HONG KONG, May 31, 2023 – (ACN Newswire) – On 30 May, international rating agency S&P Global Ratings issued a report, raising Fosun International's rating outlook to stable.

This move implies that with continuous efforts to optimize capital and asset base, Fosun's short-term liquidity pressure has been greatly eased and its ratings have been affirmed by international agency S&P Global Ratings. The results of its strategy of "streamlining the organization" are gradually emerging.

Analysts believe that coupled with the recent increase in foreign investment in China and the continuous net purchase of domestic securities, S&P Global Ratings' move also revealed that the international capital market is bullish on Chinese private enterprises considering the confidence boost in the outlook of China's economic recovery.

S&P Global Ratings pointed out in the report that benefitting from the diversified asset portfolio and management's commitment and execution to deleverage through asset disposal, Fosun's asset disposals brought a cash inflow of approximately RMB30.0 billion in 2022. At the same time, sound banking relationships enabled sufficient sources of liquidity amid turbulence in the bond market. The significant asset disposals and stable credit support from banks enabled Fosun's successful repayment of all concentrated maturing bonds in the past three quarters. As of the end of March 2023, Fosun successfully brought down holding-company debt by about RMB24.0 billion to RMB93.0 billion. In addition, the share of bank loans in the holding company's debt rose, the proportion of debts due over the next 12 months dropped significantly, and the stability of the debts improved significantly.

Market analysts pointed out that in the face of the challenging global financial backdrop, U.S. interest rate hike cycle, and geopolitical tensions that disrupt the global economy, Fosun firmly positions itself as a "global innovation-driven consumer group" and implements the strategy of "streamlining the organization", focuses on core businesses, and consolidates the ability to win out market cycles, which set a great example for Chinese companies competing in international markets.

On 30 March, Guo Guangchang, Chairman of Fosun International, once said at Fosun International's 2022 annual results presentation, "2022 was a special year for Fosun. I think it was a 'perfect storm'. To usher in the future, we must first win out the storm."

In 2022, Fosun stepped up its efforts in the divestment of non-strategic and non-core assets initiated since 2020 to consolidate its liquidity cushion. For the full year of 2022, the amount by contract value based on consideration set out in the divestment agreements exceeded RMB40.0 billion, bringing a cash inflow of nearly RMB30.0 billion at holding company level.

After winning out the "perfect storm", Fosun's efforts in "streamlining the organization" have been recognized in the financial market.

In early May this year, Fosun International's offshore multi-currency syndicated loan was officially launched, and it has obtained a loan of more than US$450 million in equivalent so far. The offshore syndicated loan was jointly initiated by seven banks including Bank of China, Bank of East Asia, Commerzbank, Hang Seng Bank, HSBC, Natixis Bank, and Standard Chartered Bank as lead bookrunners, and more than 10 banks have joined the syndicate.

In January this year, Fosun's domestic operating entity, Shanghai Fosun High Technology (Group) Co., Ltd. obtained a syndicated loan of RMB12.0 billion. The syndicate was formed by five major state-owned commercial banks including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications as joint lead banks, and China Minsheng Bank, the Export-Import Bank of China, and Shanghai Pudong Development Bank as participating banks.

In the report issued on 30 May, S&P Global Ratings fully affirmed Fosun's sound relationships with domestic and foreign banks. Considering the progress of bank financing, S&P Global Ratings affirmed Fosun's long-term issuer credit rating and guaranteed senior unsecured notes rating, and raised the rating outlook from negative to stable.

Domestic and foreign banks have successively provided significant credit support to Fosun, which reflects mainstream financial institutions' recognition of Fosun's debt management actions such as accelerating the sale of non-core assets and cash inflows. The significant financial support from banks will also help Fosun reduce its dependence on public market financing and support subsequent liquidity management and sustainable business development.

Fosun's series of measures to deleverage and increase cash inflow have also accumulated momentum for the recovery of core businesses in the household consumption sector. In the first quarter of this year, Fosun's businesses in consumer and tourism sectors showed a remarkable upward trend. In the first quarter, Yuyuan achieved an operating revenue of RMB15.244 billion, representing a year-on-year growth of 22.61%; the revenue of Yuyuan Jewelry and Fashion reached RMB11.494 billion, representing a year-on-year increase of 28.55%. Coupled with the overall relaxation of travel restrictions worldwide, Fosun Tourism Group's profit attributable to the parent in the first quarter doubled compared with the same period in 2022, Club Med's business volume reached RMB5.004 billion, an increase of about 44.2%; during the May Day holiday this year, the total business volume of Club Med resorts in China exceeded the same period in 2022 by about eight folds, and exceeded the same period in 2019 by about 110%.

In view of Fosun's business recovery this year, a number of securities firm such as Goldman Sachs, Daiwa Capital Markets, Guotai Junan, etc., successively published research reports, assigning Fosun International a "Buy" or "Overweight" rating.

In the report, S&P Global Ratings also looked ahead to the next 12 to 18 months, on the basis that the short-term liquidity pressure has been greatly eased, Fosun's strategy of "streamlining the organization" will continue to bear fruit, which may be reflected in future rating actions.

