Q2 2026 Fosun International Ltd Earnings Call
Speaker #1: Yes.
Speaker #2: 最近这个跟昨天不一样。
Speaker #1: 不一样。
Speaker #2: 啊。
Speaker #1: 各位尊敬的投资人，分析师。
Speaker #3: Dear investors and analysts partners and friends from the media, good morning.
Speaker #2: 今天在现场。
Speaker #3: Today.
Speaker #2: 充分感受到。
Speaker #3: We can strongly feel your attention to post-international. I would like to thank you all for being here and I would like to thank the guests online.
Speaker #3: I am Co-CFO of Post-international 蔡怡清. First, let me introduce the leaders from Post-international. First, we have Chairman of Post-international, Mr. 郭广昌. Co-Chairman of Post-international, Mr. 王勤斌.
Speaker #3: Executive Director, Co-CEO of Post-international, Mr. 陈其宇. Executive Director and Co-CEO of Post-international, Mr. 许小亮. And Executive Director, Executive President and CFO of Post-international, Mr. 龚平.
Speaker #3: Today we will have two sessions in the morning session focused on international management team will brief on the financials, business, and strategic development for the first half of 2026 in the afternoon session.
Speaker #3: The Head of Foreign Business Segments will share on the business, financials, and strategic development. First, let's give the floor to Mr. 龚平 to brief us on the financials.
Speaker #3: Dear investors and analysts, and friends, good morning. On behalf of the management team, I would like to report to you on the financials of Post-international in the first half of 2026, with complex macro-environment focusing is committed to streamlining business and focusing on core business and we are seeing strong results the group overall has shift towards profit growing track and we are seeing solid performance across all segments in the first half we see some key features.
Speaker #3: First, total revenue remained stable and structure remained optimizing the total revenue in the first average to 86.96 billion RMB up by 3% year-on-year excluding impact of HALC consolidation for core revenue reached 63.88 billion RMB, 73.5% of total group revenue, and revenue increased by 4.6% year-on-year excluding impact of yuan and overseas business covering 40-plus countries and regions.
Speaker #3: And we are seeing stronger profitability back on the right track due. Banking insurance and Hainan mining, the industrial operating profit reached 3.69 billion RMB up by 17% year-on-year and driving by higher industrial operating profit and lowered headquarter finance cost net profit triple to owners of the parent reached 1.72 billion RMB up by 160.3% year-on-year and we are continuing the investment in technology and innovation in the first half the investment was 4.2 billion RMB up by 16.7% year-on-year focusing on R&D system optimization, efficiency improvement, and continuous investment in advantageous pipelines and product line especially in fossil pharma and other businesses.
Speaker #3: And the group continue to optimize portfolio with valuation recovery underway. By June 30th, 2026, group portfolio value PVS or PVN reached 192 billion RMB and share of listed insurance assets in portfolio value reached 55% and we are seeing more transparency here making strong foundation for valuation recovery and adjusted NAVS of period and reached 128 billion RMB adjusted.
Speaker #3: Per share reached 18.1 HKD and the price NAV ratio reached 0.29 showing strong improvement for share price and strong prospects. And the group also on several key strategies.
Speaker #3: First, enhancing ROE management, improving core business performance. The midterm target for the group's net profit triple to owners of the parent is reaching 10 billion RMB, especially for fossil pharma fidelidad and Hainan mining.
Speaker #3: The ROE improvement of such core businesses lay a solid foundation for overall ROE improvement. Second, we are adamant in disclosing non-core assets and commitment to deleverage the midterm target is reducing group level interest bearing liabilities to below 60 billion RMB and we have increased by about 4.5 billion RMB from the beginning of the year as of June 2026.
Speaker #3: The third part is assets spent up to unlock value. We are actively spinning up unlisted assets and pushing forward public listing including Senya Talentus commencing commercial real estate rates issuance.
Speaker #3: As for the four segments here, we are seeing growth in all of the industrial operating profitability showing our diversification strong risk resilience. For health segment, first half revenue reached 24.03 billion RMB, 6.5% year-on-year growth, industrial operating profit RMB, 3% comparable basis growth, and the overseas revenue reached 16% year-on-year growth.
Speaker #3: And for Hanwi, and other platforms, we are seeing many drugs reaching market approval in US, EU, Canada, etc., and fossil health actively exploring international healthcare services and the innovative drug sales reached 33% of total sales showing our globalization upgrade we are committed to being CMNC for fossil pharma.
Speaker #3: As for happiness segment, we are seeing breakthrough in globalizing our brands in the first half revenue reached 33.63 billion RMB, a slight decline but still very strong because of macro pressure.
Speaker #3: Despite the overall pressure, we are still seeing some structural highlights. We are seeing breakthrough in globalization, including Mao Miao having five new overseas stewards providing strong revenue growth and Nanxiang opened three new overseas stewards brand Yuyuan revitalization and GMV reaching over 2.2 billion RMB and the travel segment also strong show strong highlights.
Speaker #3: With CloudMed seeing record-breaking growth and two new results and Atlantis Senya also experienced a very strong performance with 850 million RMB of revenue and improving overseas guest ratio.
Speaker #3: For wealth, the first half revenue reached 27.31 billion RMB and industrial operating profit reached 2.96 billion RMB with insurance contributing over 2 billion RMB and for the banking and insurance BG.
Speaker #3: We see a 24% growth for the premium. And as that management part, revenue slightly decreased because of the divestment of HL but if we exclude that impact we are still seeing strong growth here.
Speaker #3: And we have five new private equity funds with AUM excluded exceeding 43 billion RMB focusing on high growth factors including AI and biopharma with 16 portfolio companies listed and over 10 companies filing for IPOs.
Speaker #3: For intelligent manufacturing we are seeing the growth for oil and gas and new energy first half revenue reached 4.61 billion RMB, 14.6%. And year-on-year growth.
Speaker #3: Industrial operating profit 180 million RMB, 54% year-on-year growth, especially for Hainan mining. Revenue and net profit are trivial to owners of the parent both grew by double digit in first half 2026.
Speaker #3: Wan Sheng revenue grew by 20% year-on-year and Taiwan production base commenced operations smoothly. Strengthening its global supply chain. And then let's look at the core subsidiaries.
Speaker #3: Fosun's core competitiveness is rooted on the operations of our core companies and the four core companies lay a strong foundation for Fosun International. Fosun Pharma is seeing breakthrough in innovative drug reaching 1.72 billion net profit trivial to owners of the profit.
Speaker #3: Owners of the parents and then for Yuyuan Lao Miao jewelry is accelerating globalization with Oriental lifestyle aesthetic strategy on the top and we are seeing revenue growth by over 200% year-on-year of Lao Miao jewelry despite the macro economy pressure we're still seeing adamant strategy in lifestyle aesthetics and building Oriental cultural IPs.
Speaker #3: For Fosun Insurance Portugal the first half premium reached 3.88 billion euro and 19% year-on-year and in Portugal we are seeing strong performance in auto and life insurance driving total premiums up by 21% year-on-year and S&P rating outlook upgraded from stable to positive and it is also a strong driver for our overseas revenue.
Speaker #3: And then let's look at Fosun Tourism segment focusing on three major product lines. For CloudMed we are seeing growth in business volume and occupancy and we see the opening of Hangzhou Longwu and the South Africa which has a faraway resort.
