Core Viewpoint - Fosun International aims to balance its asset portfolio by exiting heavy asset projects and reducing financial leverage while enhancing its industrial operations [2][3]. Financial Performance - For the fiscal year 2024, Fosun International reported total revenue of 192.14 billion yuan, with an industrial operating profit of 4.9 billion yuan. The company recorded a loss attributable to shareholders of approximately 4.35 billion yuan, primarily due to adjustments in the book value of its investment in Cainiao [2][3]. - The book loss is mainly attributed to a non-cash impairment related to the decline in the valuation of the Cainiao project, with a significant adjustment leading to a one-time non-cash loss of about 5.1 billion yuan [3]. Investment Strategy - Fosun's CFO indicated that the company has invested approximately 1.5 billion yuan in Cainiao, with a historical cumulative return of about 4.4 billion yuan, resulting in an internal rate of return (IRR) of approximately 34% [3]. - The company plans to continue its strategy of "slimming down and balancing" by divesting from heavy asset projects and non-core industries while investing in innovative sectors with significant growth potential [3]. Globalization Efforts - In 2024, 49.3% of Fosun's revenue came from overseas markets, reflecting a year-on-year increase of 6.2%. The company aims to gradually increase the proportion of overseas revenue in the coming years [4]. - Fosun's globalization strategy includes promoting Chinese enterprises and industries abroad while expanding its investments in overseas companies, with a notable example being its insurance business in Portugal, which derives 29.8% of its revenue from outside Portugal [4].

Core Viewpoint - Fosun International Limited reported a total revenue of RMB 192.14 billion for the fiscal year 2024, demonstrating the effectiveness of its strategic transformation amid global economic fluctuations [1] Group 1: Core Business Performance - The four core subsidiaries, including Yuyuan, Fosun Pharma, Fosun Portugal Insurance, and Fosun Tourism, contributed a total revenue of RMB 134.65 billion, accounting for 70.1% of total revenue [2] - The group's total debt ratio remained stable at 52.0%, with cash reserves reaching RMB 106.34 billion [2] - The company completed asset disposals worth approximately RMB 30 billion, enhancing liquidity [2] - The net loss attributable to shareholders was RMB 4.35 billion, but after excluding one-time non-cash losses, a profit of RMB 750 million was achieved [2] Group 2: Globalization Strategy - Overseas business has become a new growth engine, with overseas sales of Fosun Pharma increasing by 30.8% year-on-year [3] - Four biological drugs entered the European and Latin American markets [3] - Fosun Portugal Insurance's international business proportion rose to 29.8%, with gross premium income reaching EUR 6.172 billion [3] - Hainan Mining accelerated its international expansion, acquiring oil field rights in Oman and initiating a zircon-titanium mine acquisition in Africa [3] - The Yuyuan Lantern Festival, after its debut in Paris, is set to launch in Vietnam and Thailand in 2025, marking a new chapter in cultural globalization [3] Group 3: Innovation and R&D Investment - The company invested RMB 6.9 billion in R&D, establishing over 20 global innovation centers [4] - Fosun Pharma received approvals for 16 indications for 7 innovative drugs, while Fosun Pharma's overseas subsidiary achieved a profit of RMB 820 million [4] - The application of VR/AR technology in the Yuyuan Lantern Festival created a cloud exhibition with millions of views, and Fosun Portugal Insurance's digital services covered nearly 20% of Portugal's population [4] Group 4: Strategic Ecosystem and Synergy - The "Insurance + Industry + Investment" flywheel strategy led to 14,000 signed health insurance policies, resulting in Fosun Health's first profit [5] - The light asset model flourished, with a RMB 5 billion biopharmaceutical industry fund established in the Greater Bay Area [5] - The Sanya AI-themed resort introduced digital concierge services [5] - The chairman of Fosun International, Guo Guangchang, emphasized the commitment to core industries and seizing opportunities in globalization and technological innovation [5] Group 5: ESG and Social Responsibility - The group maintained an MSCI ESG rating of AA, ranking among the top 5 in the global industry [6] - The "Rural Doctor Program" reached 16.34 million rural residents, and artemisinin-based treatments have helped 80 million malaria patients globally [6] - In 2024, the company committed to donating RMB 10 million worth of anti-malarial drugs to Africa, continuing its corporate social responsibility efforts [6]

