Fosun International Stock

Dear investors and analysts, good morning. Welcome to Fosun International 2025 Annual Results Announcement. I am the General Manager of Investor Relations Department, Sun Lu.

Now please allow me to introduce you to the participants here. We have Chairman of Fosun International, Mr. Guo Guangchang; Co-Chairman of Fosun International, Mr. Wang Qunbin; Executive Director and Co-CEO of Fosun International, Mr. Chen Qiyu; Executive Director and Co-CEO of Fosun International, Mr. Xu Xiaoliang; Executive Director, Executive President and CFO of Fosun International, Mr. Gong Ping.

Today, we will have morning session and afternoon session. In the morning, Fosun International's management team will brief us on Fosun International's business operations and strategy and afternoon, the head of the 4 business segments will share their business review and future outlook.

Now let's give the floor to Mr. Gong Ping to share on the financial part.

Dear investors and analysts of Fosun International, good morning. On behalf of Fosun International's management team, I will now report to you on Fosun's business results in 2025.

In 2025, Fosun International made progress under pressure. The total revenue reached RMB 173.43 billion, down by 9.7% year-on-year, mainly due to decline in Yuyuan revenue and changes in consolidated scope. But for the revenue from 4 core subsidiaries, it remained steady with RMB 128.24 billion, accounting for 74% of total group revenue, maintaining stable. We are seeing a highlight, the overseas revenue reached RMB 94.86 billion, accounting for 55% of total revenue, up by 6 percentage points year-on-year, demonstrating the group's solid progress in globalization.

As for investment in technology and innovation, the total investment reached RMB 7.8 billion, and we focused on R&D system optimization, R&D efficiency improvement, focusing on input/output ratio.

As for the group's industrial operating profit, it reached RMB 4 billion, excluding noncash impairment provisions from subsidiaries, remaining stable.

We would also like to report on the net profit attributable to owners of the parent is minus RMB 23.4 billion. For this result, we also expressed our regret. As for 2025, net profit attributable to owners of the parent of minus RMB 23.4 billion. What does it mean? This is the practice based on prudent principle and it is a practice for us to build a solid foundation for our future progress. And the impairment of real estate account for about 55%, mainly from the loss of real estate project under Yuyuan and impairment provisions on real estate project held by the group. And another 45% come from impairment of noncore assets due to changing consumer behavior, shifts in industry dynamics and valuations of secondary-market financial investment positions are affected by share price fluctuations. It's worth mentioning that the impairment is mainly noncash impairment charges. It does not have an impact on the fundamentals of our core businesses and operations.

We are unlocking portfolio value with a clear path to value recovery. By the end of 2025, the group portfolio value maintained at RMB 207 billion, with 60% coming from listed assets and insurance concepts -- assets. The adjusted net asset value is maintained at RMB 133.5 billion with adjusted NAV per share reaching HKD 18.1. So that's 0.24 of P/NAV ratio.

By the end of 2025, our book value per share reached HKD 12.7 and the P/B ratio was 0.34, which shows our huge potential for value recovery. In the future, the management team will take multiple approaches to drive a leaner, more transparent portfolio to accelerate value recovery.

As a midterm target, the group's net profit attributable to owners of the parent will reach RMB 10 billion or above. We will accelerate divestment of heavy assets and noncore subsidiaries to optimize portfolio and reduce group level interest-bearing liabilities to below RMB 60 billion.

We will also accelerate spin-offs to unlock asset value. As mentioned in the announcement, REIT application has been submitted to SSE backed by Atlantis Sanya and the Easun Technology A-share IPO filing has been submitted to Shanghai Securities Regulatory Bureau. Fosun Pharma also announced spin-off plan for its subsidiaries such as Fosun Adgenvax.

As for listed companies, we will strengthen investor communications to improve market cap of listed subsidiaries.

We are very happy to see that our 4 core subsidiaries continue to drive growth, building a resilient profit base. For Fosun Pharma, we are seeing innovation with global expansion, driving innovative drug growth, and we are seeing revenue growth from the innovative drug with double-digit growth. In 2025, Fosun Pharma's net profit attributable to owner of the parent reached RMB 3.37 billion with 22% year-on-year growth. Yuyuan suffered short-term pressure, but we're still seeing recovery. We are also seeing strong highlights in Q1 2026.

As for the gold jewelry business, it's still ranking the top among its industry and Lao Miao Jewelry opened 3 new stores overseas in Macau and Kuala Lumpur that's global expansion breakthrough. And overseas sales of golden jewelry surged by 229% year-on-year. And Yuyuan Phase 1 achieved RMB 4.29 billion GMV in 2025 with 40 million-plus visits and improved occupancy rate.

Fosun Insurance Portugal maintained the market leader in Portugal, and it is steadily going for global expansion, expanding into Europe, Latin America and Africa, and overseas total premium contribution exceeding 30%. Solvency ratio maintained at 190%. In 2025, its net profit attributable to owners of the parent reached RMB 1.63 billion with 16% of year-on-year growth.

As for FTG, the adjusted EBITDA reached RMB 3.61 billion with 15% of CAGR in the next -- in the past 3 years and the last 4-year CAGR reached 9% in terms of the revenue. We are also seeing Club Med hitting new high in terms of business volume. As for Atlantis Sanya, it reached RMB 124 million of business volume over 9 days during Spring Festival in 2026 with 98% average occupancy, making a record spring festival performance.

We are also happy to see strong growth and next-tier core companies unlocking profit upside. Peak Re reached USD 2.2 billion of total premium in 2025 with 25% of year-on-year growth, and there's nearly USD 200 million annual net profit for 3 consecutive years. In 2025, we also established North America subsidiary and India branch.

For Pramerica Fosun Life Insurance and Fosun United Health Insurance, we also saw strong results. In 2025, Pramerica Fosun Life Insurance reached over RMB 13 billion in total premium with 42% year-on-year growth, reaching RMB 650 million in terms of net profit and net profit increased by 5x year-on-year. For Fosun United Health Insurance, the total premium reached RMB 7.84 billion with 50% year-on-year growth and RMB 140 million of net profit.

As for Millennium BCP in 2025, it reached EUR 1.02 billion of net profit with 12% year-on-year growth, 14.1% ROE in 2025, making sound balance sheet with strong capital adequacy ratio and CET1 ratio.

As for Hainan Mining, it reached RMB 4.42 billion in revenue with 8.6% year-on-year growth and RMB 430 million of net profit. It is still leveraging global M&A to accelerate development of mineral plus energy network across Africa, Middle East and Southeast Asia and profit growth expected to accelerate with ramp-up of lithium and oil and gas production.

For Fosun Pharma, it achieved multiple licensing deals and co-development partnership in 2025 with potential milestone payment exceeding USD 4 billion. Henlius has 10 products approved globally covering about 60 countries and regions.

Apart from Yuyuan gold jewelry business, Fosun Insurance Portugal also achieved international business contributing 30% of total premium. As for Hainan Mining, it is also actively exploring global resources through projects like Mali Lithium and Oman Oilfield. As for our overseas revenue share, it grew from 49% in 2024 to 55% in 2025.

We are also embracing AI across different industries. For example, Fosun Pharma launched PharmAID and FTG introduced AI G.O., the world's first AI travel agent across all scenarios. And Fosun Portugal Insurance digital customer base now approach nearly 22% of Portugal's population.

As for capturing unicorn opportunities through PE/VC, Maxone Semiconductor, a portfolio company of Fosun Capital, successfully listed on STAR Market, becoming the first listed semiconductor probe card company. Z.ai and Quant Group, portfolio companies of Fosun RZ Capital, successfully completed their IPO in Hong Kong. And Fosun Health Capital ranked among top 20 investors in biopharmaceuticals.

We are also stepping up investment in tech innovation. Fosun Pharma has devoted R&D investment reaching nearly RMB 6 billion and Henlius HLX43 will become the world's first PD-L1 ADC to enter Phase II clinical trials, and it is a very promising product with tens of billions of U.S. dollars in terms of value.

We are diversifying financing channels, steadily reducing the cost of debt. In 2025, the group's public markets financing reached RMB 27.8 billion, and the average cost of debt in 2025 dropped from 5.6% to 5.0%. We are also deepening collaboration with financial institutions. We have signed strategic cooperation agreements with multiple financial institutions, including CITIC Group, HSBC, Postal Bank China (sic) [ Postal Savings Bank of China ], China Minsheng Bank and BNP Paribas. We also signed another strategic cooperation agreement yesterday. We also successfully arranged our offshore syndicated loan for 9 consecutive years, raising about USD 1 billion with support from nearly 20 major banks. Last week, we also had achievements -- new achievements.

And in terms of expanding financing channels, we successfully issued U.S. dollar bonds in January and September, returned to Eurobond market in November and issued JPY 4.2 billion bonds in November. Fosun High Tech also issued the world's first Yulan Bond by a private enterprise in September.

As for decline in financing cost, the cost of the group's commercial paper decreased by about 200 bps and coupon rates on long-term public bonds declined by around 110 bps. And our offshore public bond coupon rates dropped from about 8.5% to 5.875% and Japanese bond issued a coupon rate of 3% at Q4 2025.

It's also worth mentioning that this morning, we also made an announcement for the USD 200 million, we will offer -- we will have cash offer. And the group will continue to divest noncore assets in 2025.

The cash flow at the group level from asset disposal and subsidiary dividend reached RMB 14 billion and signed disposal of heavy assets and noncore, nonstrategic asset across subsidiaries reached RMB 12 billion.

And we also received optimistic ratings. In March 2026, S&P maintained our current rating and outlook in the rating commentary that is BB- rating with stable outlook. We will further reduce group interest-bearing debt. In 2025, the number dropped to about RMB 90 billion, and our midterm target is to drop interest-bearing debt to below RMB 60 billion.

And the group will sharpen its focus on existing businesses while enhancing shareholder returns. First, we will improve subsidiary operating efficiency, enhance ROE and strengthen dividend management. Secondly, we will accelerate disposal of noncore assets to generate cash and unlock profits. Thirdly, as a general principle, the group will refrain from large-scale investments and M&A.

We will also take multiple measures to enhance shareholder cash returns. Firstly, as announced starting today till the June AGM, we have announced we will launch a share buyback plan. And after AGM, we will continuously propose further share buyback plan. And the -- we have also announced the plan of stake increase by major shareholder and management of up to HKD 500 million in open-market share purchases over the next 12 months. And our target payout ratio for 2026 is to increase from current 20% to 35%. The dividend for fiscal year 2026 is expected to be no less than HKD 1.5 billion.

Now I will give the floor to Co-CEO of Fosun International, Mr. Xu Xiaoliang.

Dear investors, analysts and friends from the media, thank you for attending our press release for the annual results. Last year, despite the global macro uncertainties, Fosun has focused on our core businesses, continue to optimize our financial structure and steadily improve our business operations and achieving high-quality breakthroughs in key sectors.

So let me briefly share Fosun's business highlights across health, happiness, wealth and intelligent manufacturing. First, on the Health segment. So in 2025, the Health segment achieved a total revenue of RMB 48 billion, up 3% year-on-year with net profit to parent of RMB 1.4 billion, up 59% year-on-year. Fosun Pharma's revenue achieved RMB 41.5 billion. Henlius achieved a revenue of RMB 6.67 billion and net profit of RMB 800 million, marking 3 consecutive years of growth. Fosun Health & JianJia Healthcare generated revenue of RMB 7.37 billion. Luz Saude achieved double-digit growth in both revenue and operating profit. The Health segment overseas revenue ratio increased to 40.6%, further accelerating our globalization.

Specifically, Fosun Pharma's innovative drugs served as the growth engine, generating revenue of RMB 9.89 billion, up nearly 3% year-on-year. Net profit attributable to parent reached RMB 3.37 billion. Operating cash flow from -- reached RMB 5.2 billion, significant increase versus last year.

Innovation and R&D have now become Fosun Pharma's core competitiveness. In antibodies and cell therapy, Fosun Pharma has become industry leader, combining internal R&D, collaborative development, licensing, fund incubation, industrial investment, the pipeline of innovative products continues to expand. Our core products have achieved global penetration and breakthroughs.

So in 2025, Fosun Pharma continued 2-way licensing cooperation globally and collaborative development, achieving 7 license out deals. The total down payments amounted to USD 260 million with potential milestone payments exceeding USD 4 billion.

So on -- regarding pharmaceutical manufacturing capacity and global registration, Fosun Pharma currently operates 17 workshops and production lines certified by GMP in major regulatory markets, including the U.S., EU and WHO. And Fosun Pharma has built up a global R&D production registration capability, featuring Western lead breakthroughs deepening in emerging markets. Its global commercialization team exceeds 6,000 people. The core product HANSIZHUANG has been approved in more than 40 countries and regions.

MedTech, Sisram has delivered a strong performance across global markets, including North America, Hong Kong, Thailand and Israel. The da Vinci surgical robot operated by Intuitive Fosun has exceeded 500 cumulative installations.

