Is Fosun Set to Rise Again as China Reopens?

The debt-heavy conglomerate announced a fresh $1 billion in asset sales last week, as growing signs emerge that its looming debt crisis of 2022 may be receding Key Takeaways: By Chen Ruzhen On the last evening of 2022, Guo Guangchang, chairman of conglomerate Fosun International Ltd. (0656.HK), visited a lantern festival at Yu Garden, the famous Shanghai tourist attraction operated by one of his company’s units. The rags-to-riches billionaire made New Year’s wishes that life would return to normal in China, and that Fosun’s global partners could visit a country…

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Fosun Seeks Club Med Investors to Plug Its Own Financial Holes

The debt-plagued financial conglomerate is reportedly looking for a third party to buy some or all of its majority stake in Fosun Tourism, owner of the French resort chain Key Takeaways: Debt-strapped Fosun is reportedly seeking to raise cash by bringing in a major outside investor for its tourism unit, whose crown jewel is the Club Med resort chain Club Med accounted for about 80% of Fosun Tourism’s business in the first three quarters of 2022, as the chain rebounded sharply on easing Covid restrictions outside China By Doug Young…

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FAST NEWS: Fosun Tourism Announces Chairman’s Resignation, New co-CEO

The latest: Resort operator Fosun Tourism Group (1992.HK), owner of the Club Med resort chain, disclosed Monday its chairman and CEO Qian Jiannong has resigned and been appointed as honorary chairman of the board for life, and was re-designated as a non-executive director. Non-executive director Xu Xiaoliang was appointed chairman and re-designated as an executive director, while Henri Giscard d’Estaing was appointed as co-CEO. Looking up: Xu is the executive director and co-CEO of Fosun Tuorism’s parent Fosun International (0656.HK). Thus, his appointment to the top position at Fosun Tourism may indicate Fosun…

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Fosun Scrambles to Sell Its Way Back to Health. But Will It Mortgage Its Future?

Billionaire Guo Guangchang’s flagship investment group aims to sell up to $11 billion in non-core holdings to pay down its debt. But such sales could leave it with less-desirable assets Key Takeaways: Fosun International aims to raise as much as $11 billion by selling non-core assets in the next 12 months, according to a Bloomberg report. The sale of better-performing assets might leave the group with subpar businesses that would worsen its debt problem By Warren Yang Things are looking messy these days for Fosun International Ltd. (0656.HK), the debt-laden…

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FAST NEWS: South Korea’s Meritz Buys Into Fosun Tourism

The latest: South Korean financial company Meritz Financial Group disclosed it purchased 81.54 million shares of resort operator Fosun Tourism Group (1992.HK) on Oct. 20, equal to 6.57% of the company’s total share count, according to a new Hong Kong Stock Exchange filing. Looking up: Meritz and Fosun Tourism parent Fosun International (0656.HK) have previously worked together, with Fosun’s Lanvin Group of luxury brands announcing last Monday that it received a $50 million commitment from Meritz through a private equity investment. The pair of investments likely reflect Meritz’s confidence in…

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FAST NEWS: Fosun Tourism Plunges After Controlling Shareholder Cuts Holdings

The latest: Resort operator Fosun Tourism Group (1992.HK) announced on Wednesday its controlling shareholder, Fosun International (0656.HK), agreed after the market closed Sept. 5 to sell 28 million shares of the company to an independent third party for HK$8.57 per share. Looking up: The company implied that recent volatility for its stock may be related to the share sale, making the announcement an apparent move to allay investor concerns. Take Note: A controlling shareholder’s reduction of its stake in a company is generally considered a negative signal, possibly showing the shareholder has…

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FAST NEWS: Fosun Tourism’s Loss Grows as Travel Starts to Recover

The latest: Travel company Fosun Tourism Group (1992.HK), owner of the Club Med resort chain, posted a net loss of 2.71 billion yuan ($433 million) last year, 5.4% more than its 2.57 billion yuan loss in 2020, according to its 2021 results released after market close on Monday. Looking up: The company’s revenue rose 31% for the year to 9.26 billion yuan, mainly benefiting from an increase in property units delivered, resulting in a more than threefold jump in turnover from tourism-related property sales and construction services to 2.14 billion…

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FAST NEWS: Club Med Strength Fuels Fosun Tourism Rebound in Third Quarter

The latest: Fosun Tourism (1992.HK), owner of the Club Med resort chain, said the business volume at its resort operations totaled 5.58 billion yuan ($873 million) in the first nine months of the year, down 4.4% from the same period a year earlier. The decline marked a big improvement from the first half of the year, when business volume plunged 41.9% to 2.43 billion yuan. Looking Up: The improving performance was reflected in third-quarter results for Club Med, whose business volume more than doubled to 2.6 billion yuan during the…

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Fosun Tourism Sees Rebound Just Around the Corner – Again

Owner of Club Med resort chain says business from core tourism operations slumped 42% in first half of 2020, an improvement from 74.5% drop in first quarter Key points: Fosun Tourism’s business continued to drop in the second quarter despite very weak comparisons from the year-ago period Company continues to see rebound coming, with bookings at 86% pre-pandemic levels in the second half of the year By Doug Young Tourism may be staging a nascent comeback as China and the west bring their pandemics under control. But you might have…

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Club Med Owner Fosun Tourism Sees Sunnier Skies, But Investors Unimpressed

Company’s shares sag 5% after it reports business at its tropical Hainan island mega-resort soared 161% in first quarter of 2020 Key takeaways: The latest data from Club Med owner Fosun Tourism provides further evidence of a strong tourism rebound when the pandemic subsides. A selloff of the company’s shares after the announcement reflects investor caution following a recent run-up in the stock By Doug Young Investors are starting to tire of the nonstop stream of optimistic forecasts coming from a global tourism sector that has been one of the…

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