Fosun International Announces 2022 Interim Results: Total Revenue Amounted to RMB82.89 Billion, representing a year-on-year increase of 17.7%

Technology and Innovation, and Globalization Continue to develop

2022 Interim Results Summary and Highlights:

• Total revenue in the first half of 2022 amounted to RMB82.89 billion, representing a year-on-year increase of 17.7%; profit attributable to owners of the parent reached RMB2.70 billion, enterprise operation profit^[1] amounted to RMB2.33 billion, representing a year-on-year increase of 35.5%
• With profound industrial presence in more than 30 countries and regions, overseas revenue in the first half of 2022 amounted to RMB38.76 billion, representing a year-on-year increase of 30.7% and accounting for 46.8% of the total revenue;
• Investment in technology and innovation^[2] in the first half of 2022 amounted to RMB4.6 billion, representing an increase of 21% year-on-year;
• The FC2M ecosystem acquired 18 million new operational members^[3], bringing the total number to 414 million operational members. As of the end of the Reporting Period, the ecosystem has created a total value^[4] of more than RMB3.8 billion.

HONG KONG, Aug. 30, 2022 /PRNewswire/ -- Fosun International Limited (HKEX stock code: 00656, "Fosun International"), together with its subsidiaries ("Fosun" or the "Group"), today announced its financial results for the six months ended 30 June 2022 (the "Reporting Period").

In the first half of 2022, against the backdrop of the complex and volatile external environment, Fosun demonstrated the resilience of sustainable development, and the Group's achieved steady revenue growth, with total revenue reaching RMB82.89 billion, representing an increase of 17.7% over the same period in 2021; net profit attributable to owners of the parent amounted to RMB2.70 billion; enterprise operation profit amounted to RMB2.33 billion, representing a year-on-year increase of 35.5%.

Meanwhile, the Group's funds remained stable and its capital structure continued to be optimized, thereby laying a solid financial foundation for long-term and stable business development. During the Reporting Period, the Group financed RMB17.67 billion in the domestic and offshore public market (including syndicated loans); the Group's overall average cost of interest-bearing liabilities was at a historically low level 4.5%. 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.

Guo Guangchang, Chairman of Fosun International, said, "In the face of the volatile epidemic situation and many external uncertainties in the first half of the year, Fosun maintained its strategic focus, insisted on doing the right things, the difficult things, and things that take time to develop, continue to develop in technology and innovation and globalization, demonstrated full resilience in its interim results, accumulating momentum for future development." 

Continued to Strengthen the Four Segments and Revenue achieved Sustainable Growth

Facing the severe challenges brought about by the pandemic and global market fluctuations in the first half of 2022, Fosun leveraged on its advantages in diversification and globalization and adhered to the twin-driver strategy of "Profound Industry Operations + Industrial Investment" to effectively overcome risks and maintain the steady development of the four major business segments of Health, Happiness, Wealth, and Intelligent Manufacturing.

During the Reporting Period, the Group's Health segment of pharmaceutical, devices and diagnosis, healthcare services and products developed synergistically and steadily, and reported a total revenue of RMB23.37 billion, representing a year-on-year increase of 21.2%. Among them, the revenue of Fosun Pharma in the first half of the year was RMB21.275 billion, representing a year-on-year increase of 26.05%, and the revenue of new products and sub-new products accounted for more than 25% of the revenue from the pharmaceutical manufacturing segment. The vaccination of the mRNA COVID-19 vaccine (COMIRNATY®), jointly developed by Fosun Pharma and BioNTech, a German biotechnology company, has become available for children aged 5 to 11 in Macau SAR and the Taiwan region in April and May 2022 successively, and the vaccination of infant dosage for young children aged 6 months to 4 was approved in the Taiwan region in August 2022. As of the end of June 2022, a total of more than 30 million doses of COMIRNATY® have been sold in Hong Kong SAR, Macau SAR and the Taiwan region. In July 2022, Fosun Pharmaceutical Industrial entered into an agreement with Genuine Biotech in relation to the strategic cooperation on, among other things, the joint development and Fosun Pharmaceutical Industrial's exclusive commercialization of Azvudine, the first approved small molecular oral medication for COVID-19 independently developed by China, and entered into a strategic cooperation agreement with Sinopharm to accelerate the national channel network coverage. Fosun Kite's CAR-T cell therapy, Yi Kai Da (Ejilunsai Injection), has been on the market for a year, as of the end of July 2022, Yi Kai Da has been included in the urban customized commercial health insurance of 44 provinces and municipalities and over 50 commercial insurances, while the number of treatment centers on file had reached nearly 100.