On health care services, Fosun Health continues to focus on the Greater Bay Area and the Yangtze River Delta with sustained investment in key specialties. It currently holds controlling stakes in 19 medical institutions with 6,500 licensed beds.

JianJia Healthcare is developing rapidly, currently operating 24 rehabilitation hospitals and preparing for one more, further strengthening its nationwide chain network. At the same time, Fosun Pharma continues to explore synergies within its ecosystem, including insurance, consumption and elderly health care services.

Fosun Pharma continues to deepen its digitalization and AI strategy, systematically advances AI development. It focuses on new drug R&D, clinical research, operational management and product applications, systematically advances our AI capabilities through platform-based development, engineering and scalable development. For example, decision intelligence platform released by Fosun Pharma has improved the efficiency of extracting drug R&D and industry information by approximately 50%.

Let's move on to the Happiness section. The Happiness segment recorded total revenue of RMB 64.75 billion, down 15.6% year-on-year, mainly due to the decline of Yuyuan's revenue. Yuyuan reported a full year revenue of RMB 36.37 billion, showing some decline, but its core business fundamentals remain solid. Net profit to parent recorded a loss of RMB 4.9 billion, mainly due to impairment provisions on certain real estate projects and goodwill, which further enhances our asset quality.

Fosun Tourism Group achieved a revenue of RMB 17.76 billion, reaching a historical high, driven by continuous improvement in its global operations. Adjusted EBITDA reached RMB 3.6 billion.

So specifically, Yuyuan's admin expenses in '25 were RMB 2.2 billion in '25, down 19.5% year-on-year, demonstrating a clear cost reduction and efficiency improvement result. Cash on hand reached RMB 11.05% (sic) [ RMB 11.05 billion ], an increase of RMB 360 million versus end of '24. The average financing cost decreased by -- from 5% to 4.3%. So its affiliated entities, jewelry and fashion reached revenue of RMB 22.7 billion '25. In Q4, the revenue reached nearly RMB 4.3 billion. The gross margin continued to improve. Online retail maintained a leading position and global expansion achieved from 0 to 1 breakthrough. Shede Spirits' revenue declined due to the industry conditions, but it has actively promoted e-commerce internationalization. Online sales increased by 35% year-on-year and overseas sales now cover 5 continents across 42 countries and regions.

The Grand Yuyuan continued to promote scenario integration and upgrades. So Yuyuan Phase 1 leverages IP to promote Chinese style fashion chains and intangible cultural heritage, attracting younger customers. BFC enhanced its fashion positioning by leveraging both major and minor IPs plus self-innovative thematic content metrics. So notably, the Lantern Festival of the Year of the Horse has, for the first time, achieved a coordination across 6 zones, including the Yuyuan Phase 1. So it has effectively boosted the overall customer traffic across Grand Yuyuan.

For FTG, the '25 performance has maintained steady growth, and the total tourism operating revenue reached RMB 19.9 billion.

Club Med achieved a revenue of RMB 17.97 billion, up 2% year-on-year.

Fosun Tourism Group has focused -- has been focused on 3 major product lines like for our Super Resort, Club Med operates 67 resorts globally, all positioned as premium luxurious offerings. The average occupancy rate for the year was 76% and the average daily price was RMB 1,950.

For Super Resort Complex, including Atlantis, Taicang and Lijiang Resort, the '25 visitors continue to grow with strong performance. Atlantis recorded revenue of RMB 1.48 billion and average occupancy rate of 85%, total visitor volume of 6.4 million.

For Super Culture and Tourism Mall, Fosun reshapes the commercial space with a tourism mindset to create lifestyle destinations, and the Chongqing Culture Tourism Mall will officially open this year.

Fosun Tourism's AI plus tourism strategy is accelerating its AI G.O, which is the first -- the world's first full scenario AI vacation engine, has been launched in Xianlin Nanjing and Taicang. Club Med has also launched its AI-powered customer service in about -- in 16 countries and regions globally. Going forward, FTG will build a systematic AI organization aiming to become a leading tourism -- AI plus tourism brand.

On the Wealth segment, the performance has remained solid with the total revenue reaching RMB 55.86 billion, up 1.4% year-on-year. Fidelidade achieved total premiums of EUR 6.53 billion, maintaining the #1 market share in Portugal, Peak Re recorded total premiums of USD 2.2 billion, up 25% with continuous improvement on underwriting mix and profitability. Pramerica Fosun achieved total premiums of 13.28% (sic) [ RMB 13.28 billion ], growth by -- up by 41% with a leading growth in the market. Fosun United Health Insurance achieved total premiums of RMB 7.84 billion, up 50%, has remained profitable for 5 consecutive years. Asset management revenue reached RMB 11.05 billion and equity fund AUM reached RMB 42.9 billion.

On the Insurance business, the total premiums has reached -- has remained stable. And the domestic insurance companies grew rapidly, leveraging Fosun's ecosystem. And Fosun Pramerica recorded nearly 11,000 community-based policies and Fosun United Healthcare's insurance exceeded 3,500. Fidelidade maintained a leading position in its domestic market in Portugal. Its nonlife business performed strongly, growing 10% versus last year. It continues to deepen its global footprint, especially in Portugal -- Portuguese and Spanish-speaking countries and regions. It consolidated its existing market share and expanded into new potential markets. For example, in Bolivia, the premium income has ranked #1 and in Peru, its premium income ranks #4.

On Investment Asset Management business, the total AUM reached nearly RMB 1.2 trillion, up 10% year-on-year. Fosun continued to deepen its investments in core sectors, including consumer biomedicine embodied intelligence and AI chips. It added around 40 new investment projects with total investment of approximately RMB 2 billion. Among the portfolio companies, 11 have completed IPOs and more than 10 have filed for listing. And notably, Ziphu AI, invested by Fosun RZ Capital, has successfully completed its Hong Kong IPO, becoming the world's first listed LLM AI company with the latest market value exceeding HKD 250 billion.

On the Smart Manufacturing segment, it has achieved total revenue of RMB 7.74 billion in '25. Hainan Mining recorded revenue of RMB 4.4% (sic) [ RMB 4.4 billion ], up 8.6%. Wansheng recorded a revenue of RMB 3.38 billion, up 40% year-on-year. Overseas revenue reached RMB 2.25 billion. Excluding consolidation impact, overseas revenue grew 29% year-on-year.

Hainan Mining maintained stable performance despite a downward cycle. And iron ore production remained stable and oil and gas production increased by over 60%. At the same time, the company has completed a new industry deployment and continue to expand its global strategic mineral resources. For example, the lithium mine in Mali has -- in Africa has successfully started production and has already achieved the first batch sales of lithium hydroxide products.

Wansheng achieved a strong growth in core product sales with new products successfully commercialized, driving revenue growth of over 200% year-on-year. At the same time, it continued to deepen base construction, build a global production capacity. It facilitates cost reduction, quality improvement by significantly lowering production costs through automation and supply chain optimization.

So overall, in 2025, Fosun adhered to a strategy of streamlining and strengthening business operations, focusing on household consumption industry. Each business segment continuously strengthened its operational capabilities and achieved resilient growth.

Looking forward, we will continue to maintain our strategic focus, strengthen global operations and increase innovation in order to create healthy, happy and prosperous lives for families worldwide.

And next, regarding Fosun's strategic development for '26 and beyond, including our organizational mechanism, I will leave the floor to Mr. Chen Qiyu. Thank you.

Hello. Let me report to you to our strategic development and next steps of Fosun. So in 2025, this is the 33rd year since our founding, and this is also a key turning point for us.

As the financial report has already shown that we had around RMB 20 billion of impairment. The goal is because that a lot of assets were affected by the macro economy and they are becoming the burden for our short-term profitability. So asset impairment has told us to be more focused on the high-growth core sectors. So I think with this time of changes and especially our noncore assets divestment from ''22 to '25 has already achieved over RMB 80 billion. So after this round of change, our structure has become clearer. And in midterm, we still hope that we can recover to RMB 10 billion in profit as we used to deliver. And after that, we also want to create more values. So comparing to the portfolio businesses that we had, we will be more focused on the innovation and globalization in the biopharmaceutical companies.

And secondly, our Insurance business also have a very solid international foundation. Our profit and cash flow growth will also remain sustainable as well as healthy. And also, they are our core foundations for solid dividends. We also have global asset-light businesses from culture and tourism businesses. And we also have jewelry businesses, Hainan Mining and Wansheng. Jewelry and Shede Spirits are under Yuyuan and also, we have Hainan Mining and Wansheng in Intelligent Manufacturing. All of these are very healthy assets, and we will see healthy upgrade from them going forward.

So first, innovation-driven biopharma helps advance towards a global innovative pharma company. So we have the innovation, R&D, AI biotech and global commercial systems so that we can target a top 20 global innovative pharma company. We want to build a C-MNC with Chinese characteristics. As you know that biopharma companies are normally referred to as MNC, but Fosun Pharma wants to build a C-MNC with Chinese characteristics because we have R&D innovation and also, we are fully embracing AI. I think comparing to other leading Western biopharmaceutical companies, we are more effective, we are faster, and we are also embracing low-cost, high-quality and diversified products as well as the pipelines.

As for our global commercialization system, we will also further accelerate our globalization. And when I'm talking about globalization, I'm also talking about our products as well as the pipeline. As you know that the traditional biopharmaceutical companies, 50% or 60% of their marketing as well as the revenue are coming from the U.S. market. So their pricing are quite high. So we also want to change that market framework. We want to base on China, Europe, very deepen globalization market footprint to achieve globalization of innovative drugs.

As for insurance and finance, we have a solid foundation. So over the past few years, Fosun International in the past 3 to 5 years, the insurance and finance has contributed revenue as well as the growth. So over decades of development in China, we have insurance ecosystem that can have global footprint.

We also have Fidelidade based in Portugal. They also had businesses in South America and Africa through its own international growth. Peak Re based in Hong Kong is also facing the international market. And over the past 3 years, we are seeing great growth of premium as well as the income.

And our Chinese insurers are entering a profitability phase. And comparing to their peers, their premium growth are leading.

In Europe, we also invested Millennium BCP, a bank in the European market. Its profitability, share price are growing fast in European market. At the same time, we are also focusing on the asset management capabilities based on the insurance and financial businesses. And also over the past few years, this business has also achieved growth. So going forward, we believe we will see sustainable growth in industrial operating profit from insurance and financial businesses to further support group's profit as well as cash flow.

As for the consumption businesses, we will further unlock brand value, especially FTG asset-light expansion capabilities. FTG right now have Club Med, Atlantis Sanya and Super Culture Tourism Mall. These are the 3 main product lines of FTG. And also, we are actively expanding through asset-light way to further capture international customers and also international destinations.

Our Lao Miao Jewelry, Yuyuan Lantern Festival, Shede Spirits. Consumption brands will actively unlock global brand value as well as the local operation. They will further integrate global channels as well as the supply chains.

As for intelligent manufacturing, it will capture clinical (sic) [ cyclical ] opportunities and forward-looking global resource portfolio. For Hainan Mining, it is focusing on resources as well as the new energy. In iron ore, it is securing stable raw ore supply and continuously improving beneficiation efficiency, and we are seeing record high production in oil and gas. So I'm sure that with the uncertainties of the macro economy, we will see even higher growth in oil and gas.

As for the lithium hydroxide production, it has already been connected with the lithium resources from the upstream to lower stream. It has already achieved an integrated industrial chain. And we will further enhance the production of the lithium resources so that we can continuously build resilience through market cycles.

Wansheng, it's a manufacturing company with global sales. So right now, we are also making breakthroughs in globalization, including launched construction of the Thailand base, marketing a solid step in global capacity footprint. And also, we are enhancing AI capabilities to cover new product businesses, new technology, new products to provide services to the industrial upgrade. And going forward, we will further enhance industrial operating capabilities and strengthen portfolio value.

In Fosun, we look at this from 2 perspectives. First, from industrial level, from P&L level, we will further deepen the FES management system to advance lean operations and organization efficiency, including management efficiency, global operations as well as the operation excellence, focusing on ROE and ROIC to further improve operational efficiency and profitability. And on this foundation, we will further strengthen operational quality through industrial operations and further improve their competitiveness. At the group level, we will strengthen strategic focus and drive dynamic portfolio optimization and upgrading. So with FES tool, we will keep focus on strategic core businesses, just like in the 20 to 30 year of turning of Danaher, it become a leading life science company through transformation. So at the group level, for our portfolio, we will be more focused on core assets to create value, long-term value creation. And also, we will focus on balanced leverage. And more importantly, we will further enhance dividend level.

For fiscal year 2026 -- after the fiscal year of 2026, our target dividend payout ratio will be 35%, and we will further improve that going forward.

So I think right now, AI is a hot topic. And this is also something that we are implementing across all industries. At the Health segment, we implemented AI in drug discovery. We are the early adopter. We cooperated with Insilico, small cell -- small stake investment. But also, we are very happy to see that Insilico has already become a star company in AI drug company.

