Fosun: Foreign Media Reports about "Regulatory Authorities Asking Banks to Examine their Exposure to Fosun" are Completely False

Rhea-AI Summary

On September 14, 2022, Fosun refuted foreign media claims regarding Chinese regulatory authorities probing banks about their exposure to the company. Fosun confirmed that the China Banking and Insurance Regulatory Commission had not issued any such requests. Gong Ping, CFO, emphasized that recent shareholdings reductions are part of a strategic asset optimization rather than a reaction to market pressures. For the first half of the year, Fosun reported a revenue increase of 17.7% to RMB82.89 billion and a 35.5% rise in enterprise operation profit, with stable cash balances of RMB117.65 billion.

Positive

• Total revenue increased to RMB82.89 billion, a 17.7% year-on-year growth.
• Enterprise operation profit rose by 35.5% year-on-year.
• Cash, bank balances, and term deposits amounted to RMB117.65 billion, indicating strong liquidity.
• Adjusted NAV remained stable at HK$24.2 per share.

Negative

• None.

HONG KONG, Sept. 14, 2022 /PRNewswire/ -- In response to foreign media reports about "Chinese regulatory authorities asking banks and some of the state-owned companies to examine their exposure to Fosun" on 13 September, Fosun said such reports are completely false.

It is understood that Fosun has sought confirmation from regulatory authorities through multiple channels. The China Banking and Insurance Regulatory Commission (CBIRC) has not asked commercial banks to check about their financial exposure on Fosun, and many commercial banks that cooperate with Fosun have never received relevant notices.

Gong Ping, Executive President and CFO of Fosun International, said, "Fosun's recent seemingly frequent reductions in shareholdings and divestments are a continuation of its financial strategy of balancing investment and divestment in the past few years. Fosun has been dynamically sorting and optimizing its asset portfolios. Such moves are not just for coping with the current market environment. However, we noticed that the complex external environment has raised public opinion on the disposal of the Group's assets, resulting in a one-sided interpretation of such asset disposal, while neglecting the Group's general principle of asset optimization, which is our long-term dynamic asset optimization."

According to the interim results announced on 30 August, Fosun's four major business segments of Health, Happiness, Wealth, and Intelligent Manufacturing demonstrated resilience. In the first half of the year, Fosun achieved sustainable revenue growth, its total revenue reached RMB82.89 billion, representing a year-on-year increase of 17.7%. Its enterprise operation profit increased by 35.5% year-on-year. Meanwhile, the Group's funds remained stable. As at the end of the reporting period, cash, bank balances and term deposits were abundant, amounting to RMB117.65 billion; the adjusted NAV remained stable at HK$24.2 per share.

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SOURCE Fosun

FAQ

What did Fosun say about the foreign media reports on September 14, 2022?

Fosun stated that the reports regarding Chinese regulatory authorities asking banks to examine their exposure to the company were completely false.

What were Fosun's revenue figures for the first half of 2022?

Fosun achieved a total revenue of RMB82.89 billion, marking a 17.7% increase year-on-year.

How did Fosun's enterprise operation profit change in 2022?

The enterprise operation profit increased by 35.5% year-on-year.

What is the adjusted NAV per share for Fosun?

The adjusted NAV remained stable at HK$24.2 per share.

What is the cash balance reported by Fosun at the end of the reporting period?

Fosun reported cash, bank balances, and term deposits totaling RMB117.65 billion.