Fosun's Businesses Shows Strong Recovery Momentum as Consumption Regains Vitality and Tourism Industry Continues to Recover

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Jun 30, 2022, 08:16 ET

HONG KONG, June 30, 2022 /PRNewswire/ -- The Bund Finance Center (BFC) in Shanghai officially resumed dine-in services at restaurants starting from 29 June. At present, Fosun's businesses and shopping centers in Shanghai, including the BFC, Yuyuan Tourist Mart, Forte Woli City, and Orstar City Zhenru, have fully resumed business operations. As major shopping centers shows signs of recovery, businesses that have been affected by the epidemic since March this year have quickly recovered, and the consumption vitality is ushering in a new climax.

Tourists are having a great time at Club Med Bali. (PRNewsfoto/復星國際有限公司)

In addition, thanks to the stabilization of the epidemic prevention and control situation and the arrival of the peak season in tourism industry, Fosun Tourism Group's domestic business saw a rapid recovery following a strong rebound in its overseas business.

After experiencing the "trough period" of the epidemic, Fosun's businesses in various segments have made steady progress, and is poised for a new round of growth.

As the Epidemic Situation Stabilizes, Businesses and Tourism Consumption have Rebounded Significantly

The resumption of dine-in services in major business districts in Shanghai is accelerating the economic recovery.

The robust momentum in business operations is also catalyzing business recovery. Positioned as a consumer group in the Happiness segment, Yuyuan Inc. takes "Oriental life aesthetics" as the top concept, and continues to refine the operation of the Happiness industry. In the first quarter of this year, Yuyuan Inc. continued to expand the business channels of its Jewelry & Fashion segment and continued to improve its product competitiveness. The sales volume of the Guyun Gold series products reached a new high, with a year-on-year increase of over 100%. In the first quarter, Yuyuan Jewelry & Fashion chain business opened 140 net stores, which brings the total number to 4,121 stores, consolidating its leading position in store expansion in the industry.

In terms of domestic tourism, Qian Jiannong, Chairman and CEO of Fosun Tourism, said, "Thanks to the stabilization of the epidemic prevention and control situation and the further relaxation of the epidemic prevention measures in Hainan, Fosun Tourism's tourism destination projects in Sanya have seen a significant rebound in visitor flow and occupancy rate." Entering the second half of June, the occupancy rate of Atlantis Sanya has exceeded 90%, and the hotel bookings at the end of the month are almost full. In order to welcome the return of tourists, Atlantis Sanya will launch the "2022 Atlantis Super Summer" event from 2 July to 31 August, including the marine fantasy acrobatics C Show, Shall We parent-child art festival and various children's summer camps to rekindle tourists' enthusiasm for tourism consumption. As residents in Beijing and Shanghai are resuming normal life, it is believed that Hainan will become the first stop for many consumers after a long absence of travel.

In addition, Club Med Joyview Qiandao Lake has served more than 3,000 customers since its trial operation on 16 June with an occupancy rate of more than 60% based on available rooms. The resort is located on the outskirts of the core city with high-quality ecological resources, making it an ideal travel destination for residents in Jiangsu, Zhejiang and Shanghai after the epidemic.

Previously, Fosun Tourism's overseas business saw its first rebound. Since Fosun Tourism Group announced in April that it has turned profitable in the first quarter of 2022, international brands such as Club Med, Thomas Cook and Casa Cook under Fosun Tourism have actively seized the opportunity of the recovery of the global tourism industry, and have made remarkable progress. On 16 April, the bookings of Club Med in the second half of the year have surpassed that of the same period in 2019 before the epidemic. Among them, the bookings in two major regional markets of Europe and the Americas have increased significantly, outperforming the industry level. Thomas Cook's business in the UK saw an increase of more than 8-fold year-on-year in the first quarter of this year. Thomas Cook has also expanded into the Netherlands in March. On the basis of its original partners, it has adopted digital business models such as the use of websites and applications to expand its regional business in Europe. Casa Cook has also accelerated its expansion in Europe, with the new opening of Casa Cook Samos in Greece in May this year.

Innovation-driven: Pharmaceuticals and Hive Operations Performed Remarkably

Fosun continued its steady growth momentum in the Health segment with successive breakthroughs in regional cooperation, drug introduction, and research and development.

On 27 June, Fosun Pharma and Hainan Boao Lecheng International Medical Tourism Pilot Zone entered into an agreement. The two parties will translate scientific research achievements of innovative drugs and medical devices, diagnostic technologies and products into applications and conduct pilot trials based on Lecheng's real-world data, introduce overseas drugs and medical devices for urgent clinical use, establish regional cooperation with medical institutions, and strengthen the training of academic talents.

On the same day, Fosun Pharma and Amgen jointly announced a collaboration and license agreement for the commercialization of Amgen's two innovative drugs, Otezla® and Parsabiv®, in the Chinese Mainland (excluding Hong Kong SAR, Macau SAR, and Taiwan region).

Regarding research and development, Henlius has recently made a technological breakthrough in asymmetric multichain bispecific antibody cell line development (CLD), in which the stable monoclonal cell line increased the titer to 6g/L, and over 90% of clones expressed the desired products. Based on this achievement, the company was invited to the BioProcess International US West Conference.

Profound industry operations is an important driving force for Fosun's long-term development. Recently, Fosun Hive has renewed its efforts in industry operations, and Hefei Yungu Financial City has ushered in a new round of industrial development, further consolidating the benchmarking and intelligent manufacturing capabilities of hive city. On 27 June, the opening ceremony of enterprises and the signing ceremony of project settlement in Hefei Yungu Financial City Park were successfully held. Among them, the Securities Division of HuaAn Securities on Yungu Road, Binhu New District, Hefei and the Anhui Branch of the Architectural Design & Research Institute of Tsinghua University successfully opened. In addition, Alltrust Insurance has entered into an agreement to establish a presence in Hefei Yungu Financial City. With the continuous introduction of high-quality enterprises, the park has gathered more industries and headquarters bases.

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). In 2021, Fosun International's total revenue was RMB161.3 billion and total assets amounted to RMB806.4 billion. Fosun International ranks No.589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.

SOURCE Fosun