And Fosun Pharma and Henlius has developed PharmAID decision intelligence platform and HAI Club platform to assist pipeline positioning and other drug discovery.

As for Happiness Wealth, we are also implementing AI, for example, FTG AI G.O. Grand Yuyuan Xiaoyuyu AI guide.

And in Wealth segment, in the product design and also other areas, we are using AI. And Fosun Wealth also has F-AI platform to empower financial services.

Intelligent Manufacturing is also using AI to accelerate sales and solutions to delivery.

And in this macro economy, we are still enhancing our organizational support, create and share incremental value while upholding entrepreneurial spirit. So we are strengthening organizational support for business alignment, building a water-like organization, flexible management, choosing what works best. So for organization, talent mechanism and culture, we are upgrading all 4 areas.

I want to highlight 2 areas. The first is how we build our globalization organization. No matter it's the Health segment, Wealth segment, Happiness segment or Intelligent Manufacturing segment, all of the segments, especially for our core companies, we are building globalization organization. We are recruiting high-level performers from around the world. And we are also building a top-level talent pyramid. And also, we are creating the culture so that everyone can learn and contribute in this platform. So this is the culture that we are enhancing joint entrepreneurship and Fosun's founding mission and global governance culture.

As a listed company, as a global company, we are also committed to global services, advancing corporate sustainable development. So in the area of ESG, we have already set up the initiatives, goals. I'm not going to elaborate on this. But as for the result, we are recognized from global institutions.

In 2025, our MSCI ESG rating upgraded from AA to AAA for the first time. This is a hard-earned rating upgrade. And S&P CSA ESG score surged to 33 (sic) [ 73 ], maintaining a leading position among global peers. We -- our Hang Seng Sustainability rating maintained at AA-. This is because since our founding, we are committed to the global services.

And since 2020, Fosun International has achieved the ESG Leading Enterprise Award from Bloomberg Businessweek/Chinese Edition for 6 consecutive years. So ESG is not only a slogan. It is something that we are working on. It is our mission to global services and also create value to shareholders. That's all from me. Thank you.

Thank you for your sharing, the management team. Now we will go into the Q&A part. If you have any question, please raise your hand, we will have our staff to send you the mic.

I am from Guotai Haitong Securities. I'm very happy to hear the management team's detailed introduction about Fosun International streamlining portfolio and our eyes are on the impairment. Could you please share with us the consideration for the impairment? And apart from the impairment, how is the performance of each business segment in 2025?

And I would also like to know, after the impairment, will the company enter financial recovery? As mentioned by Mr. Chen Qiyu, the company wants to return to a profit of RMB 10 billion. So could you please explain your plan on that? We are also happy to see for financial year 2025, the expected dividend would be HKD 1.5 billion. So could you please explain more about the plan?

Right. Thank you for your question. We will leave this question to Mr. Guo Guangchang.

Okay. Let me answer this question. First, I want to be clear. In 2025, we made a prudent accounting treatment, not a reflection of those operational issues. Specifically speaking, the loss was primarily driven by one-off impairment charges decided by the Board, in line with a prudent management approach on certain noncore assets. So this is noncash accounting treatment, reflecting the difference between current market values and historical costs, mostly coming from real estate impairments.

Because of our misjudgment, especially my misjudgment, we made significant loss from a project in Wuhan. But most of our investments are successful. And some investments didn't reach our expectation for financial returns. So we also recognized some goodwill impairment. But our net operating cash flow has remained positive. Our financing channels are open and our fundamentals remain solid.

So this impairment is more like fixing the roof on a sunny day. But making losses or recognizing impairment is not a good thing. On behalf of the management team, I would like to say sorry to Fosun's shareholders, especially long-term shareholders. We will step up our efforts to thank you for your trust and confidence in us.

In the long term, this impairment marks Fosun's entry into a new phase of development. We are resolutely exiting assets with weak profitability, also par value creation and reallocating resources to high-growth core sectors, driving the company towards a leaner, healthier and more sustainable growth model.

Our management team also introduced earlier that from an operating standpoint, our core businesses remain resilient. In pharmaceuticals, our globalization strategy continued to make breakthrough with multiple products launched overseas. And we have several R&D pipelines with multi-tens of billions of U.S. dollars potential.

In Insurance, we see Fidelidade business expanding to Latin America and Africa. In China, Fosun United Health Insurance and Fosun Pramerica Insurance are also significantly increasing their profitability. And in FTG, Club Med also reached record high business performance. Such businesses have the capacity to generate sustainable profits and cash flow, and they underpin Fosun's confidence in continued growth.

We believe that our future results will more truly reflect the true quality of earnings from our core businesses. Our management team, including me, remain highly confident about the company's future, and the Board has announced a share buyback plan. And our major shareholder and management team will also increase their holdings.

Going forward, Fosun will, based on operational improvement and cash flow, actively roll out additional shareholder return measures, including optimization of our dividend mechanism. So we have a clear conviction in Fosun's future.

I believe that Fosun has the ability to navigate cycles. There may be short-term pains. But in the long run, this is about making Fosun stronger and more enduring.

I believe that as long as our direction is right and our original aspiration remains unchanged, we will find our path forward. We look forward to working together with shareholders and partners to drive Fosun's development to an even higher level. Thank you. And Gong Ping, you can make additional comments.

Right. Thank you, Mr. Guo. After completing the financial bottoming out, the signal we want to send to the market is clear. The company will place greater emphasis on shareholder returns. Now our NAV is not reaching our expectation, but we have made share buyback plan, and we will step up share buyback, and we will further reduce the interest-bearing liability to RMB 60 billion in the midterm, and we will raise our target payout ratio from previous 20% to 35%. The shareholder and management team will increase their holdings, which is also announced. So these are all showing our confidence in Fosun's long-term future.

And then we are open for the second question.

So as a bond investor, I want to ask 2 questions. So in 2025, will the company face further impairment pressure going forward after 2025 impairment? And also from a liquidity perspective, will this noncash impairment and resulting accounting loss have any material impact on cash flow or the company's future financing capacity? So okay. So I will let Mr. Wang answer this question.

Thank you for your question. Dear investors and analysts, both in the room and online, dear friends from the media, hello. For financial year 2025, the net loss attributable to parent was approximately RMB 23.4 billion, and it was primarily driven by noncash impairment charges, and 55% came from real estate-related impairments. And also, we had impairments from noncore businesses, including impairment on goodwill and intangible assets. This part account for about 45%.

At the group level, at the holding company level, we have already made full and prudent provisions for these impairment items based on the actual operating conditions of the impairment assets, the valuation cycle of the relevant industries and our expectations for future growth of the related business strictly in accordance with the prudence principle and the requirements of international accounting standards. So currently speaking, we don't have pressure from further impairments.

Since announcing the impairment, the management team has proactively engaged in timely and in-depth communications with rating agencies, our major partner banks and public bond investors. Rating agencies and the major creditors, including banks and investors, they have generally recognized our proactive approach to addressing impairment risks.

For banks, during our communication, we received recognition from our partner banks. So we have signed many strategic cooperation agreements with many banks like with HSBC and Pudong Development Bank yesterday. And our financing costs coming from the banks are also continuously declining.

For our communication with public bond investors, in terms of offshore public bond price, we are seeing stable price in this part. So bond price stabilization also shows that this impairment is recognized by public bond investors. So this is for bond investors. And we are also seeing good share price performance, which shows we are also recognized by our equity investors. For our future financing capability, we are very confident on that.

While we remain confident about our financing, for our onshore and offshore financing costs, we are seeing strong improvement, but we will continue to streamline our operations and focus on growth. We will be committed to enhancing our credit rating and especially for our debt, we aim to reduce our interest-bearing debt to lower than RMB 60 billion in the midterm.

Okay. We can move on to the next question.

I'm from Nomura Oriental International. So my question is about globalization. We know that in 2025, Fosun and its subsidiaries continued to advance localized operations and local development. And we also know that the ability to manage complex and diverse operations globally also requires complex capabilities. So my question is that how does Fosun build strong global operating capabilities amid an increasingly intense competitive landscape?

Okay. Thank you for your question. I will let Mr. Chen to answer.

Okay. Thank you. So Fosun's globalization is not a passive move that forced in the past 2 to 3 years. Actually, this is a very active initiative for the past 20 to 30 years. So at the very beginning, we had a slogan called China Capabilities with Global Resources because we believe if we can integrate China capabilities with global strength, then that would be better because at that time, China economy were surging, but we are lacking good products and good services in China. So after decades and even 2 decades of development, all of our businesses has already achieved their global capabilities, for example, pharmaceutical businesses, actually, our Health segment, 40% of the revenue from the Health segment from overseas market and 30% of Fosun Pharma's revenue is from overseas market, 40% of revenue from Happiness BG is from overseas market. As for the Wealth, 80% coming from the overseas market. As for the Intelligent Manufacturing at the P&L, at the consolidated level is around 30%, but actually, it would be higher if we dig deeper.

So all of these numbers can show that after several years of development, right now we are having the 3.0 Globalization in Fosun, which means that all of our core businesses has achieved global commercialization, product design, supply chain capabilities.

Especially, right now, China economy is playing a more important role in the global economy. So not only that we are focusing on low-priced products, we are also focusing on the R&D and development of high-value products.

Also, we noticed that global markets actually need China. In all the industries that we noticed China products, China supply chain has become a very important role in the global market. So in this context, our Health segment, Happiness segment, Insurance, Intelligent Manufacturing, we are all developing global capabilities.

While developing our global capabilities, we also have a top to bottom requirements and organization, which means that every year after developing the strategy and budget for different businesses, we are also asking all the businesses to think about global market, who is your global competitors? What is the global trend in your industry? And what is your own competitiveness? And do we have global commercialization? If not, then we need to build fastly.

Let me give you an example, pharmaceutical. In -- 20 years ago, we discussed about can we globalize our generic drugs. And after 20 years, we found that it will be hard for us to globalize our generic drugs. So right now, we are supporting our innovative drugs to going out. We have the foundation and the capabilities to going out for our innovative drugs. Just like what I mentioned that we're building C-MNC because we noticed that the MNC leading innovative perspective, actually, China innovative drug companies have an opportunity right now to enter global markets. So right now, we are asking all of our pharmaceutical businesses to have globalized R&D approval filing as well as the commercialization capabilities. We have already established a global commercialization team. In the U.S., they will further sell PD-1 in the U.S. market. In Southeast Asia, we are also developing our commercialization network. In Japan, we established JV. And right now, we are also studying South America. So this is actually a systematic approach that we are taking.

As for the Intelligent Manufacturing, Wansheng, they have the leading retardant products in the global market. But because of the tariff as well as other barriers that we are facing right now, we are strengthening global supply chain capabilities to support globalization. Right now, we are developing Thailand base. In the future, Wansheng will have both China base as well as the Thailand base.

As for FTG, in the Happiness segment, we acquired Club Med. Club Med has French roots. So before our acquisition, it's hard for them to enter China market. But after our acquisition, we're developing quickly in China market. Today, Club Med has a new organization and a new structure. It is a very good platform for China inbound and outbound tourism. We are also actively promoting gold and jewelry business, Shede Spirits and other Chinese consumption brands to go out.

For Wealth segment, Fidelidade is also expanding in the global market. And behind all of these initiatives, Fosun is making sure that we have a cross-culture organization to further support. We are making sure that the management team, they are very globalized. They have local management team members as well as people with China experience, especially HR and finance. We are also encouraging young talent to join global organization to work in the front line.

So globalization is our long-term strategy. And in the current context, we are seeing that global markets can create high values, but also it has high barriers. So I think this is our strong capabilities as well as the competitors. That's why we are seeing the proportion of overseas business revenue is contributing more and more. So I think this is our long-term capabilities. Thank you.

Thank you, Mr. Chen for your answer. We will open the floor to the next question.

I am [ Joseon from Guofeng Securities ]. We have been following Fosun for many years. Last year, we saw Fosun's implementation of AI across different businesses like using AI for scenarios for digital efficiency. We are also seeing real AI practices on health care, culture tourism and consumer brands because we are also seeing the booming growth of AI. So I would like to know how will Fosun build this AI leadership.

Thank you for your question. As for this one, we will give the floor to Mr. Xu.

Thank you for your question. We are quite lucky. We have navigated through different eras. First, we saw the Internet of Things era and now things are intelligently connected together. And now we are in the intelligent era, the biggest benefit we can enjoy is AI. For all of the companies using AI, it's not a choice but a necessity.

How well you can answer this question will determine your survival and your development. For Fosun's Board, in face of the AI era, we reached consensus really soon, we will be all in AI application. We believe that those who can use AI well will eliminate those who cannot. To put it simply, we are not going to make wheels. We want to be the drivers who can drive well. And we also ask all Fosun portfolio companies to be all in AI.

