A Detailed Look at Interim Results 2023: How did Fosun Set Sail Again After the “Perfect Storm”?

In March this year, Guo Guangchang, Chairman of Fosun International, used the “perfect storm” as a metaphor for Fosun’s encounters in 2022 at the annual results presentation. The market is generally concerned about how this consumer group will navigate the new economic cycle after winning out over the “perfect storm”?

On 31 August, Fosun International held its 2023 interim results presentation. Guo Guangchang said at the presentation, “It is very clear that we have won out over the cycle and Fosun’s liquidity pressure has been well managed. From now on, we will focus on the development of businesses where we boast clear competitive advantages. Development is the key solution to all issues.”

According to the interim results announced on 30 August, in the first half of 2023, Fosun achieved total revenue of RMB97.06 billion, representing a year-on-year increase of 10.9%; profit attributable to owners of the parent was RMB1.36 billion. The key indicator reflecting a company’s endogenous growth capabilities – industrial operation profit surged 66% (excluding the effects of asset disposed) year-on-year to RMB3.37 billion. After further sorting out the balance sheet, cash flow statement, and operational figures of each segment, it is evident that Fosun, which has been firmly implementing the business streamlining and core business-focused strategy, has successfully unloaded its debt burden, enhanced the development of core industries, and laid a stronger foundation to usher in a new round of development.

Business streamlining: reduced more than RMB40.0 billion debt in a year, liquidity pressure has been lifted

In 2022, due to the impact of the epidemic and fluctuations in the global capital market, coupled with the rumors, there were once concerns about Fosun’s debt issue.

According to the interim results announced on 30 August, as of 30 June 2023, Fosun International’s total debts at the consolidated level was RMB220.9 billion, a significant decrease of RMB40.2 billion compared to RMB261.1 billion as of 30 June 2022. Total debts to total capital ratio further dropped to 51.8%, and the average cost of debt was 5.32%, demonstrating Fosun’s ability to manage financing costs amid sharply rising global interest rates.

In addition, on 30 June, Fosun International arranged to redeem the USD700 million offshore bond due on 2 July. Therefore, total debts at the consolidated level narrowed to RMB216.4 billion, and if excluding the debts of its consolidated listed subsidiaries such as Yuyuan, Fosun Pharma, and Fosun Tourism Group (FTG) Fosun’s debt at the holding company level narrowed to RMB90.2 billion accordingly.

Data shows that during the reporting period, Fosun redeemed onshore bonds of RMB6.73 billion as well as USD offshore debt and syndicated loans with an amount of more than USD2.7 billion, and it had no material offshore bonds due in the next 12 months. As of 30 June 2023, cash and bank balances and term deposits were abundant, reaching RMB114.68 billion.

Since last year, through business streamlining, Fosun has not only navigated through the “maturity wall” but also built a stronger foundation for sustainable development.

According to the interim results announcement, Fosun has continued to firmly push forward the implementation of the divestment of non-strategy and non-core assets in 2023. In the first half of the year, cash received from divestment at the consolidated level exceeded RMB20.0 billion. Meanwhile, Fosun has further expanded its domestic and overseas financing channels. In January, Fosun obtained a syndicated loan of RMB12 billion led by the five major state-owned banks. Fosun maintained an extensive collaboration network of domestic and foreign banks, executed an offshore syndicated loan in April 2023, amounting to no less than USD500 million as of 30 June. In terms of open-market financing channels, it issued super short-term commercial papers of RMB1 billion each in January and July 2023 respectively.

The significant credit support received continuously and the successful issuance of financing bonds reflect domestic and foreign financial institutions’ full recognition of Fosun’s financial strategy and business-focused strategy. Previously, the international credit rating agency S&P Global Ratings had noticed Fosun’s stable development, and issued a report on 30 May, lifting Fosun’s rating outlook to “stable”.

Analysts believe that in the face of the complex and volatile international political landscape, the weakening momentum of global economic recovery, and challenges such as insufficient demand in the domestic economy, China’s private enterprises have experienced a high incidence of defaults since the beginning of this year. “Against the backdrop of such an external environment, Fosun’s ability to reduce debt and risk resilience are even more remarkable.”

