Group 1 - The company will resume trading of its shares on December 11, 2024, at 9 AM [1] - The company plans to privatize through an agreement, offering to repurchase shares at HKD 7.80 each, representing a 95% premium over the last closing price before suspension [1] - The aim of this move is to unlock shareholder value and achieve flexibility in long-term strategic decisions [3] Group 2 - After privatization, the company will continue to operate its existing business without plans for significant adjustments [2]

Financial Performance - Total revenue for the first half of 2024 reached RMB 9,414.6 million, a 5.8% increase compared to RMB 8,898.8 million in the same period of 2023[6] - Adjusted EBITDA for the first half of 2024 was RMB 2,086.5 million, a decrease of 9.3% from RMB 2,299.7 million in the first half of 2023[6] - Profit attributable to shareholders for the first half of 2024 was RMB 321.8 million, down 31.8% from RMB 471.8 million in the same period of 2023[6] - The group's gross profit for the first half of 2024 was RMB 3,206.5 million, compared to RMB 3,076.6 million in the same period of 2023[61] - The group's pre-tax profit for the first half of 2024 was RMB 387.8 million, down from RMB 678.6 million in the same period of 2023[61] - The total comprehensive income for the period was RMB 247,925 thousand, significantly lower than RMB 518,865 thousand in the prior year[107] - The operating profit for the group for the six months ended June 30, 2024, is RMB 1,036,480,000, compared to RMB 1,352,415,000 for the same period in 2023, indicating a decrease of about 23.3%[125][126] Revenue Breakdown - Club Med's revenue for the first half of 2024 was RMB 8,894.4 million, reflecting a 10.3% increase from RMB 8,062.1 million in the first half of 2023[12] - Revenue from the Asia-Pacific region for Club Med increased by 32.5% in the first half of 2024 compared to the same period in 2023[12] - Revenue from the Europe, Africa, and Middle East region for Club Med was RMB 5,038.0 million, up from RMB 4,772.5 million in the first half of 2023[19] - Revenue from the Americas increased by 9.7% year-over-year, with North America showing an 8.1% growth[24] - Revenue from tourism operations and other services was RMB 9,251,920 thousand, up from RMB 8,486,668 thousand, reflecting a growth of 9.0%[128] - Revenue from property sales and construction services decreased significantly to RMB 162,646 thousand from RMB 412,149 thousand, a decline of 60.5%[128] Operational Metrics - The average occupancy rate for Club Med globally reached 70.4%, an increase of 0.8 percentage points compared to the same period in 2023[12] - The average daily rate per bed increased to RMB 1,922.0, compared to RMB 1,777.8 in the first half of 2023[22] - The average occupancy rate reached a historical high of 89.6%, an increase of 3.4 percentage points from 86.2% in the first half of 2023[47] - The number of customers in the Asia-Pacific region reached 255,000, up from 245,000 in the same period last year[21] - The number of visitors increased from 3.395 million in the first half of 2023 to 3.435 million, setting a new historical record[43] Capital Expenditures and Investments - Capital expenditures for resort operations amounted to RMB 317.0 million, a decrease of 4.2% compared to the same period in 2023[34] - Capital expenditures for the first half of 2024 amounted to RMB 546.5 million, down from RMB 746.1 million in the same period of 2023, focusing on light asset management[80] - The resort's second phase project, with a total investment exceeding RMB 5 billion, is set to enhance its offerings with additional facilities including a themed hotel and water park[54] Debt and Liquidity - Total debt as of June 30, 2024, was RMB 24,175.1 million, with a notable increase in long-term debt proportion from 69.5% at the end of 2023 to 73.7%[82] - As of June 30, 2024, liquidity was reported at RMB 1,673.5 million, ensuring the advancement of key projects[34] - Cash and bank balances increased by 18.4% to RMB 3,540.9 million as of June 30, 2024, compared to RMB 2,991.7 million at the end of 2023[82] - The company's current ratio improved from 0.53 as of December 31, 2023, to 0.62 as of June 30, 2024, indicating a stronger financial position[86] Market Strategy and Expansion - The company aims to continue expanding its market presence despite macroeconomic uncertainties and geopolitical tensions affecting the global tourism industry[8] - The company plans to continue expanding its market presence, particularly in high-demand regions such as China and Southeast Asia, to capture growing tourism trends[41] - The company is focusing on enhancing its MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities, with over 5,000 square meters available for events at the Sanya Atlantis resort[42] Share Options and Incentives - The pre-IPO share option plan allows for a total of 100,000,000 shares to be issued, representing approximately 8.04% of the shares in issue as of September 20, 2024[181] - As of June 30, 2024, there are 25,405,454 unexercised pre-IPO share options, equivalent to about 2.04% of the shares in issue[181] - The exercise price for the pre-IPO share options granted on February 23, 2018, and November 19, 2018, is set at HKD 8.43 and HKD 15.60 per share, respectively[181] - The company has no plans to grant further pre-IPO share options after its listing date on December 14, 2018[182] Risks and Financial Management - The company faces market risks including currency risk, interest rate risk, and liquidity risk, and employs various financial instruments to mitigate these risks[96] - The company aims to maintain sufficient operating cash inflows to meet debt obligations and future capital expenditures[100] - The company has established hedging measures to manage foreign exchange rate volatility risks associated with its global operations[101]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong expectation of performance exceeding the market by over 20% in the next six months [4][10]. Core Insights - The company reported a 10.5% year-on-year increase in tourism operations revenue for H1 2024, reaching 10.649 billion RMB, while total revenue grew by 5.8% to 9.415 billion RMB. However, net profit attributable to shareholders decreased by 31.79% to 322 million RMB, primarily due to one-time gains from asset sales in the previous year [4]. - Club Med's global revenue reached a historical high, with sustainable growth in bookings. Revenue in mainland China increased by 20.5%, with outbound tourism and inbound reception revenue growing fivefold and sevenfold, respectively [4][5]. - The company is focusing on a light asset strategy, with the signing of the second phase of the Taicang project, marking a significant milestone in this transition [5]. Financial Data and Profit Forecast - The company forecasts revenue growth from 17.15 billion RMB in 2023 to 18.53 billion RMB in 2024, with a projected net profit of 349 million RMB in 2024, increasing to 492 million RMB by 2026 [6][8]. - The report outlines a consistent growth trajectory in revenue and net profit, with expected growth rates of 8% for 2024 and 9% for the following years [6][8].

事件 2024 年 8 月 22 日公司公告 1H24 业绩，收入 94.1 亿元/+5.8%，归 母净利 3.2 亿元/-31.8%，经调整 EBITDA 20.9 亿元/-9.3%，剔除 1H23 一次性处置度假村受益影响后分别同比+20.3%、+2.8%。 点评 旅游运营稳健增长，对地产销售依赖度进一步下降。1H24 公司旅 游运营营业额 106.5 亿元/+10.5%（一致汇率计），全球业务稳健 增长。分业务拆分收入，Club Med 及其他/三亚亚特兰蒂斯/度假 资产管理中心/复游会及相关业务分别 81.7/8.6/2.9/0.9 亿元、 同比+8.9%/-7.3%/-24.2%/+10.9%，其中地产销售收入 1.6 亿元， 占总收入 1.7%/-2.9pct,对地产业务依赖明显下降。盈利能力看， Club Med 及其他/三亚亚特兰蒂斯/度假资产管理中心/复游会及 相 关 业 务 毛 利 率 分 别 為 33.0%/50.0%/16.4%/94.0% 、 同 比 +1.4/-3.4/-25.1/+21.2pct，经营利润11.5/1.8/-1.1/0.02亿元、 对 应 经营利润率 14.0%/ ...

