Wed, 07 Jun 2023

Thanks to its Robust Global Ecosystem, Fosun's Various Business Segments Continue to Achieve Growth

HONG KONG, June 21, 2022 /PRNewswire/ -- With the resumption of work, production, and business operations in Shanghai, the 4th 515 Fosun Family Day, which has been ongoing for more than a month, ushered in the climax during the 18 June (618) shopping festival. During the 618 shopping festival, the overall sales of consumer brands under Fosun increased by 35% year-on-year, of which the jewelry category saw a year-on-year increase of 76%, sales of more than ten brands such as Yayi, Songhelou and Jinhui Liquor grew by more than 100% compared to the previous year, and a number of blockbuster products were launched. From 18 to 19 June, various consumer brands under Fosun, including Laomiao, Shanghai Watch, Tuopai Baijiu, Mid-Lake Pavilion, and Ocean Glam, all joined livestream shopping to give back to consumers. In addition, after the resumption of dine-in services in Shanghai, Yuyuan Foods & Dining Group will conduct a special live broadcast of "in-store dining", spreading happiness to offline stores to help the city restore hustle and bustle.

Fosun Family Day is just an epitome to boost consumption. In fact, in the face of the on-going epidemic and many external uncertainties, Fosun has been leveraging its long-term accumulation of innovation and comprehensive globalization capabilities to drive growth with profound industry operations and industrial investment, demonstrating high resilience in its four major segments of Health, Happiness, Wealth, and Intelligent Manufacturing. In addition, Fosun is in a sound financial position with abundant cash flow and continues to optimize its debt structure. On 1 June, S&P Global Ratings affirmed Fosun's outlook as 'stable'. With the gradual easing of the epidemic, the core long-term innovation and globalization capabilities accumulated by Fosun during its industrial development have become the core driving force for the strong recovery of its business.

Continuous Breakthroughs in Innovative Achievements

Fosun's long-standing investment in technology and innovation has continued to come to fruition recently.

On 13 June, Henlius, the biopharmaceutical platform of Fosun Pharma, announced that it has entered into a license and supply agreement with Organon LLC ("Organon"). According to the agreement, the multinational pharmaceutical company, Organon will acquire exclusive global commercialization of Henlius' independently developed HLX11 (anti-HER2 domain II humanized monoclonal antibody injection), a biosimilar of pertuzumab, and HLX14 (recombinant anti-RANKL human monoclonal antibody injection), a biosimilar of Denosumab, except for China, covering major markets such as the United States, the European Union, Japan, as well as a number of emerging markets. Henlius will receive potential revenue of US$541 million from the transaction, including a US$73 million upfront fee on the transaction.

At around the same time, Fosun Pharma and Henlius attended the BIO International Convention, the world's largest biotechnology event, in San Diego, California, USA, to showcase the latest achievements in innovative research and development in the field of oncology. Various projects gained favors from the international industry at the conference.

 As Fosun is about to celebrate the one-year anniversary of China's first CAR-T cell therapy, (Yi Kai Da, Aquilence Injection), Fosun Kite, a joint venture of Fosun Pharma, announced on 16 June the company's continuous efforts in enhancing accessibility for patients and commercialization achievements in the past year, and shared plans for future development. In the past year, Yi Kai Da has benefited more than 200 patients since its launch. In the future, Fosun Kite will continue to promote the innovation and implementation of innovative payment models to reduce the financial burden of patients. As of the end of May 2022, Yi Kai Da has been included in the urban Huimin Insurance (civil affordable insurance scheme) in more than 30 provinces and cities across the country. Fosun Kite also will actively expand the coverage of CAR-T cell therapy treatment centers. As of the end of May, there are more than 80 Yi Kai Da treatment centers on file to meet the needs of nearby treatment for patients with relapsed/refractory large B-cell lymphoma in various provinces and cities.

Fosun continues to increase investment in technology and innovation, providing "hard core" support for innovative development. In 2021, the Group's total investment in technology and innovation amounted to RMB8.9 billion.

Chen Qiyu, Co-CEO of Fosun International, said, "Henlius' gradual expansion into the international market and the steady advancement of the commercialization of Yi Kai Da represent the market's recognition and feedback for Fosun's long-term commitment to innovation and research and development (R&D) investment. Innovation-driven has become one of the most important core competencies of Fosun, which is also a key foundation for us to cope with various challenges calmly and achieve steady development."

"Profound Industry Operations + Industrial Investment" to Foster New Growth Impetus

Since March this year, Fosun's subsidiaries have actively assisted Shanghai to defeat the epidemic. They have also dived deep into the potential of industry operations to accumulate new growth momentum.

Currently, Yuyuan Inc. has fully resumed operations. As Shanghai's first cultural tourism landmark project to resume offline operations, Yuyuan Tourist Mart and many time-honored brands at the Yuyuan Tourist Mart have reopened to reunite with Shanghai citizens since 28 May. Up to now, all 205 stores at the Yuyuan Tourist Mart have resumed business operations. During the 515 Fosun Family Day, Yuyuan Inc.'s brands boosted consumption with various marketing campaigns and promotions, and it is estimated that nearly RMB100 million worth of coupons and vouchers were distributed. In addition, Yuyuan Inc.'s Jewelry & Fashion, Foods & Dining, Beauty & Health and other industrial groups plan to launch innovative brands or products in the near future, bringing new impetus for growth in the post-epidemic era.

Capitalizing on the Shanghai's "21-measure" and "50-measure" policies to help enterprises resume work and production, Fosun's subsidiaries such as Fosun Tourism Group are also making full efforts to shortly launch a number of new projects that were developed during the epidemic.

While deepening its industry operations continuously, Fosun has also created some highlights in industrial investment. Holisto, an Israeli online travel booking platform invested by Fosun RZ Capital, recently announced that it has entered into a business combination agreement with Moringa Acquisition Corp., a special purpose acquisition company (SPAC), and will be listed on the Nasdaq. Holisto is the first Israeli project that Fosun RZ Capital invested in 2019. After investing in Holisto's Series A funding round, Fosun RZ Capital has set a clear direction to invest in cutting-edge technologies, continued to expand its Israeli investment team and invest in early-stage technology projects to form strategic and executive synergies with its investments in China, the United States, India, Southeast Asia, etc. Holisto will become publicly traded only three years after Fosun RZ Capital's investment, marking another milestone in the global development of Fosun RZ Capital.

Xu Xiaoliang, Co-CEO of Fosun International said, "As a global innovation-driven consumer group, Fosun has grown into one of the few domestic enterprises that is equipped with global operations, investment capabilities, and accumulated profound technology and innovation capabilities. In the future, we will continue to build Fosun's industrial matrix at a deeper level with the 'twin-driver' of profound industry operations and industrial investment."

About Fosun

Founded in 1992, Fosun is a global innovation-driven consumer group dedicated to providing high-quality products and services for families around the world in Health, Happiness, Wealth, and Intelligent Manufacturing segments. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). In 2021, Fosun International's total revenue was RMB161.3 billion and total assets amounted to RMB806.4 billion. Fosun International ranks No.589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.


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