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China's Fosun posts 33.6 pct rise in H1 profit, says core units grow well
August 30, 2017 / 9:56 AM / 2 months ago

China's Fosun posts 33.6 pct rise in H1 profit, says core units grow well

HONG KONG, Aug 30 (Reuters) - Chinese conglomerate Fosun International Ltd, one of the country’s most acquisitive overseas dealmakers, reported a 33.6 percent rise in first-half net profit on Wednesday, thanks to steady growth in its core businesses.

The insurance-to-tourism conglomerate, which has a market value of HK$106.3 billion ($13.6 billion), said net profit for the six months ended June totalled 5.86 billion yuan ($889.2 million), up from 4.39 billion yuan a year earlier.

Revenue increased 11.6 percent to 36.3 billion yuan.

The company said its key businesses - including Fosun Pharma, Club Med and Yuyuan - performed strongly.

The group is one of China’s most aggressive global dealmakers, having taken control of French resort chain Club Med and Britain’s Thomas Cook Group as well as a stake in an iconic U.S. building, One Chase Manhattan Plaza.

In June, a consortium of investors led by Fosun International said it would buy a 10 percent stake in Russia’s top gold producer Polyus for $887 million.

The group has come under scrutiny in recent weeks amid a drive by Beijing to suppress showy overseas deals that has drawn in other corporate giants, including property developer Dalian Wanda, HNA Group and Anbang Insurance.

In March, Fosun’s chief executive and vice president stepped down in a surprise reshuffle that raised concerns over the group’s strategy.

Fosun has been the poster child for China’s decade-long outbound push, which saw Chinese bidders spend a record $105 billion on assets ranging from movie studios to football clubs in 2016.

$1 = 7.8251 Hong Kong dollars $1 = 6.5904 Chinese yuan Reporting by Anne Marie Roantree; Editing by Richard Borsuk

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