FOSUN INTL(00656)2024-04-26 08:39Financial Performance - In 2023, Fosun International achieved total revenue of RMB 198.2 billion, representing an 8.6% year-on-year growth[1]. - The operating profit from industrial operations reached RMB 4.9 billion, a year-on-year increase of 20.4% compared to 2022[1]. - The net profit attributable to shareholders was RMB 1.38 billion, recovering from a loss of RMB 831.8 million in 2022[9]. - The company's total revenue for 2023 reached RMB 198.2 billion, representing a year-on-year increase of 8.6%[11]. - Net profit attributable to shareholders was RMB 1.38 billion, an increase of RMB 2.21 billion compared to the previous year[11]. - The revenue from the four core subsidiaries contributed 72% to the overall income, with Fosun Tourism achieving a revenue of RMB 17.15 billion, up 24.5% year-on-year[11]. - The group’s profit attributable to equity holders reached RMB 1,379.1 million, a significant increase of 265.8% compared to the previous year[74]. - The insurance segment reported a profit of RMB 790.2 million, marking a 126.6% increase year-on-year[74]. Debt Management - As of the end of the reporting period, Fosun reduced interest-bearing debt by RMB 15 billion compared to the end of 2022, with a total debt to total capital ratio of 50.4%, down 2.9 percentage points[2]. - The company's interest-bearing debt was RMB 211.92 billion, a decrease of RMB 15 billion from the end of 2022, with a total debt to total capital ratio of 50.4%, down 2.9 percentage points from December 31, 2022[21]. - The average debt cost slightly increased by 89 basis points to 5.60% from 4.71% in 2022, while the total interest-bearing debt decreased by RMB 15 billion to RMB 211.9 billion[27]. - The group’s total debt to total capital ratio decreased by 2.9 percentage points to 50.4%[27]. - The company signed a RMB 12 billion syndicated loan agreement with eight domestic banks at the beginning of 2023, reflecting strong support for private enterprises[21]. Revenue Sources - Overseas revenue amounted to RMB 89.2 billion, a 6% year-on-year increase, accounting for 45% of total revenue[2]. - Fosun's health segment generated revenue of RMB 46.3 billion, while the happiness segment saw revenue rise to RMB 88.9 billion, up from RMB 70.7 billion in 2022[9]. - Fosun Portugal Insurance reported a gross premium income of EUR 5.207 billion and a net profit of EUR 180 million in 2023[16]. - The health segment generated revenue of RMB 46,314.4 million, a decrease of 3.5% compared to the previous year, while the happiness segment saw a revenue increase of 25.7% to RMB 88,946.4 million[72]. - The Happy segment reported a revenue of RMB 88,946.4 million, a 25.7% increase year-on-year, primarily due to rising gold prices and strong post-pandemic vacation demand[119]. Investment and Innovation - The company invested RMB 7.4 billion in technological innovation during the reporting period[4]. - The company invested a total of RMB 7.4 billion in scientific innovation throughout 2023, supporting the development of new technologies and products[17]. - The company is focusing on AI applications across over 80 product matrices, enhancing the quality of grassroots medical development and clinical technology innovation[20]. - The company is actively promoting consumption scene innovation, integrating technology with offline experiences to enhance customer engagement[20]. - The company aims to achieve carbon peak by 2028 and carbon neutrality by 2050, with the establishment of a carbon neutrality committee and the release of its first TCFD report in April 2023[43]. Market Expansion and Strategy - Fosun's global strategy has led to the establishment of a presence in over 35 countries and regions, enhancing its operational capabilities and market reach[14]. - The company plans to focus on light asset operations and actively invest in core industries to enhance its ecosystem capabilities and value in 2024[5]. - The company aims to expand its light asset operation capabilities, leveraging its operational strengths to seize opportunities in the current financing environment[20]. - The company is committed to building a super cultural and commercial complex exceeding 1 million square meters in Shanghai's core business area[20]. ESG and Social Responsibility - Fosun's MSCI ESG rating is AA, making it the only comprehensive enterprise in Greater China with this rating[4]. - The company actively promotes carbon neutrality and energy-saving measures, demonstrating commitment to environmental protection[21]. - The company encourages its subsidiaries to enhance ESG efforts, reflecting a commitment to sustainable development[23]. - The company provided over 2,000 emergency relief items valued at RMB 1 million to Turkey following the earthquake in February 2023[44]. Health Sector Developments - The CAR-T cell therapy product, Yikaida®, has treated hundreds of patients and received approval for a second-line indication in June 2023[17]. - Fosun Pharma focuses on innovative drug development in key disease areas such as oncology and central nervous system disorders, enhancing its product pipeline through diverse collaboration models[48]. - Fosun Health aims to provide comprehensive health management services through an integrated online and offline medical service platform, enhancing accessibility for users across major economic regions in China[52]. - Fosun Pharma's innovative drug pipeline includes 6 new drugs with 8 indications approved for market, alongside 29 generic drug varieties[92]. Tourism and Leisure - In 2023, the revenue of Club Med reached RMB 15.12 billion, an increase of 19.2% compared to 2022, and 118.3% of the 2019 level[20]. - Fosun Tourism's total revenue reached RMB 17,151.8 million in 2023, a year-on-year increase of 24.5%[127]. - Sanya Atlantis achieved a revenue of RMB 1.67 billion in 2023, a significant increase of 90.9% year-on-year, with an average occupancy rate of 81.9%[20]. - Club Med's revenue was RMB 15,122.5 million in 2023, growing approximately 19.2% year-on-year and reaching 118.3% of 2019 levels[128]. Manufacturing and Production - The smart manufacturing segment achieved revenue of RMB 12,755.6 million, a year-on-year increase of 23.2%, while profit attributable to shareholders decreased by 22.3% to RMB 934.1 million[168]. - Hainan Mining's revenue for the reporting period reached RMB 198,200.3 million, an increase of RMB 15,774.5 million or 8.6% year-on-year[71]. - Hainan Mining completed the acquisition of a 49% stake in Rock Oil for USD 163 million, making it a wholly-owned subsidiary[172]. Insurance Sector Performance - The total gross premium of Fosun Portugal Insurance reached EUR 5.207 billion, a slight increase of 1.7% year-on-year, with non-life insurance premiums growing by 10.5%[143]. - Dingrui Reinsurance reported gross premium income of USD 1.761 billion, down from USD 2.295 billion in 2022[146]. - The insurance segment reported a revenue of RMB 37,453.6 million, a decrease of 5.1% year-on-year, primarily due to the disposal of AmeriTrust[141].