Speaker #3: Atlantis Senya also see double digit growth in revenue. And then for the next year core companies they are also unlocking profit upside for us for peak three first half total premiums reached 1.19 billion US dollars, 12% year-on-year growth, 19 million US dollars net profit in their first half and we see rate the rating upgrade for peak three moving upgraded the insurance financial strength rating from BA1 to A3 and for America Fosun Life Insurance reached 8.38 billion total premiums in the first half reaching 52% year-on-year growth, 780 million net profit in the first half, strong growth in new business premium including the individual agent channel and bank assurance channel.
Speaker #3: Fosun United Health Insurance reached 4.96 billion in terms of total premiums in the first half reaching 36% year-on-year growth. It is leveraging groups ecosystem resources to build a differentiated full life cycle health management system.
Speaker #3: As for Millennium BCP maintaining sound balance sheet first half net profit reaching 570 million euro showing 12.7% year-on-year growth. First half ROE reaching 14.6% and total capital adequacy ratio at 19.3% and CT1 ratio at 15.1%.
Speaker #3: Hainan mining reached 2.72 billion RMB for first half revenue showing 13% year-on-year growth and Maoli Buguli Mine 70,000 tons of mine has shipped to China in the first half and we are seeing the completion of technology upgrade for the lithium.
Speaker #3: Line so that there could be flexible switching of lithium salt products. And for rock oil with oil price hike we are also seeing solid performance and Hainan mining is also actively exploring into fluoride business.
Speaker #3: For Fosun's globalization strategy it has been upgraded to global in depth operation especially driven by innovation and technology. In the first half overseas revenue ratio reaching 56% and business covering over 40 countries and regions.
Speaker #3: For Fosun Pharma's oral small molecule DPP-1 1 inhibitor security exclusive global licensing deal outside Chinese mainland Hong Kong and Macau. And we see exclusive cooperation for Alzheimer's disease drug with for AR1001 and we are also seeing some exclusive options for Fosun Pharma and CloudMed is also deepening global operations Nanshan opening two new stores and CloudMed Resorts also seeing strong performance in various parts of the world and the fidelity that premium reaching 30% growth and gaining leading positions in multiple markets like Rubo, Livia and Chile Hainan mining is actively exploring global resource through projects including Maoli and Oman and the Wanshan commenced operation of the Taiwan production base.
Speaker #3: And then for innovation driven growth we are seeing AI plus business initiatives for example Han Li's powered by AI for science platform reducing the R&D cycle from 18 months to 5 months AIGO in tourism business provide 24/7 multi-lingual and personalized online services Fosun United Health Insurance proprietary AI products and the FinLoop fully automated AI powered information processing with zero human intervention.
Speaker #3: And we have seven innovative drugs with total of 20 indications developed and licensing by Fosun Pharma. And then for PEVC platforms Fosun Capital and Fosun RC Capital we see over 30 portfolio companies of them showcased at WAIC 2026 spending AI infrastructure embodied AI memory chips and quantum computing Fosun Health Capital launched new drug fund phase two with 2 billion RMB raised further strengthening is focused on early stage innovation.
Speaker #3: And the group continued to improve from the financial structure and with solid rating for the first half we see smooth public market financing with 5.22 billion RMB during the period.
Speaker #3: And we see we have a successful case for bank syndicate in Hong Kong. And the group is actively adjusting the pace of its offshore bond insurance and the average cost of that during the period for the group reached 5.2% average cost of that during the period consolidated level reached 5.0% remaining stable.
Speaker #3: And we are adamant in reducing the that for cash inflow from asset investments and the dividend upstream at group level reaching 9.3. Billion RMB contracted investment of PEVIS and Encore and the non-strategic asset by subsidiaries reaching 7 billion RMB including disposal Fosun International Financial Center and disposal of 13 non-core business hotels from quote hotel portfolio in Japan.
Speaker #3: And we see further reduction in group interest bearing debts. The debts level reduced from 89.9 billion RMB by the end of 2025 to 85.4 billion RMB by June 2026.
Speaker #3: And we see very clear midterm target for the group including focus development profit growth deleveraging and shareholder returns with insurance and the health and the tourism as the main segments we are focusing on global operations and innovations and depend AI applications we will further increase the share of overseas revenue and further strengthen the risk resilience as for profit growth the midterm target is that reaching 10 billion RMB in terms of net profit driven to owners of the parents enhancing operating efficiency of core companies and strengthening ROE management reduced headquarter expenses as for deleveraging the midterm target is reaching 60 billion.
Speaker #3: RMB of group's interest bearing liability continues divestment of non-core assets enhancing dividend management and advancing towards investment grade status shareholder returns is targeting payout ratio to 35% with dividend for fiscal year 2026 expected to be no less than 1.5 billion Hong Kong dollars major shareholders and management intend to purchase up to 500 Hong Kong dollars of shares by March 30th 2027.
Speaker #3: Overall we aim to carry out our strategies to have stronger shareholder returns and now let's give the floor to Chen Qiu.
Speaker #2: So Alex Gong has already reported to you on the business performance of the first half on my side. I'm going to give you an overview of our businesses by different segments.
Speaker #2: So first if we look at the health segment in 2026 H1 we have reached a total revenue of 24.03 billion RMB grew by 6.5% year on year and the industrial operating profit reached 716 million growing by 2.7%.
Speaker #2: Fosun Pharma revenue 20.38 billion RMB Han Li's reached 3.59 billion RMB our overseas revenue has exceeded 10 billion RMB Fosun Pharma R&D expenditure 3.25 billion RMB Fosun Health Tianda Healthcare reaching revenue 3.74 billion RMB Lu Zawood in Portugal reaching 0.45 billion euros.
Speaker #2: Fosun Pharma in H1 has seen the rising share from innovative drugs and overseas revenue. The innovative drugs reaching 4.9 billion 13.84% year on year accounting for 33% of pharma segment revenue.
Speaker #2: Overseas revenue reaching 6.379 billion 16% year on year accounting for 31% of total revenue. Net profit attributable to shareholders to was 1.7 billion growing by 1.15 year on year.
Speaker #2: Adjusted net profit was 1.1 billion growing by 19% year on year. So besides our innovation R&D we have a very important initiative for Fosun Pharma which is to build a full value chain collaboration for our global operational system so this is after a decade of R&D innovations for pharmaceutical companies in China I think this is consensus of the industry to make a breakthrough which is to build a global operational system with a full value chain collaboration.
Speaker #2: So in the first half we have seen a 6.3 billion overseas few contributors Glant Pharma it's in India it's actually it's it was acquired by Fosun for about 10 years and our core businesses is actually in the US on the high-end generic drugs and at the same time it is also a CDMO company in India targeting the global operations and we have reached a strategic collaboration with a global manufacturing pharmaceutical company and we expected any last revenue exceeding around the USD 100 million we'll see more progress on that.
Speaker #2: On Han Li's for PD1 and also there are a few other high quality biosimilars have been launched in several markets PD1 was approved in EU and also it has now been launched in India some other emerging markets Difusumab was approved in Canada Pertusumab was Difusumab was approved in Canada following its approval in the US and the EU.