Focused development: industrial operation profit jumped 66%, with core businesses stimulating endogenous growth

The industrial operation profit disclosed in Fosun’s results announcement has always been highly concerned by the market and investors. This indicator includes the profit contribution of industrial operation subsidiaries of the Group and associates and joint ventures accounted by equity method. Compared with the profit attributable to owners of the parent, which is greatly influenced by capital market fluctuations, industrial operation profit can better portray the performance of Fosun’s core businesses.

In the first half of 2023, the Group’s industrial operation profit reached RMB3.37 billion, excluding the profit of disposed (including transactions yet to be completed) enterprises, representing a significant year-on-year increase of 66%. This reflects the further release of Fosun’s endogenous momentum after stepping up its efforts to focus on household consumption as the top-priority sector.

“We focus on our existing capabilities and further strengthen them. We no longer take expansion as the main direction of development. We invest in industries where we boast clear competitive advantages as our foundation. We have further defined and fine tuned our strategy,” Guo Guangchang said.

In the first half of the year, centering around the needs of global families in Health, Happiness, and Wealth, the four core subsidiaries of Yuyuan, Fosun Pharma, Fosun Insurance Portugal, and FTG continued to improve their products and services, yielded a total revenue of RMB70.76 billion, accounting for 73% of the Group’s total revenue, with increasing profit contribution.

In particular, Yuyuan’s revenue amounted to RMB27.44 billion in the first half of the year, representing a year-on-year increase of 21.86%; net profit attributable to owners of the parent was RMB2.218 billion, representing a year-on-year increase of 225.83%. In the first half of the year, FTG saw a 38.7% surge year-on-year in its revenue to RMB8.90 billion and turned profitable, with a net profit attributable to equity holders of the company of RMB471.8 million. Fosun Pharma’s revenue in the first half of the year was RMB21.395 billion, and the revenue contribution of new and sub-new products further increased. Fosun Pharma’s innovative biopharmaceutical platform, Shanghai Henlius, achieved revenue of RMB2.5005 billion in the first half of the year, representing a year-on-year increase of 93.9%, and turned profitable for the first time in half a year, with a net profit of RMB240 million.

Analysts believe that the growth of Fosun’s core businesses in the first half of the year was attributable to its efforts in seizing the opportunity of consumption recovery, and more importantly, the accumulation of profound industry operations. Its long-term accumulation of innovation and global operational capabilities are continuing to be reflected in its results.

Taking Shanghai Henlius as an example, its revenue growth mainly came from its self-developed core products. In particular, HANQUYOU (trastuzumab of injection) and HANSIZHUANG (serplulimab injection) achieved sales revenue of approximately RMB1.2767 billion and RMB556.3 million respectively. At present, HANQUYOU has been accepted by the U.S. Food and Drug Administration (FDA) for the marketing authorization application (MAA) in the U.S., and it is expected to become the first domestic biosimilar approved in China, the U.S. and Europe; HANSIZHUANG has been approved for three indications in China, and has become the world’s first monoclonal antibody drug targeting PD-1 for first-line treatment of extensive-stage small cell lung cancer. With the empowerment of Fosun’s global ecosystem, Shanghai Henlius has launched five self-developed products on the market, reaching more than 40 markets around the world and benefiting more than 450,000 patients.

Fosun International’s interim results show that Fosun invested RMB4.2 billion in technology and innovation in the first half of the year, representing a year-on-year increase of 20%, injecting impetus to foster more “world’s firsts” and “China’s firsts”.

Meanwhile, based on Fosun’s business presence and profound operations in more than 35 countries and regions, the “global organization + local operations” model has become more mature. Overseas business has become an important driving force for Fosun’s development. In the first half of the year, overseas revenue amounted to RMB44.09 billion, accounting for 45.4% of total revenue, and the 10-year compound growth rate reached 60%.

“Fosun has built global development capabilities through years of hard work. Fosun itself has indeed benefited from its strong global operations, and we will continue to further build up our globalization capabilities,” Guo Guangchang, Chairman of Fosun International said in the interim results conference.

