Focus on light asset operation and grasp global dynamics.

Shanghai, August 23, 2024 / PRNewswire / - On August 22, 2024, Fosun Tourism & Culture Group ("Fosun Tourism" or "the Group", stock code: 1992.HK) announced its interim performance for the six months ended June 30, 2024 ("the Period"). During the Period, the revenue of "Club Med and Others", "Sanya Atlantis", "Resort Asset Management Center"[1], and "Foliday Club and related businesses" (collectively referred to as "Tourism Operations") reached RMB 10.65 billion, a year-on-year growth of 11%; the Group's revenue reached RMB 9.41 billion, a year-on-year growth of 6%; adjusted EBITDA was RMB 2.09 billion; attributable profit to shareholders was RMB 0.32 billion, representing a 20% increase compared to the same period in 2023, excluding the one-time disposal of resort income.

Club Med's performance in the three major regions is impressive, reaching a new historical high.

In the first half of 2024, benefiting from significant growth in the mountain business and a strong rebound in the Asia-Pacific region, Club Med achieved a new historical high in performance. Club Med recorded revenue of RMB 8.89 billion, a 10% increase compared to the same period in 2023. The adjusted EBITDA of resort operations in the first half of 2024 increased to RMB 2 billion, compared to RMB 1.99 billion in the same period in 2023. Driven by the "upgrading" strategy, the average daily room rate was RMB 1,922 (based on consistent exchange rates), an 8% increase compared to the same period in 2023; the global average room occupancy rate reached 70.4%, an increase of 1 percentage point compared to the same period in 2023.

In the ever-changing global economic situation, the Americas, Europe, Africa, the Middle East, and the Asia-Pacific regions have all achieved profitable growth. In the Europe, Africa, and the Middle East region, benefiting from the new La Rosière exclusive space launched by the La Rosière resort in the French Alps, revenue increased by 6% compared to the same period in 2023. Business activities in the Americas continued to be strong, with the 'halo effect' of the Quebec Charlevoix resort in Canada driving the overall business development in North America. Summer skiing in the French Alps boosted the region's revenue by 10% compared to the same period in 2023.

After the lifting of travel restrictions, strong growth was achieved in the Asia-Pacific region, with a 32% increase in revenue in the first half of 2024 compared to the same period in 2023. Club Med recorded revenue of 0.38 billion yuan in mainland China, a 20% increase year-on-year, and a 33% increase excluding non-recurring projects in the same period of 2023. Outbound travel from China increased by 5 times compared to the same period in 2023, and inbound tourism at Chinese resorts increased by 7 times compared to the same period in 2023.

During the period, Club Med's capacity increased by 4% compared to the same period in 2023. The Mediterranean & Neighboring Black Stone Resort opened in July, becoming the first Mediterranean & Neighboring series resort in the southwestern region of China. By 2026, including new openings and renovations (partially offset by the closure of outdated resorts), Club Med expects the annual capacity to increase by approximately 13% compared to 2023.

With strong demand for summer vacations and the following year's ski season, sustainable growth in bookings is expected in the second half of 2024 and the first half of 2025. As of August 3, 2024, cumulative bookings for the second half of 2024 (based on consistent exchange rates and revenue from lodging, travel, and services) increased by approximately 6% compared to the same period in 2023. As of August 3, 2024, cumulative bookings for the first half of 2025 (based on consistent exchange rates and revenue from lodging, travel, and services) increased by approximately 11% compared to the same period in 2024.

"In the face of macroeconomic uncertainties and geopolitical tensions that challenge the tourism industry, Club Med achieved record performance in 2023 and reached a new high in the first half of 2024. This not only proves the success of our resort upgrade strategy, but also further strengthens our global leadership in mountain resort areas. Today, the high-end and exclusive collection of Club Med resorts accounts for 100% of our portfolio, a luxury resort combination that we have never been so proud of in our 74-year history." - CEO of Fosun Tourism and President of Club Med, Henri Giscard d'Estaing.

Looking ahead, we will continue to develop resorts in the most beautiful destinations around the world, leveraging our global resources and operational capabilities. We will also promote digital transformation and integrate artificial intelligence technology to enhance customer experience and operational efficiency. Our goal is to become the global leading brand in sustainable tourism and create a unique lifestyle centered around the Club Med spirit, embracing all future challenges.

With a focus on operating with light assets, our domestic business remains resilient.

As a leading high-end integrated ocean-themed resort destination in China, Atlantis Sanya continues to lead the market. The resort's operating revenue reached 870 million yuan in the first half of 2024. The average room occupancy rate reached a historic high of 89.6%, an increase of 3 percentage points compared to the same period in 2023. The number of visitors increased from 3.4 million to 3.44 million, breaking a historical record. Due to changes in supply and demand in the domestic tourism lodging market, the resort adopted flexible pricing adjustments to maintain product competitiveness. The average daily room rate during the period reached 2,044 yuan, with adjusted EBITDA of 290 million yuan.

In terms of vacation asset management centers, Taicang Alps International Resort is currently in the business growth phase, benefiting from the growth of urban vacation and winter tourism demand, as well as the continuous enhancement of the resort's operation. The project has shown steady improvement, with a revenue of RMB 0.11 billion and approximately 0.29 million visitors during the period. The second phase of the Taicang Alps International Resort project was officially signed in June with a total investment of over RMB 5 billion. It is funded by the Taicang Municipal Government and operated by the Group, becoming a new milestone for Fosun Tourism's light asset strategy implementation. The Lijiang Mediterranean International Resort has benefited from the operation improvement of Club Med Lijiang Resort and the revitalization of the Amaze Snow Mountain Camp. During the period, it recorded a revenue of RMB 46 million, a year-on-year growth of 15%, and approximately 0.11 million visitors, a year-on-year growth of 67%.

In the first half of 2024, Foyo Club, as the global membership platform of Fosun Tourism, continued to leverage its membership operations and digital advantages. During the period, Foyo Club recorded a revenue of RMB 0.17 billion, basically flat compared to the same period in 2023. As of June 30, 2024, Foyo Club has a membership base of over 6.9 million, a year-on-year growth of 13%.

Xu Xiaoliang, Co-CEO of Fosun International and Chairman of Fosun Tourism Group, said: "In the first half of 2024, in an environment where the global macro economy faces many challenges, Fosun Tourism has leveraged its global layout and operational advantages, effectively mitigating the risks of a single regional market and seizing opportunities in global emerging markets, achieving steady performance growth. Looking ahead to the second half of the year, we will continue to focus on light asset operation, closely following the trends of urban vacation and winter vacation markets, focusing on enhancing product strength and brand power, optimizing operational efficiency, improving customer satisfaction, and achieving sustainable growth of the Group's businesses, creating long-term returns for our shareholders."