"The virtuous cycle of the capital market and credit rating will lay a solid foundation for the smooth implementation of Fosun's subsequent financial and business strategies," an analyst said.


Copyright 2023 ACN Newswire. All rights reserved. http://www.acnnewswire.com

HONG KONG, May 25, 2023 – (ACN Newswire) – New Hope Service Holdings Limited ("New Hope Service" or "the Company", stock code: 3658.HK), a comprehensive property management and lifestyle service operator in China, celebrated its second listing anniversary and hosted in Chengdu a strategic development forum themed "For Better People's Livelihood, New Hope Services Start from Hustle and Bustle of Chengdu". Prominent guests attending the forum included the leaders of the People's Government of Wuhou District, Chengdu; Mr. Huang Xilei, Deputy Director of Chengdu Municipal Housing and Urban-Rural Development Bureau; Mr. Zheng Youcai, Deputy Secretary of Sichuan Property Committee of the Communist Party of China and Full-time Vice President of Sichuan Real Estate Association; Mr. Zhang Wei, Chairman of the Chengdu Association of Building Economy Promotion; Mr. Wang Lei, Party Committee Secretary and Chairman of Chengdu Xingcheng Renju Real Estate Investment Group Co., Ltd; Mr. Li Wei, Executive Director and Vice President of Shoucheng Holdings; Principals of Wuhou SDIC, Wuhou Development Group, Wuhou Capital Group, ChengDu JingKai GuoTou Investment Group Co., Ltd.; Co-Chairman and President of Tuya Smart, Leo Chen ; Ms. Yan Yun, CEO of Jinxin Fuxing Eldercare Group; Mr. Luo Yi, General Manager of Guoniang Food; Mr. Chen Qiwu, General Manager of Huiji Food, as well as Mr. Jiang Mengjun, Chairman of the Board, Ms. Wu Min, Co-Chairman, Mr. Dong, Non-executive Director and Ms. Chen Jing, Chief Executive Officer.

Signed Eight Strategic Cooperation Agreements Solid Strengths Widely Recognized
A complement to New Hope Service celebrating the 2nd anniversary of listing, it signed strategic cooperation agreements with six parties, namely the People's Government of Wuhou District, Chengdu, Chengdu Renju Commercial Management Company, Shoucheng Holdings Limited, Sichuan New Hope Flavor Industry Co., Ltd., Sichuan Huiji Food Electronic Commerce Co., LTD and Chengdu Jinxin Medical Investment Group Co., Ltd. at the forum. At the same time, it has set up a joint venture with Wuhou SDIC, Wuhou Development and Wuhou Capital, and another joint venture with Chengdu Economic and Technological Development Zone Yuanqu Investment Co., Ltd.;.

— People's Government of Wuhou District X New Hope Service will deepen interaction among endeavors in areas including lifestyle services, city services, property services, canteen operations and asset operations, helping build a more superior city core and creating a better happy living area model.
— Guided by the idea of cultivating, building and serving Chengdu, Chengdu Renju Commercial Management X New Hope Service will jointly create consumption scenarios and service scenarios for the future, strive to boost the value of and room for businesses to ease living and benefit lives in a community and extend the value of lifestyle services.
— Shoucheng Holdings X New Hope Service will work together to provide more quality services to meet the public transport needs, and needs of businesses and residents.
— Chengdu Jinxin Medical X New Hope Service will together explore the area of medical property plus, with focus on back-end medical logistics services, childcare and home care for elderly, among others so as to contribute to the development of high-quality regional medical services.
— New Hope Service has officially become the general agent of the nationwide property sales channel of New Hope Flavor and Huiji Food. In the future, the companies will strengthen cooperation in aspects such as continuous product supply, service quality assurance and closed-loop services.
— New Hope Service and the three state-owned platforms, namely Wuhou SDIC, Wuhou Development and Wuhou Capital, have set up the joint venture Chengdu Guoyue New Life Service Co., Ltd., which will allow the partners to apply their respective strengths and cooperate effectively in the "larger property" realm in developing ancillary services, property services, lifestyle services and asset management services.
— The joint venture formed by New Hope Service and Chengdu Economic and Technological Development Zone Yuanqu Investment is named Chengdu Guoyue New Life Service Co., Ltd. It will promote development and building of the city and development of ancillary services, property services and lifestyle services for the city.

Stronger government-enterprise cooperation is conducive to the integrated development of state-owned platforms and private enterprises, plus going in-depth in exploring the niches in the property-plus segment and also New Hope Group stepping up construction of its lifestyle service supply chain are all moves that fuel the business momentum of New Hope Service. In addition, with a sound strategic cooperation mechanism, threading through up- and down-stream the industry, helping to build an industrial community, a development community and a community of shared future, has also helped open a new setting for it to facilitate development of cities and serve people's livelihood needs.

