Fosun Tourism Group presented its first annual results as a publicly listed company for the year ended December 31 2018.
Highlights
Total revenues increased by 37.9% to RMB16,269.8 million in 2018, compared with RMB11,799.4 million in 2017.
Gross profit increased by 86.4% to RMB5,276.0 million in 2018, compared with RMB2,830.3 million in 2017.
Adjusted EBITDA increased to RMB2,073.0 million in 2018, compared with RMB746.3 million in 2017.
Net profit was turned around with net profit amounted to RMB389.1 million in 2018 against the net loss of RMB295.0 million in 2017.
The resort business under Club Med brand has demonstrated strong performance in 2018. The business volumes increased by 8.0% in 2018 compared with 2017 and the recurring operating profit of resort operation increased by 41.8% in 2018.
In 2018, the number of customers from Asia Pacific region increased by 14.4% and particularly, customers from Greater China increased by 21.6%.
Resort business
Atlantis Sanya, the first tourism destination project located in Sanya, has approved to be an icon of tourism upgrading v3.0 of Sanya, Hainan. Since its soft opened in February 2018 and officially opened in April 2018, Atlantis Sanya contributed RMB752.0 million operation revenue and the number of customer visits to Atlantis Sanya reached 3.2 million in 2018.
During 2019 Chinese New Year vacation period (i.e. from February 4 to February 19), Atlantis Sanya recorded operation revenue of RMB150.4 million, including room revenue of approximately RMB77.8 million with Occupancy Rate by Room of approximately 93.0% and other operating revenue of approximately RMB72.6 million.
As of December 31 2018, the Group had entered into purchase agreements for the sale of 966 units, including 183 out of 197 villas and 783 out of 807 apartments, among which, the Group had transferred 764 apartments to customers in 2018 and RMB3,393.3 million of contract liabilities was recognized as revenue in 2018.
Loyalty programmes membership
As of December 31 2018, Club Med had approximately 3.9 million Great Members, all of whom purchased Club Med’s products at least once during the three years ended December 31 2018.
In March 2018, the group launched the Foryou Club membership system in China and have integrated members from various of its brands in the FOLIDAY ecosystem, including but not limited to Atlantis Sanya, Club Med’s Great Members from China, FOLIDAY app and other members from various activities and services. As of December 31 2018, Foryou Club has accumulated approximately 3 million members and the average monthly purchase by the members is approximately RMB4.18 million.
Revenue
Total revenue increased by 37.9% from RMB11,799.4 million in 2017 to RMB16,269.8 million in 2018, mainly attributable to the strong performance of our resort operation and tourism destinations business.
Resorts: Revenue increased by 2.2% from RMB11,758.4 million in 2017 to RMB12,017.0 million in 2018, primarily due to resort operation revenue increased by 6.8% with amount of RMB613.8 million, partially offset by one-off constructive service revenue in 2017. The increase of resort operation revenue was driven by a combination of growth in Bed Nights Sold and Average Daily Bed Rate.
Tourism destinations: Revenue increased by RMB4,151.2 million from RMB13.9 million in 2017 to RMB4,165.1 million in 2018, primarily due to the operation of Atlantis Sanya and delivery of property units in Tang Residence. Atlantis Sanya had its soft opening in February 2018 and official opening in April 2018 and recorded operation revenue of approximately RMB752.0 million in 2018. Meanwhile, 764 pre-sold apartment units in Tang Residence were delivered to customers as of December 31 2018 and RMB3,393.3 million was recognized as revenue accordingly.
Services and solutions in various tourism and leisure settings: Revenue increased by 396.3% from RMB27.0 million in 2017 to RMB134.1 million in 2018, primarily driven by revenue generated from online and offline travel services through our travel agency and Foliday platform.
Gross profit increased by 86.4% from RMB2,830.3 million in 2017 to RMB5,276.0 million in 2018. Except of the strong performance of tourism related property sales and construction services, which contributed RMB1,981.0 million additional gross profit in 2018, our gross profit of resorts and destination operations increased RMB444.3 million, representing of 17.9% growth yearover-Year.
The group had a net gain of RMB208.5 million in 2017 and a net gain of RMB42.8 million in 2018. The decrease was primarily due to one-off gain on the disposal of a certain subsidiary of RMB192.5 million in 2017.
Operating profit and loss
Operating profit and loss increased RMB1,875.3 million from RMB75.5 million in 2017 to RMB1,950.8 million in 2018.
Resort: Operating profit decreased from RMB464.4 million in 2017 to RMB446.0 million in 2018. Excluding the non-recurring operating items, the recurring operating profit increased from RMB286.4 million in 2017 to RMB406.2 million in 2018.
Tourism destinations: Operating profit changed from operating loss of RMB380.8 million in 2017 to operating profit of RMB1,557.8 million in 2018. The operating profit in 2018 primarily included property sales profit of RMB1,780.6 million, which was mitigated by preparation and operation costs before Atlantis Sanya official opening amounted to RMB187.2 million in 2018.
Services and solutions in various tourism and leisure settings: Operating loss of this segment increased by RMB44.9 million in 2018 due to the ramping up of entertainment and tourism-related business in 2018, leading to more cost and expenses than revenue expansion at the early stage.
Adjusted EBITDA
Adjusted EBITDA increased from RMB746.3 million in 2017 to RMB2,073.0 million in 2018.
Resort: Adjusted EBITDA of resorts decreased by 2.5% from RMB1,053.8 million in 2017 to RMB1,025.7 million in 2018 mainly due to the change of non-recurring operating items. Excluding the impact of those non-recurring items, adjusted EBITDA of recurring operation for resorts increased from RMB875.3 million in 2017 to RMB987.4 million in 2018.
Tourism destination: Adjusted EBITDA of tourism destination operation changed from negative RMB278.0 million to positive RMB1,162.0 million. The adjusted EBITDA in 2018 mainly included property sales of Tang Residence of RMB1,234.8 million and operation of Atlantis Sanya amounted to RMB134.0 million, which was mitigated by preparation and operation costs before its official opening amounted to RMB187.2 million.
Services and solutions in various tourism and leisure settings: Adjusted EBITDA loss of services and solutions in various tourism and leisure settings increased from RMB27.4 million in 2017 to RMB66.0 million in 2018.
Capital structure
Total assets increased from RMB29,329.8 million as of December 31 2017 to RMB29,532.3 million as of December 31 2018, and the total liabilities decreased from RMB24,782.3 million as of December 31 2017 to RMB21,217.1 million as of December 31 2018.
Current ratio decreased from 0.8 as of December 31 2017 to 0.7 as of December 31 2018 primarily due to decrease in the amounts due from related companies, which was partially offset by a decrease in contract liabilities.
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