事件 2024 年 8 月 22 日公司公告 1H24 业绩，收入 94.1 亿元/+5.8%，归 母净利 3.2 亿元/-31.8%，经调整 EBITDA 20.9 亿元/-9.3%，剔除 1H23 一次性处置度假村受益影响后分别同比+20.3%、+2.8%。 点评 旅游运营稳健增长，对地产销售依赖度进一步下降。1H24 公司旅 游运营营业额 106.5 亿元/+10.5%（一致汇率计），全球业务稳健 增长。分业务拆分收入，Club Med 及其他/三亚亚特兰蒂斯/度假 资产管理中心/复游会及相关业务分别 81.7/8.6/2.9/0.9 亿元、 同比+8.9%/-7.3%/-24.2%/+10.9%，其中地产销售收入 1.6 亿元， 占总收入 1.7%/-2.9pct,对地产业务依赖明显下降。盈利能力看， Club Med 及其他/三亚亚特兰蒂斯/度假资产管理中心/复游会及 相 关 业 务 毛 利 率 分 别 為 33.0%/50.0%/16.4%/94.0% 、 同 比 +1.4/-3.4/-25.1/+21.2pct，经营利润11.5/1.8/-1.1/0.02亿元、 对 应 经营利润率 14.0%/ ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) [Key Financial Indicators](index=1&type=section&id=Key%20Financial%20Indicators) Revenue grew 5.8% YoY to RMB 9,414.6 million, while operating profit and net profit attributable to shareholders declined Key Financial Data for H1 2024 (RMB thousands) | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 9,414,566 | 8,898,817 | | Gross Profit | 3,206,501 | 3,076,622 | | Operating Profit | 1,036,480 | 1,352,415 | | Profit Before Income Tax | 387,816 | 678,550 | | Profit for the Period | 317,154 | 490,332 | | Profit Attributable to Equity Holders of the Parent | 321,838 | 471,840 | | Adjusted EBITDA | 2,086,517 | 2,299,661 | | Adjusted Net Profit | 332,745 | 513,215 | | Earnings Per Share — Basic (RMB) | 0.26 | 0.38 | | Earnings Per Share — Diluted (RMB) | 0.26 | 0.38 | - Revenue increased by **5.8% YoY** to **RMB 9,414.6 million**[2](index=2&type=chunk) - Operating profit decreased by **23.4% YoY**, and profit for the period decreased by **35.3% YoY**[2](index=2&type=chunk) [Business Review](index=2&type=section&id=Business%20Review) [Group Overview and Overall Performance](index=2&type=section&id=Group%20Overview%20and%20Overall%20Performance) The Group's tourism operation turnover grew 10.5% YoY to RMB 10,648.8 million, with revenue up 5.8% and gross profit up 4.2% - The Group's tourism operation turnover (at constant exchange rates) reached **RMB 10,648.8 million**, a YoY increase of **10.5%**[3](index=3&type=chunk) - The Group's revenue reached **RMB 9,414.6 million**, a YoY increase of **5.8%**[3](index=3&type=chunk) - Gross profit reached **RMB 3,206.5 million**, a YoY increase of **4.2%**[3](index=3&type=chunk) - Profit attributable to the Company's shareholders, excluding one-off gains from resort disposals, increased by **20.3%** compared to the same period in 2023[3](index=3&type=chunk) [Club Med and Others](index=3&type=section&id=Club%20Med%20and%20Others) Club Med's turnover reached a new high, growing 10.3% YoY to RMB 8,894.4 million, driven by its five-pillar strategy - Club Med operates **67 resorts** in over 40 countries and regions across six continents[4](index=4&type=chunk) - Club Med's turnover reached **RMB 8,894.4 million**, a YoY increase of **10.3%**[4](index=4&type=chunk) - Club Med's global average room occupancy rate reached **70.4%**, an increase of 0.8 percentage points YoY; the average daily bed rate was **RMB 1,922.0**, an increase of **8.1%** YoY[5](index=5&type=chunk) [Club Med Operational Overview and Performance](index=3&type=section&id=Club%20Med%20Operational%20Overview%20and%20Performance) Club Med's performance was driven by growth in EMEA and the Americas, with a strong 32.5% rebound in the Asia Pacific region Club Med Turnover by Customer Booking Region (RMB million) | Region | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | EMEA | 5,038.0 | 4,772.5 | | The Americas | 2,420.9 | 2,205.9 | | Asia Pacific | 1,435.5 | 1,083.7 | | Total | 8,894.4 | 8,062.1 | Club Med Resort Capacity (in thousands) | Resort Type/Location | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Mountain | 1,783.9 | 1,745.5 | | Sun | 3,991.8 | 3,897.7 | | Club Med Joyview | 617.7 | 525.4 | | Total | 6,393.4 | 6,168.6 | | Percentage of Premium and Exclusive Collection Resorts | 99.2% | 96.9% | - Club Med recorded a turnover of **RMB 381.9 million** in mainland China, a YoY increase of **20.5%**, or **33.0%** excluding non-recurring items[4](index=4&type=chunk) [Club Med Strategy and Future Outlook](index=7&type=section&id=Club%20Med%20Strategy%20and%20Future%20Outlook) Club Med advances its five-pillar strategy, focusing on premiumization, digitalization, and global expansion to drive future growth - The capacity of Premium and Exclusive Collection resorts accounted for **99.2%** of our total resort capacity, an increase of 2.3 percentage points YoY[11](index=11&type=chunk) - Club Med's sales network achieved a direct (and semi-direct) sales rate of **71.1%**, with the online booking rate increasing by 2.7 percentage points to **27.3%**[13](index=13&type=chunk) - Club Med launched a generative AI strategy and a new AI chatbot for Brazilian customers on WhatsApp, achieving great success[14](index=14&type=chunk) - As of August 3, 2024, cumulative bookings for H2 2024 increased by approximately **6%** YoY; cumulative bookings for H1 2025 increased by approximately **11%** YoY[15](index=15&type=chunk) [Mini Camp](index=10&type=section&id=Mini%20Camp) Mini Camp's turnover grew by 52.5% YoY to RMB 9.2 million, driven by a 46.7% increase in bookings for its family-oriented programs - Mini Camp's turnover reached **RMB 9.2 million**, a YoY increase of **52.5%**[16](index=16&type=chunk) - Bookings for winter/summer camps and parent-child programs increased by **46.7%** compared to the same period in 2023[16](index=16&type=chunk) [Sanya Atlantis](index=11&type=section&id=Sanya%20Atlantis) Sanya Atlantis maintained market popularity with new venues and events, achieving a record-high occupancy rate of 89.6% - Sanya Atlantis launched a new multi-functional event venue, The ONE, an aquatic wedding chapel[17](index=17&type=chunk) - The C Show's turnover reached **RMB 34.0 million**, a YoY increase of **4.0%**[18](index=18&type=chunk) - Turnover reached **RMB 866.2 million**, a YoY decrease of **5.0%**[18](index=18&type=chunk) - The average room occupancy rate reached a record high of **89.6%**, an increase of 3.4 percentage points YoY[18](index=18&type=chunk) - The average daily room rate was **RMB 2,043.8**, a YoY decrease of **15.1%**[18](index=18&type=chunk) [Operational Highlights and Events](index=11&type=section&id=Operational%20Highlights%20and%20Events) Sanya Atlantis launched The ONE aquatic wedding chapel and hosted various themed events, enhancing its customer experience and market appeal - In January, Sanya Atlantis officially launched its new multi-functional event venue — The ONE aquatic wedding chapel[17](index=17&type=chunk) - During the Spring Festival, it hosted a series of exciting events, including the "Legend of Mountains and Seas, Dragon Dance for the New Year" projection show and a "Honor of Kings Themed Limited-Time Special Exhibition"[17](index=17&type=chunk) - The C Show's turnover reached **RMB 34.0 million**, a YoY increase