Reports
Fosun Predicts Slump In H1 Profits As Virus Slams Tourism, Travel

The Asian group holds stakes in a number of wealth management and financial services firms around the world.
Fosun
International, the Hong Kong-listed conglomerate that owns
wealth management and businesses in other sectors, has warned
shareholders that COVID-19’s disruption to tourism will hammer
profits. The group said it expects to record an attributable
profit of about RMB1.8 billion ($257 million) to RMB2.2 billion
for the first six months of this year, slumping from RMB7.61
billion a year earlier.
There is a “significant negative impact of [the] COVID-19
epidemic on the tourism operations of Fosun Tourism Group and
Fosun Tourism Group." The organisation owns the Club Med resort
chain, among others.
“Notwithstanding the significant negative impact on the tourism
operations of Fosun Tourism Group in the first half of 2020,
Fosun Tourism Group continues to control cost and strives to
promote business recovery,” Fosun said.
“While the loss on fair value adjustment of financial assets
caused by the market fluctuation has been recorded in the first
half of 2020, the board considers there is no material impact on
the operations of the company as the unrealised fair value
adjustment is a non-cash item. Currently, the company’s financial
position remains solid with ample liquidity and diversified
financing channels to cope with future business needs,” it
said.
The group covers a number of segments, including healthcare,
tourism and wealth management. In the latter area, the firm has
continued to make acquisitions and enter agreements. Last
November, Fosun agreed a strategic co-operating pact with
Citigroup. Fosun is also rumoured to be considering a bid for
Germany’s private bank, Bankhaus Lampe. Last year a report said
that Fosun was thinking of buying the firm in a deal that could
value it at €200 million ($221.9 million).
In 2018, Fosun concluded its purchase of a 69.14 per cent stake
of Guide Investimentos from Brazil's central bank. Fosun paid
R$167.9 million ($45 million) for the business, and a further
R$120 million which is dependent on how well the firm performs in
future. The firm also bought Hauck & Aufhäuser in 2016. Fosun -
founded in 1992 – holds firms across different sectors, including
wealth managers and private banks. Its acquisition strategy
involves buying Western wealth management businesses. In January
this year, for example, Fosun forged a strategic pact with
UK-listed Standard Chartered.
In March 2018, Fosun signed a co-operation pact with HSBC as part
of its growth plans. In 2015, it launched a financial platform
for its investment and asset management business in Russia and
neighbouring countries. However, not all of its bids have been
successful: in 2015 it pulled out of an attempt to acquire BHF
Kleinwort Benson.
Here are results from Fosun, reported earlier this year.