It is worth mentioning that the results of the “mutual empowerment” of Fosun’s global operations have further emerged. In the first half of the year, Easun Technology, headquartered in Shanghai, China, recorded a significant increase in overseas orders. In particular, it saw robust growth in business operations in North America. New orders reached RMB1.38 billion in the first half of 2023, representing a year-on-year increase of 131.2%. Fosun Insurance Portugal, headquartered in Lisbon, Portugal, has made steady progress in its global business, premium income in Peru and Bolivia reached RMB816 million and RMB200 million respectively, representing an increase of 61% and 43% year-on-year respectively.

Looking ahead to the second half of the year, “recovery” will still be the keyword for the global economy. Guo Guangchang said, in the future, Fosun will continue to focus on core businesses, consolidate resources to develop businesses where we boast clear competitive advantages, deepen innovation and global operations, and further promote the high-quality development of our businesses. “Both business and economy have cycles. We must innovate, develop, and better serve customers one step at a time to navigate the cycle.”

Topic: Press release summary

Sectors: Daily Finance


From the Asia Corporate News Network

Copyright © 2023 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Inkeverse 2022 Interim Results Announcement

Inkeverse Group Limited (“Inkeverse” or the “Group”; stock code: 3700.HK) has announced its interim results for the six months ended 30 June 2022 (the “Reporting Period”).

In the first half of 2022, the Group continued to intensify its expansion in the interactive entertainment and social networking sector while enriching its business scenarios to boost operational efficiency. Through its strategy of profiting from a diversified matrix, the Group realized total revenue of RMB4.0 billion. Supported by stable revenue, Excluding the impact of share-based non-cash compensation expenses and goodwill impairment losses, the Group recorded an adjusted net profit of RMB402 million, a year-on-year increase of 150.8%. The Group’s gross profit increased by 22.8% to approximately RMB17.3 billion, and the gross profit margin also increased to 42.6% from 34.9% in the same period last year, primarily due to an increase in the proportion of revenue from products under revenue-sharing businesses with high gross profit and the optimization of the revenue-sharing structure.

In particular, revenue from social networking products accounted for 69.6% of total revenue. Revenue from live streaming products and dating products accounted for 22.2% and 5.5% of total revenue respectively. The encouraging performance of these products demonstrated the effectiveness of the Group’s development strategies, which will help drive future growth.

Mr. Feng Yousheng, Chairman and Chief Executive Officer of the Group, said, “In the first half of 2022, although affected by the macroeconomic environment and short-term epidemic resurgence, we continued to refine our technologies through innovation and maintained stable and sound cash flow which provided strong support for further business expansion. Entering the new era of Web 3.0, we have drawn on our extensive operating experience and social network to continuously acquire new technologies. In June 2022, we upgraded our brand, changing its name to Inkeverse Group Limited, and announcing our entry into the metaverse market. We are poised to seize the new growth opportunities presented by the times and the industry, and strive to bring better returns to our shareholders.”

Business Review

Continuous development in live streaming
Looking at the development of live streaming thus far, it is no longer a tool in a single scenario, but a strong pillar of support facilitating the growth of other business sectors. The new metaverse era has driven the development of virtual reality and other advanced technologies. As the Group’s most mature product, “Inke” APP has innovated the traditional live streaming model with new technology. In May 2022, the Group launched “Panoramic Karaoke”, an immersive KTV function which integrates a 3D space with virtual images, creating a variety of new live streaming scenarios and continuing to empower more business segments to realize higher business value.

Refined social networking operation
The Group continued to refine the management of its existing social networking products and polished its business model, and also actively explored more diversified scenarios to keep abreast of new market trends. With social networking at the core, the Group has built a diversified product portfolio with multiple scenarios for people of different social circles, ages, geographical backgrounds, and interests, laying a solid foundation for the Group’s product development with the continuous launch of new and iterative products. In addition, the Group has been actively exploring the new ecology of metaverse social networking. Its diversified models have also helped improve the profitability of the social networking sector.

Increased dating match efficiency
The Group maintained its market acumen and developed an innovative matching and dating model. By continuously optimizing the user matching strategy, the rapid penetration of the “Cloud Matching” model has completely improved the issue of “unmatched dating information”. The Group has established its position as a leader in the online dating industry with its professional and extensive product operations and user services. In addition to providing professional relationship guidance, “Matchmakers,” has created tens of thousands of jobs in the markets of lower-tier cities and facilitated more than 25 million dating matches. In May 2022, the Group launched “Love Planet” for lovers to create a new ecology for romantic social networking. By reaching male and female users of different ages in different regions, the satisfaction and influence of our brand have been furthered enhanced.

