00656.HK --

Fosun Tourism Announces 2021 Annual Results : Strong rebound in performance boosted revenue up 30% Accelerate expansion Look forward to the future

Release Time:2022-03-23 Author: Source: Pageviews:

Results Highlights

  • Benefiting from the strong rebound of its businesses in the second half year, the business volume of tourism operations increased by 20% in 2021, with adjusted EBITDA reaching RMB3 million. Both business volume and adjusted EBITDA in the second half year rebounded notably, the business volume of tourism operations rose by 122.1% year-on-year, with adjusted EBITDA turned around a loss of RMB1,094.4 million
  • Club Med rebounded rapidly after resumption of resort operation. In the second half year, its business volume increased by 180.1% year-on-year, with average occupancy rate up by 5.9 percentage points year-on-year and average daily bed rate increased by 28.0% year-on-year, whereas capacity swelled by 79.5% year-on-year. The Group will continue to accelerate development of new resorts with 17 new Club Med resorts signed and planning to open between 2022 and 2024
  • Business volume of Atlantis Sanya for the year achieved a record high of RMB1,455.3 million, adjusted EBITDA margin reached approximately 44.8%, the average occupancy rate was 71.5%, the average daily rate was about RMB2,419
  • Although Thomas Cook relaunched for only 18 months, the App recorded cumulatively about 2.6 million downloads. Total business volume of its business in China and UK in 2021 surged by close to three folds year-on-year to more than RMB740.9 million
  • Club Med Lijiang resort in Lijiang FOLIDAY Town started operation as scheduled. For Taicang FOLIDAY Town, the construction of Alpes Snow World progressed smoothly; revenue from property sales amounted to RMB1,333.0 million. Alpes Snow World, Club Med Joyview Taicang resort and the themed commercial street will commence their business in the second half of 2023
  • The Group will continue to be deeply root in Hainan market. At the same time, through Club Med and Taicang FOLIDAY Town businesses, the Group aims to build a global ski ecosystem for all ages coverage of skiers, from cities to mountains


Fosun Tourism Group (“Fosun Tourism” or the “Group”, Hong Kong Stock Exchange Stock Code: 1992), a world-leading leisure-focused integrated tourism group, announced today its annual results for the year ended 31 December 2021 (“the year”). In the first half of 2021, most of our resorts were closed due to the epidemic control measures implemented by different countries and our business has been significantly affected. However, with different countries rolling out vaccination schemes and European countries gradually relaxing travel restrictions, the Group quickly made deployment and resumed business, especially driven by the strong rebound of Club Med, the Group recorded satisfactory business performances for second half of 2021.

During the year, the Group’s revenue increased by 31.2% year-on-year to RMB9,261.5 million (2020: RMB7,060.3 million), with the business volume of resorts and destination operations and tourism and leisure services and solutions (collectively “tourism operation”) up by 20.1% year-on-year to RMB8,094.7 million (at constant exchange rate) (2020: RMB6,739.0 million). Adjusted EBITDA was RMB248.3 million (2020: RMB187.5 million(restated)). In the second half year, in particular, business volume and adjusted EBITDA saw strong rebound, with tourism operation recording a surge of 122.1% year-on-year(restated) in business volume to RMB5,660.9 million and adjusted EBITDA turning around a loss of RMB1,094.4 million. During the year, all the Group’s businesses functions achieved gratifying growth year-on-year. By business volume, Club Med made RMB5,978.3 million, a 10.8% increase year-on-year, Atlantis Sanya made RMB1,455.3 million, increased by 18.6% year-on-year, Thomas Cook China recorded approximately RMB357.9 million, up by 95.1% year-on-year and that of Thomas Cook UK was approximately RMB383.0 million.


Club Med business quickly recovered since reopening and achieved a sharp increase YoY in second half year, while EBITDA profit turned around significantly

During the year, the business volume of Club Med reached RMB5,978.3 million (at constant exchange rate), up by 10.8% year-on-year. Business volume of EMEA and the Americas increased by 14.3% and 31.3% respectively, and that of Asia Pacific decreased by 30.9%, compared with the same period in 2020. Business volume of Club Med resorts in Mainland China grew by 15.5% year-on-year. The adjusted EBITDA increased to negative RMB100.7million, compared to negative RMB333.5 million(restated) for the same period in 2020. 

In the first half of 2021, due to the continuous spread of COVID-19, all mountain resorts in the Alps (except Saint Moritz resort in Switzerland) could not operate in the 2021 snow season; moreover, outbound travel was also suspended in major customer source markets. With countries starting to reopen borders, the Group reopened certain resorts in mid-May 2021, which achieved aspiring rebound. 

