Fosun Tourism Group, the Chinese owner of the Club Med resort chain, swung to profit in 2018, the year of its Hong Kong listing, as its resorts attracted more tourists.
Full-year profit attributable to shareholders was 308.4 million yuan (US$45.9 million), or 0.30 yuan per share, compared with a loss of 196.5 million yuan in 2017, said the company in an exchange filing on Sunday. Revenues increased 38 per cent to 16.3 billion yuan, according to the statement.
Business volumes from Club Med rose 8 per cent last year and the operating profit jumped almost 42 per cent, Fosun Tourism said in the statement. About 3.2 million tourists visited its Atlantis Sanya, a luxury resort in China’s southernmost province of Hainan, it said, without giving comparable figures.
Fosun Tourism, a spin-off unit from Chinese conglomerate Fosun International, raised US$428 million from a Hong Kong initial public offering in December, after pricing the shares at the bottom of the indicated range.
Its shares fell 0.3 per cent to HK$16 on Friday, FROM its IPO offer price of HK$15.60
Fosun International bought control of Club Med, the Paris-headquartered luxury holiday group, for US$1.07 billion in 2015 after a two-year takeover battle, a record in France, as the conglomerate – running businesses from pharmaceuticals to steelmaking – counts on China’s burgeoning tourism industry as its major driver for revenues.
Club Med operates in more than 40 countries, with 42 resorts in Europe and the Middle East, 15 in Asia-Pacific and 12 in the Americas. The resort expanded into China in 2016 and has since opened six locations from Sanya in the southernmost province of Hainan to Yabuli in the northeastern province of Heilongjiang.
China has been the world’s largest tourism market since 2012, with a rising middle class spending more on holidays and leisure. Still, the industry had a headwind in 2018 as an economic slowdown and the escalating trade war with the US hurt consumers’ confidence.
Fosun Tourism will start construction of two more tourist resorts in Lijiang in the Yunnan province and Taicang in Jiangsu province this year, it said in the statement.
This article Club Med owner Fosun Tourism swings to profit during its first year of listing in Hong Kong first appeared on South China Morning Post