In the first half of the year, the Group's Happiness segment achieved a total revenue of RMB32.07 billion, representing a year-on-year increase of 12.5%, mainly due to the robust revenue growth of Fosun Tourism Group. During the Reporting Period, Fosun Tourism Group's revenue reached RMB6.42 billion, representing a year-on-year increase of more than 131%. In particular, the resort and hotel segment benefited from the strong growth of its business in Europe, Middle East and Africa (EMEA) and the Americas, with a year-on-year increase of 354%. Yuyuan's jewelry and fashion segment grew against the trend, with a total revenue of RMB15.64 billion in the first half of the year. During the Reporting Period, Yuyuan Inc. opened 290 net stores, bringing the total number of stores to 4,271; regarding Laomiao, a jewelry brand under Yuyuan Inc., after the "Guyun Gold" series achieved record-breaking sales of RMB2.9 billion in the first half of the year, Laomiao launched the "Youque" series, a China-chic gold wedding jewelry line in July. In terms of the food and beverage segment, there are a total of 106 Songhelou noodle shops, and 71 shops have been signed but not opened or are in the process of signing the contract as of 20 August.

In the first half of the year, the Group's Wealth segment recorded a total revenue of RMB22.97 billion, representing a year-on-year increase of 16.9%. Among which, the revenue from insurance segment amounted to RMB15.89 billion, representing a year-on-year increase of 2.7%; the revenue from asset management segment was RMB7.08 billion, representing a year-on-year increase of 69.7%. During the Reporting Period, Fosun Insurance Portugal achieved a total premium income of EUR2.63 billion, representing a year-on-year increase of 12.8%. The gross revenue of HAL, a German private bank was EUR192 million, representing a year-on-year increase of 41%.

The Group's Intelligent Manufacturing segment continued to deepen industry operations and recorded a total revenue of RMB5.13 billion in the first half of the year, representing a year-on-year increase of 43.6%. Nanjing Iron & Steel promoted the optimization and upgrading of product structure, and the sales volume of advanced iron and steel materials grew 2.27%, accounting for 18.63% of the total sales volume. Meanwhile, many products such as low-temperature structural steel and crack arrest steel achieved breakthroughs. Among them, the 100 mm thick crack arrest steel for the application of the world's massive 24000TEU container ships was certified by ship classification societies of seven countries. The pace of improvement of the industrial ecosystem is also accelerating, Nanjing Iron & Steel's 2.6 million-ton coke project was successfully put into operation in PT. KinRui New Energy, Indonesia in May; the 20,000-ton battery-grade lithium hydroxide project invested by Hainan Mining was signed and settled in Yangpu Economic Development Zone, Danzhou, Hainan Province in July.

Guided by Globalization Strategy, Core Competencies Continued to Improve

In the first half of 2022, Fosun further consolidated its positioning as a global consumer group, and continued to polish and enhance the four core competencies of innovation-driven, globalization, FC2M ecosystem, and FES system, so as to ensure the sustainable development of the Group.

