Domestic and Foreign Investment Banks, Including Citi, UBS, Nomura Orient, Industrial Securities, Huaxi Securities, and Kaiyuan Securities are Bullish on Fosun International’s Strong Profitability in Core Businesses and Sufficient Liquidity

HONG KONG SAR - Media OutReach - 11 September 2023 - Fosun International Limited (HKEX stock code: 00656, "Fosun International" or the "Company"), together with its subsidiaries ("Fosun" or the "Group"), announced its interim results at the end of August, a number of domestic and foreign securities firms and investment banks, including Citibank, UBS Securities, Nomura Orient International Securities, Industrial Securities, Huaxi Securities, and Kaiyuan Securities, have successively published research reports, expressing their bullish views on Fosun International's strong profitability in core businesses and sufficient liquidity.

Many domestic and foreign securities firms and investment banks have assigned the Company a "Buy"/"Overweight" rating. In particular, Citibank, Nomura Orient International Securities, and Industrial Securities have assigned the Company target prices of HK$7.1, HK$7.5, and HK$9.06 respectively, with approximately 45% - 85% upside.

Securities firms and investment banks have recognized Fosun International's strategy of focusing on its core businesses and concentrating on the development of core businesses where it boasts clear competitive advantages. During the Reporting Period, the Group achieved a total revenue of RMB97.06 billion, representing a year-on-year increase of 10.9%; the key indicator reflecting the Company's operational capabilities - industrial operation profit reached RMB3.37 billion, representing a year-on-year increase of 5.5%, if excluding the profit of disposed enterprises (including transactions yet to be completed), industrial operation profit surged 66% year-on-year, demonstrating significant improvement in the profitability of core businesses. Domestic and foreign securities firms and investment banks pointed out that benefitting from consumption recovery and relaxation of travel restrictions globally, Fosun's Happiness segment, especially tourism and consumer businesses, saw a strong recovery after the epidemic. In addition, the profitability of the Health segment, especially Fosun Pharma, improved significantly, reflecting steady growth in Fosun's core businesses.

Some securities firms and investment banks pointed out that Fosun's overseas core subsidiaries, empowered by the Group, have achieved remarkable results in global expansion and have become an important driving force for development. Huaxi Securities pointed out that Fosun International's leading model of "global organization + local operations" has become more mature, with a business presence in more than 35 countries and regions and nearly 40 overseas brand enterprises. In the first half of 2023, the Group's overseas revenue reached RMB44.09 billion, accounting for 45.4% of total revenue. Citibank pointed out that the international business of Fosun Insurance Portugal's total gross written premiums ("GWP") amounted to EUR832 million, a 19.4% increase year-on-year, highlighting the benefits of Fosun Insurance Portugal's diversification strategy. MyFidelidade App launched by Fosun Insurance Portugal successfully acquired more than 1.4 million registered users (exceeding 13% of Portugal's total population). Industrial Securities pointed out that Fosun Insurance Portugal's total GWP for the first half of 2023 were EUR2.65 billion, maintaining its leading position in the Portuguese market with a 30% market share in Portugal; German private bank HAL's gross income increased by 24% year-on-year to EUR224 million, with total assets reaching EUR13.3 billion, reflecting the strong growth momentum in Fosun's overseas business thanks to the Group's empowerment.

Fosun's robust technology innovation capabilities are also an important core engine that drives the growth of the Company. In the first half of 2023, the Group's research and development ("R&D") investment reached approximately RMB4.2 billion. Nomura Orient International Securities believes that led by global expansion and innovation, Fosun is expected to see business recovery. The firm pointed out that Fosun has established strong globalization capabilities and a unique operating model. Through its global business presence, Fosun has closely integrated global resources with global customers. In addition, Fosun has always maintained high investment in R&D to build a global innovation system led by product innovation, digital intelligence innovation, and management innovation, leveraging innovation to create happier lives for families worldwide.

It is worth noting that domestic and foreign securities firms and investment banks unanimously pointed out Fosun continued to optimize its capital and asset structure, put greater efforts in the disposal of non-strategy and non-core assets, and actively explored financing channels, thereby maintaining ample liquidity. During the Reporting Period, cash inflow from divestment amounted to more than RMB20.0 billion at the consolidated level. In January 2023, Fosun High Technology successfully entered into a syndicated loan agreement for an amount of RMB12 billion with eight domestic banks, attesting to the domestic banking institutions' firm support for the development of private enterprises. As for public-market financing channels, Fosun High Technology issued two super short-term commercial papers of RMB1 billion each in January and July 2023. In the first half of 2023, the Group has navigated through the maturity wall, and redeemed onshore bonds of RMB6.73 billion as well as offshore debt of over USD2.7 billion. As of 30 June 2023, the Group had no material offshore bonds due in one year. The improved credit profile has also been affirmed by the international market. International rating agency S&P Global Ratings recognized Fosun's effective efforts in terms of debt reduction driven by asset divestment and debt structure optimization and lifted the Group's rating outlook to "stable".

Looking ahead to Fosun International's future performance, domestic and foreign securities firms and investment banks are optimistic about the Company's accelerated divestment of non-strategy and non-core assets and optimization of capital structure to sharpen its focus on core businesses. A securities firm pointed out that the Company's results performance is expected to see rapid growth as compared to the full year of 2022. Since major factors affecting the share price have already been reflected, the Company's current valuation is attractive, thus a number of domestic and foreign securities firms and investment banks have recommended investors to buy the Company's shares.


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