Speaker #2: Brius and Systrom they are the key contributor of our international business and their key market is actually also in the US and Europe so for EUS and Europe and emerging markets pushing our pharmaceutical business has been is going to be a long-term global development of our strategy for globalization it's not just about innovative R&D it's also about registration and production therefore we are building this systematic layout globally for the global commercialization capabilities you can see that we have around 5,000 commercialization people in our commercialization team in China and for overseas we have around 1,000 people and going forward we target mature and emerging markets a mix of markets to have a systematic development in the US our MedTech our MedTech business is mostly is mostly in the US whether for our respiratory and medical aesthetic devices and for generic drugs we have also built the direct distribution capabilities in the US and going
Speaker #1: Forward . We are planning for PD one and are 101 commercialization . Us we are preparing for that for you . Supporting map has been included in 12 EU countries Insurance social health insurance .
Speaker #1: Reimbursement catalogs and we have also collaborated with Is efforts to set them up in Japan and for African . We are also pushing for that Middle East .
Speaker #1: We are accelerating the launch of innovative drugs . We also target . Like s e markets as well , both pharma is committed to comprehensive deployment of innovative technology platforms and we can see that we have our comprehensive system for all different technical platforms covering monoclonal antibody bias , poly ADC fusion proteins , and small molecules , and also Car-T , R T , S , I , RNA , others and diagnostics , etc.
Speaker #1: . For each of these indications , we have different medications , preparations , and pipelines . And with more than ten years of development , we have built a high value pipeline portfolio .
Speaker #1: So now we are covering solid tumors and immuno inflammatory diseases , neurodegenerative diseases , CRM and our products . So we cover different phases from IMD phase one , phase two , phase three , and day , and launching .
Speaker #1: And I believe we have already secured a few pipelines with a great potential for the global market with around 1 billion and 500 million potentials globally , Fosun Pharma is also committed to building a opened opening system .
Speaker #1: We are also pushing the full comprehensive collaboration with different pharmaceutical companies like Eisai and and Pfizer , etc. we collaborate with them with different types of products , including with GLP one , small molecule products , and also Senate is also a leading biopharmaceutical company .
Speaker #1: We are pushing for the biopharmaceutical collaborations in the markets . We also work with a leading scientists like editing , bio . We work with them on the first in class medication R&D .
Speaker #1: We also licensed in air bio AR 101 , targeting our achievements . We work with Top Alliance . We work with Top Alliance for the Greater China Region on this .
Speaker #1: Antibody drugs and on hep A Sierra , which is our found incubation is a found incubation company . We work with them on the on on the chronic hepatitis B medication is also in phase two .
Speaker #1: The health care services and pharma has continued to improve , especially targeting for international health care . We are actively pushing for a healthcare system that is rooted in the greater Bay area to push the operations into CA .
Speaker #1: We also pushing for smart healthcare and AI applications . Our rehabilitation , healthcare company . We are operating 25 rehabilitation , medical institutions .
Speaker #1: We are advancing our specialty development , especially to push AI enabled applications to empower our rehabilitation , healthcare , our medical devices , and diagnostics business , as also developing developing system is based in Israel as a dual engine , as a company that has a dual engine strategy of energy based devices and .
Speaker #1: And also injectable , cellular . And besides the North America company , where we have some strategic adjustments in the market for the global markets of system has maintained a very solid performance taxi is actually an injectable filler .
Speaker #1: And now advancing this commercialization in China , for Insightec , it's a brand new Professional . It has completed the two system newly sold in China and intuitive for some and installed six systems across China and Hong Kong and Macau for the respiratory care , which is breathless .
Speaker #1: We are now have business operations in nearly 60 countries and the US market . We have seen some temporary pressures , but we .
Speaker #1: We expect very strong progress in the second half and also in some global other global markets . Fosun Pharma is also pushing for AI development and empowerment , especially in the pharmaceutical R&D .
Speaker #1: Our farmer site is pushing very . Is delivering very good , great impact and effects for the decision management on the happiness segment .
Speaker #1: We have seen 316 billion . Slight decrease of 6.2% and operations revenue operation losses reached 200 million loss down by 40% yuan , reaching 17 billion when seen a performance rebounding because it's because the core business remain fundamentally resilient , we have seen lean operations and also the admin expenses decreasing our overseas revenue , reaching 3.1 13.9 billion , 44% of total revenue , up by three percentage points year on year .
Speaker #1: For tourism segment , reaching 9.9 billion . The revenue continued to grow and we have seen the resilience of its strategic performance . So it's seen also significant improvement in gross profit margin and in the first half , we have seen the competition and the in the competition in the consumption industry in the past three years , we have seen some impacts of our performance in the past few years .
Speaker #1: But on the net profit , we have managed to grow it from 14% of H1 last year to 18.6% . Our jewelry and fashion gross margin reaching to 8.76% from 7.3% of same period last year .
Speaker #1: So the spirits e-commerce revenue have also seen a steady growth Events , jewelry business have seen a better quality and efficiency , and also we are observing a multidimensional operational innovations .
Speaker #1: So based on our deep consumer insights research , we continue to cultivate the . Good luck brand mindset , build a highly competitive product , manage our metrics , steadily reshape our brands pricing power .
Speaker #1: In the first half of this year , the sales proportion of new pretty based pricing products exceeded 18% . Piece based pricing is actually very heated .
Speaker #1: Concept , which is concept that allow ML is adopting . It's not like weight based pricing Our jewelry business is also actively expanding overseas business .
Speaker #1: In the past , we only focus on the domestic markets , but now we're accelerating our developments in overseas market . As of H1 26 .
Speaker #1: The Source in Hong Kong , overseas and duty free channels have expanded 15 with significant sales growth For the Grand Yuan strategy , we are elevating the strategy .
Speaker #1: We have decided to have intangible cultural heritage as a priority strategy of Grand Yuan . And so we aim to build a global showcase for intangible cultural heritages and fashion culture , integrating culture , commerce and tourism to create immersive global destination for cultural and e-commerce .
Speaker #1: So for UN phase one , we have set up the jewelry and Fashion district to to build and get the gathering of leading brands to build a heritage gold ecosystem .
Speaker #1: And BFC , which is quite close to you . And it's also the headquarter of Folsom Group . We are building an incubation hub for in designer jewelry brands and also to see at the same time , we aim to build a integrated destination experience , Clomid .
Speaker #1: We continue to deepen the global presence and enhance the resort experience . Clomid operates six sales and marketing activities across 40 more . More than 40 countries and regions spanning six continents .
Speaker #1: As of H1 , it had 69 resorts in operation worldwide . We also continue to expand our global destination footprint , and Hans Resort experiences this year .
Speaker #1: In April , Club Med Urban Oasis has officially opened a new resort , which is in Hangzhou , Longwu Resort in July . We have opened a new resort in South Africa .
Speaker #1: It's . We have soft . We have a trial opening of the South Africa Beach and Safari Resort , Sanya . Atlantis is a flagship product of .
Speaker #1: Of our business and we continue to push for product innovation and also to deliver strong operating growth in double digit growth in revenues And overseas revenue growing strongly and accounted for more than 10% have seen a two 2.0 upgrade and specifically on the progress of public rates , we have seen a very good progress of the application overall , has seen an 850 million RMB of total revenue and 50% of non-removable volume , and also 87% average occupancy rate .
Speaker #1: We welcome you to sign Atlantis to have a better experience for the wealth segment . We have seen . 27.31 billion . Excluding the impact of divestments , the revenue grew by 8% year on year .