Revenue Performance - Total revenue for the year ended December 31, 2024, was RMB 192,142 million, a slight decrease from RMB 198,200 million in 2023, representing a decline of approximately 0.54%[3] - The group's total revenue reached RMB 192.14 billion, a slight decrease of 3.1% compared to the same period in 2023[20] - The total revenue for the health segment reached RMB 45,336,335, while the happiness segment generated RMB 76,481,021, and the insurance segment contributed RMB 39,313,691, leading to a combined total revenue of RMB 192,142,001[131] - Total revenue for the year ended December 31, 2023, was RMB 198,200,310, a decrease from RMB 192,142,001 in 2024, representing a decline of approximately 3.4%[136] Profit and Loss - The net loss attributable to shareholders for 2024 was RMB 1,379.1 million, a significant improvement from a loss of RMB 4,348.9 million in 2023[3] - The company reported a net loss of RMB 2,212,730,000 for 2024, compared to a profit of RMB 5,347,126,000 in 2023, indicating a significant decline in performance[112] - The group recorded a net loss of RMB 2,212,730 for the year, with the health segment contributing a profit of RMB 3,270,437 and the happiness segment a loss of RMB 2,853,148[131] - The net profit for Gland Pharma was $84 million, a 6% increase year-over-year, with a net profit margin of 12%[52] Segment Performance - The insurance segment reported a profit of RMB 1,716.1 million for 2024, compared to a profit of RMB 790.2 million in 2023, indicating a growth of 117.5%[3] - The health segment's revenue for 2024 was RMB 46,552.9 million, slightly up from RMB 46,314.4 million in 2023, showing a growth of 0.51%[3] - Revenue from the health segment reached RMB 46,552.9 million, representing a year-on-year growth of 0.5%, while the happiness segment saw a decline of 13.8% to RMB 76,710.1 million[36] - The wealth segment's revenue increased by 6.4% to RMB 55,114.1 million, with insurance contributing RMB 39,313.8 million, a growth of 5.0%[36] Investment and Innovation - Fosun's investment in technology innovation reached approximately RMB 6.9 billion in 2024, with over 20 global innovation centers established across various industries[10] - The company established a RMB 5 billion biopharmaceutical industry fund in collaboration with Shenzhen's guiding fund to promote high-quality development in the Greater Bay Area[13] - The innovative drug PD-1 monoclonal antibody is expected to be approved for marketing in the EU by early 2025, becoming the first PD-1 innovative drug approved for extensive first-line treatment of small cell lung cancer in the EU[12] - The company is investing heavily in R&D, allocating RMB 5 billion for the development of new healthcare technologies and products over the next two years[194] Debt and Financial Management - The company issued a total of RMB 11.1 billion in domestic and foreign public debt in 2024, successfully issuing USD 300 million in offshore bonds[15] - The group's total debt as of December 31, 2024, was RMB 214.105 billion, slightly up from RMB 211.924 billion in 2023, with a debt-to-capital ratio of 52.0%[107][108] - The group aims to reduce interest-bearing liabilities and strengthen its ability to navigate economic cycles, targeting an "investment grade" rating in the future[15] - The company has taken proactive liquidity and debt management measures, including diversifying financing channels and disposing of non-strategic and non-core assets to enhance cash reserves[118] Market Expansion and Strategy - Fosun International is exploring strategic acquisitions to enhance its market presence, targeting companies in the biotechnology sector with a budget of up to USD 1 billion[192] - The company plans to expand its footprint in Southeast Asia, aiming to establish a presence in three new countries by the end of 2025[194] - Fosun Group plans to expand its business in high-potential regions like the Middle East and enhance operational efficiency through innovative strategies in 2025[75] - The company emphasized a balanced approach of "advancing and retreating" in its core business strategy, focusing on both divesting non-core assets and expanding core operations[6] Customer and User Engagement - The company highlighted a user base expansion, with active users increasing by 20% to reach 5 million in the health technology segment[192] - The digital user base of Fosun Portugal Insurance surpassed 1.9 million, representing nearly 20% of Portugal's population, with significant improvements in medical reimbursement and auto insurance claim rates[29] - The group’s consumer membership reached 12 million, contributing 52.4% to sales, with plans to enhance high-net-worth customer operations through precise services[28] Sustainability and ESG - The MSCI ESG rating has been maintained at AA level for four consecutive years, reflecting the company's commitment to sustainable development[16] - The group maintained an MSCI ESG rating of AA and was ranked in the top 5% of its industry in the S&P Global Corporate Sustainability Assessment[34] Future Outlook - Fosun International provided a positive outlook for 2025, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion strategies[194] - The company plans to propose a final dividend of HKD 0.02 per share for the year ended December 31, 2024, amounting to approximately RMB 163.65 million, pending shareholder approval[158] - The company announced a new partnership with a leading tech firm to enhance its data analytics capabilities, aiming to improve customer insights and service delivery[194]

