Fosun International: Total Revenue for 2023 Reached RMB198.2 billion, Industrial Operation Profit Increased by 20% YoY

Rhea-AI Summary

Fosun International (FOSUY) announced its 2023 annual results, showing a total revenue of RMB198.2 billion with a year-on-year increase of 8.6%. Industrial operation profit rose by 20% to RMB4.9 billion. Overseas revenue reached RMB89.2 billion, accounting for 45% of total revenue. The company focused on 'Deep mining' strategy, technology innovation, and asset-light operational capabilities for future growth.

Positive

• Total revenue increased by 8.6% to RMB198.2 billion.
• Industrial operation profit surged by 20% to RMB4.9 billion.
• Overseas revenue rose to RMB89.2 billion, comprising 45% of total revenue.
• Investment in technology innovation increased by 14% to RMB7.4 billion.
• Consolidated interest-bearing debt decreased by RMB15 billion.
• Fosun's globalization strategy covers over 35 countries and regions.
• Core subsidiaries achieved significant revenue growth in various sectors.
• Fosun Pharma's product mix optimization led to new approvals and launches.
• FTG reported a turnaround in profit and revenue structure optimization.
• Fosun maintained strong ESG efforts and received high sustainability ratings.
• The company's commitment to 'Business for Good' and rural healthcare initiatives.

Negative

• None.

2023 Annual Results Summary and Highlights:

• Total revenue was RMB198.2 billion, representing a year-on-year increase of 8.6%;
• Industrial operation profit reached RMB4.9 billion, representing a year-on-year increase of 20%; profit attributable to owners of the parent was RMB1.38 billion;
• Overseas revenue was RMB89.2 billion, representing a year-on-year increase of 6%, accounting for 45% of total revenue, with business presence covering more than 35 countries and regions;
• Investment in technology innovation was RMB7.4 billion, representing a year-on-year increase of 14%;
• Interest-bearing debt at the group level decreased by RMB 9.2 billion compared with the end of 2022, consolidated interest-bearing debt decreased by RMB 15 billion;
• Focus on "Deep mining" and continue to develop the industries where it boasts clear competitive advantages, stable profit growth as the core objective of future operations, dividends will increase gradually.

HONG KONG, March 27, 2024 /PRNewswire/ -- Fosun International Limited (HKEX stock code: 00656, "Fosun International"), together with its subsidiaries ("Fosun" or the "Group"), today announced its annual results for the year ended 31 December 2023 (the "Reporting Period").

In 2023, Fosun continued to implement core business-focused strategy and improve its operating capabilities in advantageous industries. During the Reporting Period, the Group achieved a total revenue of RMB198.2 billion, representing a year-on-year increase of 8.6%. Thanks to the Group's global business presence and continuous innovation, industrial operation profit reached RMB4.9 billion, representing a year-on-year increase of 20%. The profit attributable to owners of the parent was RMB1.38 billion. Total revenue of the four core subsidiaries, namely Yuyuan, Fosun Pharma, Fosun Insurance Portugal and Fosun Tourism Group (FTG), was RMB142.69 billion, representing  a year-on-year increase of 8%, contributing 72% of the revenue. The Group's business foundation is solid and stable.

Fosun has continued to optimize its debt structure and strengthen liquidity management to prepare for the next phase of steady development. As at the end of the Reporting Period, the consolidated interest-bearing debt decreased by RMB15 billion, interest-bearing debt at the group level decreased by RMB9.2 billion compared with the end of 2022, total debt continued to reduce both at consolidated statements of the Group and at the Group level. The total debt-to-asset ratio at the consolidated statements of the Group stood at 50.4%, representing a decrease of 2.9 percentage points from 31 December 2022. In May 2023, the international credit agency S&P raised Fosun's rating outlook to "stable", recognizing Fosun's financial strategy and the sustainability of future development.

Guo Guangchang, Chairman of Fosun International, stated, "After more than a decade of efforts, Fosun has gradually completed its global expansion and industrial business presence, anchoring itself in the household consumption sector, Fosun's industry operations strategy has also evolved from 'prospecting' and 'exploration' across various industries and locations worldwide to 'deep mining' (which means focusing on the development of our core industries) and 'developing good mines' (which means tapping into industries with high value-added development and growth potential). We will continue to focus on core businesses, leveraging our unique strengths to enhance our capabilities and strengthen our foundation, and actively invest and expand in advantageous sectors, taking stable profit growth as the core objective."