Speaker #1: This is driven by revenue growth from fidelity MP3 , the wealth segment recorded industrial operating profit of R&B , 2.96 billion and insurance segment have seen 2 billion , up by 40% .
Speaker #1: Overseas revenue , reaching 24.48 billion , accounting for 89.6% of total fidelity . Maintaining number one market share in Portugal and see insurance contract revenue of 2.06 billion .
Speaker #1: And also the net profit oh point €17 billion for pre insurance contract revenue 830 million USD and the net profit reaching 90 million USD .
Speaker #1: These two companies have both seen the upgrade of from the rating institutions millennium BC . The core operating profit €1.21 billion . Core operating profit grew by 3% .
Speaker #1: Consolidated net income amounted to Euro 0.159 , 0.15 7 billion . The quality of credit assets was resilient , non-performing loan rate dropped to 2.2% for America Life insurance for the premium 8.38 billion RMB .
Speaker #1: Total premium growing by 52.2% among the fastest of the market . Net profit reaching 718 million . Folsom United Health Insurance Total Premium 4.96 billion RMB .
Speaker #1: Total premium grew by 36.2% , and that profit reaching 5570 million and asset management revenue 4.5 billion RMB . The insurance business The total premiums reaching 52.7 billion RMB .
Speaker #1: Structurally , we have seen the growth growth of different markets for fidelity dot . He has steadily expanded business skill and continuous , enhancing the profitability level combined ratio stands at 92% annualized .
Speaker #1: Investment return , reaching 3.5% . P3 have seen an excellent performance in profit , profitability and also prudently managed risk exposure . Combined ratio 91% annualized investment return 4% .
Speaker #1: Our domestic insurers of America , and it leverages , ecosystem , strengthens and focus on long term value growth . We have seen 5844 contracts from the retirement community policies , and also MPV , growing by 45% year on year , both in health has seen a .
Speaker #1: Contracts of community policies of 3484 and MPV , growing by 47% year on year . Fidelidad For the first half , the total premiums reaching euros 2.84 billion , up by 21% , and maintaining the leadership in Portuguese markets with a 30% market share in South America , we are deeply in our presence in Peru , Bolivia and Chile .
Speaker #1: We achieve the total premiums of a euro 0.6 billion in H1 , up by 10% for Peru market . We rank number four in premiums .
Speaker #1: Bolivia . We maintained second in premiums . Chile after six years of operations , we climbed to eighth in premiums . In Africa , we maintain top market positions , access across different markets .
Speaker #1: Angola for Angola , we rank a number of four . Cape Verde we rank number first , which they have seen a very good result of the World Cup .
Speaker #1: Mozambique as a number three as management . We . For example , for half its alternative asset manager in Europe and also we have .
Speaker #1: We have foreseen RC capital and foreign capital flows and health capital and frozen wealth . We have all of these companies as delivering the footprint of asset management platforms .
Speaker #1: The new investment projects is 14 new investment amount , 1.5 billion RMB . We're focusing on core tracks including AI , embodied AI , semiconductor chips , biopharma consumption .
Speaker #1: We have seen portfolio company IPOs with 16 listed and more than ten filed . We have a good quality companies such as Zhifu and some other technology companies for international manufacturing .
Speaker #1: We have seen 4.6 billion RMB in the Each one growing by 14.6% , driven by growth at hand and mining and wangcheng industrial operations , operating profit reaching R&B 180 million , up by 54% year on year .
Speaker #1: China Mining reaching 2.72 billion , up by 12.6 billion . Net profit attributable to parent is 510 million RMB , up by 83% , and Wang Sheng , the revenue is 1.97 billion , up by 21% .
Speaker #1: The net profits to parent was 2.7 million , down year on year . Hainan Mining is focused on strategic resources and we evolving from cyclical to growth .
Speaker #1: The core business of mining is is the traditional resources business . After years of strategic transformation , we are focusing in lithium resources business , oil and gas , and oil .
Speaker #1: And so we have made a breakthrough from the quite singular business in the past of just iron ore and last year , the first half was performance is actually built on years of strategic transformation of our business in Hainan , in Hainan , we have built this lithium hydroxide production , and this first half we have delivered the first production .
Speaker #1: And also we invested in Mali on the lithium production business , achieving our full business loop , closed loop We aspire to reach 5000 tons of attributable LCE capacity by 2030 for Mali lithium mining .
Speaker #1: This is a very long term strategy for us and for the oil and gas business . We continue to optimize existing resources and also to leverage the up cycle of oil prices to increase production .
Speaker #1: Iron ore business . We operate lean management to strengthen the production to ensure that we extend concentrate sales and the lamp oil products .
Speaker #1: Maintain your gross margin above 49 , 40 , 47% and also to advance underground mining development to secure long term resource supply and we also make sure that we push for the M&A of the upstream resources , including fluoride , and also some traditional resources as well And we , for one , as the world's leading functional materials enterprises , the existing business continue to grow .
Speaker #1: At the same time , we deepen our innovation accelerator product commercialization . And we are pushing the development of the product and also we are deepening the collaboration between industry , universities and research institutes , collaborating with universities such as China Academy of Science Sciences So the sales volume of household is have grown from 300 or 4 to 1400 to 7 .
Speaker #1: And we have also seen the capacity expansion for domestic upgrades and overseas production , domestic base , and also overseas base have continued to ramp up the false fight .
Speaker #1: Easter flame retardant project in Thailand base now being commended . And that's all for my report . I will give the floor to Edward Xu of Strategy .
Speaker #1: Okay , to all of the investors , analysts and friends of the media on site online . Good morning . I will now report our thoughts on the group's development strategy Looking back at the first half , what certain is that external uncertainty is not reducing , but intensifying We see global economic uncertainty is the norm The more uncertain it is , the more important it is for folks international to anchor to certainty We are pursuing high quality development to navigate different periods of uncertainties and next I will explain from four dimensions , including high quality mission strategy , operations and organizations to share .
Speaker #1: Focus First , with the external environment , changing all the time Fosun has anchored on this vision and mission 34 years ago . Chairman and Chairman Wang founded Fosun in the founding stage , so soon made a commitment with the vision of self-improvement , teamwork , performance and contribution to society and after 36 , after 34 years , now we are very clear on the society .
Speaker #1: We are contributing to . That is global families We want to create happier lives for families worldwide and under such mission , we want global families to be healthier , happier and healthier .
Speaker #1: Living up to 121 years old We want the mission to be focused . Significance to be the meaning of existence and the belief that falls .
Speaker #1: Strive for . So I believe first we need to have a high quality mission no matter how the world changes , we need to be adamant on the mission and standing on the mission .
Speaker #1: We also have a clear strategic positioning that is building a global innovation driven family consumer group . That's an anchor for us . And under such strategy We also have a very clear strategic focus , including business streamlining asset light operations .
Speaker #1: And asset heavy partners , and balancing offense and defense our mid goals are also very clear in the next 3 to 5 years .
Speaker #1: Both aims to stabilize that profit attributable to owners of the parent to 10 billion RMB and moving towards an investment grade rating . And in the long term , Fosun aims to be a great company that enable global families to be happier , healthier and wealthier .
Speaker #1: And the generating more products , good content , good models and good scenarios for the global families and specifically speaking in order to deliver the strategies we need to be driven by the operations .