of **4.0%**[18](index=18&type=chunk) [Financial Performance and Key Data](index=12&type=section&id=Financial%20Performance%20and%20Key%20Data) Turnover decreased by 5.0% YoY to RMB 866.2 million due to a lower average daily rate, though the occupancy rate hit a record high Sanya Atlantis Key Operational Data | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Turnover (RMB thousands) | 866,168 | 912,143 | | Average Room Occupancy Rate | 89.6% | 86.2% | | Average Daily Room Rate (RMB) | 2,044 | 2,408 | | Revenue Per Available Room (RMB) | 1,831 | 2,075 | - Adjusted EBITDA was **RMB 293.7 million**, a YoY decrease of **23.4%** after excluding non-recurring items from the same period in 2023[18](index=18&type=chunk) [Vacation Asset Management Center](index=13&type=section&id=Vacation%20Asset%20Management%20Center) The center integrated Taicang and Lijiang projects, optimizing IP operations and advancing an asset-light strategy - The Vacation Asset Management Center includes the Taicang Alps International Resort and the Lijiang Mediterranean International Resort[20](index=20&type=chunk) - Taicang Alps International Resort's operational turnover reached **RMB 112.9 million**, with **290,000 visitors**[22](index=22&type=chunk) - Lijiang Mediterranean International Resort's turnover reached **RMB 45.7 million**, a YoY increase of **15.3%**, with **107,000 visitors**, a YoY increase of **67.4%**[25](index=25&type=chunk) [Taicang Alps International Resort](index=13&type=section&id=Taicang%20Alps%20International%20Resort) The resort's operational turnover reached RMB 112.9 million in H1 2024, with a phase two project signed for over RMB 5 billion - The operational part of Taicang Alps International Resort opened in H2 2023, including Alps Snow World, Club Med Joyview Taicang Resort, and Alps Time[21](index=21&type=chunk) - In H1 2024, the operational turnover of Taicang Alps International Resort reached **RMB 112.9 million**, with **290,000 visitors**[22](index=22&type=chunk) - In June 2024, the phase two project of Taicang Alps International Resort was officially signed with a total investment of over **RMB 5 billion**, which will include a snow-view hotel, themed hotel, water park, land park, and aquarium[22](index=22&type=chunk) Taicang Alps International Resort Property Sales and Delivery | Period | Units Sold (including pre-sold) | Sales Value (including pre-sold) (RMB million) | Units Delivered | Area Delivered (sqm) | Revenue Recognized (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | | H1 2024 | 24 | 58.2 | 51 | 5,678.5 | 120.4 | | From pre-sale to June 30, 2024 | 1,447 | 3,774.5 | 1,411 | 157,480.9 | 3,365.1 | [Lijiang Mediterranean International Resort](index=15&type=section&id=Lijiang%20Mediterranean%20International%20Resort) The resort's turnover grew 15.3% YoY to RMB 45.7 million, driven by a 67.4% increase in visitors and a successful brand upgrade - Lijiang Mediterranean International Resort opened on September 25, 2021, and includes Club Med Lijiang Resort, Lijiang Mediterranean Tang'an Resort Hotel, JOY PARK commercial street, and AMAZE Snow Mountain Camp[24](index=24&type=chunk) - In H1 2024, the resort upgraded its snow mountain camp brand to "AMAZE," which ranked second on Douyin's Lijiang attractions collection list and fourth on its bestseller list[24](index=24&type=chunk) - Turnover reached **RMB 45.7 million**, a YoY increase of **15.3%**, with **107,000 visitors**, a YoY increase of **67.4%**[25](index=25&type=chunk) Lijiang Mediterranean International Resort Property Sales and Delivery | Period | Units Sold | Sales Value (RMB million) | Units Delivered | Building Area Delivered (sqm) | Revenue Recognized (RMB million) | | :--- | :--- | :--- | :--- | :--- | :--- | | H1 2024 | 30 | 38.0 | 23 | 1,854.0 | 26.3 | | From pre-sale to June 30, 2024 | 154 | 183.2 | 129 | 7,798.1 | 139.8 | [Foryou Club and Related Businesses](index=16&type=section&id=Foryou%20Club%20and%20Related%20Businesses) The Foryou Club global membership platform grew to over 6.9 million members, while Thomas Cook UK achieved turnover growth - The Foryou Club platform has over **6.902 million members**, a YoY increase of **12.6%**[28](index=28&type=chunk) - Foryou Club's turnover was **RMB 172.7 million**, remaining stable compared to the same period in 2023[28](index=28&type=chunk) - Thomas Cook UK performed well with YoY turnover growth, focusing on long-haul holiday products[29](index=29&type=chunk) [Foryou Club Platform](index=17&type=section&id=Foryou%20Club%20Platform) The platform's membership grew 12.6% YoY to over 6.9 million by leveraging digital strategies and ecosystem partnerships - Foryou Club is the global membership platform of Fosun Tourism, including members from Club Med, Sanya Atlantis, and other business segments[28](index=28&type=chunk) - As of June 30, 2024, the Foryou Club platform had over **6.902 million members**, a YoY increase of **12.6%**[28](index=28&type=chunk) [Thomas Cook UK](index=17&type=section&id=Thomas%20Cook%20UK) Thomas Cook UK achieved YoY turnover growth by optimizing marketing spend and focusing on profitable long-haul holiday products - Thomas Cook UK performed well with YoY turnover growth[29](index=29&type=chunk) - The company focused on long-haul holiday products by optimizing marketing spend to achieve higher profit margins[29](index=29&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Analysis of Condensed Consolidated Statement of Profit or Loss](index=18&type=section&id=Analysis%20of%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Group revenue grew 5.8% YoY, but operating profit declined 23.4% due to lower gross profit from Sanya Atlantis and a one-off government subsidy in the prior year Condensed Consolidated Statement of Profit or Loss Summary (RMB thousands) | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 9,414,566 | 8,898,817 | | Gross Profit | 3,206,501 | 3,076,622 | | Operating Profit | 1,036,480 | 1,352,415 | | Profit Before Income Tax | 387,816 | 678,550 | | Profit for the Period | 317,154 | 490,332 | | Profit Attributable to Equity Holders of the Parent | 321,838 | 471,840 | - Revenue increased by **5.8% YoY** to **RMB 9,414.6 million**, driven by the continued recovery of the global tourism market and improved operational efficiency[31](index=31&type=chunk) - Operating profit was **RMB 1,036.5 million**, compared to RMB 1,352.4 million in the same period last year, mainly affected by the decrease in gross profit of Sanya Atlantis and a one-off government subsidy in the prior year[41](index=41&type=chunk)[42](index=42&type=chunk) [Revenue Analysis](index=19&type=section&id=Revenue%20Analysis) Group revenue grew 5.8% YoY, driven by a 9.1% increase in the Club Med and Others segment, which offset declines in other segments Revenue by Business