"Deep mining" to deepen global operations

In 2023, Fosun's four core subsidiaries continued to focus on business and enhance operational capabilities, and saw significant revenue growth. Yuyuan's jewlery & fashion group revenue reached RMB36.7 billion, representing a year-on-year increase of 11%. Shanghai Henlius achieved the first full-year profits and operating revenue of RMB5.39 billion, representing a year-on-year increase of 67.8%. Club Med, the leading global resort brand under FTG, business performance hit record high. Its business volume reached RMB15.12 billion, representing a year-on-year increase of 19%. Atlantis Sanya's business volume reached RMB1.68 billion, representing a substantial year-on-year increase of 91%. Fosun Insurance Portugal maintained its local leadership with 30% market share of the Portuguese market through its high-quality services.

Since Fosun International's listing in Hong Kong in 2007, Fosun's globalization journey has spanned nearly 17 years. It now has established business presence in over 35 countries and regions. Its "global organization + local operations" model has become increasingly mature. In 2023, Fosun's overseas revenue reached RMB89.2 billion, representing a year-on-year growth of 6% and accounting for 45% of the total revenue. HANQUYOU (trastuzumab injection), independently developed and produced by Shanghai Henlius, has been approved for marketing in more than 40 countries and regions worldwide, making it the domestically-produced biosimilar drug with the highest number of market approvals. In December 2023, Shanghai Henlius' first innovative drug HANSIZHUANG (serplulimab injection) was approved for marketing in Indonesia, becoming the first domestically-produced anti-PD-1 monoclonal antibody successfully approved for marketing in a Southeast Asian country.

In the happiness sector, as of the end of 2023, Club Med had sales and marketing operations in more than 40 countries and regions across six continents, and operated 68 resorts (including 10 resorts in China). The Yuyuan Garden Lantern Festival, a national intangible cultural heritage event that has been held for 29 consecutive years, successfully made its overseas debut in Paris, France, attracting nearly 200,000 local visitors, further enhancing its globalization capabilities. The 2023 Fosun Family Season campaign carried out joint marketing with over 60 domestic and overseas brands of the Group, created new scenes and immersive experiences, and launched more than 80 products related to the Year of the Dragon's theme.

In the wealth sector, Fosun Insurance Portugal continued to expand its presence in overseas markets such as South America and Africa. Its international business reported a premium revenue of EUR1.70 billion, representing a year-on-year increase of 11%. Hainan Mining in the intelligent manufacturing sector completed its investment in KOD and KMUK, and obtained a controlling stake in the lithium mine asset of Bougouni in Mali, Africa. The new energy industry layout and internationalization strategy have taken a critical step.

Technology innovation to drive new growth

Technology innovation serves as another core driver for Fosun's development. During the Reporting Period, the Group's total investment in technology innovation amounted to RMB7.4 billion, representing a year-on-year increase of 14%.

Continuous investment in technology innovation has led to the continuous optimization of Fosun Pharma's product mix, with several new products and indications being approved and launched. HANSIZHUANG (serplulimab injection), the world's first anti-PD-1 monoclonal antibody approved for first-line treatment of small cell lung cancer (SCLC) developed independently has been approved for four indications, benefiting more than 60,000 patients since its launch; the second-generation artesunate for injection (Argesun®) was prequalified by the World Health Organization (WHO-PQ), becoming the first injectable artesunate presented with a single solvent system approved by WHO-PQ, greatly improving the convenience of clinical use. Since its launch more than two years ago, China's first CAR-T cell therapy product, Yi Kai Da (ejilunsai injection), developed by Fosun Kite, has been used to treat more than 600 patients with relapsed or refractory large B-cell lymphoma (r/r DLBCL), has received conditional approval from the National Medical Products Administration (NMPA) for a new second-line indication, bringing more treatment options and hope for Chinese lymphoma patients. Intuitive Fosun's domestic Da Vinci Xi Surgical System was successfully approved by the NMPA and officially commenced production. Da Vinci Xi Surgical System has been installed in China, realizing "made in China, joint research & development, global sales".

MyFidelidade App launched by Fosun Insurance Portugal has surpassed 1.6 million registered users (exceeding 15% of Portugal's total population), In addition, the number of telemedicine services reached close to 2 million tele-consultations, of which the online consultation rate for serious diseases was 41%.

Enhance asset-light operational capabilities

After more than 30 years of development, Fosun has accumulated profound operational capabilities. Through asset securitization and exit of bulk assets, as well as promoting industrial funds to help industry achieves 'multiplier growth', asset-light operation achieved remarkable results.

