复星旅游文化(01992) - 2024 - 中期业绩

Financial Summary Key Financial Indicators 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] - Operating profit decreased by 23.4% YoY, and profit for the period decreased by 35.3% YoY[2] Business Review Group Overview and Overall Performance 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] - The Group's revenue reached RMB 9,414.6 million, a YoY increase of 5.8%[3] - Gross profit reached RMB 3,206.5 million, a YoY increase of 4.2%[3] - 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] Club Med and Others 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] - Club Med's turnover reached RMB 8,894.4 million, a YoY increase of 10.3%[4] - 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] Club Med Operational Overview and Performance 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] Club Med Strategy and Future Outlook 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] - 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] - Club Med launched a generative AI strategy and a new AI chatbot for Brazilian customers on WhatsApp, achieving great success[14] - 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] Mini Camp 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] - Bookings for winter/summer camps and parent-child programs increased by 46.7% compared to the same period in 2023[16] Sanya Atlantis 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] - The C Show's turnover reached RMB 34.0 million, a YoY increase of 4.0%[18] - Turnover reached RMB 866.2 million, a YoY decrease of 5.0%[18] - The average room occupancy rate reached a record high of 89.6%, an increase of 3.4 percentage points YoY[18] - The average daily room rate was RMB 2,043.8, a YoY decrease of 15.1%[18] Operational Highlights and Events 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] - 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] - The C Show's turnover reached RMB 34.0 million, a YoY increase of 4.0%[18] Financial Performance and Key Data 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] Vacation Asset Management Center 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] - Taicang Alps International Resort's operational turnover reached RMB 112.9 million, with 290,000 visitors[22] - 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] Taicang Alps International Resort 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] - In H1 2024, the operational turnover of Taicang Alps International Resort reached RMB 112.9 million, with 290,000 visitors[22] - 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] 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 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] - 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] - Turnover reached RMB 45.7 million, a YoY increase of 15.3%, with 107,000 visitors, a YoY increase of 67.4%[25] 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 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] - Foryou Club's turnover was RMB 172.7 million, remaining stable compared to the same period in 2023[28] - Thomas Cook UK performed well with YoY turnover growth, focusing on long-haul holiday products[29] Foryou Club Platform 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] - As of June 30, 2024, the Foryou Club platform had over 6.902 million members, a YoY increase of 12.6%[28] Thomas Cook UK 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] - The company focused on long-haul holiday products by optimizing marketing spend to achieve higher profit margins[29] Management Discussion and Analysis Analysis of Condensed Consolidated Statement of Profit or Loss 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] - 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][42] Revenue Analysis 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] - 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] Cost of Sales and Gross Profit Analysis 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] - 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] 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 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] - 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] Selling and Marketing Costs 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] - Sales commissions for resorts and tourism operations increased by 11.0% YoY to RMB 444.4 million[39] General and Administrative Expenses 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] - Employee costs at Club Med increased by RMB 83.5 million[40] Operating Profit Analysis 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] - 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] Finance Costs 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] - Debt balance slightly decreased by RMB 39.1 million[43] Income Tax Expense 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] - 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] Non-IFRS Measures 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] Adjusted EBITDA 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] - Adjusted EBITDA for the Sanya Atlantis segment decreased from RMB 452.5 million to RMB 281.1 million[47] Adjusted Net Profit 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] Capital Expenditure 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] - Club Med's capital expenditure was RMB 317.0 million, a decrease of approximately RMB 13.7 million YoY[49] - Capital expenditure for the Vacation Asset Management Center decreased by RMB 222.7 million as the Group focuses on asset-light management[49] Indebtedness, Liquidity and Financial Resources 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] - Undrawn bank facilities were approximately RMB 3,256.9 million, maintaining a sound liquidity position[51] - Net current liabilities improved from RMB 7,551.1 million to RMB 5,378.3 million[54] - The current ratio increased from 0.53 to 0.62[54] Cash and Bank Balances Analysis 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 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] - The directors confirmed that the Group has complied with all material covenants of its loan agreements and amendments[53] Capital Structure 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] - Net current liabilities improved from RMB 7,551.1 million to RMB 5,378.3 million[54] - The current ratio increased from 0.53 to 0.62[54] - The gearing ratio slightly increased from 53.5% to 55.1%[54] Impact of Exchange Rate Fluctuations 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] - 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] Condensed Interim Consolidated Financial Statements Condensed Interim Consolidated Statement of Profit or Loss 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 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 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] Notes to the Condensed Interim Consolidated Financial Information Basis of Preparation and Accounting Policies 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] - 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] - Amendments to IFRS 16, IAS 1, IAS 7, and IFRS 7 had no material impact on the Group's financial position or performance[64][65] Operating Segment Data 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] 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 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] Details of Other Income and Gains, Net 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] - 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] Details of Finance Costs 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] Composition of Profit Before Income Tax 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] - Depreciation of right-of-use assets increased to RMB 601,801 thousand[78] - Impairment loss on intangible assets was zero, compared to RMB 87,891 thousand in the same period last year[78] Details of Income Tax 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] 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] Earnings Per Share 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 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 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 No significant events occurred after the end of the reporting period - No significant events have occurred since the end of the reporting period[87] Other Information Interim Dividend Payment 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] Purchase, Sale or Redemption of the Company's Listed Securities 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] Review of Interim Results 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] - The Audit Committee has no objection to the accounting treatments adopted by the Company[89] Corporate Governance Practices of the Company 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] Model Code for Securities Transactions 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] Publication of Interim Results 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] Forward-Looking Statements 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] Glossary