And in terms of AI application, we have 2 mountains ahead of us. The first mountain is business plus AI. With AI, we can have cost saving and efficiency gain. This is foreseeable. But the other mountain we want to cross is AI plus business. It's not simply about cost saving or efficiency gain. It's more about realizing a new value model. You need to do everything with AI, and it's a disruption. So we will start from business plus AI, but the real competition lies in AI plus business.

We are making efforts on all these. And what are the pain points we are seeing? Actually, all companies are facing this. How can we build an AI organization? How can we build an organization with AI leadership? We believe it would be a symbiosis organization, and we want to have symbiosis leadership. There are 3 points. First is symbiosis between human brain and machine. Human life and machine integration is important. The second important thing is traditional economy symbiosis with digital economy. We want to use those data assets to transform the business with them. And the third part is symbiosis between individual enterprises and the broader ecosystem.

In the future, ecosystems will be like open source. That's how you can have more cooperation with other partners. Such symbiosis leadership is especially important for Fosun. And we ask all portfolio companies on the Fosun with global presence to answer this. How can you build a global AI-driven organization?

And because this is a question we need to answer based on our real practices, we want to use AI well. Driven by AI, Fosun want to bring more better products, better services, better scenarios and better models and ecosystem to more global families, and we will continue our efforts on this. Thank you for your question.

Okay. We can open to the next question.

So I'm [indiscernible] and my question is in 2025, Fosun's Pharmaceutical segment continued to make steady progress in the commercialization of innovative products, expansion of overseas registration and external collaboration, demonstrating steady advancement. So my question is what is the outlook for Fosun Pharma's future profitability and market capitalization?

Okay. Thank you for your question. And Mr. Chen, could you please answer this?

Okay. So I think pharmaceutical businesses. So from the global perspective, it can be divided into generic drugs and innovative drugs, and they are quite different. As we can see that innovative products, the ceiling is very high as for generic drugs. The best company may be around USD 10 billion or USD 20 billion of market cap. But for innovative products, the ceiling is much higher because your question is about the outlook for Fosun Pharma's future profitability and the market capitalization. As we can see, Lilly has already achieved USD 1 trillion of market cap. And also in the past, the most market cap of pharmaceutical business is around USD 300 billion to USD 400 billion.

So I think pharmaceutical businesses has the most companies with the largest market cap. As we can see, the top 20 companies have the largest market cap. For example, in Japan, it also emerged the first USD 100 billion of market cap in the pharmaceutical businesses.

So I think sometimes profitability and market cap, sometimes they travel in the same train, sometimes they are traveling different speed. But I think it depends on the business model, innovation capabilities and commercialization capabilities. If the company has a strong pipeline, of course, they will have high market cap. But if not only they have strong pipeline, they -- but also, they have a strong commercialization, self-commercialization team, then their market cap will be even higher.

So all the large market cap company that we have mentioned, the one company provided the GLP-1 license to Lilly. And also Japanese company also licensed out their drugs to Gilead and other U.S. market players. Of course, if you have a strong pipeline, you can achieve a significant market cap. But if you also have commercialization capabilities, then your market cap can be 10x.

So I think for Fosun Pharma, not only that we need to focus on the pipeline of innovative products, but also, we need to focus on global commercialization. So that is our path going forward.

So you mentioned steady advancement. I think we are not looking after steady. We want to be fast. Steady means that you have a strong system. It means that you have a strong management for the full cycle from the early stage to different clinical trials and then to commercialization. It means that you have a strong system to cover all of the areas. Steady also means that from the very beginning, you are focusing on the efficiency, efficacy, quality and the cost, which means that from the very beginning, from the drug discovery and design, we need to focus on the quality, cost as well as the efficacy. So I think steady means a very good foundation.

Small cell, large cell, these are our good foundation. We can do very efficiently. But I think we need to move quickly. We need to move fast. First, we need to move fast in pipeline. We need to look beyond horizon. We need to be able to be the early adopter. We cannot just follow the market trend because otherwise, we can only be the follower. We can only be slow. And after early adopter, you also need to move quickly with your clinical trial between Phase II, Phase III, how to speed up Phase III, so which means that quick early stage, then we need to have quick clinical trial.

We also need to move quickly in BD. China pharmaceutical companies, China innovative drug companies, it is a hot topic right now. So this is -- I don't think that it will be a topic for short term. It will be a topic for long term because before most of the BD are happening in Nasdaq biotech companies. But we are seeing the trends in China innovative drugs, China biotech, China local companies are replacing the Nasdaq companies to become innovative drug suppliers, which means that the BD is still there, but the players has already changed. For Fosun Pharma, we started -- we did a deal very early and nobody paid attention. In 2019, 2020, we also did a transaction at that time and the market didn't pay attention to us. But right now, we are seeing the players have changed and MNC are trying to seize in the results of China companies. And the China companies are trying to seize in the trend. So which means that we also need to move quickly for the BD.

We also need to be quick in commercialization. We need to focus on China market from the authorization, from the sales, from the national health insurance access, we need to move quick.

On the other hand, we also need to establish a global sales team quickly. Before our BD, we borrowed a boat to go out. But right now, we need to create. We need to build a boat to go out. That's why that we need to build a self-team, a global light commercialization team owned by us. We need to be the Tier 1. Of course, the structure would be different than other MNC as we know that the MNC are very focused in the U.S. market. But for us, we will focus on China market. We will also focus on U.S. market as well as the emerging market. I think that we need to give enough attention to emerging markets because for U.S. market, we need to provide first-in-class, best-in-class products. But I think we need to focus on all China markets, emerging market as well as the U.S. market.

And also, I know that we are facing a lot of the risks and challenges going forward. I think we need to be very cautious. We need to move with the best pace. We need to see the growth of the revenue. We also need to see a strong pipeline, and we also need to focus on the profit and cash flow so that we can provide the best results to our investors.

Thank you, Mr. Chen, for your detailed answer. Due to the time limit, we will open for the last question.

I am [indiscernible] Investment. I have a question about FTG. By the end of 2025, FTG, you launched 3 product lines, Super Resort, Super Destination and Super Culture Tourism Mall and identifying the brand vision of being a leading global family vacation brand. So could you please share us -- share with us about this logic?

We will give the floor to Mr. Xu.

Thank you for your question. This is very important. Why does FTG focus on vacation in this strategy. Actually, after COVID, everyone is focusing more on their physical and mental health. Everyone wants to spend more time with their family and friends. And having vacation is a very important choice and very important vehicle for work/life balance. After COVID, we are seeing dramatic changes in the global tourism landscape. People are shifting from sightseeing to vacation, and this trend is irreversible. Sightseeing and vacation is also different in essence. Travel is looking out to the outside world and vacation is looking inside for self-discovery. Business hotels sell space and the resorts sell time. Resorts value your experience when you are there.

Scenic areas compete for traffic. They want as much as people possible so they can generate more revenue. But destination compete for people staying. They want more people to stay there, to have decent experience. We see across many different cities in China, we are not short of mall, satisfying what you need. But cities do not have culture tourism mall that can create what you love.

So we are seeing the trend shifting from sightseeing to vacation, and we are identifying the significant change in people's consumption behavior.

In China and in the rest of the world, we are also seeing a gap. Across the globe, we see lifestyle vacation. People closely connect their life with vacation, and vacation is an indispensable part in their life. But in China, we are just starting to see the shift from sightseeing to vacation. We see many small getaways like in weekend, and we are already seeing the trend, and that is when people in China need more vacation venues and products to meet their demand.

Overall, we see this significant -- this material change. That is why we are focusing on vacation. And we have launched 3 product lines. For Super Resort, they centered on the Club Med resorts, including sun resort and snow resorts. Now Club Med operates 67 resorts and Club Med aim to expand into 100 resorts in the near future that provide high-quality PAI experience.

In Europe, North America, South America and APAC, we will further expand sun resorts as well as snow resorts. As for the snow resorts, in China, we will start from resorts with indoor ski dome and then invite more people to enjoy outdoor skiing area.

As for Super Destination, in China, we see a lot of high-quality scenic areas. For these scenic areas, they have -- they provide strong natural scenery. And on top of that, we have Atlantis Sanya and Taicang Alps Resort and the Lijiang Resort. These are international resort destinations that can transform traffic into a strong experience, valuable experience for the customers. And this year marks the beginning of Super Culture Tourism Mall. In the second half this year, we will see Hi Sphere Chongqing opening. We have also signed contracts for new culture tourism malls.

And all these 3 product lines are designed for the trend we are seeing in the tourism industry. And your presence in vacation would determine your competitiveness in the global culture tourism industry. That is why FTG choose to be all in vacation. We believe that better holiday, better life, and we want people to have better work-life balance. I also sincerely invite all of you, all of the investors and analysts and friends from the media to enjoy the 3 super product lines of FTG, so that you can have a leisure experience and also understand more about Fosun.

Thank you, Mr. Xu, for your invitation. And I'm sure that all of you look forward to some comments from Mr. Guo. So Mr. Guo, the floor is yours.

Okay. Thank you, everyone. I think we have been very clear. So going forward, Fosun International will focus more on our main businesses, especially the businesses that we already have advantages. We believe that they have great potentials, including the pharmaceutical and tourism businesses. We want to provide happier, healthier and wealthier life for all of our family, global families. We want all of you to live as long as 121 years old, and we will more focus on innovation, for example, Fosun Pharma, Henlius has been developed for over a decade. And we are seeing many good trends and also, we are seeing good results emerging. And we will further focus on globalization and the global development.

So in the global context right now, Fosun's global capabilities are bringing dividends to us and creating more value to us. In 2025, it's actually we are repairing the roof in the sunny days. And going forward, Fosun will see leaner, healthier and sustainable growth. And we will see great potential for our revenue and profitability and the management team has full confidence on that. I also want to appreciate the support and efforts from the -- our analysts.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Dear investors and analysts, good morning. Welcome to Fosun International 2025 Interim Results Announcement. I am General Manager of Investor Relations of Fosun International, [ Lu Sun ]. I will now introduce the management team attending the results announcement today. We have Guo Guangchang, Chairman of Fosun International; [ Wang Qunbin ], Co-Chairman of Fosun International; Chen Qiyu, Executive Director and Co-CEO of Fosun International; Xu Xiaoliang, Executive Director and Co-CEO of Fosun International; and Gong Ping, Executive Director, Executive President and CFO of Fosun International.

We will divide today's announcement into two parts, the morning session and afternoon session. In the morning, Fosun International management team will talk about the business and strategic development for the first half of 2025. And in the afternoon session, the head of the business groups will talk about the business results for the first half of the year.

Now let's give the floor to Gong Ping, Executive President, Executive Director and CFO of Fosun International, to talk about the financials.

Dear investors, both online and in the room, good morning. Welcome to Fosun International 2025 Interim Results Announcement. On behalf of the group management, I will report on the group's financial results in the first half of 2025. In the first half of this year, the group reached RMB 87.3 billion of total revenue, slightly down compared with the same period last year, mainly impacted by some business, but we see strong growth for overseas revenue, and the proportion increased from 43% to 53% of total revenue. The industrial operating profit maintained stable, reaching RMB 3.15 billion, and we achieved RMB 0.66 billion of profit attributable to owner of the parent. The adjusted NAV reached HKD 18 per share, reflecting our continuous improvement, and we are seeing strong dividend payments from the core portfolio companies. We invested RMB 3.6 billion in technology and innovation, ensuring stable business growth.

Apart from stable business foundation, we have an improving revenue structure in the health business. We see a strong contribution from Henlius innovative drug. In licensed out deals, we signed USD 1.4 billion, and 32% of the total revenue comes from innovative drug, and the CEO will talk about that later.

In terms of wealth business, we are seeing solid growth. While divesting HAL, we still ensure stable growth in different business contribution. Yuyuan's golden jewelry business had some slight downturn in the first quarter. But in the second quarter, they are strongly bouncing back, and the tourism business is also improving significantly.

In Intelligent Manufacturing, we are seeing double-digit growth in oil and gas. And excluding HAL business, the main revenue contribution maintained strong. Our 4 core business, the revenue maintained stable for Yuyuan due to a consumption downturn, that slightly decreased, but we are very confident in that. Especially for golden jewelry business, we are seeing strong recovery in the second quarter, and we are very confident in the second half of the year.

In terms of the financials, in the first half, we completed RMB 13.62 billion of public market financing, and cash bank balances and term deposits reached RMB 67.83 billion, remained stable compared with the last year, and the average cost of borrowing decreased from 5.6% last year to 5.3% this year. When we compare with the same period of last year, we have a 50 bps drop. With rate cuts in the U.S. and our own financing cost management activities, we'll further reduce our average cost of borrowings.

And S&P Global Rating affirmed our stable outlook. On May 29, 2025, S&P completed its annual review of Fosun Group and maintained the BB- rating with a stable outlook. And S&P reaffirmed the improvement in Fosun's overall credit indicators, highlighting strengthened liquidity buffer and steady debt duration.