In March 2024, Fosun Pharma, together with seven investors including Shenzhen FoF planned to jointly establish a RMB5.0 billion biopharmaceutical fund, with the entire raised funds to be invested in fields of biopharmaceuticals, cells, and genes. Shanghai Rehabilitation Equity Investment Fund Management Co., Ltd., a subsidiary of Fosun Pharma, won the bid through the public selection process in Shenzhen to exclusively manage the biopharmaceutical fund, demonstrating the greater recognition of Fosun's global technology innovation capabilities and profound industrial operational capabilities.

FTG has leveraged its operational strengths and achieved full recovery in global business performance, business volume reached RMB17.15 billion for the year, representing a year-on-year increase of 24.5%. Its profit attributable to equity holders turned around to RMB0.31 billion. During the Reporting Period, the revenue structure was optimized, and 93% of the revenue came from its resort operations. With the improved asset-light operational capabilities, FTG launched its new product line successively. Urban vacations in the Chinese market have opened up a new track. Two resorts - Club Med Urban Oasis Nanjing Xianlin Resort and Taicang Alps Resort are opened in 2023.

Looking ahead to 2024, Fosun will focus more on enhancing asset-light operational capabilities and seizing development opportunities. Guo Guangchang, Chairman of Fosun International, said, "In the future, we will continue to focus on core businesses, leveraging our unique strengths to enhance our capabilities and strengthen our foundation, and actively invest and expand in advantageous sectors. Through forward-looking planning, we will deeply explore the capabilities and value of the Fosun ecosystem, endeavoring to create more good products and services for one billion families worldwide."

Business for Good, ESG efforts continues to enhance 

As of the end of the Reporting Period, Fosun maintained an MSCI ESG rating of AA and was the only conglomerate in Greater China with such rating. Its HSI ESG rating was upgraded to AA- and it was selected as a constituent stock of the Hang Seng Corporate Sustainability Index for the first time. It also consistently improved its FTSE Russell ESG rating and was selected as a constituent stock of the FTSE4Good Index Series. In addition, Fosun was included in S&P Global's Sustainability Yearbook 2024 and recognized as an Industry Mover.

In April 2023, Fosun issued its first Task Force on Climate-Related Financial Disclosures (TCFD) report, demonstrating its commitment to climate action to the international community. In addition, Fosun successfully converted a syndicated loan into a sustainability-linked loan, marking its implementation of green financing.

Fosun remains committed to its original aspiration of developing business for good and prioritizing the needs of its customers, while upholding its corporate value of "Contribution to Society". Over the past seven years, Fosun has continued to carry out the Rural Doctors Program, which has covered 78 key rural revitalization counties across the country, supporting 25,000 rural doctors and benefiting 3 million grassroots families. Through incentive mechanisms, Fosun aims to attract more individuals to join the team of rural doctors and guide and nurture more healthcare professionals at the grassroots level.

Full details of the 2023 annual results announcement of Fosun International can be found on the Company's website (www.fosun.com) and on the website of the Hong Kong Stock Exchange.

Fosun International 2023 annual results presentation will be held on 28 March 2024, from 10:00 to 16:00. The management will introduce the key financial performance and strategic outlook of the Group. 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.

Chinese live webcast: https://fosun.dajun.tv:8443/live/q.do?roomCode=23147265 

English live webcast: https://fosun.dajun.tv:8443/live/q.do?roomCode=21127128 

About Fosun

Fosun was founded in 1992. After more than 30 years of development, Fosun has become a global innovation-driven consumer group. Adhering to the mission of creating happier lives for families worldwide, Fosun is committed to creating a global happiness ecosystem fulfilling the needs of one billion families in health, happiness and wealth. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). As of 31 December 2023, Fosun International's total assets amounted to RMB808.4 billion; it received an AA MSCI ESG rating and was the only conglomerate in Greater China with such rating.

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 2023 annual financial figures in this press release are calculated using the average exchange rate for the Reporting Period from January to December 2023 (USD/CNY=7.04310, HKD/CNY=0.89971, EUR/CNY=7.63524), and period-end exchange rate as of 31 December 2023 (USD/CNY=7.08270, HKD/CNY=0.90620, EUR/CNY=7.85920), unless otherwise stated.

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SOURCE Fosun

FAQ

What was Fosun International's total revenue for 2023?

Fosun International reported a total revenue of RMB198.2 billion for 2023.

How much did industrial operation profit increase by in 2023?

Industrial operation profit rose by 20% to RMB4.9 billion in 2023.

What percentage of total revenue did overseas revenue account for in 2023?

Overseas revenue accounted for 45% of the total revenue in 2023.

What was the focus of Fosun International's future operations strategy?

Fosun International focused on 'Deep mining' strategy for future operations.

How much did Fosun International invest in technology innovation in 2023?

Fosun International invested RMB7.4 billion in technology innovation in 2023.