As a global innovation-driven consumer group, Fosun has established profound industrial presence in over 30 countries and regions. In the first half of the year, Fosun's globalization and ecological synergy capabilities played an important role in driving the continuous growing momentum of overseas business. During the Reporting Period, the Group's overseas revenue reached RMB38.76 billion, representing a year-on-year increase of 30.7% and accounting for 46.8% of the total revenue. Revenue of China-overseas Two-way empowerment^[5] is RMB 6.5 billion, with 48 overseas brand enterprises and over 41,000 overseas employees. FTG's overseas business saw a robust recovery, the business volume of Club Med in the first half of the year reached RMB5.74 billion, representing a year-on-year increase of 336%. The capacity of Club Med's resorts in EMEA and the Americas increased by 411.4% and 90.6%, respectively, compared to the same period in 2021. Meanwhile, the Group's global business has been continuously strengthened and extended to the high value-added industrial chain. Shanghai Henlius entered into a license agreement with Eurofarma and Organon respectively, for the commercialization of five independently developed Hang Li Kang (rituximab biosimilar) products in designated areas. Lanvin Group is proposed to be listed on the New York Stock Exchange through a business combination with Primavera Capital Acquisition Corporation to build a global luxury fashion group. Fusionride established European R&D centers in Germany and the United Kingdom respectively, achieving important milestones; Easun Technology established manufacturing and operation structure covering various regions including China, North America, Europe (Germany, Romania, Spain, Poland, etc.) to foster collaborative business development.

Innovation-driven is an important endogenous driving force supporting the steady development of Fosun. During the Reporting Period, the Group's investment in technology and innovation increased to RMB4.6 billion, representing a year-on-year increase of 21%. The long-term accumulation of technological innovation capabilities has also continued to bear fruit. In March 2022, Shanghai Henlius' self-developed PD-1 inhibitor, Han Si Zhuang (serplulimab injection), was conditionally approved by the National Medical Products Administration (NMPA) for the treatment of adult patients with advanced unresectable or metastatic MSI-H (Microsatellite Instability-High) solid tumors that have failed to respond to previous standard therapy, and has achieved revenue of approximately RMB76.9 million as of the end of June. In addition to the Health segment, innovative gene has also continued to penetrate into other segments of the Group. In 2020, Yuyuan proposed to build five technological innovation centers in five consumer fields: jewelry, cosmetics, food and beverage, tea, and liquor. At present, the Fosun Cosmetics Innovation Center and the Yuyuan Jewelry Creative House designer platform have been put into operation and reaped results, including the launch of the first fully independently developed and incubated functional skin care brand, YOGAN. In August 2022, the construction of Intuitive Fosun's headquarters and industrialization base project, Intuitive Fosun Medical Robotics Manufacturing and R&D Center, officially started, which will be used to promote the R&D and application of da Vinci and other series of medical robots, and promote the development of world-leading medical technologies and products in China.

In the first half of 2022, the development of Fosun's FC2M ecosystem further accelerated and continued to realize the multiplier effect. During the Reporting Period, the Group's ecosystem has created a total value of approximately RMB3.8 billion and acquired 18 million newly registered members, bringing the total number of operational members to 414 million. The two C-end platforms continued to be upgraded. Among them, the Fosun Alliance internet platform has facilitated cross-sector consumption from 40% of its active members, and Fosun Health has accumulated 18.14 million registered users, and carried out innovative ecological cooperation with nearly 50 internal and external enterprises to create high-quality products and services. Su Ke Xin, Han Li Kang, and Akynzeo have established in-depth synergies with the Fosun Health ecosystem, and achieved cross-sector sales of RMB1.28 billion.

The FES (Fosun Entrepreneurship / Ecosystem System) system built by Fosun has continued to evolve and achieved remarkable results. In the first half of the year, the Group completed the refinement and certification of 20 FES tools, more than 200 senior, junior and other levels of FES experts have certified the FES tools, more than 1,200 improvement projects are in progress this year, the value of cost reduction and efficiency enhancement of completed projects has exceeded RMB1.0 billion. The FES management system has been promoted and deeply applied in various industries of the Group. For example, Club Med Joyview uses VSM^[6] tool to optimize the opening process, shortening the opening process from nine months to six months, and managing multiple openings at the same time.

