With continuous efforts to optimize capital and asset base, Fosun's short-term liquidity pressure has been greatly eased and its credit rating outlook has been raised by an international rating agency

HONG KONG SAR - Media OutReach - 30 May 2023 - International rating agency S&P Global Ratings issued a report, raising Fosun International Limited's (HKEX stock code: 00656, "Fosun International") rating outlook to stable.

S&P Global Ratings pointed out in the report that benefitting from the diversified asset portfolio and management's commitment and execution to deleverage through asset disposal, Fosun's asset disposals brought a cash inflow of approximately RMB30.0 billion in 2022. At the same time, sound banking relationships enabled sufficient sources of liquidity amid turbulence in the bond market. The significant asset disposals and stable credit support from banks enabled Fosun's successful repayment of all concentrated maturing bonds in the past three quarters. As of the end of March 2023, Fosun successfully brought down holding-company debt by about RMB24.0 billion to RMB93.0 billion. In addition, the share of bank loans in the holding company's debt rose, the proportion of debts due over the next 12 months dropped significantly, and the stability of the debts improved significantly. S&P Global Ratings affirmed its long-term issuer credit rating and guaranteed senior unsecured notes rating on Fosun, raising Fosun's rating outlook from negative to stable.

Despite uncertainties in the external environment, Fosun's onshore and offshore financing capabilities have been proven by the markets.

In early May this year, Fosun International's offshore multi-currency syndicated loan was officially launched, and it has obtained a loan of more than US$450 million in equivalent so far. The offshore syndicated loan was jointly initiated by seven banks including Bank of China, Bank of East Asia, Commerzbank, Hang Seng Bank, HSBC, Natixis Bank, and Standard Chartered Bank as lead bookrunners, and more than 10 banks have joined the syndicate.

In January this year, Fosun's domestic operating entity, Shanghai Fosun High Technology (Group) Co., Ltd. obtained a syndicated loan of RMB12.0 billion. The syndicate was formed by five major state-owned commercial banks including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications as joint lead banks, and China Minsheng Bank, the Export-Import Bank of China, and Shanghai Pudong Development Bank as participating banks.

Domestic and foreign banks have successively provided significant credit support to Fosun, which reflects mainstream financial institutions' recognition of Fosun's debt management actions such as accelerating the sale of non-core assets and cash inflows. The significant financial support from banks will also help Fosun reduce its dependence on public market financing and support subsequent liquidity management and sustainable business development.

Amid a challenging global financial backdrop, Fosun's credit indicators assigned by international institutions such as S&P Global Ratings still hold firm thanks to its steadfast implementation of the strategy of "streamlining the organization". By continuously optimizing the structure of assets and liabilities and increasing the divestment of non-strategic and non-core assets, Fosun's endogenous momentum to win out market cycles and achieve sustainable development has been further strengthened. For the full year of 2022, the amount by contract value based on consideration set out in the divestment agreements exceeded RMB40.0 billion, bringing a cash inflow of nearly RMB30.0 billion at holding company level.

Fosun's series of measures of "streamlining the organization" have also accumulated momentum for the recovery of core businesses in the household consumption sector. In the first quarter of this year, Fosun's businesses in consumer and tourism sectors showed a remarkable upward trend. In the first quarter, Yuyuan achieved an operating revenue of RMB15.244 billion, representing a year-on-year growth of 22.61%; the revenue of Yuyuan Jewelry and Fashion reached RMB11.494 billion, representing a year-on-year increase of 28.55%. Coupled with the overall relaxation of travel restrictions worldwide, Fosun Tourism Group's (FTG) profit attributable to the parent in the first quarter doubled compared with the same period in 2022, Club Med's business volume reached RMB5.004 billion, an increase of about 44.2%; during the May Day holiday this year, the total business volume of Club Med resorts in China exceeded the same period in 2022 by about eight folds, and exceeded the same period in 2019 by about 110%.

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About Fosun

Fosun was founded in 1992. After more than 30 years of development, Fosun has become a global innovation-driven consumer group. Adhering to the mission of creating happier lives for families worldwide, Fosun is committed to creating a global happiness ecosystem fulfilling the needs of one billion families in health, happiness and wealth. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). As of 31 December 2022, Fosun International's total assets amounted to RMB823.1 billion. Fosun International ranks No.589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.