —

2020 Interim Results Highlights:

• Total revenue amounted to RMB63.27 billion. Profit attributable to owners of the parent reached RMB2.01 billion.
• Financial position remains healthy with abundant cash reserves. Total debt to total capital ratio was 56.9%.
• Since the outbreak of the epidemic, the Group has been providing all-round support to the global fight against the epidemic and promoted the development and launch of the COVID-19 vaccines in China.
• Implemented the wartime mechanism to strengthen the Group’s execution capability in response to the impact caused by the epidemic, with a view to accelerating the post-epidemic recovery and transformation and upgrading of its businesses.
• Fosun’s businesses have shown strong resilience and a number of its subsidiaries and core group companies achieved market-defying growth. R&D and innovation investments have also achieved breakthrough results.

Fosun International Limited (HKEX stock code: 00656), together with its subsidiaries (“Fosun” or the “Group”) today announced its financial results for the first six months ended 30 June 2020 (the “Reporting Period”).

In the first half of 2020, Fosun’s global businesses, affected by the unexpected COVID-19 epidemic, encountered varying degrees of challenges. During the Reporting Period, the Group’s total revenue amounted to RMB63.27 billion. Profit attributable to owners of the parent reached RMB2.01 billion.

The Company’s financial position remains healthy. As of 30 June 2020, the total debt to total capital ratio was 56.9%. During the Reporting Period, the Group actively enhanced its liquidity, successfully issued RMB18.76 billion bonds in the public market and successfully raised a syndication loan approximately US$1.2 billion equivalent. During the Reporting Period, the average financing cost was 4.72%, 0.34 percentage point lower than that of the full year of 2019. Healthy debt ratios and strong liquidity reinforce the Group’s capability to withstand risks and support the Group to seize investment opportunities.

In the face of the epidemic during the first half of the year, the Group quickly implemented the wartime mechanism to strengthen its execution capability, and while actively fulfilling corporate social responsibilities, it strived to seek opportunities amid crisis. Since the outbreak of the epidemic on 24 January 2020, the Group has swiftly utilized its global supply chain to deploy medical supplies to support China and overseas countries. As of now, Fosun has deployed over 50 million units of medical supplies. In addition, the Group leveraged its own technologies and products, such as medical treatment support, nucleic acid detection kits, negative pressure ambulances and ventilators, etc. to help the fight against the global epidemic.

In March 2020, Fosun Pharma’s subsidiary was licensed by BioNtech SE to exclusively develop and commercialize COVID-19 vaccine products in Chinese Mainland, HKSAR, Macao SAR and Taiwan regions based on its mRNA technology platform. In July, the acceptance notice of clinical trial application for the licensed COVID-19 vaccine product candidate BNT162b1 was granted by the National Medical Products Administration. Participants in the clinical trial have already successfully received injection.

Since the outbreak of the epidemic, the Group has identified the changes in consumer demand for health, online, and family-oriented products/services, thereby accelerating the transformation and upgrading of its businesses to facilitate the business rapid recovery. For instance, Yuyuan’s live streaming sales by KOLs (Key Opinion Leaders) and amateurs became part of its regular sales channels, which helped double the Tmall sales revenue of Laomiao Gold in the first half of 2020 as compared to the same period of last year. “iShopping”, an online shopping platform launched by the BFC, achieved its goal of reaching 100,000 members ahead of schedule and completed the rollout of a number of offline activities. Of which, the “BFC Fengjing weekend market” attracted over two million visits within two months since its launch and has emerged as a hotspot trending on the internet.

In May, the Group launched its “515 Fosun Family Day” campaign which focused on family consumption. In this annual marketing event, the Group joined hands with its 28 brands through online + offline user interactions and promotional activities, which not only helped the recovery of consumption after the epidemic, but also promoted synergy and created multiplier effect within the Fosun FC2M ecosystem.