Rapid growth of middle platform value
With the diversification of business development, the value of the Group’s middle platform has grown at an accelerated pace. In addition to stepping up investment in the metaverse, Web 3.0 and other cutting edge technologies, the Group constructed an efficient and intelligent data input system for the overseas market, upgraded the overseas multi-cloud structure and applied HTTP 3 and other technologies to improve service access quality in major countries and regions around the world, providing strong support to the overseas business expansion and development of the metaverse ecology.

Looking ahead, the Group will focus on pan-entertainment development of overseas markets. With interactive entertainment and social networking sectors at the core, the Group will promote and replicate its operating experiences in different countries and regions, actively explore local demand and achieve breakthroughs in more markets around the world. At the same time, the Group will seize diversified development opportunities, continue to enrich and upgrade the metaverse elements in its products, quickly enter the emerging Web 3.0 sector and try to integrate frontier elements with social networking experiences to maintain profits and achieve quality growth. In addition, the Group will continue to closely monitor upstream and downstream industrial chains, take business synergies into consideration, explore business areas in line with its existing operations, expand and analyse new growth opportunities globally and create room for multi-dimensional development.

About Inkeverse Group Limited (stock code: 3700.HK)
Inkeverse (3700.HK) is a leading interactive social platform in China. In May 2015, the core product Inke APP was launched, creating the trend of domestic mobile live streaming broadcasting. Inke was listed in Hong Kong in July 2018, making it the first entertainment livestreaming enterprise on the Hong Kong Stock Exchange. Inke continues to deepen its efforts in the field of audio and video streaming. After its listing, Inke is focusing on the strategy of “matrix products” for the development layout of the Group. Based on the mature industrial mid-stage system, aiming at the needs of many vertical markets and individuals, it has successively created a number of phenomenon products such as the Jimu APP, Duiyuan APP and Super Like APP, and has rolled out a rich matrix of social products. Its business covers live broadcasting, dating and social networking. After undergoing multiple online and offline scenarios, and establishing a presence in overseas markets, it has transformed from a single product line into a matrix of products to drive performance growth. Reflecting this shift, in 2022, Inke changed its name to Inkeverse, aiming to create a multidimensional social matrix combining reality and virtual reality based on a new technology model.
Company Website: https://www.inkeverse.com/index.html

Press Contacts
Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 E-mail: vicky.lee@sprg.com.hk
Yan Li Tel: (852) 2864 4320 E-mail: yan.li@sprg.com.hk
Daphne Duan Tel: (852) 2864 4833 E-mail: daphne.duan@sprg.com.hk
Website: www.sprg.com.hk

Topic: Press release summary

Hong Kong – EMSD received the interim report on the cable bridge fire incident from CLP Power Hong Kong Limited

EMSD received the interim report on the cable bridge fire incident from CLP Power Hong Kong Limited


     The Electrical and Mechanical Services Department (EMSD) received the interim report submitted by CLP Power Hong Kong Limited (CLP Power) today (June 24) in relation to the cable bridge fire incident on June 21.

     The EMSD has always attached great importance to the safety of power supply. The incident involved three sets of 132kV and nine sets of 11kV high-voltage cable, which is a rare case. The EMSD is very concerned about the incident. The EMSD acknowledged CLP’s investigation direction, restoration progress, repair work plan and the inspection of cable bridge of the similar design covered in the interim report. According to their report, the concerned cables were not under abnormal overvoltage and overcurrent conditions, and no cable joint was installed inside the bridge. The CLP Power last inspected the cable bridge in November 2021, and no site works was being carried out before the incident. The CLP Power is now conducting emergency structural reinforcement works at the exterior of the bridge in order to ensure safe access inside the bridge for conducting the investigation on the cause of the incident. The EMSD has urged the CLP Power to carry out the detailed investigation and submit a detailed report with the improvement measure within two weeks after the incident.