Segment (RMB thousands) | Business Segment | For the six months ended June 30, 2024 | % of Total | For the six months ended June 30, 2023 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Club Med and Others | 8,193,194 | 87.0% | 7,506,818 | 84.4% | | Sanya Atlantis | 867,740 | 9.2% | 937,461 | 10.5% | | Vacation Asset Management Center | 294,242 | 3.1% | 389,914 | 4.4% | | Foryou Club and Related Businesses | 134,432 | 1.4% | 104,542 | 1.2% | | Total Revenue | 9,414,566 | 100.0% | 8,898,817 | 100.0% | - Revenue from Club Med and Others increased by **9.1%** to **RMB 8,193.2 million**, benefiting from increased capacity, occupancy rates, and average daily bed rates[32](index=32&type=chunk) - Revenue from Sanya Atlantis decreased by **7.4%** to **RMB 867.7 million**, primarily due to a **15.1%** decrease in the average daily room rate[33](index=33&type=chunk) [Cost of Sales and Gross Profit Analysis](index=20&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit%20Analysis) Gross profit increased 4.2% YoY, but the gross margin slightly decreased to 34.1% due to pricing strategies and revenue mix changes - Cost of sales increased by **6.6%** from RMB 5,822.2 million to **RMB 6,208.1 million**[36](index=36&type=chunk) - Gross profit increased by **4.2%** to **RMB 3,206.5 million**, while the gross profit margin slightly decreased from 34.6% to **34.1%**[37](index=37&type=chunk) Gross Profit and Gross Margin by Business Segment (RMB thousands) | Business Segment | 2024 Gross Profit | 2024 Gross Margin | 2023 Gross Profit | 2023 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Sanya Atlantis | 420,076 | 48.4% | 496,236 | 52.9% | | Vacation Asset Management Center | 48,147 | 16.4% | 160,963 | 41.3% | | Foryou Club and Related Businesses | 85,107 | 63.3% | 59,480 | 56.9% | | Total | 3,206,501 | 34.1% | 3,076,622 | 34.6% | [Other Income and Gains, Net](index=21&type=section&id=Other%20Income%20and%20Gains%2C%20Net) Net income decreased significantly to RMB 121.4 million, mainly due to a reversal of litigation provisions and net foreign exchange losses - Net income for H1 2024 was **RMB 121.4 million**, compared to RMB 384.5 million in the same period last year[38](index=38&type=chunk) - This was mainly due to a reversal of litigation provisions for Club Med resorts of **RMB 142.3 million** and a net foreign exchange loss of **RMB 47.2 million**[38](index=38&type=chunk) [Selling and Marketing Costs](index=21&type=section&id=Selling%20and%20Marketing%20Costs) Selling and marketing costs rose 9.5% YoY to RMB 1,316.7 million, driven by higher sales commissions and advertising expenses - Selling and marketing costs increased by **9.5% YoY** to **RMB 1,316.7 million**[39](index=39&type=chunk) - Sales commissions for resorts and tourism operations increased by **11.0% YoY** to **RMB 444.4 million**[39](index=39&type=chunk) [General and Administrative Expenses](index=21&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased by 7.5% to RMB 974.7 million, primarily due to higher employee costs at Club Med - General and administrative expenses increased by **7.5%** to **RMB 974.7 million**[40](index=40&type=chunk) - Employee costs at Club Med increased by **RMB 83.5 million**[40](index=40&type=chunk) [Operating Profit Analysis](index=22&type=section&id=Operating%20Profit%20Analysis) Operating profit declined to RMB 1,036.5 million, impacted by reduced profitability at Sanya Atlantis and a loss at the Vacation Asset Management Center Operating Profit by Business Segment (RMB thousands) | Business Segment | For the six months ended June 30, 2024 | % of Total | For the six months ended June 30, 2023 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Club Med and Others | 1,145,355 | 110.5% | 1,177,309 | 87.1% | | Sanya Atlantis | 177,418 | 17.1% | 346,769 | 25.6% | | Vacation Asset Management Center | (106,456) | (10.3%) | 74,898 | 5.5% | | Foryou Club and Related Businesses | 2,054 | 0.2% | (34,893) | (2.6%) | | Total | 1,036,480 | 100.0% | 1,352,415 | 100.0% | - Sanya Atlantis's operating profit decreased to **RMB 177.4 million**, mainly due to a RMB 76.2 million decrease in gross profit and a one-off government subsidy of RMB 78.4 million in H1 2023[42](index=42&type=chunk) - The Vacation Asset Management Center generated an operating loss of **RMB 106.5 million**, compared to an operating profit of RMB 74.9 million in the same period of 2023[42](index=42&type=chunk) [Finance Costs](index=23&type=section&id=Finance%20Costs) Finance costs, net of capitalized interest, slightly decreased by RMB 13.9 million to RMB 646.4 million - Finance costs slightly decreased from RMB 660.3 million to **RMB 646.4 million**[43](index=43&type=chunk) - Debt balance slightly decreased by **RMB 39.1 million**[43](index=43&type=chunk) [Income Tax Expense](index=23&type=section&id=Income%20Tax%20Expense) Income tax expense decreased significantly by RMB 117.5 million to RMB 70.7 million, mainly comprising taxes for Club Med and China land appreciation tax - Income tax expense decreased from RMB 188.2 million to **RMB 70.7 million**[44](index=44&type=chunk) - This mainly included income tax related to Club Med's business of **RMB 96.5 million** and China land appreciation tax of **RMB 12.3 million**[44](index=44&type=chunk) [Non-IFRS Measures](index=23&type=section&id=Non-IFRS%20Measures) The Group uses non-IFRS measures like Adjusted EBITDA and Adjusted Net Profit to evaluate performance, both of which declined in H1 2024 - The Group uses non-IFRS measures such as EBITDA, Adjusted EBITDA, and Adjusted Net Profit to evaluate financial performance[45](index=45&type=chunk) [Adjusted EBITDA](index=24&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA decreased to RMB 2,086.5 million, primarily due to declines in the Sanya Atlantis and Vacation Asset Management Center segments Adjusted EBITDA (RMB thousands) | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Profit before income tax | 387,816 | 678,550 | | Depreciation | 978,604 | 898,036 | | Amortization | 70,355 | 78,336 | | Finance costs | 646,433 | 660,282 | | Land appreciation tax | (12,282) | (38,426) | | EBITDA | 2,070,926 | 2,276,778 | | Equity-settled share-based payments | 15,591 | 22,883 | | Adjusted EBITDA | 2,086,517 | 2,299,661 | | From tourism operations | 2,178,182 | 2,288,633 | | From property development and sales | (91,665) | 11,028 | - Adjusted EBITDA decreased from RMB 2,299.7 million to **RMB 2,086.5 million**[46](index=46&type=chunk) - Adjusted EBITDA for the Sanya Atlantis segment decreased from RMB 452.5 million to **RMB 281.1 million**[47](index=47&type=chunk) [Adjusted Net Profit](index=25&type=section&id=Adjusted%20Net%20Profit) Adjusted net profit decreased from RMB 513.2 million in H1 2023 to RMB 332.7 million in H1 2024 Adjusted Net Profit (RMB