Fosun Tourism back in black

Fosun Tourism (1992) announced its net profit for the first half-year was 490 million yuan (HK$546 million), compared with a net loss of 255 million yuan from a year ago, meanwhile declaring an interim dividend of 7 HK cents. Revenue for the six months grew by 35.9 percent year-on-year...

Stella Zhai

Tuesday, August 20, 2019

Fosun Tourism (1992) announced its net profit for the first half-year was 490 million yuan (HK$546 million), compared with a net loss of 255 million yuan from a year ago, meanwhile declaring an interim dividend of 7 HK cents.

Revenue for the six months grew by 35.9 percent year-on-year to 9.06 billion yuan, among which Club Med resort recorded a revenue of 6.93 billion, increased by 5 percent compared with the same period of last year.

The company's first tourism destination project, Atlantis Sanya hotel reported an income of 656 million yuan, growing 2.2 times from a year ago. Customers visiting Atlantis Sanya in the first half this year has increased to approximately 2.5 million from 883,000 in the same period in 2018, with the occupancy rate by room rising from 47.5 percent a year ago to 62 percent.

Jim Qian Jiannong, chairman of Fosun Tourism said the company is in talks of a restructuring plan of London-listed Thomas Cook, with the expectation to acquire more shares in the company and its airlines.

Qian said he is confident about the industry though many travel agencies are facing difficulties recently, and the company believes the value of Thomas Cook brand will help Fosun in the future.

He added that the mainland tourism sector was less impacted by the Sino-US trade tension and Brexit, as domestic tourist spending and Chinese outbound travelers grew by 13.5 percent and 14 percent year-on-year, respectively, in the first half this year.