Fosun International Records Net Profit of RMB 5.86 billion in 1H2017
•Net profit increases 33.6% year on year
•50.0% increase in cash, 14.9% reduction in net debt
•Adjusted book value per share of HK$30.23
•C2M model now helping companies deliver profit
（30 August 2017, HONG KONG)Fosun International Limited (SEHK stock code: 00656) and its subsidiaries (“Fosun” or the “Group”) today announced its interim results for the first half of 2017. Fosun’s net profit hits a record high of RMB5.86 billion in the first half of 2017, an increase of 33.6% from the same period in 2016.
Following the record full year net profit of over RMB10.00 billion in 2016, Fosun continued its strong growth momentum in 2017. As at 30 June 2017, the Group recorded a •total revenue of RMB36.27 billion and EBITDA of RMB13.09 billion, representing a year-on-year increase of 11.6% and 21.0% respectively. Fosun continues to optimize its capital structure during the reporting period, increasing cash by 50.0% and decreasing net debt by 14.9%. As at 30 June 2017, adjusted book value per share amounted to HK$30.23, representing a price to adjusted book value of 0.4x.
In the first half of 2017, Fosun executed its core strategy that is “Centered around Family, Deeply Rooted in China, Innovating a Global Happiness Ecosystem” to enrich the health, happiness and wealth of families around the world. Following the implementation of the Group’s upgraded strategies and by adapting the C2M (Customer-to-Maker) model, Fosun’s ecosystems achieved significant growth in the first half of 2017. The Group is optimistic about the outlook for the second half of the year and beyond.
Mr. Wang Qunbin, Chief Executive Officer of Fosun International, said, “We are very pleased with our results in the first half of 2017, with record profit and a strengthened balance sheet. The 33.6% increase in our interim net profit reflected our world-class business operations and continuous improvement in our investment and management. Over the past five years, we have continuously achieved a compounded annual growth rate of over 25.0% in our profitability”.
Mr. Wang Can, Chief Financial Officer of Fosun International, said, “In particular, several of our assets successfully turned around their operations compared to the same period last year, especially Peak Reinsurance, ROC Oil and Portuguese bank Millennium BCP. We also recorded significant profit growth in Nanjing Nangang, Yuyuan and Mybank. Against the backdrop of strong market conditions, our secondary market subsidiaries and associates performed well and we successfully listed six new companies in the domestic A-share market.
In addition to rapid profit growth, the Group has also strengthened its balance sheet over the past years, with net gearing ratio falling from 86.0% in 2013 to 47.4% as of the end of the reporting period. The Group’s total liquidity improved 21.1% to RMB255.00 billion through a 50.0% increase in cash to RMB78.24 billion and 11.6% increase in undrawn bank facilities to RMB176.76 billion. “Going forward, our focus will be on enhancing cash flow and continuously optimizing our capital structure”, Mr. Wang Can said.
Mr. Guo Guangchang, Chairman of Fosun International said, “Five months ago, we announced that our annual net profit had exceeded RMB10.00 billion for the very first time. Today, I am even more confident about our future. Our goal is to become a leading global enterprise, bringing innovative and high-quality products and services to families all over the world, particularly in China. We are making good progress toward that goal”.
“Over the past few months, we saw strong bottom-line growth across our three core ecosystems and in particular, we are very excited about the growth in some of our important consumer-facing platforms; Fosun Pharma, ClubMed, Yuyuan and Fidelidade. Leveraging our C2M model, our companies provide genuine end-to-end connection to Fosun’s ecosystems and provide products and services to more than 30 million families. Our core strategy, is to at least double that number over the next three years, and we are excited about our future and confident our strategy can achieve this target. “
To achieve this target, Fosun will continue to grow its core businesses, expand and execute its pipeline of transactions as well as increase investments into innovative companies and technology, including AI technology. This will integrate the Group’s products, services, logistics and customers into the “ONE Fosun” platform and accelerate the evolution of Fosun’s ecosystems to benefit families around the world.
Interim Meeting and Presentation
The Group’s management will present its key financial results and strategic outlook in Hong Kong on August 31, 2017 at 10am. A live-video feed of the presentation is available with access details, including the Group’s interim financial results and investor presentation on the company’s website www.fosun.com.
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. Founded in 1992, Fosun's total assets exceed RMB500 billion (c.US$75 billion). 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 media 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 media release are calculated using the average exchange rate for the reporting period January 2017 to June 2017 (USD/CNY=6.8607 HKD/CNY=0.8820), and period-end exchange rate as of 2017/6/30 (USD/CNY=6.7744 HKD/CNY=0.8679), unless otherwise stated.