Speaker #1: So high quality operation is key to us . The first thing is song global development , and for global development , we have site A and side B , side A is using global R&D and a global production to build to create more good products by leveraging global resources , forming a globally coordinated industrial footprint , we have very good example for first , first and foremost has built a global R&D team of over 3000 people , collaborating with the world's brightest team to link the most cutting edge research resources so that we can continuously generate good products Second example is on Hainan Mining .
Speaker #1: They have 7000 tons of lithium concentrates in Maui already shipped back to China , truly connecting overseas mines with domestic refinery into global production loop and apart from having the good products , we also need strong global marketing and global operations .
Speaker #1: That is the site B we are talking about . We are focusing on global customer needs , establishing service networks and strengthen brand reach and market expansion .
Speaker #1: For example , Fosun Health International Medical business is growing rapidly up by 98% year on year in the first half , and establishing several overseas offices .
Speaker #1: Their partners cover Southeast Asia , Central Asia and the Middle East continually continuously improving cross-border medical cooperation . Networks . Chen also shared details on Fidel that previously for them , they not only maintain leadership in domestic market , also expand coverage globally .
Speaker #1: In Portuguese speaking regions . Now , their overseas premium account for nearly 30% , with a growth rate of 12% , and we see markets like Peru , Bolivia and Chile .
Speaker #1: The premiums rank among the top in the respective markets . And in terms of high quality operations , are very important . Part is to be innovation driven .
Speaker #1: Innovation is one of Boston's core growth engines centered on four dimensions . First is innovative R&D We see Henry store product has strong .
Speaker #1: It has become the global first approved PD one monoclonal antibody in two indications . And in terms of innovative products , we're 1490 health insurance .
Speaker #1: They created among critical illness insurance that breaks the traditional high payout low prevention model Facilitate health insurance is working with top tier Chinese hospitals like racing Hospital to provide full life cycle health care management , filling market gaps and in terms of innovative processes .
Speaker #1: Like Miao Gold has developed a product portfolio based on Jiangnan intangible cultural heritage , craftsmanship , and mining . Implemented Carbonization line technology upgrades to enable flexible production , switching between lithium carbonate and lithium hydroxide Thirdly , innovative scenarios we see Grand Union in Shanghai .
Speaker #1: They are leveraging intangible cultural heritage to create a global intangible intangible heritage . Fashion show a hub for Chinese for China's intangible heritage .
Speaker #1: Going global . And it is a gateway for global heritage . Settling in Shanghai , becoming a new cultural landmark in Shanghai . Overall , we see forces .
Speaker #1: Innovation is not a single point . Breakthrough , but a systematic innovation spanning across R&D , product processes and scenarios to create new momentum for high quality operations and within high quality operations .
Speaker #1: Another important part is AI adoption . Now we have entered the Intelligent era and AI is the biggest dividends we can have of the intelligent era .
Speaker #1: For Fosun and for any company is not a choice , but a mandatory thing you need to do . How well you answer this challenge determine the survival and development of a company .
Speaker #1: For Folsom , we are committed to AI adoption . We are not developers of foundational LLMs , but we aim to be advanced AI adopters in industries .
Speaker #1: Simply put , we do not reinvent the wheel , but we aim to drive the car best . The goal is to move from business class AI to AI plus business So far , in terms of AI adoption , we have achieved some results .
Speaker #1: For example , in the health segment . First and foremost , Farm Aid has over 25 projects . In happiness segment fosters tourism segment .
Speaker #1: Iterated Aigo agent to redefine the customer vacation experience and in wealth segment for scenario health insurance , self-developed AI products reorganized the customers claims experience driving both quality and efficiency , and the intelligent manufacturing segment had a mining created .
Speaker #1: China's first AI , intelligent Photonic sorting projects and improving resource utilization on the . From high quality operations . Another important part is high quality organization .
Speaker #1: But organization help us to align our words with our actions and high quality organization will determine the company's sustainable , high quality growth .
Speaker #1: The key for is to build a global AI symbiosis organization , or symbiosis . Here is very important in three aspects . First is human brain and machine brain symbiosis .
Speaker #1: The second , important part is Symbiosis of traditional and digital economy . Traditional experience can definitely help . And we want a digital foundation to further boost that .
Speaker #1: The third part is enterprise and ecosystem symbiosis with openness and altruism . So this is the core for our organization setup . And within organization talent is key What's important for us is to build a strong partner system brimming with talents .
Speaker #1: Now we have 157 folks in global partners , 35 technology partners , and 117 hyper partners in our strategy for is clear on generating more AI pioneers so that we can further empower and AI symbiosis organization .
Speaker #1: And apart from having the talent , we also need strong mechanisms To deliver strategy and tactics . The key is breaking strategies down into key campaigns or battles to ensure the vitality of organizations .
Speaker #1: So we are implementing and campaign mechanism . We are not focusing on seniority , but on the contribution that the person talents can have to build a high quality , sustainable company .
Speaker #1: We also need strong culture for Folsom culture . The key is on joint entrepreneurship . We want people with entrepreneurship and we want them to carry out work diligently and always with caution to track carefully .
Speaker #1: Such elements will ultimately contribute to our high quality organization and then on ESG Fosun has been carrying out the rural Doctor program for nine years , and over the past nine years , we have dispatched 446 people stationed across the different counties to help the rural doctors , and we have helped $25,000 doctors benefiting familiar rural households .
Speaker #1: And over 16 million rural residents . We are entering the ten year anniversary for rural doctor program , and we have won the highest Highest award in China for this program .
Speaker #1: And we have won recognition by domestic and international authoritative institutions for our ESG performance . Our MSCI , ESG rating first rose to triple A rating in the top 1% in S&P Global Sustainability Yearbook , and for many years , we have been selected a mainstream ESG indices by S&P Hansen and FTSE Russell .
Speaker #1: We have several ranked ratings ranking among the top tier domestically and internationally , and that's all for our reflections on the strategic developments .
Speaker #1: We believe that opportunistic wings are temporary , while strategic wings are long term , and for Folsom Strategy , we are anchoring on long termism and firmly following the path of high quality development to navigate the different uncertainties in the future , Folsom will stay committed to our values , mission and vision , focus on strategic path and the strengthen global operations .
Speaker #1: Step up our efforts on global innovation and the use AI well to create more value for shareholders and for the society , making life happier for families worldwide .
Speaker #1: And I would like to thank again to all of the investors analysts for your support for Folsom , and we welcome you to experience those high quality products , content and scenarios .
Speaker #1: Thank you Thank thank you for your presentations and introduction . So that's the end of this morning's presentations . And then we move on to Q&A .
Speaker #1: So please raise your hand if you want to raise a question . And we ask the staff to give you a mic Thank you very much for the management team , management team for giving you giving me this opportunity .
Speaker #1: Following several years of strategic focus on capability building and senior , Folsom has embarked on a distinctive path of development . It's the first half performance has also attracted attention from the market .
Speaker #1: I just want to ask Mr. GU , how would you characterize this development path in which areas of strength will Folsom accelerate further going forward ?
Speaker #1: Thank you Thank you very much . To our shareholders , our analysts and media friends . So I believe our company's development is all about the vision and the value with a good vision , with a good ambition .
Speaker #1: It's only will have a vision and ambition . We have . We can have a long term development focus . Vision is to have to help our clients to to live happily till the age of 121 years old .