And we have been emphasizing our finance strategy. First is global operations with enhanced quality efficiency, growth driven by technology innovation. In terms of Fosun Pharma, we are actively promoting the overseas expansion. From early 2025 to August, 2 license out deals were signed with a total value of USD 835 million, including an upfront payment of USD 42 million.

As for Henlius, in the first half of 2025, overseas product profit grew over 200% year-on-year with strong growth expected for the full year. From early 2025 to August, 3 license out deals were signed totaling over USD 543 million, including an upfront payment of USD 69 million. We are also accelerating global expansion of consumption business. For Club Med in the first half of 2025, global business volume reached new high, up by 3.8% year-on-year. Operating profit continued to grow, increasing by 11% year-on-year. As for Shede Spirits, its overseas sales exceeded RMB 10 million in the first half, up by 35% year-on-year. Overseas presence spans 5 continents, 40 countries and regions, 133 stores and 1,200 retail outlets.

We're also steadily expanding insurance globalization for Fosun Insurance Portugal. In the first half of the year, the international business recorded a total premium of 924 million Eurodollars, nearly 30% of total, and its operations in 13 Portuguese Spanish-speaking countries have become a vital part of its globalization strategy.

As for Hainan Mining, in January 2025, the acquisition of [ TTU Oils ] completed through a tender offer with a transaction value of USD 166 million. In Easun Technology, following the establishment of a JV with leading Saudi group [ Shufali ], the final assembly project officially commenced operations in the first half of the year at [ King of Ju Economic City ] in Jeddah.

In terms of innovation-driven pharmaceuticals breakthrough for Fosun Pharma in the first half of the year, its innovative drug revenue rose by 14% year-on-year, accounting for 38% of total revenue, up by 5.8 percentage points from the same period last year. As for Henlius, the self-developed [ HLS43 ] has become the world's first PD-L1 targeting ADC progressing to Phase II clinical trials, displaying significant [ betterness ] versus international peers with potential sales exceeding USD 10 billion.

In terms of Yuyuan, it's leveraging digital technologies such as [ naked eye ], 3D and VR to integrate Yuyuan architecture with 10 leading domestic IPs, creating immersive experience. In the first half of the year, the core areas of Yuyuan Tourist Smart GMV reached RMB 2.6 billion, up by 55% occupancy rate, up by 8 percentage points year-on-year.

As for Club Med, over the past decade, invested EUR 175 million in digital transformation and partner with Alibaba Cloud to launch the tourism agent AIGO with the first application to be rolled out at [indiscernible] later this year. As for Fosun Insurance Portugal, the AI-powered LLM increased medical reimbursement invoice recognition from 36% in the end of '23 to 51% in mid-2025 and fully automated car insurance claim approved rating from 48% in the end of 2023 to 62% in mid-2025.

As for Hainan Mining, in the first half of the year, they advanced 18 R&D projects with R&D investment up by 37% year-on-year. We are keep -- having asset reevaluation and ongoing debt deduction commitment. We are seeing the share price improvement of Fosun International, up by 18%. For Fosun Pharma, it went up by 53%; Henlius, up by 235%; and Sisram Medical, up by 88%.

In terms of Millennium BCP, its share price also went up by 69%. For Hainan Mining, Gland Pharma and [ Lanvin ] Group, they're all experiencing increase in share price. For the primary market, Yuyuan Jewelry and Fashion Group completed capital increase, and share expansion brought in shareholders. After this round, they raised nearly RMB 2 billion with post-investment valuation of around RMB 11.2 billion. For Fosun United Health Insurance, they brought in institutional shareholders such as IFC and ADB. Within the pipeline, there are dozens of ecosystem companies with IPO potential unlock opportunities for value revaluation. We are preparing for [indiscernible] United Health Insurance, [indiscernible], Fosun Health, Easun Technology and [indiscernible].

In terms of liability, we are steadily reducing our debt level with reducing cost. At the group level, asset divestment and subsidiary dividend generated cash inflow of over RMB 8 billion, and subsidiaries intensified the divestment of having noncore and nonstrategic assets, completed contract worth nearly RMB 7 billion in the first half of this year. As for equity divestment, we achieved equity divestment in [ Kowtow Technology ], [indiscernible], United Family Healthcare and et cetera, in real estate that include Fosun Insurance Portugal building Lisbon, Madison House in New York and for BFC. Compared with 6 months ago, we are seeing slight decrease in our financing costs.

The third part of our finance strategy is diversified financing channels, declining cost of borrowings. In terms of bank financing, we built our long-term partnerships with banks. In the first half of this year, we signed strategic agreement with several banks, including Citigroup, Postal Savings Bank of China, [ China Minion ] Bank, et cetera. In March 2025, the group successfully completed the first closing of a 3-year unsecured syndicated loan overseas, raising USD 675 million. The syndicate greenshoe option is progressing smoothly.

In terms of bond financing, we have successfully issued [ 6 SCP ], raising a total of RMB 3.9 billion. We successfully issued 3 asset-backed 2-year midterm notes, raising RMB 3.5 billion. We successfully issued 3 unsecured 2-year corporate bonds, raising RMB 1.4 billion in the overseas market. Both international bond yields continue to trend lower following the reopening of U.S. dollar bond market.

Fosun International in January 2025 tapped U.S. dollar bond due 2028, expanding to USD 500 million with substantial oversubscription. As of August 2025, Fosun International has completed tender offer and early redemption of its U.S. dollar bonds due October 2025, leaving no more offshore bonds maturing for the rest of the year. In terms of bond financing costs, in the first half of 2025, consolidated financing cost were 5.26%, continuing its downward trend compared with 5.63% at the end of 2024 and 5.79% in the first half of 2024.

Since 2025, domestic public market financing has gradually improved. The cost of group's commercial papers declined by about 80 bps in the first half of the year. Meanwhile, the group successfully issued 3 asset-backed bonds in the first half of this year with the lowest financing cost of 3.69%. In July and August 2025, [ Fosun High Technology ] transitioned to unsecured issuance format by successfully issuing 3 unsecured 2-year corporate bonds with a low coupon of 3.5%. We are also expanding our financial institution network, lowering financing costs.

In the 2025 offshore syndicated loan, we secured support from around 20 leading regional banks overseas. In addition to long-term partner banks like HSBC Center Charter, [ Nalysis ] and Commerce Bank, we have also first-time participants, including JPMorgan, MUFG, SocGen, UniCredit, [ ADCB ]. And we have multiple mainstream issuers, bank wealth management subsidiaries and other nonbank financial institutions participating in the group's fundraising.

The fourth part of our finance strategy is outstanding SLI operating capability and powering insurance investment. In terms of outstanding SLI operating capability, in the tourism business as of mid-2025, Club Med operates [ 68 ] resorts, [ 85 ] of which utilize leasehold management business model. In the senior care services, investment operation in elderly care and nursing institutions have been implemented in nearly 10 key cities with a total number of beds of over 11,000.

In terms of commercial property management in the first half of 2024, Yuyuan's total managed commercial property reached about 3 million square meters, generating rental income of [ RMB 1.14 billion ] for property owners and contribution of EBITDA of RMB 650 million, up by 19%. In terms of fund management services, our onshore actively managed fund exceeding RMB 50 billion and offshore actively managed fund exceeding RMB 200 billion. For the onshore fund management part, we have Fosun Capital Fund with nearly RMB 24 billion and Fosun Health Capital Fund with nearly RMB 15 billion under management. So we are seeing a very systematic operating model so that we can use better leverage to empower insurance investments. We have a lot of high-quality insurance business under different brands. They are building on the strong growth of this high-quality insurance business and the group's proven operation capabilities so that we can enable the flywheel project.

In the first half of this year, we are seeing very strong growth for the insurance with strong profitability growth. For Fosun Insurance Portugal, the total assets reached EUR 22.6 billion with EUR 3.27 billion premium in first half 2025. Net profit, EUR 133 million. For Peak Re, total assets reached USD 3.9 billion with premiums of USD 1.06 billion and solvency around 180%. We are also seeing strong premium growth for Pramerica Fosun and Fosun United Health Insurance with RMB 5.36 billion and RMB 3.64 billion of premium in the first half of this year, respectively.

We are already seeing SLI operations and the insurance ecosystem achievements in the first half of this year and in the future, there will be stronger growth. For Fosun United Health Insurance, in the first half of this year, they saw -- they saw 1,733 policies from senior care communities with premium of RMB 1.63 billion. For Pramerica Fosun, they saw 3,900 policies from senior care communities with total premiums of RMB 39 billion.

Our finance strategy paves a promising future. In the future, we will also prioritize the group's portfolio, focusing resources on cultivating businesses with the potential to become industry leaders. We will continue to advance the implementation of SLI strategy for the divesting heavy asset projects like fund advantages. We -- our goal is to reduce the group's interest-bearing debt to approximately RMB 60 billion and industrial operating profit and net profit attributable to owner of the parent, respectively, need to reach RMB 10 billion, and we aim to consistently elevate our credit rating to investment grade.

That's all for the financials part. Now we will leave the floor to the Co-CEO of Fosun National, Mr. Chen Qiyu, to talk about the business performance.

And next, I will report on the business in the first half. First, let me talk about the Health segment. In first half 2025, the Health segment recorded RMB 22.57 billion of total revenue slightly decreased. Net profit to parent was RMB 760 million, up by 48.3% year-on-year, mainly driven by the year-on-year growth in the Fosun Pharma profit. Fosun Pharma recorded RMB 19.43 billion of revenue. Henlius recorded RMB 2.82 billion of revenue. Net profit was RMB 390 million.

The [indiscernible] got approval in the EU, the U.K. and other regions. And [ HLX43 ], this is an ADC product, has released positive Phase I and Ib clinical data on efficacy and safety in lung cancer for the first time and more than 10 clinical trials covering major indications are ongoing globally. The overseas revenue was RMB 8.59 billion, up by 2.1 bps increase. The overseas revenue accounted to 38.1% of total revenue with 2.1 bps increase.

Fosun Pharma's R&D expenditures was RMB 2.58 billion and got 5 indications of 4 innovative drugs approved and also licensed out products and licensing products. Fosun Health and [ Jianja ] Healthcare recorded RMB 3.58 billion of revenue. It will further enhance integrated operation in the Greater Bay Area. And for [ Shenhanchang ] Hospital ranked #1 on the private hospital competitiveness ranking for the consecutive -- eighth consecutive year, and [ Tiinjia ] Healthcare achieved rapid growth with improved performance.

[ Luca Wood ] recorded RMB 399 million revenue, up by 6.9% year-on-year, and the net profit has been grown by 12.3% year-on-year. For Fosun Pharma, its innovative products has been growing steadily, reaching RMB 4.3 billion of revenue, up by 14.3%. Net profit after one-off gains was RMB 961 million. It continuously advanced lean management to achieve health growth of the company. And also, it has been optimizing asset structure, and cash return acceleration and also has achieved a very healthy level of free cash flow.

And for Fosun Pharma, we have sustainable and innovative product pipeline. In the first half of 2025, after long years of deployment, we got 4 innovative drugs with a total of 5 indications independently developed and licensed by the group were approved for launch both domestically and internationally, 4 innovative drugs had entered the prelaunch approval stage and 37 generic drug varieties were also approved for launch both domestically and internationally. We focus on solid tumor, [ HAM ] and immunization. And we are also strengthening our 4 major technology platforms encompassing antibody and ADC cell therapy and small molecule to further building our high-value pipelines. And also, we are working with the health funds to explore cutting-edge technologies such as radiopharmaceuticals, RNA, gene therapy and AI drug R&D to further enrich our value chain.

And as you can see, we also have core therapeutic areas listed here. In the first half of 2025, in terms of the innovation and innovative drugs, we achieved licensed in and licensed out. And all of this has been published, [ HXS004 ] target and [ HLX13 ], [ HLX15 ], [ putimab ] and [ FXS6837 ] has achieved licensed out. As you know that in China, comparing to the big pharma, the Chinese companies are licensed out many products to the big pharma in the global world. So we believe in the second half and the next year, Fosun Pharma and Henlius will achieve more licensed out results.

As for licensing, as you can see, we are insisting licensing products with the key partners. I can give you a few examples. For example, [ AR-1001 ], we licensing this product. And also, we work with Teva to co-develop the PD-1 IR2 product. This is a very innovative cooperation model. And also, we licensed in CD47 molecule. As for globalization, Fosun Pharma has already started the global footprint. And also, we got very good foundation for the past few years. For example, in the U.S., we have already got a sales team for generic drug. And also, we have already built a U.S. sales team for [ pilutimab ].

In EU, we have operating company working with the local partners to launch the innovative drugs and the biosimilars. And in Japan, we have started a clinical trial, including [ HLX-22 ] for first-line gastric cancer. The first patient dosing of Phase III MRCT was completed. In India, we have entities in Africa. We have been working there for over 10 years. And recently, we are expanding in Southeast Asia. We have already established a sales platform for Southeast Asia, and we are expanding into different regions of Southeast Asia.