In the second half of 2021, the business volume of Club Med amounted to RMB4,639.8 million, representing an increase of 180.1% compared with the same period in 2020, and recovered to 76.9% of that in the same period of 2019, with capacity at 4.53 million bed nights, 79.5% more against the same period last year and about 74.3% of that in 2019. Average occupancy rate was 62.2%, up by 5.9 percentage points compared with the same period in 2020, and average daily bed rate was about RMB1,405.2, a climb of about 28.0% and 15.2% compared with the same period in 2020 and 2019, respectively. In December 2021, 46 resorts were in operation worldwide. Came the second half of 2021, thanks to its effective implementation of value strategy and cost control measures, the adjusted EBITDA increased to RMB890.8 million, turning around RMB1,579.7 million compared with the same period in 2020.

 In early 2022, Club Med made a plan to open 17 new resorts by the end of 2024. Club Med continued to upgrade its resort product portfolio last year; By 2024, together with new opening and renovation, annual capacity will increase by approximately 20% as compared with the same period in 2019.

Mr. Henri Giscard d’Estaing, Vice Chairman and Deputy CEO of Fosun Tourism Group, said, "2021 has been very contrasted between the first half of the year, which has been massively impacted in our international markets by sanitary situation, and the second half with a strong recovery.

Indeed, in the second half of the year, with countries starting to remove travel restriction, we could reopen progressively most of our Resorts, outside of South East Asia, and accelerate our “dual engine” glocal strategy. We had to adapt massively, but we are now even stronger, thanks to the reinforced “unique selling proposition” of Club Med and its profitable business model. Despite the context, we have opened 4 magnificent Resorts and completed 4 major renovations.

With our successful strategy and clearly defined challenges, we are definitely in position to rebound, despite the various sanitary, economic, and geopolitical uncertainties. Together with Fosun Tourism Group, we are moving forward and defining great ambitions for Club Med, to bring greater happiness to global families, on a profitable & fast-growing business model."


Atlantis Sanya continued to enrich the holiday experience,Business volume for the year made new high again 

In 2021, despite the impact of multiple outbreaks and several national outbreaks,  benefiting from its outstanding product competitiveness and demand recovery, business volume of Atlantis Sanya for the year made new high again, achieved RMB1,455.3 million,increased by 18.6% year-on-year. Room revenue increased by 18.6% year-on-year, and other operating revenue increased by 18.7% year-on-year. Average daily room rate rose by 12.3% to approximately RMB2,418.9 and its occupancy rate climbed by four percentage points to 71.5% against the downtrend. Its number of visits climbed to approximately 4.7 million. During the year, Atlantis Sanya launched the mermaid diving, a trendy sport, as a new holiday experience, while improving the supply of tourism retail and introducing popular new retail brands to enter. 


Lijiang FOLIDAY Town and Taicang FOLIDAY Town progressed as scheduled, Part of Lijiang has been opened, Taicang is expected to open in the second half of 2023 

FOLIDAY Town is the Group's tourism destination operation brand. The construction of its two key projects in Taicang and Lijiang progressed steadily during the year. In the second half of 2021, in Lijiang FOLIDAY Town, Club Med Lijiang resort, Albion Holiday Apartment and Lake Camp began operation. As of 31 December 2021, Lijiang FOLIDAY Town has accumulatively obtained sales permit for GFA of approximately 28,500 square meters, with 482 sale sets and 42 were delivered, and the amount of RMB50.9 million was recognised as revenue. 

Taicang FOLIDAY Town has obtained sales permit for GFA of approximately 162,000 square meters in total, all of which were used for pre-sale, of which 949 sets of saleable units in aggregate were pre-sold and the pre-sold value amounted to RMB2,485.2 million. During the year, the Group delivered 560 units of Taicang FOLIDAY Town and recognised revenue of RMB1,333.0 million. In January 2022, Alpes Snow World completed topping off the main structure. Themed commercial street and Club Med Joyview Taicang resort entered full construction phase in June 2021 and construction progressed on schedule. In the second half of 2023, the Group plans to commence intensively the operation of “Aples Snow World”, Club Med Joyview Taicang resort and themed commercial street at Taicang FOLIDAY Town. 


