HONG KONG SAR - Media OutReach - 1 September 2022 - On 1 September 2022, after Fosun International Limited (HKEX stock code: 00656, "Fosun International"), together with its subsidiaries ("Fosun" or the "Group") announced its 2022 interim results on 30 August, Goldman Sachs, Morgan Stanley, Daiwa Capital Markets and CICC issued research reports and unanimously assigned "Buy" or "Overweight/Outperform" ratings to Fosun International.

The interim results show that in the first half of the year, Fosun achieved sustainable growth in its revenue, continued to develop in technology and innovation and strengthen its globalization strategy, its funds remained stable, and its capital structure continued to be optimized, demonstrating the resilience of sustainable development. Although the Group's net profit in the first half of the year was affected by the pandemic, rising commodity raw material prices and fluctuations in the capital market, many major banks believe that the Group's performance was in line with market expectations, and they are unanimously optimistic about Fosun International's stock.

Goldman Sachs reiterated its "Buy" rating on Fosun International with a target price of HK$11.2 in its latest research report. Goldman Sachs believes that Fosun International in the first half of the year continued to maintain steady revenue growth, up 18% year-on-year. Although the profits of the Health and Wealth segments fell year-on-year due to investment losses dragged by market fluctuations, the loss of the Happiness segment narrowed significantly, mainly due to the strong recovery of overseas tourism business. The report pointed out that Fosun is committed to a balanced investment and divestment strategy, continues to optimize the capital structure, has sufficient liquidity and cash on hand with a stable leverage ratio, and actively manages liquidity and financing cost. It has also strengthened cooperation with two major banks, ICBC and HSBC China recently, highlighting its advantages in credit metrics management and allowing it to seize potential investment opportunities in the market. Goldman Sachs therefore believes that Fosun International is recently trading at a low level, sees high potential in Fosun International and maintained its "Buy" rating.

Morgan Stanley expressed that although Fosun International's net profit fell in the first half of the year, it was within expectation, and reiterated its "Overweight" rating with a target price of HK$11.4. The firm pointed out Fosun's financial position is solid, with ample and increased cash position. As of the end of the reporting period, the company's cash, bank balances and term deposits increased by approximately RMB21.0 billion to RMB117.65 billion, covering 45% of its total consolidated debt position; the debt to capital ratio was 56.8%. It believes that the Group's balance sheet still largely stable.

Daiwa Capital Markets also reiterated its "Buy" rating on Fosun International with a target price of HK$10.8. Daiwa Capital Markets believes that Fosun International's performance in the first half of the year is in line with the firm's expectations, and expects Fosun's debt to be optimized continuously. As of the end of the reporting period, the debt to capital ratio was 56.8%, and the Group's average financing cost was at a low level of 4.5%. The firm expects that Fosun's key financial indicators to be further optimized over the period from 2022 to 2025, and expects the Group to steadily lower debts year on year, extend the duration of debts duration, increase the dividends from subsidiaries, and control headquarter overheads, thereby steadily optimizing the Group's credit indicators. The firm expects Fosun to continue to optimize its asset portfolio, and dispose "non-strategic and non-core" assets in a timely fashion to improve its cash and liquidity position, allowing it to weather macro and market fluctuations. In addition, the firm expects that with the improved market sentiment, and benefiting from Fosun's diversified business portfolio and global presence, Fosun International will continue to demonstrate the resilience of sustainable development. Therefore, the firm remains optimistic about Fosun International and assigned a "Buy" rating on Fosun International.

In addition, CICC reiterated its "Outperform" rating on Fosun International, with a target price of HK$8.50 in its research report. CICC believes that Fosun International's main businesses achieved steady growth, and pointed out that Fosun has continuously strengthened the management of investments and divestments to strike a balance, improved the capital structure and enhanced liquidity. In the first half of the year, Fosun completed the disposal of Tsingtao Brewery and continued to promote the balance between investments and divestments. CICC believes that the asset divestments carried out by Fosun are all non-core secondary market positions, which will not affect the business structure, and will optimize the capital structure and help strengthen the financial position.

The interim results announced on 30 August shows that in the first half of 2022, Fosun's total revenue reached RMB82.89 billion, representing an increase of 17.7% over the same period in 2021; enterprise operation profit reached RMB2.33 billion, representing an increase of 35.5% year-on-year; investment in technology and innovation amounted to RMB4.6 billion, representing an increase of 21% year-on-year.

Fosun has been steadfastly fulfilling its mission of "creating happier lives for families worldwide", strengthening its presence in four business segments: Health, Happiness, Wealth and Intelligent Manufacturing. It is also one of the few companies in China which has global operation and investment capabilities and has accumulated profound technological innovation capabilities. Fosun maintained a stable leverage ratio, high risk tolerance with its multi-currency debts and stable debt maturity, and it is in a healthy financial position. At the interim results presentation held on 31 August, the management of Fosun International said that after entering the second half of the year, thanks to the Group's long-term adherence to profound industry operations, the financial and operational indicators of companies in multiple segments have rapidly shown signs of a steady recovery.

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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). As of 30 June 2022, Fosun International's total assets amounted to RMB849.7 billion. Fosun International ranks No.589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.