Roots in the city Serving people Exploring paths of development
At the forum, the leaders of Chengdu Ministry of Housing and Urban-Rural Development and Sichuan Real Estate Association expressed their expectations for the development of the property service industry and New Hope Service. Also, representatives of companies such as Jinxin Fuxing Eldercare and Tuya Smart explored in-depth such topics as city development, lifestyle services and industrial interactions.

Mr. Jiang Mengjun, Chairman of the Board of New Hope Service, said: For New Hope Group, New Hope Service is a key part of its lifestyle business, and also an important channel that matches its lifestyle service resources with customer demand. Compared with other property management companies in the industry, the Company, backed by a systematic lifestyle service industrial chain, focuses on offering distinctive services that meet two basic needs: "eating well" and "living well". In the two years since listing, it has marched into a new stage in such as quality service, steady development, standardized operation and sustainable development.

Chen Jing, CEO of New Hope Service, said: Property management has extended from serving a community to serving a city and people, gaining value in such aspects as urban grassroots governance and satisfying the wish to residents to live well. New Hope Service started its business from Chengdu, building up its ability to provide excellent services in the livable city. Backed by the lifestyle service business layout and the strong brand of over 40 years of New Hope Group, New Hope Service has been able to organically combine property management, commercial operation and lifestyle services, and horned core competitiveness in "asset appreciation and preservation" and "peaceful and good life". Moreover, having the support of digital operation, it has been able to connect up- and down-stream industries and built its "property+" service ecosystem to better serve customers and making lives better.

Professional capabilities are scarce when it comes niche services. While it is common in the industry to buy them, New Hope Service places greater emphasis on cooperation and joint-development. At the forum, Yan Yun from Jinxin Fuxing Eldercare said he appreciate the commitment of New Hope Service to "Happiness, make it everyday" and to meeting the needs of customers. he also talked about tapping the new blue ocean of the service sector by reaching a consensus on industrial deep cultivation under the background of complementary advantages and complementary resources.

From the long-term strategic partner of New Hope Service and Tuya Smart, Co-Chairman and President of Tuya Smart, Leo Chen , explained that under the innovative smart service mode, the smart upgrade of the stock/new equipment of different types of projects under management in New Hope Service was completed, and by building an IoT standardization system and opening up the hardware ecological resource library, it helped realize the full-cycle standardization of the operation process, build a digital ecology of people's livelihood.

Robust operation with quality growth Lifestyle business developing at good pace
The forum aside, New Hope Service prides commendable business performance: Compared with before listing, its area under management has increased near two folds, the area managed by third-party has increased by near 10 times, and its revenue has close to doubled, is currently among the TOP 25 in overall capabilities in the industry and enjoying a good growth momentum. Its commercial operation team recently held a business promotion conference for the Zhongding 316 project and made good progress. The retail business "Hope Mini Station" was launched on 25th May. As a lifestyle services carrier, it will use the New Hope series products as its "testing ground" and through launching new products weekly and membership day on the 25th of every month to share with customers arrays of delicacies. As for the group catering service business "New Foodies", it has rapidly grown into a group catering service supplier boasting more extensive penetration of the industrial chain, more comprehensive coverage of service scenarios and levels in Sichuan Province

With the industry back to being rational, the "two highs" – "high-quality services" and "high-quality growth" continue to be key to the stable development of property management companies. While consolidating its the different service businesses, New Hope Service will continue to work with the government, state-owned platforms, and quality enterprises to explore the differentiated service model braced by is core corporate advantages to realize the goal of concerting development with the city. That is guiding principle for it to achieve long-term and stable development of its lifestyle services. It is foreseeable that in a certain period of time in the future, New Hope Service shall be able to gain a good market position in the real estate and broader lifestyle service sectors at its efforts to cultivate business and explore new realms + partner support.

New Hope Service Holdings Limited (stock code: 3658.HK)
New Hope Service (stock code: 3658.HK), as a lifestyle service provider, embraces the mission of "Happiness, make it everyday" and is committed to meeting the needs of customers. Boasting fully integrated and customized services, it has established presence in metropolitan areas and city clusters in China, providing customers in first-tier, new first-tier and second-tier cities with property management services, lifestyle services and commercial operation services, as well as value-added non-property owner services. Moreover, with its own business scaling up steadily and on the back of New Hope Group, a Fortune 500 enterprise, which has an extensive lifestyle service layout, New Hope Service is able to continuously guarantee customer satisfaction and report high-quality operating results. It ranked 25th among the "2022 Property Management Companies in China in terms of Comprehensive Strength" and won the "2022 Golden Kirin Hong Kong and US Listed Companies Awards – Best Small and Medium-Cap Company" award.
Company Website: https://www.newhopeservice.com.cn/

Press Contacts
Strategic Financial Relations Limited
Yan Li / Grace Liu / Albert Chu
Tel: (852) 2114 4320 / (852) 2864 4170 / (852) 2114 4955
Email: yan.li@sprg.com.hk / grace.liu@sprg.com.hk / albert.chu@sprg.com.hk
Website: www.sprg.com.hk


Copyright 2023 ACN Newswire. All rights reserved. http://www.acnnewswire.com