thousands) | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Net Profit | 317,154 | 490,332 | | Equity-settled share-based payments | 15,591 | 22,883 | | Adjusted Net Profit | 332,745 | 513,215 | - Adjusted net profit was **RMB 332.7 million**, a decrease from RMB 513.2 million in the same period last year[48](index=48&type=chunk) [Capital Expenditure](index=25&type=section&id=Capital%20Expenditure) Capital expenditure decreased to RMB 546.5 million as the Group focused on an asset-light management strategy - Capital expenditure for H1 2024 was **RMB 546.5 million**, a decrease from RMB 746.1 million in the same period of 2023[49](index=49&type=chunk) - Club Med's capital expenditure was **RMB 317.0 million**, a decrease of approximately RMB 13.7 million YoY[49](index=49&type=chunk) - Capital expenditure for the Vacation Asset Management Center decreased by **RMB 222.7 million** as the Group focuses on asset-light management[49](index=49&type=chunk) [Indebtedness, Liquidity and Financial Resources](index=26&type=section&id=Indebtedness%2C%20Liquidity%20and%20Financial%20Resources) The Group maintained a sound liquidity position with RMB 3.5 billion in cash and improved its net current liabilities and current ratio - As of June 30, 2024, cash and bank balances were approximately **RMB 3.5 billion**[50](index=50&type=chunk) - Undrawn bank facilities were approximately **RMB 3,256.9 million**, maintaining a sound liquidity position[51](index=51&type=chunk) - Net current liabilities improved from RMB 7,551.1 million to **RMB 5,378.3 million**[54](index=54&type=chunk) - The current ratio increased from 0.53 to **0.62**[54](index=54&type=chunk) [Cash and Bank Balances Analysis](index=26&type=section&id=Cash%20and%20Bank%20Balances%20Analysis) Cash and bank balances increased to RMB 3,541 million, supported by RMB 1,195 million in net cash from operating activities Cash Flow Position (RMB million) | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Net cash flow from operating activities | 1,195 | 1,652 | | Net cash flow used in investing activities | (415) | (251) | | Net cash flow used in financing activities | (189) | (1,103) | | Cash and bank balances at end of period | 3,541 | 3,302 | [Indebtedness](index=26&type=section&id=Indebtedness) Total interest-bearing borrowings stood at RMB 12,862.8 million, with the Group in compliance with all major loan covenants - Total interest-bearing bank and other borrowings amounted to **RMB 12,862.8 million**, with RMB 3,379.4 million repayable within one year[52](index=52&type=chunk) - The directors confirmed that the Group has complied with all material covenants of its loan agreements and amendments[53](index=53&type=chunk) [Capital Structure](index=27&type=section&id=Capital%20Structure) The Group's net current liabilities improved to RMB 5,378.3 million, and the current ratio rose to 0.62, while the gearing ratio slightly increased - Total assets decreased from RMB 38,622.8 million to **RMB 37,447.1 million**[54](index=54&type=chunk) - Net current liabilities improved from RMB 7,551.1 million to **RMB 5,378.3 million**[54](index=54&type=chunk) - The current ratio increased from 0.53 to **0.62**[54](index=54&type=chunk) - The gearing ratio slightly increased from 53.5% to **55.1%**[54](index=54&type=chunk) [Impact of Exchange Rate Fluctuations](index=27&type=section&id=Impact%20of%20Exchange%20Rate%20Fluctuations) Currency fluctuations, particularly the depreciation of the Euro, resulted in a net foreign exchange loss of RMB 47.2 million - A net foreign exchange loss of **RMB 47.2 million** was recorded in H1 2024, compared to a net gain of RMB 70.3 million in the same period last year[55](index=55&type=chunk) - Translation of Club Med's overseas operations resulted in a loss of **RMB 83.5 million**, compared to a gain of RMB 62.4 million in the prior year period[56](index=56&type=chunk) [Condensed Interim Consolidated Financial Statements](index=29&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) [Condensed Interim Consolidated Statement of Profit or Loss](index=29&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For H1 2024, the Group reported revenue of RMB 9,414.6 million and profit attributable to equity holders of RMB 321.8 million Condensed Interim Consolidated Statement of Profit or Loss (RMB thousands) | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 9,414,566 | 8,898,817 | | Cost of sales | (6,208,065) | (5,822,195) | | Gross profit | 3,206,501 | 3,076,622 | | Other income and gains, net | 121,443 | 384,472 | | Selling and distribution costs | (1,316,740) | (1,201,982) | | Administrative expenses | (974,724) | (906,697) | | Operating profit | 1,036,480 | 1,352,415 | | Finance costs | (646,433) | (660,282) | | Share of profits and losses of associates | (2,231) | (13,583) | | Profit before income tax | 387,816 | 678,550 | | Income tax expense | (70,662) | (188,218) | | Profit for the period | 317,154 | 490,332 | | Attributable to equity holders of the parent | 321,838 | 471,840 | | Attributable to non-controlling interests | (4,684) | 18,492 | | Basic earnings per share (RMB) | 0.26 | 0.38 | | Diluted earnings per share (RMB) | 0.26 | 0.38 | [Condensed Interim Consolidated Statement of Comprehensive Income](index=30&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period was RMB 247.9 million, after accounting for a net other comprehensive loss of RMB 69.2 million Condensed Interim Consolidated Statement of Comprehensive Income (RMB thousands) | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Profit for the period | 317,154 | 490,332 | | Exchange differences on translation of foreign operations | (83,465) | 62,424 | | Net other comprehensive (loss)/income to be reclassified to profit or loss in subsequent periods | (75,780) | 25,218 | | Net other comprehensive income not to be reclassified to profit or loss in subsequent periods | 6,551 | 3,315 | | Other comprehensive (loss)/income for the period, net of tax | (69,229) | 28,533 | | Total comprehensive income for the period | 247,925 | 518,865 | | Attributable to equity holders of the parent | 264,164 | 486,004 | | Attributable to non-controlling interests | (16,239) | 32,861 | [Condensed Interim Consolidated Statement of Financial Position](index=31&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were RMB 37.4 billion, with net current liabilities of RMB 5.4 billion and net assets of RMB 2.6 billion Condensed Interim Consolidated Statement of Financial Position Summary (RMB thousands) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total non-current assets | 28,726,113 | 30,060,506 | | Total current assets | 8,720,993 | 8,562,341 | | Total current liabilities | 14,099,334 | 16,113,413 | | Net current liabilities | (5,378,341) | (7,551,072) | | Total non-current liabilities | 20,703,243 | 