     Upon receipt of the notification from the CLP Power regarding the incident in the evening of June 21, the EMSD immediately mobilised staff to attend on site to assess the situation, and urged the CLP Power to restore power supply to affected areas and conduct remedial emergency repair works. After rearranging the power supply distribution in the district, the CLP Power restored electricity supply to all affected areas by around 8am the next day, and one set of the 132kV cables was restored to service at around 3am today. After the incident, the EMSD immediately requested the CLP Power to carry out special inspection on cable bridges of similar design. The CLP Power has already completed the inspections of the aforementioned bridges, confirmed that they are under normal and safe operation condition, and enhanced regular inspection to such facilities. The EMSD has also spot checked the inspection works of the CLP Power on the cable bridges and no abnormality was found.

     The EMSD will continue to investigate and monitor the rectification works of the CLP Power, and follow up the implementation of comprehensive improvement measures of the CLP Power to prevent similar incidents from occurring again.

Canada – Renewal of interim understanding reached that will see Potlotek First Nation members fishing in pursuit of a moderate livelihood

Building on last year’s successful moderate livelihood fishery, Fisheries and Oceans Canada (DFO) has reached a second interim understanding with Potlotek First Nation that will see their members fishing jakej (lobster) in pursuit of a moderate livelihood and selling their catch under Potlotek’s Netukulimk Livelihood Fisheries Plan and a DFO-issued authorization. The plan was developed by the community with support from the Assembly of Nova Scotia Mi’kmaw Chiefs and Kwilmu’kw Maw-klusuaqn Negotiation Office (KMKNO).

April 29, 2022

Dartmouth, Nova Scotia – Building on last year’s successful moderate livelihood fishery, Fisheries and Oceans Canada (DFO) has reached a second interim understanding with Potlotek First Nation that will see their members fishing jakej (lobster) in pursuit of a moderate livelihood and selling their catch under Potlotek’s Netukulimk Livelihood Fisheries Plan and a DFO-issued authorization. The plan was developed by the community with support from the Assembly of Nova Scotia Mi’kmaw Chiefs and Kwilmu’kw Maw-klusuaqn Negotiation Office (KMKNO).

Harvesters designated under Potlotek’s Netukulimk Livelihood Fisheries Plan will fish a total of 1,200 traps during the established 2022 commercial seasons distributed across Lobster Fishing Areas (LFAs) 27, 28, 29, 30 and 31A – all of which are within the Unama’ki District where Potlotek is located.

To enable fishing in pursuit of a moderate livelihood without increasing overall effort in these LFAs, the Department remains committed to continuing to work with the commercial industry to ensure that effort is aligned with available access. The preferred approach to obtaining access is through the willing buyer – willing seller voluntary licence relinquishment process.

“The interim understanding reached with Potlotek First Nation last year was the first of its kind. This understanding saw members of the community fishing in pursuit of a moderate livelihood under a community-developed plan and DFO authorization. The success of that collaborative approach set the stage for understandings with other Mi’kmaw communities. I am pleased that the original understanding will be renewed this year to support the implementation of rights-based fishing for Potlotek and other First Nations.”

The Honourable Joyce Murray, Minister of Fisheries, Oceans and the Canadian Coast Guard

“I’d like to congratulate Chief Wilbert Marshall for his leadership, and I wish Potlotek First Nation, and all harvesters, a prosperous and safe fishing season. I look forward to our continued work together on oceans protection, safety on the water, conservation, and the preservation of the industry for generations to come.”

Mike Kelloway, Parliamentary Secretary to the Minister of Fisheries, Oceans and the Canadian Coast Guard, MP Cape Breton—Canso

Claire Teichman

Press Secretary

Office of the Minister of Fisheries, Oceans and the Canadian Coast Guard



Interim dividend for financial year 2021 – Completion and allocation of the first tranche of the share buyback program

, 650,000 shares were repurchased at an average purchase price of €643.70, representing a total amount of €418.4 million. 

It has been decided that 325,000 shares purchased under this first tranche will be cancelled. The remainder of the repurchased shares will be allocated to free share grant programs to employees.

About Kering 

A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, Jewelry and Watches: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear. By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow’s Luxury in a sustainable and responsible way. We capture these beliefs in our signature: “Empowering Imagination”.In 2020, Kering had over 38,000 employees and revenue of €13.1 billion. 


Twitter: @KeringGroup

LinkedIn: Kering

Instagram: @kering_official

YouTube: KeringGroup