Fosun International hits $1bn in net profit

Fosun International post on Tuesday that company net profit reached Rmb 6.86bn ($1bn) for the first half of 2018, on the back intense acquisition activity, which saw the Chinese firm snap up local and international assets, including luxury brand Lanvin earlier in the year.

The Chinese investment firm said net profit increased 17% over the last six months, which was slower than previous years, however, with a 33.6% uptick recorded for the first half of 2017.

Revenue reached RMB43.51 billion for the January to June period, an increase of approximately 20% over the same period last year.

The company said it “continued to focus on maintaining a healthy and stable balance sheet” and achieved a net gearing ratio of 53.6% with an overall financing cost of 5.18%.

Since the turn of 2018, Fosun has bought a stake in French confectionery company St Hubert, a minority stake in China’s Tsingtao Brewery and majority stakes in European luxury brands Wolford and Lanvin.

Fosun’s long-term portfolio also includes Club Med, a stake in Cirque du Soleil and the UK’s Wolverhampton ‘Wolves’ football team.

Co-founded by Chinese billionaire Guo Guangchang in 1992, Fosun has evolved from an entrepreneurial start-up into a leading investment group taking roots in China with a global foothold.

Listing on the Shanghai Stock Exchange in 2007, Fosun now forms part of Chinese active investor cohort, which also boasts the firms HNA, Dalian Wanda and Anbang Insurance.