Delivered Outstanding ESG Performance with a Clear Objective and Mission to Make "Contribution to Society"

While developing its businesses, Fosun emphasizes the use of ESG (environmental, social and governance) criteria to assess its own sustainable development capability and level.

As a participant of the United Nations Global Compact (UNGC), Fosun actively engaging its member companies in the implementation of ESG strategies. On the environmental front, Fosun has made a commitment to the society to achieve carbon emission peak by 2028 and carbon neutrality by 2050", and is making steady progress towards these targets.

Moreover, Fosun continued to make unremitting efforts for social welfare. The Group and its member companies carried out public welfare projects such as supporting the combat against the pandemic, assisting in the fight against malaria in Africa, disaster relief, Rural Doctors program, fostering education, culture promotion, and entrepreneurial support to actively promote community development and help people's livelihood and improve social well-being.

Since the beginning of this year, the domestic epidemic situation has shown an overall sporadic outbreaks and cluster infections in some regions. Fosun's "epidemic wartime mechanism" has maintained efficient operation, continued to respond to the needs of all parties for assistance, and successively supported the anti-epidemic work in Hong Kong SAR, Xi'an, Shanghai, Sanya and other places. When Shanghai was faced with the severe challenge of the epidemic in the first half of the year, Fosun immediately supported the city in the battle against the epidemic and mobilized a large quantity of materials to help the frontline fight against the epidemic. In addition, employees of the Fosun family participated in volunteer work. From the outbreak of the current wave of the epidemic in early March to 13 July, Fosun has donated more than 6.40 million pieces of anti-epidemic materials and daily necessities to 952 communities (including 279 nursing homes) and more than 200 schools, hospitals and other institutions in 16 districts in Shanghai.

Fosun's outstanding performance in ESG has been recognized by global professional institutions. As at the end of the Reporting Period, Fosun International's MSCI ESG rating was AA, making it the only conglomerate in Greater China with a MSCI ESG rating of AA. Fosun International was selected as a constituent of the MSCI CHINA ESG LEADERS 10-40 Index; its Hang Seng Sustainability Rating was A, and it was selected as a constituent of the Hang Seng Corporate Sustainability Benchmark Index (HSSUSB) and Hang Seng ESG 50 Index. Fosun International's FTSE Russell ESG rating has improved for two consecutive years, and it became a constituent of the FTSE4Good Index Series for the first time.

Guo Guangchang said, "This year, Fosun enters into the 30 years of establishment. Thirty years ago, at the beginning of its establishment, we put forward the core value of 'Self-improvement, Teamwork, Performance, and Contribution to Society' to help Fosuners stay motivated. Fosun, which has been strengthening its presence in the four major business segments of Health, Happiness, Wealth, and Intelligent Manufacturing in recent years, has developed into a global innovation-driven consumer group, and strive to create happier lives for families worldwide. Standing at the new starting point of 30 years of development, Fosun proposes to 'Sharing Happiness', hoping to join hands with customers, partners, investors and all parties in the society to create a happy ecosystem and share the value of Fosun."

2022 Interim Results Announcement

Full details of the interim 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 2022 interim results presentation will be held online on 31 August 2022, from 16:00 to 17:30. 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=83081035

English live webcast: https://fosun.dajun.tv:8443/live/q.do?roomCode=19423197

About Fosun

Founded in 1992, Fosun is a global innovation-driven consumer group dedicated to providing high-quality products and services for families around the world in Health, Happiness, Wealth, and Intelligent Manufacturing segments. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). As of 30 June 2022, Fosun International's total assets amounted to RMB849.7 billion. Fosun International ranks No.589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.

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 2022 interim financial figures in this press release are calculated using the average exchange rate for the Reporting Period from January to June 2022 (USD/CNY= 6.48139, HKD/CNY= 0.82821, EUR/CNY=7.08089), and period-end exchange rate as of 30 June 2022 (USD/CNY=6.71140, HKD/CNY=0.85520, EUR/CNY=7.00840), unless otherwise stated.

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