Core Viewpoint - Fosun International (00656) issued a profit warning, projecting a loss of approximately RMB 4.2 billion to RMB 4.4 billion for the fiscal year 2024, primarily due to adjustments in the book value of its investment in Cainiao Smart Logistics Network Co., Ltd. [1] Group 1: Financial Performance - The expected loss for 2024 is mainly attributed to the adjustment of the book value of the Cainiao project, with a projected profit of RMB 700 million to RMB 900 million when excluding this factor [1] - The book value of Fosun's 564.18 million shares in Cainiao was approximately USD 1.05 billion at the end of 2023 [1] - Alibaba Group plans to repurchase shares from minority shareholders at USD 0.62 per share, significantly lower than the book value, leading to a potential one-time non-cash loss of approximately RMB 5.1 billion for Fosun in 2024 [1] Group 2: Investment Insights - Analysts noted that the adjustment of the fair value of investment equity under Hong Kong accounting standards is a non-cash accounting change and does not directly impact the company's operational performance or cash flow [2] - Fosun has invested approximately RMB 1.5 billion in the Cainiao project and has recouped about RMB 4.4 billion, achieving an internal rate of return (IRR) of approximately 34% [2] Group 3: Operational Resilience - Fosun's subsidiaries have shown strong growth and operational resilience, with Fosun Pharma reporting revenue of RMB 41.067 billion and a net profit of RMB 2.770 billion, a year-on-year increase of 16.08% [3] - Other subsidiaries, such as Fuhong Hanlin and Yuyuan, also reported significant revenue and profit growth, indicating a healthy overall operational performance [3] - Fosun International is expected to release its full-year 2024 performance report, which will provide further insights into the operational metrics of its core industries [3]

Investment Rating - The report assigns a "Buy" rating to Fosun International [2][21]. Core Views - Fosun International focuses on optimizing its core business and asset structure, which has led to improved valuation potential. The company has achieved steady revenue growth driven by its four main business segments: Health, Happiness, Wealth, and Intelligent Manufacturing [1][4][21]. - The company plans to reduce its interest-bearing debt to 60 billion RMB and gradually increase its dividend payout ratio, reflecting a commitment to shareholder value [4][21]. Summary by Sections Company Overview - Fosun International has developed into a global family consumption industry group over 30 years, with a diversified presence across more than 35 countries [8][29]. - The company operates in four main segments: Health, Happiness, Wealth, and Intelligent Manufacturing, with a strong emphasis on innovation [8][34]. Financial Performance - In the first half of 2024, Fosun International reported revenue of 97.838 billion RMB, a year-on-year increase of 0.8%, and an operating profit of 3.47 billion RMB, up 3.0% [1][21]. - The overseas revenue reached 45.87 billion RMB, accounting for 47% of total revenue, reflecting a 2 percentage point increase year-on-year [1]. Business Segments - **Health Segment**: Fosun Pharma is the core of the health segment, contributing significantly to revenue. The pharmaceutical business focuses on innovative drugs, with a notable increase in revenue from this area [15][40]. - **Happiness Segment**: This segment includes consumer brands and tourism, with stable performance driven by brands like Yuyuan and Club Med [19][42]. - **Wealth Segment**: The insurance business provides a stable funding source, with a successful turnaround in profitability [51][66]. - **Intelligent Manufacturing Segment**: This segment has shown significant growth, with a compound annual growth rate (CAGR) of 37.4% since its establishment [34][73]. Valuation and Future Outlook - The report forecasts net profits of 1.8 billion RMB, 2.8 billion RMB, and 3.6 billion RMB for 2024, 2025, and 2026, respectively, with corresponding price-to-earnings ratios of 21X, 14X, and 11X [21][22]. - The current market valuation is considered reasonable, with potential for further growth as the company strengthens its global and innovative strategies [21].