20,129,134 | | Net assets | 2,644,529 | 2,380,300 | | Equity attributable to equity holders of the parent | 2,578,851 | 2,296,419 | | Total equity | 2,644,529 | 2,380,300 | - As of June 30, 2024, the Group's net current liabilities were **RMB 5,378,341 thousand**[63](index=63&type=chunk) [Notes to the Condensed Interim Consolidated Financial Information](index=33&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Information) [Basis of Preparation and Accounting Policies](index=33&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The financial information was prepared under IAS 34 on a going concern basis, despite the Group's net current liability position - The condensed interim consolidated financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[63](index=63&type=chunk) - As of June 30, 2024, the Group had net current liabilities of **RMB 5,378,341,000**, but the directors consider it appropriate to prepare the financial statements on a going concern basis[63](index=63&type=chunk) - Amendments to IFRS 16, IAS 1, IAS 7, and IFRS 7 had no material impact on the Group's financial position or performance[64](index=64&type=chunk)[65](index=65&type=chunk) [Operating Segment Data](index=34&type=section&id=Operating%20Segment%20Data) The Group's performance is assessed across four operating segments, with Club Med and Others being the largest contributor to operating profit - The Group has four reportable operating segments: Club Med and Others, Sanya Atlantis, Vacation Asset Management Center, and Foryou Club and Related Businesses[66](index=66&type=chunk) Total Revenue and Operating Profit by Segment (RMB thousands) | Segment | 2024 Total Revenue | 2024 Segment Operating Profit/(Loss) | | :--- | :--- | :--- | | Club Med and Others | 8,193,194 | 1,145,355 | | Sanya Atlantis | 867,740 | 177,418 | | Vacation Asset Management Center | 294,242 | (106,456) | | Foryou Club and Related Businesses | 134,432 | 2,054 | | Total | 9,414,566 | 1,172,322 | [Revenue Breakdown](index=36&type=section&id=Revenue%20Breakdown) Revenue is primarily generated from tourism operations and other services, with the EMEA region being the largest geographical contributor Revenue by Service Category (RMB thousands) | Service Category | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Tourism operations and other services | 9,251,920 | 8,486,668 | | Property sales and construction services | 162,646 | 412,149 | | Total | 9,414,566 | 8,898,817 | Revenue from External Customers by Region (RMB thousands) | Region | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Europe, Middle East and Africa | 5,045,002 | 4,631,679 | | The Americas | 2,294,589 | 2,079,227 | | Asia Pacific | 2,074,975 | 2,187,911 | | Total | 9,414,566 | 8,898,817 | - The majority of revenue (**RMB 9,257,906 thousand**) is recognized over time as services are rendered[73](index=73&type=chunk) [Details of Other Income and Gains, Net](index=39&type=section&id=Details%20of%20Other%20Income%20and%20Gains%2C%20Net) Other income and gains decreased significantly due to lower government subsidies, reduced gains on asset disposals, and a net foreign exchange loss Other Income and Gains, Net (RMB thousands) | Category | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Interest income | 47,925 | 57,993 | | Government subsidies | 13,703 | 89,805 | | Gain on disposal of property, plant and equipment | 10,616 | 217,747 | | Net foreign exchange gains | — | 70,322 | | Reversal of provision for resort closures | 142,340 | 7,485 | | Net foreign exchange losses | (47,204) | — | | Other income and gains, net | 121,443 | 384,472 | - Government subsidies decreased significantly from RMB 89,805 thousand to **RMB 13,703 thousand**[75](index=75&type=chunk) - A net foreign exchange loss of **RMB 47,204 thousand** was recorded, compared to a net gain of RMB 70,322 thousand in the prior year period[76](index=76&type=chunk) [Details of Finance Costs](index=40&type=section&id=Details%20of%20Finance%20Costs) Total finance costs slightly decreased to RMB 646.4 million, primarily comprising interest on borrowings and lease liabilities Finance Costs (RMB thousands) | Category | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Interest on bank and other borrowings | 351,061 | 388,107 | | Interest on lease liabilities | 281,993 | 269,451 | | Bank charges and other finance costs | 13,379 | 18,120 | | Total finance costs | 646,433 | 660,282 | - Interest on bank and other borrowings decreased from RMB 388,107 thousand to **RMB 351,061 thousand**[77](index=77&type=chunk) [Composition of Profit Before Income Tax](index=41&type=section&id=Composition%20of%20Profit%20Before%20Income%20Tax) Profit before tax was impacted by increased depreciation charges, while no impairment loss on intangible assets was recorded in H1 2024 - Depreciation of property, plant and equipment increased to **RMB 376,803 thousand**[78](index=78&type=chunk) - Depreciation of right-of-use assets increased to **RMB 601,801 thousand**[78](index=78&type=chunk) - Impairment loss on intangible assets was **zero**, compared to RMB 87,891 thousand in the same period last year[78](index=78&type=chunk) [Details of Income Tax](index=42&type=section&id=Details%20of%20Income%20Tax) Total income tax expense decreased significantly to RMB 70.7 million, mainly consisting of current tax in France and other regions Income Tax Expense (RMB thousands) | Category | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Current tax — France and others | 134,278 | 119,355 | | Current tax — Mainland China income tax | 206 | 24,934 | | Current tax — Mainland China land appreciation tax | 12,282 | 38,426 | | Deferred | (76,104) | 5,503 | | Total income tax expense for the period | 70,662 | 188,218 | - Hainan Atlantis, as a qualified encouraged industry enterprise, is subject to a preferential tax rate of **15%**[80](index=80&type=chunk) [Dividend](index=43&type=section&id=Dividend) No dividend was paid or declared by the Company for the six months ended June 30, 2024 - No dividend was paid or declared by the Company for the six months ended June 30, 2024[81](index=81&type=chunk) [Earnings Per Share](index=43&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share were both RMB 0.26, a decrease from RMB 0.38 in the prior year period Basis for Earnings Per Share Calculation | Indicator | For the six months ended June 30, 2024 | For the six months ended June 30, 2023 | | :--- | :--- | :--- | | Earnings attributable to ordinary equity holders of the parent (RMB thousands) | 321,838 | 471,840 | | Weighted average number of ordinary shares in issue (shares) | 1,243,191,887 | 1,241,763,222 | | Weighted average number of ordinary shares for diluted earnings per share (shares) | 1,245,605,307 | 1,248,323,689 | | Basic earnings per share (RMB) | 0.26 | 0.38 | | Diluted