In Middle East, we're collaborating with [ VCare Group ], and we established a JV to further promote the launch of innovative therapeutic products in Saudi Arabia and other countries. And going forward, we will further expand in South America. So the global footprint and the global operation, Fosun Pharma not only focused on innovative drugs, but also, we are expanding in the global regions.

As for medical service and health care management, we are also moving strongly. As for aesthetic medical, the revenue has already reached USD 165 million from the Sisram in the first half. And before we focus on the medical devices, but in the recent 2 years, we focus on injectable fillers. As you can see that in the first half, the revenue reached USD 14.4 million, up by over 218 percentage year-on-year. And the licensing [ Revance ] is accelerating its commercialization in China.

Intuitive Fosun is a global leader in surgical robotics and is still a leader in China. 29 da Vinci surgical systems were installed in Chinese Mainland and Macau region in first half, over 450 systems were installed. As for [ iron systems ], 6 iron systems has been installed in Chinese Mainland. And [ Abreas ] is a well-known European ventilator manufacturer. Its operating revenue, net profit and operating cash flow all recorded steady growth.

As for the diagnostics, we -- Fosun Diagnostics received approval for 2 products, the China's first and currently only home testing kits for COVID-19 and influenza A and B antigens and the first approval product under Fosun Diagnostic Respiratory Infection syndrome multiple nucleic acid detection solution. The fully automated high-speed chemistry immunoassay instrument completed follow-up validation and optimization upgrades, and we collaborated with Siemens Health near and registered 16 customized biochemical reagents and quality control products.

And for medical service and health care management model, we focus on premium medical care and professional services. Fosun Health is expanding its footprint in medical group and smart health care and insurance department. For [ Shen Chung ] Hospital and [ Hansen ] Hospital as designated medical institutions under the Hong Kong and Macau Medicine Equipment Connect launched 15 new drugs and medical devices from the catalog. As for the [ Jianjan ] Healthcare, it's accelerating its establishments in the new first-tier cities and provincial capitals. It is operating a total of 16 rehabilitation medical institutions, of which 4 were in trial operation, with another 7 institutions under construction.

And we are further expanding and optimizing our eco models, working more closely with insurance, insurance plus health care, insurance plus wellness, health care plus wellness and health management. As for digitalization and AI-driven businesses, Fosun Pharma over the past 2 years has been focusing on digitalization and AI-driven business growth. And right now, it has gradually covering R&D operation and the product application. And Fosun Pharma is among the first domestic pharmaceutical enterprises to deploy LLMs like GPT4.0 and DeepSeek and was selected into 2025 Forbes China top 10 AI innovation scenario application enterprises.

As for pharma, [ Pharma A ] decision intelligence platform has been playing a big role in R&D. As for the early-stage R&D and Henlius AI for science platform, all contributing to our innovation, the drug discovery and efficiency. So going forward, we will further leverage AI in clinical trials so that we can further improve the efficiency of clinical trials. As for MedTech, the MedTech also has been improving AI into our product. As for health care, especially for [ Shenhancheng ] Hospital, [ Fan ] Hospital has already been using the Mini app very frequently.

Moving forward to the happiness segment. The total revenue recorded RMB 33.72 billion in the first half, mainly because of the consumption segment adjustment. The revenue decreased by 21.9% year-on-year. Yuyuan recorded RMB 19.11 billion of revenue, mainly because of the challenge in the industry, but we have seen the jewelry and fashion of core consumer sector showed signs of recovery in Q2. With the challenging environment, Yuyuan has been operating lean and reduced significantly in their cost.

FTG recorded a record high revenue RMB 9.53 billion of revenue because of the global operating capacity, and it has been further optimized the cost, and operational enhancement led to double-digit growth in key profit indicators. The overseas revenue was RMB 13.56 billion, accounted for 40% of the total revenue. Especially Club Med operates in 40 countries and regions across 6 continents. And Club Med reported record high revenue during the reporting period.

Yuyuan Inc. in the first half of 2025, under the economic pressure, the operating revenue was down by 31% year-on-year. In Q2, the operating revenue was RMB 10.33 billion, broadly flat comparing with the same period last year. And we are seeing the recovery. As for gross profit -- in Q2, the gross profit has been improved comparing to Q1 and the same period last year. Cash and cash equivalents remains ample.

Under Yuyuan, the core business is jewelry and fashion. We have seen Q2 recovery in jewelry and fashion. And the fashion jewelry business in first half generated a revenue of RMB 12.8 billion. In Q2, the revenue rebounded to RMB 7.61 billion and increased, comparing to Q1 and Q2 last year. And also, we are seeing improvement in the gross profit.

As for the liquor, although we are seeing the pressure, but [ should the liquor ] has been remaining on its aged [ bajou ] strategy and price volume control policy, promoting the brand upwards while deepening base market. Sales of T68 exceptional saw accelerated growth. The company accelerated the development of online channels, with emerging e-commerce sales up by 31%. And [indiscernible] pursuing international expansion actively, now covering 5 continents with presence in 40 countries and regions. Overseas retail endpoints reached 1,200.

Even [ Tourist Mart ] has been improving and renovating itself. And also, we have seen the initial results. The occupancy rate reached 99%, up by 8 percentage points year-on-year. The sales volume has reached RMB 2.61 billion, up by 55% year-on-year. Visitor traffic reached 19 million, remained flat. The number of events is 1,000 per day. And we have self-owned IP, super scenario development and special marketing campaigns all contributing to sales growth.

As for FTG, as we mentioned before, in 2025, we are seeing the record high revenue. But more importantly, we are also seeing the profit growth. With ongoing cost reduction, efficiency enhancement and operational optimization in the first half of 2025, excluding one-off gain on disposal of resource, adjusted EBITDA grew by 16% year-on-year, and adjusted EBITDA margin rose by 3.2 percentage points. Adjusted net profit increased by 42% year-on-year, and adjusted net profit margin rose by 1.4 percentage points.

Club Med also achieved the record high revenue. The operation revenue has been improved by 4% year-on-year. We are seeing the growth from the ADR and reduced cost and double-digit growth in operating profit driven by efficiency improvement. Club Med is now running 68 resorts in over 40 countries and regions and at 69% of direct and semi-direct sales rate.

For the outlook in the second half and next year, we have already seen the booking in the second half and the next year. So we are already seeing the booking in the second half 2025 will have 9% of growth comparing to last year. And also, the booking in the first half 2026 will be grown by 17% year-on-year. And for FTG, we will further have strengthened core business, pursue asset-light growth and embracing AI for Atlantis, it will further diversify offering, boosted traffic. The business volume remained high, reaching RMB 760 million. The average occupancy rate reached 88%, which is high. The number of visitors reached over 3 million.

And the Taicang Phase 2 officially commenced. And the Lijiang project is rooted in [ Nash ] culture and creating a benchmark resort destination. Taicang is very near to us, and you can see there. As for Lijiang, the [ Yinan ] is also a very good tourist destination right now. We are also moving forward with our asset-light strategy. The Taicang [ Aps ] Phase 2 officially commenced, aiming to create a world-class winter resort landmark. In June 2025, it officially broke ground with a total investment of nearly RMB 5 billion, a joint project by Taicang Government Platform and FTG expected to commence operation in June 2029.

Chongqing China Mall project signed, aiming to build a world-class mega entertainment mall, accelerated implementation of AI technology across products and operations. So as you know that Club Med is famous for its [ GO ], and we are codeveloping the AI geo culture tourism intelligent agent.

As for the wealth segment, in the first half, the total revenue was RMB 27.83 billion, up by 3.3% year-on-year, primarily driven by growth in insurance revenue. The net profit to parent has already been increased significantly to RMB 243 million. And also, we are seeing strong profit in different entities.

And also for the Fidelidade, Fidelidade maintained the top market share in Portugal. The premium revenue recorded EUR 3.27 billion, and its international businesses accounted for 28.2%. Net profit reached EUR 133 million. Peak Re, the total premium revenue recorded USD 1 billion, and net profit reached USD 900 million. BCP, the core net profit reached EUR 1.17 billion, and the net profit to parent was EUR 500 million. HAL recorded EUR 280 million of revenue. Pretax profit rose to EUR 55 million. For Pramerica Fosun, the total premium revenue was RMB 5.36 billion. Fosun United Health recorded RMB 3.6 billion of total premium, and asset management recorded RMB 6.94 billion of revenue.

Our insurance business has global footprint, not only in China, we have seen the significant growth from the Pramerica Fosun and Fosun United Health. And also, we are seeing for our overseas insurers, including Peak Re and Fidelidade, Fidelidade is rooted in Europe and also expanding globally. As for the overseas insurers, they have efficient operation become cornerstone of profits for Fidelidade, steadily expanding the business scale and continuously enhancing profitability level. The combined ratio was controlled under 91.5% and the annualized investment yield reached 3.5%. Peak Re prudently managed risk exposure with excellent performance in profitability. The combined ratio was 88.1%, and annualized investment yield reached 4.1%.

As for domestic insurers, they rely on Fosun's ecosystem for rapid growth. Pramerica Fosun leverage ecosystem strength and focus on long-term value growth. The new business value has been grown by 39% year-on-year, over 3,900 policies from health care communities and RMB 3.9 billion of full cycle premium. As for Fosun United Health created a new business model of health insurance and intelligently manufactured health products. Its new business value has been increased by 49% year-on-year, and full cycle premium has reached RMB 1.6 billion.

And also, we are seeing global footprints for asset management platforms. We also have a very comprehensive footprint in China. In the first half, Fosun Capital got 4 portfolio companies filed for IPO, 2 portfolio companies successfully listed. [ Fosun RZ Capital ] had 4 new investments in high-quality companies across AI robotics, smart manufacturing and new global expansions and 10 projects successfully accelerated and 1 successor USD fund completed closing. We have very good major existing investments, including [ Chai ] and [ Xanopu Gold ].

Continuing with the Intelligent Manufacturing segment, the total revenue recorded RMB 4 billion in the first half, decreased by 24.6% year-on-year, primarily due to the consolidation scope. Easun Technologies is no longer in our consolidated form. So excluding this effect, revenue would have increased by 14% year-on-year. Net profit to parents was RMB 140 million. Hainan Mining recorded RMB 2 billion of revenue, up by 10.46%. And net profit to parents was over RMB 281 million. Both lithium mining and lithium cell processing achieved product rollout, and its overseas assets accounting for 48% of the total. The overseas revenue was RMB 1.12 billion. Easun Technology recorded RMB 3.76 billion of new orders. The company has secured new industry-leading customers in North America and Middle East.

As for Hainan Mining, it further focus on resources to continuously build resilience through market cycle. During the downturn, we still achieved steady performance. Hainan Mining reached stable iron ore output and oil, gas output. And we are seeing 15% of decrease from the index. Comparing to the macro economy, we have already seen over 10% of growth in the first half in terms of the revenue comparing to last year. We're also expanding into new segments. In Hainan, we have the Hainan Mining and the 20,000 tonne lithium hydroxide [ bioxide ] and also the [ Bogoni ] lithium mine in Mali, Africa. And we will continue to expand in global markets, including the Middle East to -- and also to take different methods to further enhance the values. And also, we are planning for cash dividends, equity incentives and share buybacks.

Wansheng is the world's leading new functional material company. Right now, after COVID -- during the COVID, the whole industry has been sizing up and become more competitive. And because of this, the profit has been down by a little bit. However, Wansheng has been enhancing operation capability through supply and sales synergy and focusing on base development with accelerated construction, driving innovation through technology advancement and broaden product portfolio through prioritizing quality industries. In [ Weifarb ], the IPO-funded products and over 76,000 tonne annual specialty functional materials have entered pilot production. And we believe after the output and installation, the commissioning, we will see good results.

And we have already completed the [ Shannen ] product. It is a very good company. And we will further drive innovation through technology advancement, the new [ Neilon ] flame retardants completed highlight production with performance highly recognized by customer, multiple specialty raises and [ antisotic ] agents successfully trial produced.

So that's my report on the first half performance. Next, I'll give the floor to Xu Xiaoliang to talk about strategic development.

Dear investors and analysts and friends from the media, good morning. I will now report to you a reflection of Fosun's strategic development. Since its founding in 1992, Fosun has journeyed through 33 years of growth, evolving across different stages and economic cycles. Over time, we have continued to optimize our industrial structure and steadily enhancing our global competitiveness.

With the external environment changing all the time, Fosun's mission and vision of creating happier lives for families worldwide remains unchanged. We aim to create a global happiness ecosystem, fulfilling the needs of families worldwide in health, happiness and wealth. For all the work that Fosun does, it's all about delivering our vision and mission.

So centering around this vision, Fosun has sharpened its strategic focus across several dimensions. The first is business streamlining. We are focusing on the family consumption sectors to scale and reinforce our competitive companies while decisively divesting noncore businesses. The second is capital intensive to asset-light. We are enhancing partnerships with domestic and international capital, improving asset-light operations and using light to drive heavy.