Speaker #1: We . And Chairman Wang just told me that we are already seeing people who have lived to 120 years and we are also have the old people who are living in the elderly community of Folsom .
Speaker #1: They have now more than 100 years old , and they are also traveling . They are very happy . So this is the ambition , the vision of Folsom , which is have more customers to enjoy the good products with our efforts to deliver better service to our customers .
Speaker #1: And also we have seen a lot of the people in Africa . They have become healthy again because of our efforts . So I'm very grateful to our colleagues for their efforts and for their trying over the years .
Speaker #1: So I believe over the years , for Folsom , especially last year , we have managed to repair to repair the roof while while in the sunny days .
Speaker #1: So we managed to repair this roof for Folsom . We have embarked on a journey of a stable and fast development . So I think the core of our business we have insurance , we have also the business , we have strength with years of development , our insurance business have delivered some results .
Speaker #1: We also have some pharmaceutical businesses . We also have the tourism business . I think these businesses have all had delivered a very good potential where we can deliver better results .
Speaker #1: So how we manage to , to , to unlock the potentials of these business , I think it's about how we manage to build our capabilities , just like Alex Gong and also our two co-CEOs are presented , we continue to build our globalized operations capabilities , our revenues .
Speaker #1: Now , the big part of our revenues come from global business and the global business is growing very well . Profits very well .
Speaker #1: And for the global business and overseas business , one side is we going global , which is to sell our products to overseas market .
Speaker #1: The second is to introduce and bring in talents and bring in business into China . I think the tourism business in China is very competitive .
Speaker #1: And the Hong Kong hospitality business , like the hotel businesses , the pricing is increasing . And for Atlantis is also quite expensive .
Speaker #1: But when you have overseas visitors to Hong Kong , they still find the price not very expensive . And similarly for the overseas medical and healthcare , we have one third .
Speaker #1: And so the the so the popular destinations are Japan and Singapore . The the it's actually priced a lot higher than China . So I think we can bring in a lot of these businesses and opportunities to China , which is going to be a good business potential for for Fosun and for China .
Speaker #1: And so we decide to continue to , to build this potentially in China , especially our operations . I just like to mention our I think the business for neurodegenerative segment actually a very high potential business .
Speaker #1: I believe , for the people in this room today , one third of you might have Parkinson's disease when you get old and one 3rd May have Alzheimer's disease .
Speaker #1: But don't worry , Folsom will give you very good medications and drugs to help cure you And we are actively expanding into all of these fields .
Speaker #1: And I don't think that's going to take very long . Secondly , I believe we need to continuously improve our innovations and strength of our industrial operations .
Speaker #1: So I believe that will take time for pharmaceutical and tourism business . We have a very strong talent and innovation business . However , for the fashion business and also for the liquor business for baijiu business , I think we fail to the to showcase very strong innovation capabilities for fashion and also for the liquor business .
Speaker #1: I believe if you can give both a more time , we'll be able to build up the strengths of talent and also innovation will be more competitive globally .
Speaker #1: So this is the point of repairing the roof for our business . It's to it's the the point of this is to deliver our values and to create more values for shareholders .
Speaker #1: And in order to do that , we're going to continue to be focused on the business where we have potentials and strengths like insurance , etc.
Speaker #1: and we follow the this path . And I would like to take this opportunity to thank everyone because this is actually after six years time , the first time we come back to Hong Kong to hold this result announcement , I hope going forward we have more opportunities to communicate with you in here .
Speaker #1: And I asked for your attention to the good products of Fosun . I would clear water Bay product , a clear water bay .
Speaker #1: Construction is not commenced . It's a very different product . This product has a sense of artistic , artistic senses and we have the youth in young people of the Hong Kong technological University .
Speaker #1: It's low intensity community . I asked you to go and see our district . It's a very hard business day , so I will take this opportunity to give you some advertisements .
Speaker #1: Are okay . Now we will open to the next question Okay . Thank you , chairman and the management team is presentation . Congratulations on having the strong performance .
Speaker #1: I'm from Santa Charters . I've been monitoring Folsom Business for quite a while , and I know . Folsom has diversified business and a global footprints .
Speaker #1: My question is for folks , since operations , how will Folsom adhere to the core operating principles to unlock further growth potential ? And we will have Mr. Wang to take this question .
Speaker #1: Okay . Thank you very much . I would like to thank all of the investors and analysts and friends on the media , both online and in this room .
Speaker #1: And many of the partners For score operating principles , we have mango and the two CEOs and the jumping , sharing details on that We are rooted on our values , including self-improvement , teamwork , performance , and contribution to society .
Speaker #1: And we want to create happier lives for families worldwide and on top of that , I would like to emphasize a few things .
Speaker #1: First , especially at this stage We are continuously streamlining our business and focused on our core business for stronger development , and we will continuously work to improve the credit rating of international to investment grade .
Speaker #1: And we will be more focused on development . Just like Mr. Gore has mentioned , insurance business and businesses where we have advantage in are all very important for the advantage .
Speaker #1: Businesses that include , first and foremost , Club and urine And we are pushing the insurance companies and other core businesses to create more collaborations , to create more synergies , around the global families Just like shallow mentioned , we are aiming for high quality development And we uphold long tourism to navigate the economic cycles and harness the cycles .
Speaker #1: Over the past few years , we gained a deep insight to economic cycles . So in the future , we aim to be more prepared and to tackle the uncertainties So that we can be more prepared for the uncertainties .
Speaker #1: That's the first principle Secondly , we will continue to adhere on the principle of having customer first and improve customer satisfaction . We have five types of customers with innovation being product and services .
Speaker #1: First , we want to improve the satisfaction for our clients . Secondly , we aim to improve the satisfaction of our employees , including the key talents we have .
Speaker #1: And a third type of client is the investors . So we also aim to make investors happier . Just like the two CEOs and company mentioned .
Speaker #1: We aim to continuously improve on Roe and improve dividend Meanwhile , for our partners and for our community , for the whole society , we also we are very committed to delivering happiness or satisfaction to them .
Speaker #1: And to do that , ESG is an important part Practicing the programs of ESG can help us to generate stronger customer satisfaction for all types of customers or stakeholders , and we will continue to innovate on the different dimensions .
Speaker #1: As mentioned by the two CEOs and the Gong Ping , we will have more innovation and product services , but we also want innovation with focus on characteristics .
Speaker #1: We want to have open , integrated innovation . We will do innovation on our own . In the meantime , we will also step up our efforts on cooperation , like through BD or investment incubation .
Speaker #1: And within innovation , a very important part is AI . We are committed to AI adoption so that our business can be empowered .
Speaker #1: Fourthly , we are committed to globalization As she has mentioned We need to enhance the commercialization and the global operations for our innovative pipeline .
Speaker #1: So we aim to connect China capabilities with global resources or capabilities . As we all know , China is strong in supply chain and service like medical services , benefiting global patients or Lao milk gold opening stores globally .
Speaker #1: Another important part is product innovation . Just like Silver Cross , they are leveraging China technologies to have innovative products . And we also need a strong marketing capabilities , including those in China especially .
Speaker #1: E-Com marketing Safely , we are committed to building a global organization full of energy full of strong talents and Entrepreneurship is the core principle for our talent and that is the foundation for our partner system .