During the 515 Fosun Family Day campaign, the Group also launched “Fosun Health+”, an online medical and health platform to begin the online upgrade process of its medical services and simultaneously launched Fosun Family Maintenance Organization (FHMO) to provide a one-stop family health management services by integrating online consultations, offline medical care and health insurance under the same platform. Currently, there are more than 51,000 registered doctors and over 1 million registered users under Fosun Health+.

Thanks to the timely response of the Group’s management and the joint efforts of all employees, Fosun’s global business has shown strong resilience against the economic headwinds in the first half of 2020. Fosun Pharma, Yuyuan, Peak Reinsurance and other key subsidiaries managed to achieve market-defying growth during the Reporting Period. Fosun Tourism Group was most seriously affected by the epidemic, but its core business has been gradually recovering. The occupancy rate of Atlantis Sanya for the second quarter of 2020 surpassed that of the same period of last year; Club Med has resumed operation of 26 resorts around the world, and the five resorts in China have fully resumed business operation.

In the field of R&D and innovation, the Group’s investment over the years has also achieved fruitful results. After Shanghai Henlius’ HLX01 rituximab injection (Han Li Kang) became the first Chinese biosimilar drug approved for marketing in 2019, Shanghai Henlius independently developed its second biosimilar drug, HLX02 trastuzumab injection (HLX02). HLX02 has been approved for marketing in the EU and China this year,  becoming the first locally developed biosimilar drug approved both in the EU and China.

In terms of industrial investment and business expansion, the Group focuses on family consumption needs and continues to strengthen its presence in existing industries, including the acquisition of 55.4% equity interest in French fashion jewelry brand Djula, an agreement with a high-end Italian jewelry group to jointly develop the Damiani and Salvini brands in the Chinese market, and the acquisition of Jinhui Liquor in August 2020 that further integrated the food and beverage industry chain.

Although the epidemic in the first half of the year has caused a certain negative impact on the Group’s performance in the short term, the diversified business mix, global asset portfolio, profound “industry operations + industrial investment” development model and long-term investment in technology innovation have enabled the Group to effectively mitigate market risks, helping the Group to seize opportunities in crises and changes.

Guo Guangchang, Chairman of Fosun International, said, “Facing the epidemic of COVID-19 in the first half of 2020, we have turned crisis into a driving force through the evolution of the organizational mechanism. While actively supporting the global fight against the epidemic, we rapidly promoted the post-epidemic recovery and transformation of our businesses. In the 28 years since its founding, Fosun has continued to evolve and develop amid market and industrial cycles. Leveraging its spirit of innovation and strong business resilience, we can always seek opportunities in crisis. I believe that, after going through the epidemic, we will come out stronger and create more values for our shareholders.”

Financial Results Summary

2020 Interim Results Live Webcast

Full details of the interim results announcement of the Group 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 the Group’s 2020 interim financial results and strategic outlook via online streaming on 28 August 2020. The live webcast is available in the links below. The latest PPT presentation of the Company is also available for download on Fosun’s website.

Live Webcast:
Chinese https://v.zmengzhu.com/play/10145369?i=58161&ticket_id=10145369&mod=play 
English https://v.zmengzhu.com/play/10145370?i=58161&ticket_id=10145370&mod=play

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 and wealth businesses. Fosun International Limited is an innovation-driven consumer group that has been listed on the main board of the Hong Kong Stock Exchange (00656.HK) since 2007, with total revenue of RMB143.0 billion (c.US$20.7 billion) in 2019 and total assets of RMB745.0 billion (c.US$105.2 billion) as of 30 June 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 in this press release are calculated using the average exchange rate for the reporting period January 2020 to June 2020 (USD/CNY= 7.02678 HKD/CNY= 0.90532), and period-end exchange rate as of 30 June 2020 (USD/CNY= 7.07950 HKD/CNY= 0.91340), unless otherwise stated.

*Note: Industrial operation profit included the profit contribution from operational subsidiaries as well as joint ventures and associates which are accounted under equity method.