earnings per share (RMB) | 0.26 | 0.38 | [Trade Receivables](index=44&type=section&id=Trade%20Receivables) Trade receivables decreased to RMB 511.8 million, with the majority of balances aged within 90 days Aging Analysis of Trade Receivables (RMB thousands) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 90 days | 444,977 | 643,465 | | 91 to 180 days | 43,157 | 41,822 | | 181 to 365 days | 18,974 | 8,309 | | 1 to 2 years | 2,832 | 8,754 | | 2 to 3 years | 1,726 | 2,611 | | Over 3 years | 167 | — | | Total | 511,833 | 704,961 | [Trade Payables](index=45&type=section&id=Trade%20Payables) Trade payables decreased to RMB 1,993.6 million, with the largest portion of balances aged within 90 days Aging Analysis of Trade Payables (RMB thousands) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 90 days | 1,575,890 | 1,607,981 | | 91 to 180 days | 155,317 | 59,396 | | 181 to 365 days | 103,808 | 47,231 | | 1 to 2 years | 19,305 | 291,331 | | 2 to 3 years | 49,189 | 22,821 | | Over 3 years | 90,116 | 112,103 | | Total | 1,993,625 | 2,140,863 | [Events After the Reporting Period](index=45&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the end of the reporting period - No significant events have occurred since the end of the reporting period[87](index=87&type=chunk) [Other Information](index=46&type=section&id=Other%20Information) [Interim Dividend Payment](index=46&type=section&id=Interim%20Dividend%20Payment) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[88](index=88&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=46&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any shares during the reporting period - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any shares during the reporting period[88](index=88&type=chunk) [Review of Interim Results](index=46&type=section&id=Review%20of%20Interim%20Results) The Group's unaudited interim results have been reviewed by the Audit Committee, which raised no objections to the accounting treatments adopted - The Group's interim results are unaudited but have been reviewed by the Audit Committee[89](index=89&type=chunk) - The Audit Committee has no objection to the accounting treatments adopted by the Company[89](index=89&type=chunk) [Corporate Governance Practices of the Company](index=46&type=section&id=Corporate%20Governance%20Practices%20of%20the%20Company) The Company is committed to high standards of corporate governance and has fully complied with the Corporate Governance Code - The Company has applied the principles of the Corporate Governance Code and has fully complied with its provisions[90](index=90&type=chunk) [Model Code for Securities Transactions](index=46&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted the Model Code, and all directors have confirmed their compliance throughout the reporting period - The Company has adopted the Model Code, and all directors have complied with it throughout the reporting period[91](index=91&type=chunk) [Publication of Interim Results](index=47&type=section&id=Publication%20of%20Interim%20Results) This results announcement is available on the websites of the Stock Exchange and the Company - This results announcement is published on the Stock Exchange's website (www.hkexnews.hk) and the Company's website (www.fosunholiday.com)[92](index=92&type=chunk) - The interim report will be published and/or sent to shareholders on or before September 30, 2024[92](index=92&type=chunk) [Forward-Looking Statements](index=47&type=section&id=Forward-Looking%20Statements) This announcement contains forward-looking statements that involve known and unknown risks and uncertainties - This announcement contains certain forward-looking statements regarding the Group's financial condition, results, and business, which involve known and unknown risks and uncertainties[93](index=93&type=chunk) [Glossary](index=48&type=section&id=Glossary)

Investment Rating - The report assigns a "Buy" rating for Fosun Tourism Group (1992.HK) [2]. Core Insights - Fosun Tourism Group is positioned in the high-end leisure vacation sector, showing strong growth potential despite global economic uncertainties. The company achieved a 19% increase in tourism operating revenue in 2023, with a steady growth trend continuing into 2024 [5][17]. - The company's strategic focus on high-end vacation offerings, such as Club Med, has led to a significant increase in average daily room rates, which rose by 31% compared to 2019 [17][22]. - The report highlights a shift in revenue and profit structure, with a decreasing reliance on real estate sales, which now account for less than 7% of total revenue, down from 20% in 2019 [28][31]. Summary by Sections 1. Positioning in High-End Leisure Vacation Sector - Global high-end consumption is expected to maintain resilience in the short term and steady growth in the long term, driven by high-income groups [7][10]. - Fosun Tourism Group's performance has been impressive since 2023, with a 19% growth in tourism operating revenue despite external challenges [5][17]. 2. Brand and Product Advantages - The company's product strength has been validated, with profitability exceeding pre-pandemic levels. In 2023, tourism operating revenue reached 181 billion yuan, a 19% increase year-on-year [22][24]. - The company has adopted a light-asset operation strategy, focusing on enhancing operational capabilities in products, brands, and services to achieve sustainable growth [26][27]. 3. Revenue and Profit Structure Changes - The reliance on real estate has decreased significantly, with tourism operations now contributing the majority of revenue. In 2023, adjusted EBITDA was 37.3 billion yuan, with tourism operations accounting for 37.13 billion yuan [28][31]. - The company maintains a stable net debt level of 8.7 billion yuan and has a healthy cash balance of approximately 3 billion yuan [33][34]. 4. Profit Forecast and Valuation - The report forecasts revenue growth for 2024-2026, estimating total revenues of 185 billion yuan, 207 billion yuan, and 224 billion yuan, respectively, with a focus on tourism operations [35][36]. - The current valuation is considered low, with the report suggesting a potential for significant price recovery as the company continues to expand its high-end vacation offerings [40][41].

港股公司报告 | 公司点评 复星旅游文化（01992） 证券研究报告 2024年05月 10日 投资评级 23 年业绩扭亏为盈，24Q1 稳步提升 行业 非必需性消费/旅游及 消闲设施 6个月评级 买入（维持评级） 事件：公司发布 23年全年业绩及 24年首季运营公告。（1）23年：旅游运 当前价格 4.14港元 营营业额录得181.3亿元/yoy+19%，相较19年+28%；收入端，171.5亿元 目标价格 港元 /yoy+24%，其中物业销售贡献占比降至7%以下；利润端，实现经调整EBITDA 为37.3亿元/yoy+59%；归母净利润3.1亿元/yoy+156%实现扭亏为盈。（2） 基本数据 24Q1：公司录得旅游运营营业额71.6 亿元/yoy+15.8%；未经审计之归母净 港股总股本(百万股) 1,243.38 利润较23年同期稳步提升。 港股总市值(百万港元) 5,147.58 Club Med及其他：（1）业绩表现：23年Club Med录得营业额151.2亿元 每股净资产(港元) 2.04 /yoy+19%，较19年+18%；经调整 EBITDA 32.1亿元/yoy+47%，在高通胀环 资产 ...