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company has successfully returned to the offshore bond market after three years, indicating improved refinancing capabilities and diversified financing channels [2][6] - The company plans to issue up to $300 million in senior unsecured bonds with an initial guidance price set in the 8.875% range, which will help refinance existing offshore debt and improve capital structure and liquidity [6][7] - The company's net profit is projected to grow significantly, with estimates of CNY 2.15 billion, CNY 3.29 billion, and CNY 4.56 billion for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 55.6%, 53.1%, and 38.8% [6][8] Financial Summary and Valuation Metrics - Revenue is expected to increase from CNY 198.2 billion in 2023 to CNY 267.245 billion in 2026, with a year-on-year growth rate of 12.5% in 2026 [8] - The company's net profit is forecasted to improve from a loss of CNY 832 million in 2022 to a profit of CNY 4.56 billion in 2026, with a net profit margin increasing from -0.5% in 2022 to 1.7% in 2026 [8] - The company's earnings per share (EPS) are projected to rise from CNY 0.2 in 2023 to CNY 0.6 in 2026, with corresponding price-to-earnings (P/E) ratios decreasing from 23.0 in 2023 to 7.0 in 2026 [8]

Financial Performance - Total revenue for the first half of 2024 reached RMB 97.84 billion, a slight increase of 0.8% compared to RMB 97.06 billion in the same period of 2023[9]. - Operating profit for the industry segment was RMB 3.47 billion, reflecting a 3.0% increase year-on-year[9]. - Profit attributable to shareholders of the parent company was RMB 720.1 million, down from RMB 1.36 billion in the same period last year[6]. - The group's profit attributable to shareholders was RMB 720 million, a decrease of RMB 640 million compared to the same period in 2023, primarily due to one-time losses from the disposal of non-core assets[10]. - The total profit attributable to shareholders for the six months ended June 30, 2024, was RMB 720.1 million, a decrease of 47.0% from RMB 1,359.7 million in the same period of 2023[33]. - The net profit for the six months ended June 30, 2024, was RMB 2,502.7 million, a decrease of 45.3% from RMB 4,572.9 million in the same period of 2023[142]. Revenue Breakdown - The health segment's revenue composition included 63% from pharmaceutical products, 9% from medical devices and diagnostics, and 28% from health services and consumption[29]. - The affluent segment's revenue consisted of 68% from insurance, 14% from asset management, and 18% from investment management[29]. - The technology and manufacturing segment's revenue was composed of 60% from technology and manufacturing and 40% from resources and environment[29]. - The Health segment generated RMB 23,260.5 million, accounting for 23.6% of total revenue, a decrease of 2.4% from RMB 23,837.6 million in the previous year[31]. - The Wealth segment saw a revenue increase of 5.9%, reaching RMB 26,947.3 million, up from RMB 25,435.0 million in the prior year[31]. - The Asset Management segment reported a significant growth of 21.4%, with revenue rising to RMB 8,489.7 million from 6,992.6 million year-on-year[31]. Debt and Financial Ratios - The adjusted total debt to total capital ratio was 50.2%, continuing a downward trend since 2020[1]. - As of the reporting period, the group's adjusted total debt was RMB 210.7 billion, with a total debt-to-capital ratio of 50.2%, maintaining a downward trend since 2020[13]. - The average debt cost for the group was 5.8%, with a slight increase of 19 basis points compared to the end of 2023, benefiting from stable domestic bank borrowing costs[13]. - The total debt of Fosun International reached RMB 222.31 billion as of June 30, 2024, an increase from RMB 211.92 billion at the end of 2023[118]. - The debt-to-capital ratio was 51.5% as of June 30, 2024, up from 50.4% at the end of 2023, indicating a slight increase in leverage[125]. Assets and Liabilities - Total assets increased by 1.7% to RMB 821,888 million compared to the end of 2023[29]. - The total assets as of June 30, 2024, amounted to RMB 821,888,026 thousand, reflecting a 1.7% increase from RMB 808,387,589 thousand at the end of 2023[35]. - Total liabilities increased to RMB 612,662,935 thousand from RMB 599,812,751 thousand, reflecting a rise of approximately 2.8%[146]. - The company’s inventory increased to RMB 26,920,793 thousand from RMB 26,233,846 thousand, which is an increase of about 2.62%[145]. Strategic Initiatives - The company invested approximately RMB 3.5 billion in scientific innovation during the reporting period[2]. - The group plans to continue enhancing the FES system to respond swiftly to global market challenges and explore value increments through investment and entrepreneurship systems[25]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[38]. - The company is focusing on strategic acquisitions to enhance its portfolio and market position[38]. Market and Membership Growth - The group's consumer membership reached 35.86 million, with membership sales contribution increasing to 52.3%, up 1.6 percentage points year-on-year[20]. - The MyFidelidade APP registered users exceeded 1.6 million, accounting for over 15% of Portugal's total population, with digital channel sales growing by 16% year-on-year[22]. - The membership platform "复遊會" had over 6.9 million members, a growth of 12.6%, with revenue of RMB 172.7 million, remaining stable year-on-year[74]. ESG and Sustainability - Fosun's MSCI ESG rating was AA, making it the only comprehensive enterprise in Greater China with this rating[3]. - The group received recognition as one of the top 1% in the global Sustainable Development Yearbook (China Edition) 2024 and was awarded the title of "Best Progress Company in the Industry" for its ESG efforts[26]. Foreign Exchange and Financial Management - The group faced foreign exchange risks due to holding assets and liabilities denominated in foreign currencies, which could lead to potential exchange losses or gains affecting profits or net assets[136]. - The group has adopted appropriate hedging strategies to mitigate foreign exchange risks and does not engage in speculative trading[138]. - The company recognized a foreign exchange gain of RMB 784,427 thousand in 2024, compared to a loss in the previous year, indicating a significant improvement in foreign exchange management[185].

Investment Rating - The investment rating for the company is "Buy" with a target price of 7.5 HKD, indicating an upside potential of 88% from the current price of 4.0 HKD [1][3]. Core Insights - The company's revenue for the first half of 2024 was 97.8 billion RMB, a slight increase of 0.8% year-on-year, while the net profit attributable to shareholders decreased by 47% to 720 million RMB, primarily due to a weak consumer environment and the impact of asset disposals [3][4]. - The health segment is focusing on innovative drugs and high-value medical devices, with a revenue of 23.26 billion RMB, down 2.4% year-on-year, but net profit increased by 43% to 510 million RMB [3][4]. - The leisure segment faced pressure from the consumer environment, with revenue of 43.17 billion RMB, a growth of 0.4%, but net profit dropped by 78% to 164 million RMB [3][4]. - The insurance business remained stable, with revenue of 26.95 billion RMB, a growth of 5.9%, while net profit decreased by 86% to 2.7 million RMB due to one-time asset disposals [3][4]. - The company maintains a stable debt leverage with a debt-to-equity ratio of 50.2% as of June 2024, slightly down from the end of 2023 [3][4]. Financial Summary - The forecasted revenue for 2024 is 211.46 billion RMB, with a projected net profit of 4.16 billion RMB, corresponding to an EPS of 0.29 HKD [4][6]. - The company’s net profit margin is expected to improve gradually, reaching 4.1% by 2026 [4][14]. - The average debt cost is 5.8%, which has increased due to the impact of US dollar interest rate hikes [3][4]. Valuation Analysis - The company employs a sum-of-the-parts valuation and NAV methods, estimating a reasonable market value of 601 billion HKD, leading to a target price of 7.3 HKD based on comparable company analysis [7][8]. - The NAV method suggests a reasonable market value of 635 billion HKD, resulting in a target price of 7.8 HKD [7][10]. - The combined target price from both valuation methods is set at 7.5 HKD [7][10].