- Total Revenue: RMB97.8 billion, up 0.8% YoY.
- Industrial Operations Profit: RMB3.47 billion, up 3% YoY.
- Profit to Owner: RMB0.72 billion, down 47% YoY.
- Overseas Revenue: RMB45 billion, up 4% YoY.
- Adjusted NAV: HKD17.4 per share.
- Core Subsidiaries Revenue: RMB72 billion, up 1.42% YoY.
- Health Segment Revenue: RMB23.26 billion, down 2.4% YoY.
- Wealth Segment Revenue: RMB26.95 billion, up 5.9% YoY.
- Happiness Segment Revenue: RMB43.17 billion, up 0.4% YoY.
- Intelligent Manufacturing Revenue: RMB5.3 billion, down 2.4% YoY.
- Fosun Pharma Revenue: RMB20.38 billion.
- Fosun Insurance Portugal Revenue: EUR890 million, up 6.5% YoY.
- FTG Revenue: RMB9.4 billion, up 5.8% YoY.
- Public Market Finances: RMB7.36 billion.
- Leverage Ratio: Reduced to 50.2%.
- Interest Bearing Liabilities: Reduced to RMB210 billion.
- Cash Inflows: Over RMB60 billion.
- Global Revenue Growth: 10% YoY.
- Asia Pacific Revenue Growth: 32% YoY.
- Net Profit from Health Segment: RMB510 million, up 43% YoY.
- Fosun Pharma R&D Investment: RMB2.74 billion.
- Fosun Pharma Innovative Products Revenue: RMB3.7 billion.
- Fosun Health Revenue in China: RMB2.96 billion.
- Private Medical Group in Portugal Revenue: EUR370 million, up 10.7% YoY.
- Fosun Group Overseas Revenue: RMB13.72 billion, 31.8% of total.
- Jewelry Fashion Revenue: RMB27.57 billion, up 5.5% YoY.
- Liquor Business Revenue: RMB3.27 billion, down 7.3% YoY.
- Fosun Insurance Total Premium Revenue: EUR2.81 billion.
- Peak Reinsurance Total Premium Revenue: USD850 million.
- Pramerica Fosun Life Premium Revenue: RMB5.32 billion, up 132% YoY.
- Asset Management Revenue: RMB8.49 billion, up 21.4% YoY.
- Global Premium Revenue: RMB35.8 billion.
- Intelligent Manufacturing Overseas Revenue: RMB2 billion, 38.4% of total.
- Oil and Gas Production Growth: 48.6% YoY.
Release Date: August 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fosun International Ltd (FOSUF, Financial) reported a total revenue of RMB97.8 billion, marking a 0.8% year-over-year increase, demonstrating resilience in a challenging macroeconomic environment.
- The company's overseas revenue increased by 4% year-over-year to RMB45 billion, indicating successful international expansion.
- Fosun Insurance Portugal saw a 9.7% increase in revenue, contributing significantly to the company's overall performance.
- The company has successfully reduced its leverage ratio to 50.2% in the first half of 2024, showcasing effective financial management.
- Fosun Pharma's innovative products revenue reached RMB3.7 billion, with R&D investments of RMB2.74 billion, highlighting a strong focus on innovation and development.
Negative Points
- Profit attributable to owners decreased by 47% year-over-year to RMB0.72 billion, primarily due to asset divestments and slow recovery in consumption.
- The health business segment experienced a revenue decline of 2.4%, impacted by reduced COVID-related product sales.
- Intelligent Manufacturing revenue decreased by 2.4% year-over-year, reflecting challenges in this segment.
- The company's cost of borrowing remains high at 5.8%, which could impact future profitability.
- Despite efforts to streamline operations, the company continues to face uncertainties due to global economic conditions and interest rate fluctuations.
Q & A Highlights
Q: How should investors interpret the theme "core strength, power, promising future" and what value can they expect from Fosun's core strengths?
A: Guo Guangchang, Executive Director and Chairman, explained that Fosun's core strengths revolve around innovation, particularly in addressing customer needs through platforms like Fosun Pharma. Despite asset disposals, Fosun continues to invest strategically, such as in CAR-T technology and surgical robots. The company is also enhancing its globalization capabilities, focusing on global R&D, registration, and sales, especially in the US market. Fosun aims to leverage its core industries and innovation to drive future growth.
Q: What is the strategy for disposing of non-core assets and managing debt levels?
A: Wang Qunbin, Executive Director and Co-Chairman, stated that Fosun is committed to streamlining its business by focusing on core industries and divesting non-core heavy assets. The goal is to reduce liabilities to around RMB60 billion over the next three years. The company aims to enhance its credit rating to investment grade and create value for shareholders by optimizing assets and maintaining a steady pace in asset disposals.
Q: Can you elaborate on Fosun's global development strategy and its highlights?
A: Chen Qiyu, Executive Director and Co-CEO, highlighted that Fosun has a strong global presence, operating in over 35 countries with half of its employees overseas. The company focuses on global R&D and BD, leveraging its international operations to enhance its market position. Fosun's insurance business in Portugal, for example, benefits from synergies with local hospitals and banks, contributing to its international growth.
Q: How is Fosun implementing its asset-light strategy and what are its strengths in this area?
A: Wang Qunbin explained that Fosun is focusing on asset-light operations by leveraging its strengths in areas like biopharmaceuticals, tourism, and insurance. The company is working with asset-intensive partners to enhance its capabilities, such as using biopharmaceutical funds for R&D investments and collaborating with local governments for tourism projects. This strategy aims to create long-term value for investors.
Q: What progress has Fosun Pharma made in expanding first-in-class drugs overseas?
A: Chen Qiyu reported that Fosun Pharma is focusing on innovative products like Serplulimab, which has gained approval in multiple markets. The company is building marketing networks in the Middle East, Southeast Asia, and South America to enhance its global presence. Fosun Pharma is also strengthening its clinical trial and registration capabilities to support its international expansion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