Speaker #1: We have global partners , industry partners , technology partners , function aligned partners , and hyper partners . Building a strong talent pipeline .
Speaker #1: This is the key asset we have to drive the sustainable growth of our organization Just like our management team has mentioned , we encourage you to experience the good products we have .
Speaker #1: Like Mr. Gould mentioned . In Hainan , we have a And we have like a senior residents visiting there . And I wish happiness and health and wealth to you all Thank you for the opportunity .
Speaker #1: And . From Jinglin , the Sound Manager , I have a question for the pharmaceutical Society . In the first half we see Fosun Pharma has made solid progress in both BD and R&D pipeline , especially in your presentation .
Speaker #1: You have mentioned that you have obtained obtaining the additional exclusive options for global rights for our GMOs . AR 101 . It's a very exciting opportunity for medical analyst .
Speaker #1: So could the management outline for some pharma therapeutic strategy and explain how commercialization and BD will jointly drive sustainable growth ? We give the question to Chen Chi , who , as a company driven by innovative drugs , we need to focus on the unmet medical needs .
Speaker #1: So our therapeutic strategic layout is actually focused on this . We consider the medical demands in China . In the US , and also in all the emerging markets of the world .
Speaker #1: We'll look at different dimensions . In the past We used to focus on oncology medications , and we have seen the big medications and drugs in the oncology field and the progress they're progressing very well on therapeutic strategy .
Speaker #1: Oncology has been a key focus of pharma for the past decade . I believe it will also be a focus for is a very a good focus for the market in the next one decade .
Speaker #1: To see the results . So for the biosimilars companies in the past three years , we have built a foundation . We have built ourselves into a very important player as a biosimilar company , we have observed a very strong collaboration with the global biosimilar companies , and we're going to deliver strong competitiveness on this front going forward .
Speaker #1: We want to become a leading player on this . But for biosimilar , it's only just one step . Moreover , it's also about innovation .
Speaker #1: one is now pushing for some other indications . Other oncology and tumors . At the same time . Henlius 2243 . Especially Pd-l1 , ABC 43 , I believe will have very strong potentials for oncology treatment .
Speaker #1: And all of these medications . We target the global market . And of course , we have some other medications . That is focused on tumor treatment globally .
Speaker #1: Our shared pain point or something . We have been exploring for many years is on ad Like you have mentioned about AD So my view is that the future potential for the innovative drugs should be on degenerative drugs .
Speaker #1: A degenerative treatment and ad that should be a long term layout and long term development . For us , the a lot of MNCs have invested like hundreds of billions on this .
Speaker #1: And in the past two years , with two monoclonal monoclonal drugs being launched , we have seen some progress and some drugs on ad .
Speaker #1: And now AR 101 , we are pushing a step by step . We started from getting the option in China , getting the rights in China , and we started to to view the data .
Speaker #1: And now we are trying to obtain the rights on different global market . And we're moving into SEA and to global rights I believe we are pushing our understanding and development of the drug .
Speaker #1: We're go into very soon see the data , financial data of this of this project . So besides AD , we have acquired 971 in China .
Speaker #1: We also use the data to make the decision a are 101 and 971 . They are both oral drugs . I think oral drugs will be the oral drugs will be a very strong potential .
Speaker #1: Products in the future . And this is just the aim . The early phase . There will be few further iterations in the .
Speaker #1: In the future . And I know that Henlius is also developing some monoclonal drugs . At the same time , we are going to focus on the cell therapy So I think in the short term , we'll look at oncology and meta long term look at oncology And I believe there will also be a lot of potentials for for the immunotherapy And for the immunotherapy immune immunology .
Speaker #1: We look at the small cells and some other potential therapies as well These are the drugs that will focus on and also at the same time on the cardiovascular And And also we are developing GLP one small cell developments .
Speaker #1: We have pushed for collaboration with with Pfizer , I believe we'll have a lot of opportunities So with a short to mid and long term development plan , we have different steps .
Speaker #1: And also for the product acquisition , we have our self development . And for self development we have built these two self-development platform .
Speaker #1: We have that has built a B , C monoclonal and the bias clonal . And we have also the new drug development R&D platform , which is molecule molecules focusing on the RNA and small Cells , etc.
Speaker #1: I believe we have the soft moment to enrich our pipelines At the same time , we are pushing for the BD opportunities , especially on this .
Speaker #1: This projects that are recently to be launched and we don't have them yet in our pipeline and we are pushing for that . And we , besides our own self development , we have pushed for the progress with Gene on GR , a one 803GS005 and these are the pipelines that we don't yet have in our own pipeline .
Speaker #1: Our own development pipeline , and also we leverage the incubators films . Our model is that we leverage these funds incubation to , to deliver or to build a innovative drug platforms to this in this way has a lowest resource consumption for Fulton Pharma .
Speaker #1: And if there are any good products , we'll get into it immediately . Just like the biotech mechanism on the hepatitis B medication that I have just mentioned in my presentation , that's how we managed to get into the field .
Speaker #1: So we want to leverage this diversified model to build a comprehensive pipeline and to become a complete company that is driven by innovative drugs .
Speaker #1: In the future , we want to have The we want to be able to build the drugs that will deliver 500 million potentials in the future .
Speaker #1: Okay . Thank you . We will now open the next question Thank you for giving me this opportunity and congratulations on delivering strong results in the first half of this year , giving strong return to the investors .
Speaker #1: I am one child from Chongqing You have a shared on your presence in different segments , including for innovation and manufacturing . This is where we see advantages in China and we see fierce competition in China .
Speaker #1: And with the advancement of AI , I see that people will have more time for their own . And I believe that in the future .
Speaker #1: Tourism space will greatly benefit from AI , and we see globally speaking , we are seeing strong recovery for the tourism industry overall and for Fosun Tourism .
Speaker #1: We see the goal of being a lifestyle group . So could you please explain the strategic rationale for different commitment to vacation segments and explain the future direction of the product portfolio ?
Speaker #1: Okay . Thank you for this question . We see for the global tourism market , it comprises two parts . One is sightseeing and the other is vacation .
Speaker #1: Since the 1950s , we see a lot of opportunities for vacation , and we are seeing the shift from from sightseeing towards vacations following decades of market development , we see in the overall that 70% of vacation and 30% sightseeing .
Speaker #1: And if we turn to China In the 15th five year plan , the goal of becoming a strong tourism nation was included in this plan .
Speaker #1: For the first time , and tourism has become a strategic pillar industry and industry , supporting people's livelihood and contributing to well-being for the 30 years of China's tourism industry .
Speaker #1: Now China is the largest source market , and to be a strong tourism nation for China not only number is number important . The quality is equally important and we are seeing the trend of shifting from sightseeing to vacation in China Now , in China , that's 70% sightseeing and 30% vacation .
Speaker #1: So we see this 40 percentage point gap . Structurally speaking , between China and global tourism market . So for a tourism company , your presence in the vacation space determine your competitiveness .
Speaker #1: So for false aneurysm segments , we are fully committed to vacation and we believe that better vacation or better holiday , better life globally speaking and Also in China , we have three product lines globally speaking .
Speaker #1: We are centered on Clomid with 76 years of history . Now excluding mainland China , Clomid operates 57 resorts with 37 . Sun resorts and 21 mountain resorts And these results will be further upgraded to provide better services and better quality and products And Clomid also aim to accelerate expansion globally .
