- Fosun International Announces 2018 Annual Results Net Profit Reaches New High at RMB 13.4 billion
- Release Time: Mar 26, 2019
2018 FINANCIAL HIGHLIGHTS:
- Revenue increases 24% and exceeds RMB 100 billion for the first time;
- Net profit increases for the 7th consecutive year to a new record of RMB 13.4 billion;
- The board increases dividend by 6% to HK$0.37 per share, 20% payout ratio.
<<26 March 2019, Shanghai, Hong Kong>> Fosun International Limited (SEHK stock code: 00656) and its subsidiaries (“Fosun” or the “Group”) today announced its financial results for the year ended 31 December 2018.
Mr. Guo Guangchang, Chairman of Fosun International said, ‘We are pleased to announce that in 2018, Fosun recorded its best ever year, with revenue of RMB 109.4 billion (US$16.5 billion) and a record profit attributable to owners of the parent of RMB 13.4 billion (US$2.0 billion). Despite the volatility of global capital markets in 2018, Fosun’s diverse and resilient strategy saw growth across nearly all its ecosystems. With our record year and strong financial position, I am pleased to announce that the Board has recommended an increase of 6% in our dividend to HK$0.37 per share.’
‘Since its founding 27 years ago, Fosun has developed a twin-engine strategy of Industry Operations + Industrial Investment. Leveraging our global technology and innovation competence, we empower our portfolio companies to improve their own operations and investment capabilities. This strategy has developed into a truly global ecosystem with total assets worth RMB638.9 billion (US$93.1 billion) as at 31 December 2018, profit attributable to owners of the parent growing over the past 7 years with a 10-year growth at a compounded annual rate of 26%.’
‘In 2018, we invested over RMB28.5 billion (US$4.3 billion), over 70 new projects with nearly half overseas. Some of our notable investments include Baihe Jiayuan, Wolford, Lanvin, St Hubert, Tsingtao Brewery and FFT in Germany ().’
‘We completed several major capital market transactions in 2018. This included the injection of RMB22.4 billion (US$3.4 billion) of assets into our Shanghai-listed happiness platform Yuyuan Inc. (600655.SH), the IPO of Fosun Tourism Group (1992.HK) and Babytree (1761.HK) on the Hong Kong Stock Exchange. These transactions mark a full investment and operating evolution, from Fosun’s capacity to invest, operate and create brand new listed pure-play platforms.’
‘The successful IPO of Fosun Tourism Group2 in December 2018 is also a prime example of Fosun’s twin-engine strategy at work. Starting with our first investment into Club Med in 2010, its privatization in 2015 and breaking even in 2016, to the successful launch of Atlantis Sanya in April 2018, the Fosun Tourism Group’s IPO sets the path for many other Fosun platforms to replicate, such as our fashion, sports and innovation groups.’
‘Looking ahead, I am confident that our twin-engine strategy of Industry Operations + Industrial Investment will continue to provide premium products and services to our family customers and drive long-term shareholder return. I am truly excited about the future prospects of Fosun. Once again, thank you to all our shareholders for your continued support.’
The full Chairman’s letter to shareholders can be found on the Hong Kong Stock Exchange Website and the Company’s website at www.fosun.com.
In 2018, Gross Revenue reached RMB 109.4 billion, up 24% from the previous year. The revenue contributed by the health and happiness ecosystems grew substantially, now representing over 67% of total revenue with 29% and 73% year-on-year increase respectively. Fosun Pharma was the main revenue contributor in the health ecosystem with Yuyuan and Atlantis Sanya the main revenue contributors in the happiness ecosystem. Excluding the one-off impact from the sale of US insurance company Ironshore in 2017, the insurance segment would have seen a pro-forma revenue increase of 3%. In the finance segment, revenue increased by 35%, mainly attributable to the business expansion of German private bank Hauck & Aufhäuser Privatbankiers AG (“H&A”).
Profit attributable to owners of the parent in 2018 was a historical record of RMB 13.4 billion representing a 10-year CAGR of 26%. In the health and happiness ecosystems, profit attributable to owners of the parent increased 14% and 21% year-on-year respectively. Net profit contributions from core operations also increased such as Fosun Tourism Group’s successful turnaround recording RMB 389 million and Yuyuan exceeding RMB 3 billion. Profit attributable to owners of the parent from the finance segment saw a 13% increase mainly due to BCP, which saw annual growth of 62% recording a net profit of Euro 301 million.
At the end of 2018, the Group’s total debt to total capital ratio remained healthy at 53.7%. The proportion of 1-year short-term debt was reduced to 36.4% and the Group’s overall average cost of debt was 4.97%. In January 2018, Moody’s acknowledged Fosun’s financial improvements by raising its rating to Ba2 Stable in recognition of the Group’s large and diversified investment portfolio, proven investment track record, and increased holdings of marketable securities. The Group will continue to prudently manage its financial position and work towards investment grade rating.
Adjusted Net Asset Value (Adj. NAV) per share as at 31 December 2018 was HK$24.84.
Given the good financial performance in 2018, the Board has recommended this year a dividend at HK$0.37 per share representing a payout ratio of 20% and dividend ratio of 3.25%.
Financial Results Summary
Profit attributable to owners of the parent (RMB mn)
YoY Change (%)
Profit attributable to owners of the parent (RMB mn)
Basic earnings per share – RMB
Diluted earnings per share – RMB
Net asset per share
Adjusted NAV per share(1)
Note: 1. adjusted NAV per share = [market value of listed investments held at the group level+ the fair value of unlisted investments estimated by the management utilizing precedent transactions analysis or comparable company analysis - the net debt at the Group level]/ total issued number of shares of the Company
2018 Financial Results Meeting and Presentation
Full details of the Group’s 2018 financial results can be found on the company’s website www.fosun.com and on the Hong Kong Stock Exchange.
The management will present its key financial results and strategic outlook on 27 March 2019 at 8am (Beijing/Hong Kong/Singapore). A live-video feed of the management is available via https://live.vhall.com/801095974?invite (ENGLISH) / (CHINESE).
Please click this link https://tinyurl.com/FosunAR2018 for an automated calendar invite.
Transcripts in English, Chinese, French, German and Portuguese will be available on the Company’s website shortly after the presentation. A copy of the latest Investor Relations presentation can also be downloaded from the website.
Fosun International Limited is a family focused multinational company that has been listed on the main board of the Hong Kong Stock Exchange (00656:HK) since 2007. Founded in 1992, Fosun's total assets was worth RMB638.9 billion (c.US$ 93.1 billion) as of 31 December 2018. With its roots in China, and through technology and innovation, Fosun’s mission is to create customer-to-maker (C2M) ecosystems in health, happiness and wealth, providing high-quality products and services for families around the world.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Fosun International Limited (the “Company”) expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. The Company’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, and other risks and factors beyond our control. In addition, the Company makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements. The financial figures in this press release are calculated using the average exchange rate for the reporting period January 2018 to December 2018 (USD/CNY= 6.63379 HKD/CNY= 0.84641), and period-end exchange rate as of 2018/12/31 (USD/CNY= 6.86320 HKD/CNY= 0.87620), unless otherwise stated.
For more information, please contact:
Group Deputy CFO, Capital Markets and Investor Relations
Senior Director, Capital Markets and Investor Relations
- Transaction not yet completed, not included in the investment amount of 5 billion in 2018.
- Fosun Tourism Group was the world’s largest resorts group by revenue in 2017.