Financial Performance - Adjusted EBITDA reached RMB 3,729.9 million, a 59% increase year-on-year[7] - Total revenue for 2023 was RMB 17,151.8 million, representing a 24% year-on-year growth[12] - Profit attributable to shareholders was RMB 307.2 million, a significant increase of 156% compared to the previous year[12] - In 2023, the revenue of Fosun Tourism Group reached RMB 17,151.8 million, primarily from tourism operations, with property sales accounting for less than 7%[17] - The operating revenue from Club Med and other segments increased from RMB 15,252.4 million in 2022 to RMB 18,125.1 million in 2023, representing a year-on-year growth of 18.8%[20] - The adjusted EBITDA rose from RMB 2,344.9 million in 2022 to RMB 3,729.9 million in 2023[20] - The net profit attributable to shareholders was RMB 307.2 million in 2023, a significant recovery from a loss of RMB 544.9 million in 2022[20] - The operating profit for the company was RMB 1.807 billion, compared to RMB 593.5 million in the previous year[76] - Gross profit increased by 40.2% to RMB 5,595.2 million, with gross margin rising from 29.0% to 32.6%[83] - The adjusted net profit for 2023 was RMB 394.6 million, a significant improvement from a net loss of RMB 497.3 million in 2022[94] Revenue Growth - Club Med's global revenue reached RMB 15,122.5 million, a 19% increase year-on-year, with all major regions recovering to pre-pandemic levels[12] - The Americas region has become a new growth engine for Club Med, with revenue in Brazil doubling compared to 2019[16] - Revenue from the Americas grew by 23.5% compared to 2022 and 62.7% compared to 2019, with a total revenue of RMB 3,651.6 million in 2023[33] - In mainland China, revenue reached RMB 752.8 million in 2023, an increase of 86.3% from 2022, recovering to 101.2% of 2019 levels[30] - Revenue in the Asia-Pacific region grew by 96.5% in 2023 compared to 2022, reaching 101.6% of 2019 levels, indicating a strong post-pandemic recovery[36] - Revenue from Sanya Atlantis surged by 92.8% to RMB 1.769 billion, attributed to increased room revenue and occupancy rates[79] Operational Highlights - The average daily room rate for Club Med increased, contributing to a 47% year-on-year growth in adjusted EBITDA to RMB 3,207.9 million[12] - The average occupancy rate for Club Med globally reached 70.0% in 2023, an increase of 3.5 percentage points from 2022, but 1.5 percentage points lower than 2019[33] - The capacity of Club Med resorts increased by 6.4% in 2023 compared to 2022, reaching 97.7% of 2019 levels[26] - The number of customers served reached 1,518 thousand in 2023, up from 1,304 thousand in 2022[32] - The average daily rate per bed was RMB 1,681.2 in 2023, reflecting an increase of approximately 8.5% from 2022 and 30.8% from 2019[33] - The average daily room rate was RMB 2,385.5, with an average occupancy rate of 81.9%, an increase of 38.9 percentage points compared to 2022[55] Strategic Initiatives - The company launched a new urban resort product line, "Mediterranean Daydream," with successful pre-sales in Nanjing and Taicang[15] - The company aims to enhance its light-asset operation strategy, focusing on product, brand, service, and experience improvements[17] - The company plans to leverage opportunities in urban vacations, cross-border travel, and winter tourism as markets recover[18] - The company continues to focus on its strategic product lines: mountain and Exclusive Collection series[43] - The company is investing in new technology for guest services to improve the overall customer experience at its resorts[52] Market Expansion - The Asia-Pacific region, particularly China, Japan, South Korea, and Southeast Asia, is identified as a key growth area for future expansion[16] - The company has expanded its resort offerings with new properties in China, including the opening of 5 new resorts in 2023[47] - The company aims to expand its market presence in Southeast Asia, leveraging its existing properties in Indonesia and Thailand[47] Corporate Governance - The board has committed to high standards of corporate governance, aligning with shareholder interests and enhancing corporate value[121] - The board of directors consists of 12 members, including 3 executive directors, 3 non-executive directors, and 4 independent non-executive directors, ensuring a diverse representation[127] - The company has implemented a board diversity policy since 2018, focusing on various factors such as gender, age, and professional experience[133] - The company emphasizes the importance of providing accurate, clear, and complete information to all directors in a timely manner[142] - The company has established various committees under the board, including the audit committee, compensation committee, nomination committee, strategic committee, and environmental, social, and governance committee[143] Risk Management - The company has established a risk management and internal control system that includes regular assessments and audits to ensure effectiveness and compliance with regulations[156] - The board has confirmed the effectiveness of the risk management and internal control systems, covering financial monitoring, operational monitoring, compliance monitoring, and risk management functions[157] - The company has implemented a zero-tolerance policy towards fraud, encouraging stakeholders to report any misconduct through various channels while ensuring confidentiality[156] Shareholder Communication - The company has a shareholder communication policy in place to facilitate effective communication with shareholders and investors, ensuring they can access public information easily[159] - The company provides bilingual communications to shareholders to enhance understanding of the content, in compliance with the Hong Kong Stock Exchange's requirements[160] - The company regularly holds various activities to enhance communication with shareholders and investors, including briefings and media interviews[163] Leadership Changes - Xu Xiaoliang appointed as Executive Director and Chairman of the Group on November 7, 2022, responsible for formulating business strategy[171] - Cai Xianan appointed as Chief Financial Officer of Club Med Group starting February 26, 2024, overseeing accounting and financial management[175] - Qian Jiannong transitioned to Honorary Chairman and Non-Executive Director, providing strategic and business consulting[176] Environmental, Social, and Governance (ESG) - Fosun Tourism Group received MSCI ESG AAA rating for the second consecutive year, being the only company in the Greater China hotel and tourism sector to achieve this[18] - The Group is committed to environmental, social, and governance (ESG) initiatives, with new committee appointments to strengthen oversight[175]

Investment Rating - The report assigns an "Accumulate" rating for the company [1] Core Views - The company has achieved a comprehensive recovery in performance, with a revenue of 17.15 billion yuan in 2023, representing a year-on-year increase of 24.5%. The net profit attributable to shareholders was 307 million yuan, marking a return to profitability [3][4] - The company's four main business segments, including Club Med and Sanya Atlantis, generated a total revenue of 18.13 billion yuan, up 18.8% year-on-year, driven by strong post-pandemic demand [3][4] - The report highlights the successful launch of new high-end resorts and the ongoing upgrade strategy for existing properties, which contributed to improved operational metrics [3][4] Summary by Sections Financial Performance - In 2023, the company reported a gross profit of 5.595 billion yuan, with a gross margin of 32.62%, an increase of 3.66 percentage points year-on-year [3] - The adjusted EBITDA for the year was 3.73 billion yuan, reflecting a year-on-year growth of 59.1% [3] - The company expects EPS for 2024-2026 to be 0.30, 0.35, and 0.42 yuan respectively, with corresponding PE ratios of 11, 9, and 8 times [4][5] Business Segments - **Club Med**: Achieved a revenue of 15.122 billion yuan, up 19.2% year-on-year, with a significant recovery in the Asia-Pacific region, particularly in mainland China, where revenue increased by 86.3% [3][4] - **Sanya Atlantis**: Revenue reached 1.675 billion yuan, a remarkable increase of 90.9%, with an occupancy rate of 81.9% [3][4] - **Vacation Asset Management Center**: New projects have performed well, with the Taicang Alps International Resort achieving rapid growth since its opening [3][4] Membership and Customer Engagement - The company's membership platform, "Revival Club," reached 6.529 million members, a 16.5% increase, with paid members growing by 52.6% to 114,000 [4] - The revenue from the Revival Club was 355 million yuan, reflecting a 9.0% increase [4]