The third part is balancing investment and divestment, balancing offense and defense, advancing high-value projects while safeguarding our operational fundamentals. The fourth part is technology innovation. We are committing to technological innovation, driving industry upgrades and building core competitiveness.

Over the past year, Fosun has further developed business consensus and organizational consensus. I will now talk about these 2 parts. First, in terms of business consensus, the first important consensus is globalization. Fosun is one of China's leading privately owned enterprises with a truly global footprint and operating capabilities. In the first half of this year, we reached a new milestone in globalization, with overseas revenue accounting for 53% of the total.

We have moved from China momentum, leveraging global resources to China capabilities leveraging global resources. And these capabilities are reflected in several dimensions. The first is global R&D and BD capability. We see that Henlius innovative drug has now been approved in over 30 countries and regions worldwide. [ HLX43 ] has also entered international multicenter Phase II clinical trials.

The second is global investment capability. Fosun Pharma has partnered with a leading Saudi health care group to bring innovative therapies to Saudi Arabia. Hainan Mining has also launched the pilot production of Phase 1 at [ Guni ] lithium mine in Mali. In terms of cultural export capability, the [ Yuyuan ] Lantern Festival in Thailand concluded successfully, celebrating the 50th anniversary of China-Thailand diplomatic relations. For the [ Yuyuan ] Lantern Festival in Thailand, spanning across 55 days, it attracted over 4 million visitors.

In terms of global operation capability, Fosun Tourism Group has fully implemented the group's asset-light strategy to upgrade global resorts. And Club Med achieved new record highs in the first half of this year. And another important part for Fosun's business consensus is going into the flywheel model. Today, Fosun has entered a stage of deep industrial operations where we have established a flywheel model driven by insurance capital plus investment plus industrial operations. That is based on Fosun's deep understanding across different industries, our rich investment experience and high-quality commercial resources so that we can use insurance to connect with more investment parties and then empower our industrial operations for win-win-win.

Now Fosun exploring flywheel projects in senior care, hive asset management and tourism, we will keep involving in these dimensions and accelerate industrial high-quality development. The third business consensus is building marketing force. In today's complex and highly competitive market environment, Fosun has built strong marketing force to better connect products with customers. We are seeing solid results in the first half of the year.

For Fosun Pharma, it further strengthened its global market presence and marketing system with about 5,000 sales representatives in China and over 1,000 overseas. As for Shede Spirits, in the first half of this year, it took a forward-looking approach to marketing and channel development for its T68 product. Despite industry headwinds, T68 still achieved a breakthrough, with sales up by 23% year-on-year. And Fosun Tourism Group is also capturing the rebound in inbound tourism.

For Atlantis Sanya, in the first half this year, they saw a 71% year-on-year increase in international visitors. And Club Med China saw inbound revenue rose by 65%. As for Fosun Insurance Portugal, it has advanced organizational upgrades with marketing support, staying close to customers and market needs while driving product innovation. In the first half of this year, its savings insurance sales in Portugal exceeded EUR 1 billion, up by more than 40% year-on-year.

The fourth business consensus is AI application. At Fosun, we believe that those who use AI well will thrive, and those who don't will be left behind. That is why we are driving adoption of AI across the entire value chain. For example, AI -- using AI to accelerate R&D for stronger product innovation. Fosun Pharma has launched [ Farm 8 ], the industry's first AI decision-making platform empowering drug discovery, smart health care and precision medicine. With [ Farm 8 ], information extraction efficiency has improved by 50%. AI can also be adopted to enhance customer experience for stronger marketing power.

Club Med has developed its AIGO, a travel agent that personalizes and streamlines the entire vacation journey while significantly improving operational efficiency. And another part of consensus is organizational consensus. in order to implement our strategies and business goals, ultimately, it depends on organizational support. Fosun's strength emphasizes building water-like organizations. We emphasize that there is no fixed formula for management, what fix best is best. And there is no unchanged formula for management. Management should be dynamic.

On the talent front, Fosun is emphasizing leaner and flatter organization. As for our talent team, we are focusing on building talent pipeline, and we are building a multilevel partnership system. Now, we have about 160 global partners. And in the first half of this year, for the first time, Fosun Group has been implementing the [ Hypo Partner Program ]. In the first half of this year, we selected 44 [ Hypo ] partners, preparing for the future leaders of Fosun for its long-term development.

In terms of mechanism, first, we emphasize a meeting mechanism for organization, for business, for fine for the capital, we have different parts of meeting mechanisms. The second part of mechanism is incentive mechanisms to be aligned with our values and to match the long-term values. In terms of culture, we remain true to the founding spirit of co-entrepreneurship, continuously strengthen our shared commitment. Guided by our cultural principle of rule rationale and relationship, our global governance ultimately centers on the rule of law with the protection of shareholder rights as the baseline and maximizing shareholder value as the goal.

Self-improvement, teamwork performance and contribution to society is our original aspiration of holding business for good. We are committed to sustainable development and creating value for all stakeholders. In the past half year, Fosun's ESG performance has continued to improve. On the environment front, we aim to achieve peak carbon emissions by 2028 and carbon neutrality by 2050. We have also conducted climate risk assessment and released the third climate information disclosures report.

On the society front, the rural doctors program was established in 2017. And over the past 8 years, the program has supported 25,000 rural doctors, benefiting 3 million families in rural communities. And the [ artisanate 4 ] injection has saved the lives of over 84 million severe malaria patients worldwide.

As for governance, we have strengthened our ESG governance framework and incorporated ESG performance into the Board's evaluation system. And Fosun's strong ESG performance has been widely recognized by leading domestic and international institutions, and we have been included in key industry indices. Our MSCI ESG rating has remained at AA for 4 consecutive years. And Fosun International has received the ESG Leading Enterprise Award from Bloomberg Businessweek Chinese Edition for 5 consecutive years.

That concludes my sharing on Fosun's strategic progress. Today, while the global economy is still in a slow recovery and filled with uncertainties, Fosun will continue to sharpen its strategic focus. We will solve development challenges through growth itself and navigating future cycles with a long-term mindset. We are committed to creating greater value for our shareholders and society and to make families around the world happier.

Once again, I would like to thank all of the investors for your long-standing support. We also welcome you to visit Fosun to experience our products and our happiness ecosystem. I wish all of the families happy, healthy and wealthy. Thank you.

Thank you for the management. And next, we will move on to the Q&A session. I will invite the guests here to ask questions. We will give you a microphone. Okay, the lady in the front. Okay.

Thank you, and I'm very honored to be able to ask the questions. I'm from the [ Nation Security ]. And I've noticed that today, the topic is from shared vision to greater horizons. And we're also seeing that in the first half, Fosun International has made breakthrough and innovative results. And I mean, Chairman Guo always says that the company needs to insist on doing the right thing, the difficult thing, especially the things that requires time.

So my question to the management team is that in the second half, what is the things that we will be -- keep moving on? And what is the sector that we will be focusing?

And the question would be answered by Chairman Guo.

Okay. So the question is about the sector. So in the first half, we are seeing the recovery from the consumption sector. And also for the innovations and innovative drugs, we are seeing the breakthroughs. So we are very confident about our business and the future growth. So going forward, for the innovative drugs, we not only have Henlius, but also [ CAR-T ] and maturing drug segments. So we will have great potential in innovation and smart innovation.

I have been thinking about this. Several years ago, we mentioned that we want to have people to live happily, healthily and wealthily until 120 and the cancer can be cured. In 7 and 8 years ago, it may seem a little bit not going to happen. But I think right now, we all believe that a lot of cancers can be detected and can be cured or can be controlled. So we are seeing the development in the industry and also, we are seeing great potentials.

In our pipeline, we also have great products in our pipeline that has the USD 5 billion or even USD 10 billion potential in our pipeline. And I have been strengthening this to the team. We cannot just sold out. I think license in and license out, both are very important comparing to other Chinese pharmaceutical company. We need to have our uniqueness. We need to be able to build our own global R&D, clinical trial and sales capabilities.

So this has been promoted by our teams. And we are aiming to become a big pharma in the global market. And this is our path to become the big pharma. License out is simple and can be sold in a very high price, but we are very patient. I believe that our products in the pipeline is very good.

And also, I want to share another comment with you. The technology is developing very rapidly. And why is that? I want to share some of my thoughts, especially in the past 5 years and 10 years. We believe that humans are carbon-based animals, and we have seen great potential and breakthroughs in our gene development and our gene study. As for AI and robotics, they are also growing and developing rapidly. So if we combine both, we would see great potential for innovation in the future, and it would be hard for us to imagine.

For Fosun, our vision is to let the families to live happily, healthily and wealthily until the age of 120. So we are seeing great breakthroughs in the pharmaceutical businesses. I'm not an expert in cancer, but my team told me that the cancer cannot be cured by one molecule. It would be relying on different methods, including the medical devices, the different molecules. It's sort of like a cocktail therapy. The combination of therapies can cure cancer. And I think Fosun has a unique advantage because we have a very comprehensive footprint, and so we are in different sectors. And we believe that if we want to cure cancer or if we want to solve the difficult problems, we need to rely on different solutions and comprehensive energy and capabilities. And Fosun Pharma has its uniqueness. We can sell the new alcohol. We also rely on the aged alcohol. And also, we rely on the things that needs requiring time.

For Henlius, we have developed it for over 10 years. For the first 10 years, we invested over RMB 10 billion, and we didn't see any return. But right now, we are seeing it has been maturing. And the same thing for the liquor, we are selling the aged alcohol. And also for our insurance companies, one company we have been invested for over 10 years. The other, we have been invested in for over 12 years. So if you do not invest in one thing for over 10 years, you cannot achieve great competitiveness.

So for me, I think if we enter a new sector, we prepare it for another 10 years, it might not be in line with our advantage. We need to focus on the sector and on the businesses that we have already been gaining the strength for over the past 10 years and keep routing it and keep developing it.

So for us, the new sector is not our goal. What excites us is that we make breakthroughs in the sector that we have already entered in and also had the advantages. So that is our excitement. For aged alcohol, we also have innovation. I want to make an advertisement. Tomorrow, Shede Spirits will launch a new product with 29 alcohol degrees, and it's called [ Suzi ]. I think it would be beneficial for both customers, the first is who drink a lot. And if you want to free and shoulder a lower response -- if you want to free yourself, then [ 29 sub degree ] would be good. And if you're young and not that good at alcohol, then 29 [indiscernible], that is also good for you. So we hope that if you have time and if you are interested, you can watch out for our new product launch.

Thank you, Chairman Guo, for your answer. We will now open to the second question.

I am from [indiscernible] Securities. I have a question about deleveraging. We see that Fosun Group has been adamantly divesting nonstrategic, noncore assets since 2022 to deleverage. So we noticed for the 2024 numbers and for the first half of 2025 numbers, the group consolidated statements interest-bearing debt level slightly rebound. So what's our interpretation on this?

Thank you for your question. We will have Chairman Wang to answer first, and then [ Alice Gong ] can add more things later. Chairman Wang is saying thank you for your question.

I would like to first say thank you to all of the investors and analysts and friends from media online and in the room. Thank you for your support for Fosun.

Fosun is very clear on streamlining its business and focusing on development while streamlining our business while being more strategically focused. Our requirements, our management of financial indicators for deleverage, the key is about deleveraging for the parent company. And in terms of the business we are focusing on, we are controlling the leverage ratio and the debt amount.

You are playing very close attention to this. I give you credit. For Fosun International's consolidated statement, in terms of the debt level, excluding the FX factor, our debt level slightly reduced. At the consolidated level, indeed, as you mentioned, the interest-bearing debt level slightly increased. As Chairman Guo and the 2 CEOs mentioned, while streamlining our business, we are also focusing on developments for biopharmaceuticals, for FTG and other businesses where we are strong in, we still want to see great development for these businesses, but that is based on ample cash flow and a healthy leverage ratio.

At the consolidated level, let me take FTG privatization as an example. We privatized it through a share buyback, so the debt increase for FTG. As for Hainan Mining, they acquired an oil field in Oman. As for Fosun Pharma, for better development, they increased their debt level in a certain degree. But for these core businesses, they are in healthy financial situation. That is why we are seeing slightly increase in interest-bearing debt at the group's consolidated level. We are keeping improving our competitiveness for our businesses, and we are seeing strong improvement for the financing environment.

Reducing debt and improving credit rating have been our goal, and we are very committed to it. We remain committed to our deleveraging goal, and we are making steady progress. Another thing we focus on is to reduce borrowing cost. When talked about the financial numbers, we can see that our cost of borrowing has been dropped by 50 bps compared to the same period last year, but this is far from enough. So we are having more efforts on lowering the cost of borrowings. That's all from me.

Thank you, Chairman Wang, for your answer. And we will open to the third question.

Hello. I'm from one of the Hong Kong family office. In the first half, as you know, that Hong Kong market is booming, especially the pharmaceutical segment. And we are seeing that Fosun Pharma and Henlius has announced many good news. So my question is that for the mid and long term, our strategic development and the core driver for the Fosun Pharma and the pharmaceutical segment?

