Retail in Asia

In Trends

Fosun International Limited announces financial results


Fosun International Limited, together with its subsidiaries, announced its financial results for the first six months ended 30th June 2020.

SEE ALSO : Damiani Group signs JV with Fosun’s jewelry unit Yuyuan

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 US$9.24 billion. Profit attributable to owners of the parent reached US$293 million.

The company’s financial position remains healthy. As of 30th June 2020, the total debt to total capital ratio was 56.9%. During the reporting period, the group actively enhanced its liquidity, successfully issued US$2.74 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 24th 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 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.

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 and 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.

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 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.

SEE ALSO : Guess announces financial results

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.”