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.93, compared to the latest closing price of HKD 4.01 [2][7]. Core Insights - The company reported total revenue of HKD 97.8 billion for the first half of 2024, a year-on-year increase of 0.8%, with operational profit reaching HKD 3.47 billion, up 3% [3]. - The net profit attributable to shareholders was HKD 720 million, a decline of 47% compared to the same period last year, primarily due to one-time losses from the disposal of non-core assets [3]. - The company has optimized its asset-liability structure, reducing interest-bearing debt to HKD 85.8 billion, a decrease of HKD 3 billion from the end of the previous year, with a leverage ratio of 50.2% [3][5]. Revenue Performance - The company’s four major segments—health, happiness, wealth, and intelligent manufacturing—generated revenues of HKD 23.26 billion, HKD 43.17 billion, HKD 26.95 billion, and HKD 5.33 billion respectively, with year-on-year changes of -2.4%, +0.4%, +5.9%, and -2.4% [3]. - The net profit contributions from these segments were HKD 510 million, HKD 164 million, HKD 30 million, and HKD 45 million, reflecting year-on-year changes of +43%, -78.5%, -86.9%, and -61.8% [3]. Global Expansion and Asset Quality - The company’s four core subsidiaries—Yuyuan, Fosun Pharma, Fosun Portugal Insurance, and Fosun Tourism—accounted for 74% of total revenue, amounting to HKD 72.17 billion [4]. - The overseas revenue reached 47% of total revenue, marking a 4% increase year-on-year, indicating a robust global presence [4]. - Club Med, under Fosun Tourism, achieved record global revenue of HKD 8.894 billion, a 10.3% increase, with a 32% growth in the Asia-Pacific region [4]. Financial Health - Since 2022, the company has focused on asset disposals, exiting approximately HKD 60 billion in non-strategic and non-core assets over two years [5]. - In 2024, the company signed agreements for asset exits totaling HKD 15 billion, while also optimizing its asset portfolio through various means, including acquisitions [5]. - The average debt cost remained stable, with only a slight increase of 19 basis points compared to the end of 2023, despite rising financing costs in overseas markets [5]. Earnings Forecast - The company is expected to achieve revenues of HKD 229.9 billion, HKD 268.0 billion, and HKD 305.8 billion for 2024, 2025, and 2026 respectively, with net profits projected at HKD 1.5 billion, HKD 2.0 billion, and HKD 2.4 billion [6][8]. - The diluted EPS for the same period is forecasted to be HKD 0.18, HKD 0.24, and HKD 0.29, with corresponding P/E ratios of 24.96, 18.05, and 14.95 [7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company demonstrates resilient revenue, with a focus on innovation, light asset operations, and globalization driving healthy growth [2] - The financial indicators show increasing stability, with a revenue of 97.8 billion yuan in H1 2024, a year-on-year increase of 0.8%, and an operating profit of 3.47 billion yuan, up 3% year-on-year [2] - The company is strategically focusing on its core capabilities to enhance quality and efficiency in its main industries, maintaining a solid asset base [2] Financial Performance Summary - In H1 2024, the company achieved revenue of 97.8 billion yuan, with a year-on-year growth of 0.8%. The operating profit was 3.47 billion yuan, reflecting a year-on-year increase of 3%. However, the net profit attributable to shareholders was 720 million yuan, down 47% year-on-year [2] - The company has exited contracts worth over 22 billion yuan as of H1 2024, indicating a strategic shift [2] - The forecast for net profit attributable to shareholders for 2024-2026 is adjusted to 2.15 billion, 3.29 billion, and 4.56 billion yuan, with year-on-year growth rates of 55.6%, 53.1%, and 38.8% respectively [2] Segment Performance - The company’s four major segments (Health, Happiness, Wealth, and Intelligent Manufacturing) reported revenues of 23.26 billion, 43.17 billion, 43.17 billion, and 5.33 billion yuan respectively in H1 2024, with year-on-year changes of -2.4%, +5.9%, +0.4%, and -2.4% [2] - The major subsidiaries, including Yuyuan, Fosun Pharma, Fosun Insurance, and Fosun Tourism, generated revenues of 27.57 billion, 20.38 billion, 14.81 billion, and 9.41 billion yuan respectively, with total revenue contribution of 74% [2] - Domestic revenue was 51.93 billion yuan, down 2% year-on-year, while overseas revenue was 45.87 billion yuan, up 4% year-on-year, accounting for 47% of total revenue [2] Innovation and Globalization - The company invested 3.5 billion yuan in R&D in H1 2024, a decrease of 17% year-on-year, while improving research efficiency [2] - Four key innovative products from Fosun Pharma are in the pre-approval or critical clinical stages for nine indications [2] - The company has established a C2M ecosystem with 5.86 million consumer members, contributing 52.3% to sales, and achieved cost reductions of 623 million yuan in the supply chain [2] - The light asset operation model in the tourism sector has shown significant results, with total revenue reaching 9.41 billion yuan in H1 2024, up 6% year-on-year [2]