Speaker #1: Speaking now , we have 57 resorts and by 2030 we aim to have 86 resorts in total And we will have more resorts in Canada , in North Africa , in the Caribbean , and Southeast Asia And especially in in terms of mountain resorts , we have 20 mountain resorts now .
Speaker #1: And this is scarce resources In the future , we want to build a whole mountain resort ecosystem with presence in China and the rest of the world .
Speaker #1: As I mentioned before , in China , we are shifting from sightseeing towards vacationing . And in China , the US family culture is strong China's holiday is usually frequent , but short .
Speaker #1: So what suits China market is short break and micro vacation product . That's why in China we are focussing on super resort destinations just like a lentils in Hainan .
Speaker #1: In the future , a more cities we will create more like ultra matte resort destinations . And for the cities and city clusters in China , we have urban oasis and joy view .
Speaker #1: These are the two product lines in China we have to support the presence for super resort destination and another important opportunity in China is the culture .
Speaker #1: Tourism . More . Now we see a lot of shopping malls across the different cities in China , but we . What we don't have is culture , tourism , malls with local features and the first pilot we have is Chongqing High Sphere Mall , centering on Chongqing Bashu culture With such projects to start , we will have more potential in the future .
Speaker #1: So overall for China and for the rest of the world , we have super resource , super resort destinations and super cultural tourism mall .
Speaker #1: These are the three major product lines . And we're focused tourism segments . We aim to be the leading family vacation brand . And thank you for your question .
Speaker #1: Okay . Thank you , Mr. Xu I believe that there are many questions to come , but due to the time limit , we will have the the last question Thank you .
Speaker #1: I'm from Hong Kong Bank . Thank you for your detailed introductions and congratulations for your good performance . I want to take this opportunity to ask the management of question , how do you Push the industrial operations coupled with a .
Speaker #1: How do you . Quantitate industrial operations as an excess cash recovery and optimization . How will it convert momentum , in industries into earnings growth and stable .
Speaker #1: Sufficient cash flow and supporting credit rating targets and steadily improving shareholder returns . So we'll give you the question to the our CFO .
Speaker #1: So thank you for your question . So on the industrial operations and asset access and cash recovery and data optimization , we are doing a lot of work within the group .
Speaker #1: But I think these works are not in silos . They are actually quite systematic . They are not separate activities . They form integrated system .
Speaker #1: So when we form financial strategy , a designed to support industrial operations , at the same time , we consider the needs of shareholders , creditors , rating agencies and subsidiaries , and also our stakeholders maintain and we try to maintain a dynamic balance among earnings growth , cash generation , capital efficiency and financial security .
Speaker #1: We have mentioned that our medium term target is actually R&B 10 billion net profit attributable to attributable to shareholders . So we have broken down that target .
Speaker #1: The full course Typekit subsidiaries , the core businesses as insurance , pharmaceutical and tourism and our target is for the core subsidiaries to expect to contribute RMB 8 billion .
Speaker #1: Other key subsidiaries to contribute R&B 4 billion and investment gains can reach RMB 2 billion . At the same time , the headquarters Finance and expenses will be reduced to R&B for .
Speaker #1: 4 billion . Therefore , the 10 billion target is 8 billion plus 4 billion , plus 2 billion plus So at the same time , we encourage our subsidiaries when conditions are appropriate to allocate value by spending of mature business and to strengthen their ability to pay dividends upstream .
Speaker #1: So I think these financial targets are not as simple , like add up of these exercises . So the we need to improve the industrial operation profits , which is the the recurring earnings of subsidiary and also the investment gains can be a supplement .
Speaker #1: And here I want to mention our insurance and high street business in 2026 , our insurance businesses have delivered some skill . Our full insurance subsidiaries have reached around 400 billion .
Speaker #1: And they have delivered an industrial operating profit of R&B 2 billion in the first half . So I believe the insurance business will be the most important contributor .
Speaker #1: Profit contributor of the group . And at the same time , we have seen the total premiums of our insurance companies have generated more than 50 billion RMB for fidelity and P3 America .
Speaker #1: Fosun and UnitedHealth . They have seen a very good profit and also very strong dividend payout in the first half . And they .
Speaker #1: So in this segment , we'll continue our efforts to make sure that we comply with the regulatory requirements and the market expectations to make sure that it becomes a very important technical segment of our business and secondly , at the group level , besides insurance and some other core businesses , will continue to complete the divestments of our non-strategic assets .
Speaker #1: So this first half , we have managed to completed to generate a more than 12 billion RMB in cash proceeds and also the total debt to total capital ratio have declined further to 55.7% in the next five years .
Speaker #1: We have a prepared for like hundreds of billions of pipeline projects to be exited . And that's and that's going . And we and that's going to generate around 60 billion in exit .
Speaker #1: Proceed over five years and gradually reduce the interest bearing debt at the group headquarters level to R&B 60 billion . So our target is to to deliver like stable earnings and recurring cash flows through industrial operations .
Speaker #1: At the same time , we will have asset access , release capital tied up in the portfolio . And at the same time that optimization that lowers financing costs , improves creditor metrics so that we can deliver strategy and to deliver more values to our shareholders .
Speaker #1: Thank you
Speaker #2: Thank you .
Speaker #1: Okay . Thank you , Mr. Gong . We are running out of time . But at this very important timing with Folsom back on the right track , I'm sure you want to go to , say a few words
Speaker #2: About .
Speaker #1: Okay . Thank you all again I would like to share my thoughts here . Now we are back to the track of growth and we see strong results for the first half of this year .
Speaker #1: But this is not the end goal for us . Just like God mentioned in for the mid-term target , we want to reach 10 billion RMB in terms of net profit .
Speaker #1: But this is still not our ultimate goal . I still want to elaborate on our investment value and core value . I believe the core value are twofold First , frozen is rooted in China and built in global presence .
Speaker #1: We are building integrated innovation capability . This is a very unique structure of frozen for the pharmaceutical business . We have business started from from scratch , and we have business showing integrated innovation .
Speaker #1: And this is not something that an ordinary company can do under such capability will further create value for you in the future , including the one on one .
Speaker #1: Alzheimer drug . This is only one example . I believe there will be more to come in the future and also in tourism and in fashion .
Speaker #1: In consumption . We aim to fully leverage the advantage we have for integrated innovation , while because we are rooted in China and having global presence .
Speaker #1: And another thing I want to emphasize is we are trying to . Having synergy between insurance and our advantage industry industries for the past 30 years .
Speaker #1: This is something that frozen is trying to do , and we are showing some results in this in terms of creating synergy between insurance and the rest of the segments .
Speaker #1: And it will bring stronger momentum for frozen . These are the two points I would like to emphasize especially the second point connecting our operating companies insurance .
Speaker #1: This is very difficult , but very promising . Every day here we are aiming for this and I believe we are reaching stage results here .
Speaker #1: But we will work harder on this . Frozen is a patient company delivering continuous operations and we welcome people with the shared insights and the value to join us and grow with us .
Speaker #1: That's all from me . Thank you . Okay . Thank you . All of the investors and analysts and the partners for attending this event .
Speaker #1: And that concludes the first session for First International 2026 interim Results announcement . The afternoon session will start at 2 p.m. . And please , you are welcome to join us online .