Digitalization strategy was accelerating total business volume of Thomas Cook global grew by close to three folds to RMB740.9 million 

During the year, Thomas Cook China achieved business volume of RMB357.9 million, a 95.1% increase year-on-year. By the end of 2021, the Thomas Cook APP recorded cumulatively about 2.6 million downloads and brought approximately 270,000 orders, almost three times than that of 2020. After resuming operation in 2020, Thomas Cook UK saw vigorous growth momentum despite the pandemic prevailing and strict travel restrictions in Europe. During the limited travel periods of the year, it recorded business volume of approximately RMB383.0 million and 27,000 orders, realizing nearly 60-fold increase.


Deploy in high-growth areas in the post-epidemic era,To lead high-quality transformation of the industry

Affected by the comings and goings of the COVID-19 pandemic and anti-pandemic policies, the tourism market saw weak performance in the past year. However, the timely announcement of the "14th Five-Year Tourism Development Plan" (the “Plan”) boosts confidence in China's tourism industry. The Plan states the aims of, by 2025, achieving in-depth integration of culture and tourism, constructing a number of world-class tourist attractions and resorts that feature rich cultural heritage and creating a number of national-level tourism and leisure cities with distinctive cultural characteristics. The tourism sector in Hainan, in particular, has very obvious advantages of culture and tourism combination. Even during the pandemic, the growth rate of many economic indicators in Hainan remained among the highest in the country. The Group keeps to cultivate business in Hainan. In 2019, in terms of room numbers charging average daily rate of over RMB1,000, the Group was the largest high-end resort provider in Sanya. With the free trade port policy working in its favour, the Group is actively looking for opportunities to further develop its business, and will focus on expanding new businesses in the areas of tourism and destinations, resorts, tourism retail and destination services, so as to continuously enrich the FOLIDAY ecosystem in Hainan.

The Group has been committed to building a complete and comprehensive ski ecosystem. By the end of 2024, the Group plans to open 9 to 11 ski resorts and hotels and to see  "Alpes Snow World" in Taicang FOLIDAY Town developing into a large-scale indoor ski domain with GFA of 90,000 square meters, and with ESF, a long-term partner of Club Med, to provide professional European system ski courses. The Group will also provide ski training solutions in the name of "Foryou Ski" in urban commercial facilities.


A good start in the first two months of 2022,Comprehensive and high growth of core business

 In the first two months of 2022, as the global epidemic prevention and control gradually turned to normal, the Group's business in China and overseas got off to a good start. The business volume of Club Med (at constant exchange rate) increased significantly by 426.2% year-on-year, recovering to 81.4% of that in the same period of 2019. As at 5 March 2022, cumulative bookings for the first half year, expressed in business volume at constant exchange rate, increased by approximately 304.2% compared to that in the first half of 2021 as recorded in the same period of 2021, and recovered to approximately 92.2% of that for the first half of 2019 (before the pandemic) as recorded in the same period of 2019. The business volume of Atlantis Sanya was approximately RMB362.1 million, increased by approximately 44.3% compared with that of 2021. The occupancy rate was 89.1%, increased by 21.7 percentage points compared to the same period of 2021. Average daily rate by room was RMB2,925.7, representing an increase of 11.2% of the same period in 2021. The business volume of Thomas Cook China amounted to approximately RMB100.9 million, representing an increase of 150.5% compared to the same period of 2021. Thomas Cook UK achieved business volume of RMB249.5 million, representing an increase of nearly 11 times compared to the same period of 2021. 

Mr. Qian Jiannong, Chairman and CEO of Fosun Tourism Group, said, "In 2021, Fosun Tourism saw a strong recovery of its businesses worldwide. With Club Med business in particular managing a strong rebound, we are confident of returning to profitable in 2022.

At present, the tourism industry has been integrated into the comprehensive development layout of the “14th Five-Year Plan”. The tourism industry is accelerating the formation of a new pattern, and the two-way adjustment of supply and demand is promoting the tenacious recovery of tourism. While focusing on business recovery, Fosun Tourism is also actively building a high-quality tourism ecosystem to meet the changing trend of market supply and demand, and to better meet the needs of tourism for a better life and the upgraded tourism consumption demand through product quality upgrading, as well as maximizing the development potential of the company. 

Looking ahead to 2022, with anti-pandemic restrictions relaxing gradually overseas, while deeply engaged in the regional market, we will strive to maintain a good momentum for fully recovering our businesses worldwide. We will also continue to uphold our strategy of upscale, global, digital and ecological. We are committed to innovation, achieving stable and long-term development, and planning for future growth, so that we may deliver better business results to reward shareholders for their support."