Fosun International Reports 1H 2018 Financial Results

1H Net Profit Increases 17% to RMB 6.86 Billion

HONG KONG and SHANGHAI, Aug. 28, 2018 /PRNewswire/ --

1H 2018 FINANCIAL HIGHLIGHTS:

  • Net profit increases 17% to RMB 6.86 billion, six years of consecutive rapid growth
  • Pro-forma net profit increases 41% to RMB 8.29 billion (under previous accounting standards)
  • Focused on health and happiness ecosystems; key investments include St Hubert, Tsingtao Brewery, Lanvin and Wolford
  • RMB 4 billion invested into technology and innovation during reporting period

Fosun International Limited (HKEX stock code: 00656) and its subsidiaries ("Fosun" or the "Group") today published financial results for the first six months of 2018.

During this reporting period, Fosun International delivered revenue of RMB 43.51 billion, an increase of 20% over the same period of last year and profit attributable to the owners of the parent of RMB 6.86 billion, an increase of 17% over the same period of last year. Pro-forma profit attributable to the owners of the parent under the previous financial instrument accounting standards HKAS 39 was RMB 8.29 billion, an increase of 41% over the same period of last year. 

Earnings per share was HK$0.98 (RMB 0.80), an increase of 18% over the same period of last year. This is the sixth consecutive year of profit growth and represents a 5-year compounded annual growth rate of 29% in profit attributable to the owners of the parent and 21% in earnings per share.

As at 30 June 2018, the Company's continued focus on maintaining a healthy balance sheet achieved a net gearing ratio of 53.6% with an overall financing cost of 5.18%. In January 2018, Moody's increased the Company's credit rating from Ba3 to Ba2 Stable. 

The Company's adjusted net asset value ("NAV"), estimated by management, was HK$30.78 per share, representing a slight decrease of 7.5% from the adjusted NAV recorded as of 31 December 2017. The main change in NAV was attributable to secondary market volatility.

Chairman of Fosun International, Guo Guangchang said, "In the first six months of 2018, despite the market volatility, Fosun recorded a net profit growth of 17% (or 41% under previous accounting standards), reflecting the resilience of our business model, which focuses on health, happiness and wealth ecosystems for global families with deep roots in China. Over the past 10 years, Fosun's commitment to investment, continuous innovation and delivering superior value to shareholders has seen its per share book value increase from HK$3.60 to HK$13.79, a rate of 14.4% compounded annually."

"In the first six months of 2018, we continued to make strategic investments across the world, balanced with key divestments in some projects. On the industrial operating front, five years after commencing construction of our champion project, Atlantis Sanya opened this year with phenomenal success and popularity. We are also executing our strategy of bringing several key assets into public markets, including the completed restructuring of Yuyuan in July 2018.  We also signed important strategic agreements with major partners such as HSBC, SPD Bank, and New China Insurance. And finally, the Group launched youlè, Fosun's proprietary loyalty program, with a total user base now exceeding 148 million despite only launching six months ago." 

Speaking to how the Group plans to deliver even greater shareholder value, Mr. Guo outlined three key strategies:

''First, we remain fully committed to disciplined investment and professional operations across our three core ecosystems in wealth, health and happiness.

Second, with 10 IPOs completed by Fosun and its affiliates in 2017, we will continue to execute the strategy of bringing our key assets into the public markets, with a strong IPO pipeline including Babytree and Fosun Tourism Group.

Third, we will continue to increase our investment in technology, research and innovation to further strengthen Fosun's strategy of transformational operations and continuously improve customer experience. In the first half of 2018, RMB 4 billion was invested into technology initiatives to enhance our operating capabilities. With the application of leading technology in our core businesses such as Fosun Pharma, Club Med, Atlantis Sanya, Fidelidade and BCP, I am confident that Fosun will continue to generate rapid and sustainable growth in our recurring operating profit and cash flow.''   

Financial Results Summary

Profit Attributable to Owners of the Parent 

RMB mn

1H 2018

1H 2017

YoY Change (%)

Health Ecosystem

828.9

631.6

31.2

Happiness Ecosystem

832.6

791.5

5.2

Wealth Ecosystem

5,196.8

4,441.4

17.0


Insurance and Finance

1,737.2

1,523.5

14.0


Investment

3,062.9

2,557.8

19.7


Hive Property

396.7

360.1

10.2

Total

6,858.3

5,864.5

16.9

Total (pro-forma under HKAS 39)

8,291.8

5,864.5

41.4

 

Net Profit / EPS/ Net Asset Per Share

RMB

1H 2018

1H 2017

YoY Change (%)

Profit attributable to owners of the parent (mn)

6,858.3

5,864.5

16.9

Basic earnings per share -- RMB

0.80

0.68

17.6

Diluted earnings per share -- RMB

0.79

0.68

16.2

HKD

2018/6/30

2017/12/31

Change (%)

Net asset per share

13.79

14.07

-2.0

Adjusted NAV per share1

30.78

33.28

-7.5


1 Adjusted NAV includes the market value of listed investments held by the Group, fair value of unlisted investments utilizing recent transactions or comparable companies minus the Group's net debt.

 

Interim Results Announcement 2018 and Presentation

Full details of the Group's 2018 interim results can be found on the company's website www.fosun.com and on the Hong Kong Stock Exchange.

The Group's management will present its key financial results and strategic outlook in Hong Kong on 29 August 2018 at 10am. A live-video feed of the presentation is available via the following link (ENGLISH) / (CHINESE). A copy of the latest Investor Relations presentation can also be downloaded from the website.

English live-video link: https://live.vhall.com/247614756
Chinese live-video link: https://live.vhall.com/843059179

About Fosun

Fosun was founded in 1992. Fosun International Limited is a family-focused multinational company that has been listed on the main board of the Hong Kong Stock Exchange (00656.HK) since 2007, with total assets exceeded RMB560 billion (c.US$85 billion) as of June 30, 2018. With its roots in China, and through technology and innovation, Fosun's mission is to create customer-to-maker (C2M) ecosystems in health, happiness and wealth, providing high-quality products and services for families around the world.

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 2018 to June 2018 (USD/CNY= 6.3870 HKD/CNY= 0.8147), and period-end exchange rate as of 2018/6/30 (USD/CNY=6.6166 HKD/CNY=0.8431), unless otherwise stated.

Related Links :

http://www.fosun.com