Okay. Thank you for your question. The question would be answered by Chen Qiyu.

So in the past, as you know, that starting from the [ VBP ], our strategic goal has been very clear. We are moving towards innovative drugs. Especially in 2021, the pharmaceutical segment has reached the peak. And the following 4 years, we are seeing the cool down period in the pharmaceutical sectors in the stock market, and the stock price has presented its challenges. This is because of the industry adjustment, the difference from the industry adjustment and the reception from the capital market. And the cooling down of the capital market has also made us to think clearly about our strategic future, whether we should do innovative drugs and how should we do that.

So the trend in China market is that we need to move towards to the innovative drugs. We need to improve the innovative level. And also, we need to improve our vision and the value achievement, and we need to have a clear path for the values. So these are our requirements.

So over the past few years, we made the strategic footprint and adjustments. I think you can see from the Henlius performance because it is independently listed. Before, the capital market only thinking about us doing the biosimilars. And also, they have concerns about our portfolio structure, only focusing on PD-1. Is it too slow? Does it have the potential? We need time to answer those questions and respond to those concerns.

And we can see that Henlius not only have Han Qu You, [indiscernible], such products, we're also seeing that Henlius has very good performance of the biosimilars, and it has become a very big and large player in the global biosimilar market and comparing to the U.S. biosimilar players. And also, we are comparing ourselves to the big names, we're collaborating with the many big players. the active biosimilar player in different markets, we are cooperating and establishing very good commercialization cooperation with them. That's why that we have a very strong pipeline. And that's the only foundation.

And from the -- for the innovative product, the PD-1, although that the launch is late, but we have seen the indication is very unique. For example, for the SCLC and the clinical trials for the gastric cancer. And also, we are seeing the launch for markets in Europe, in the U.S., we are speeding up for the preparation and the clinical trials to prepare for the launch in the U.S. So [ Han Si Zhuang ] has already proved its successfulness, and it can prove that Henlius has strong capability in R&D and global commercialization. And right now, we are working on [ HLX43 ] and [ HLX22 ]. It will further prove Henlius capabilities.

So that's why that the capital market has already seen that we have strong foundation and also, we have strong capabilities. Actually, the cash flow from the products can reimburse our R&D expenditures. As for PD-1, hence the drone has already been proved its successfulness. We are moving very quickly, especially for [ LHS43 ] from we start the project to clinical trial is moving very quickly.

Before, we didn't do ADC. But right now, we are in ADC, we have very accurate and precise targets and also very efficient clinical trials. This has all demonstrating our capabilities. So we think that innovative drugs would play an even bigger role in our strategic development.

So you're asking about our strategic development and core drivers. So I think down to -- we will be more focusing on innovation, and we will have innovation-driven growth. But for innovation, we also need to have a platform and foundation. Not only we need to have the map, we will also be relying on ADC and CAR-T. For CAR-T, for the cell body and the generic, we were moving from the customized to generic, and we will further build a CAR-T platform. And we are expanding in CAR-T.

As for small molecule, we rebuilt a small molecule platform. We licensed out 2 self-developed small molecule products recently with the team rebuild, and we will further expand in traditional and new small molecule. We also built a radiopharmaceutical platform. And we are building the [ RNA ] and small asset platform. We will further build our platforms to speed up early study.

I think for us, early study is very important. We need to have a strong pipeline in early study and then strengthen the clinical trials. For a big pharma, we need to have a strong early study and a strong platform. And also, we need to precisely select the molecule for clinical trials. We also need to further leverage the local development, R&D and clinical trial in China. Right now, the Chinese market has been highly recognized by the big names. This is because that we have strong capability and strong data. We also need to further enhance our BD commercialization capability. And also, we need to further focus on the license out in different markets.

And different markets has different uniqueness. For some markets, they rely on innovative drugs. And for some markets, we need to have both generic drugs and innovative drugs. Before, we're seeing the innovative drug and generic drugs are separated, for example, [ Our Home ] and other companies, they are generic drug company. But right now, all of our companies are focusing on innovative drugs. Of course, different companies will take different projects and responsibilities, but they will all moving forward to innovative drugs. And also, we will keep working on the globalization to achieve our value. So that's all for me. Thank you.

Thank you, Mr. Chen. We will move on to the next question.

I am from [indiscernible] Securities. I would like to ask a question about the AI strategy. Fosun held a global AI conference and FTG started AI Lab and reached full stack AI cooperation with Alibaba Cloud. Fosun Pharma is also building the [ AI + X ] smart health care ecosystem. So we are seeing that Fosun is very committed to fully embrace AI. Then how can we -- how should we interpret Fosun's all AI strategy?

We can have Mr. Xu to answer this question.

Thank you for your question. A few days ago, we see that the State Council of China released its opinions on deeply implementing the [ AI+ ] action. And that's why we see that at the national level, the nation is fully upgrading the AI strategy. Of no doubt, AI is the biggest opportunity in this era. For any country, for any company, it's not a choice, but a necessity.

For Fosun, that also applies. Apart from fully embracing AI, we also propose that we need to all in AI. What it means by all in AI is not that Fosun will devote all of its investment or resources to AI large model development. It's about having all of our organization and mindset and business in AI. We need to fully adopt AI in our business and to leverage our advantages in scenarios. We are not building vehicles. We are learning how to drive with AI.

And in terms of AI application, here's Fosun's reflection. There are two mountains to climb for adopting AI. The first is business plus AI, and the second is AI plus business. For most of the companies today, they're still in the first stage, that is business plus AI. Let me give you an example. For an existing building, you can use AI, you can adopt AI in your facilities to boost your operational efficiency. But in terms of AI plus business, it means from constructing the building, to building delivery, to building operation, it starts with AI. So we believe the true competition lies in the second stage, that is, AI plus business.

For most of the businesses in Fosun, they are still in the first stage, that is, business plus AI. We can already experience the benefits of using AI. Let me give you an example in pharmaceuticals. There's a rule in pharmaceuticals. In the past, if you want to develop a new drug, it will take at least a decade. It requires at least USD 1 billion investment, but ultimately, the success rate may be less than 10%.

For Fosun Pharma, they are already launching the [ F8 ] platform, and we can already feel the power of AI. At the drug discovery stage, [ F8 ] can provide you with sufficient information. And before clinical trial, AI can help you with patient selection, optimal dosage selection and rational combination therapy selection. So business plus AI is where we start, and it's a long journey. Ultimately, we want to shift towards AI plus business. Along this journey, the hardest part is to build an AI-oriented organization.

And for this part, in the first half of this year, Fosun held the global AI conference, and we have already built the consensus on AI. Moving forward, we will be fully devoted to the AI plus business initiatives to keep evolving. And in the future, we want to work with more global partners to seize the AI opportunity and to grow together with AI.

Thank you, Mr. Xu Xiaoliang, for your answer. And I can see another question is ready.

Thank you for giving me this opportunity to ask a question. And we have noticed that, for example, the is taking the global route to Malaysia and Henlius has already shipped the first batch to India and that Yuyuan has lightened up the Mekong River side. And we have noticed that Fosun has already got the footprint in over 40 countries and regions. And we are also wondering that what's the priorities for our global development in the future?

Thank you for your question, and the question will be answered by Mr. Chen Qiyu.

Okay. So for the globalization, this has been a very key part for Fosun's development this round. As you may notice that in -- when we make the performance announcement, we highlight our overseas revenue and the percentage of overseas revenue. So for the past few years, you would notice that all these indicators has been growing healthily.

And we want to interpret it by two ways. The first is the globalization of the overseas companies. And also, China companies moving global markets. I think both parts contributing to our globalization. For example, Henlius has demonstrated its performance greatly. Its share price cannot be achieved without 2 points. The first is the overseas market registration and the collaboration. And the second is the BD and CSO. And also, we have been noticing that the products of Henlius, if a good product can have a big deal, I think we have expectations for that. And with that expectation, that will meet the global demand. And why is that? This is because of our globalization mindset.

For innovative drug, if you only focus on Chinese standards and the Chinese requirements and demand, where do you meet the demands and the requirements of the global market, different regulations, different markets? I think Henlius is a small example for that. So our innovative drugs not only can meet the requirements of the Chinese demand, but also Chinese plus global market. And also right now, the global market is playing a bigger role in our footprint.

This is our starting point. While we are researching for the products, we are also thinking about who should we be cooperating with. The PAI in China, we are very clear about our markets and our partners. So this is just one example I want to show you. It's the same for many of our companies based on our macro economy. All of our companies needs to have global market selections, and then we can decide what should we do.

Secondly, we also need to be focused on the global network, direct and indirect network. Of course, the leading company needs to have the direct sales, for example, the consumption businesses and pharmaceutical businesses and the electronic businesses. The leading companies, they have the direct sales network. As we mentioned in our report for Club Med, their direct and semi-direct sales has reached 69%. This is demonstrating their globalization capability.

For Fosun Pharma, we also need to build the globalization endpoint capabilities. So for example, in our global network, we need to further generate more revenue through our own network. We also need indirect sales network, including the agents and partners. But even through the agents and the partners, we also need to be able to understand the local channels, the local management and control. So that's about the global network. So we need to understand the requirements and demands from different markets, and we need to have different product portfolio in different markets.

And also, we need to have global supply chain. I think especially today, with so many uncertainties, we need to think about the supply chain, cost competitiveness and the safety security and regulation about supply chain. For example, Wansheng, they are the leading company in retardants. Some products may face over 200% of tariff. Of course, we're still trying to solve the problem. And also, we -- Wansheng is going overseas, is building its factory in Thailand, and part of the products will be produced in Thailand and shipped to the global markets. So I think supply chain is also very important.

Last but not least, cross-cultural management is also important. If you are a portfolio company at Fosun, your globalization strategy needs to be defined and implemented. And during the process, we also need to focus on the management team, the sales team and operation team, whether they have the capability to have cross-culture management, we need to be able to have the cross-border culture and management.

For example, the Fidelidade, they have -- they are leading in Portugal. However, they are also expanding in South America. And what's the driver? I think it's because -- one of the reasons is that we bring entrepreneurship of Chinese. We bring this culture to them. We are pressing them to have higher growth so they cannot find higher growth in Portugal. That's why they are moving overseas. Their ROE goal is 15%. Right now, it's 8% to 9%, which is also very good. But in order to achieve 15% of ROE, they need to move to the overseas markets and to find further growth opportunities. So for Fosun, not only that we are telling our culture to Chinese companies, but also to overseas companies. That's all from me.

Thank you, Mr. Chen, for your answer. We will open to the last question.

Hello, everyone. I am from VC. I would like to first congratulate Fosun Tourism Group for celebrating the 75th anniversary of Club Med. We are also happy to see the strong results of FTG. In the business result part, we see a new record high revenue for FTG and strong results in profit. I would like to ask the management team to explain the logic behind its rapid growth and also share the outlook and business plan for the future. Thank you.

Thank you for your question. We will have Mr. Xu to answer this question. Mr. Xu says thank you for your question.

Indeed, for the first half this year, FTG reached record high in revenue, that is RMB 9.53 billion. As for Club Med Global, in the 3 major business units, they're all seeing record high in revenue and the ADBR keeps improving, showing the brand strong influence and the premium. For FTG, excluding the onetime village disposal revenue, the adjusted EBITDA improved by 16% year-on-year, and adjusted net profit improved by 42% year-on-year. It shows that we are seeing very strong demand in vacation. And it also show that it's important to deliver strong offerings for resorts.

In terms of capital intensive to asset-light, the [ 5 billion ] Taicang Phase 2 has started construction, and it will be opened in 2 to 3 years, and it will be the largest indoor ski dome project in the world. In Chongqing, we have a 480,000 square meters of [ Culture ] Tourism Mall already signed. So we are seeing steady progress in our capital intensive to asset-light strategy.

The core of business growth is organizational support. In the first half of this year, Club Med welcomed the sixth CEO, Stephane. He is a successor recommended by the former President, Henri. After selection of Fosun Board, we have Stephane on board, and Stephane will lead the team in maintaining Club Med's French roots and core values and also leading the team in reaching more record high results.

So these are the highlights for the first half of this year. As for the future development of FTG, we have a very clear strategy. Now we see the booming market for global tourism, for vacation style tourism. After COVID, we see that people are desiring work-life balance and creating more happiness for families, having more high-quality family time. So in tourism space, we see a shift from sight seeing tourism to vacation style tourism, and that is a very key element in bringing happiness to families. So for Fosun Tourism Group, we will be all in vacation style tourism. We want to build the leading vacation lifestyle brand.

For Club Med Global, this is the 75th anniversary of Club Med. Outside China, they have 33 PAI and the 21 mountain PAIs. In the future, Club Med Global will further strengthen its footprint in the source markets and destination markets, especially for Japan and Thailand in Southeast Asia and Canada in North America and Brazil in South America. For Club Med China, we will further enhance the 2 product lines, that is UO and JV. They are centered around urban vacation or city cluster vacation.

For the 3 PAIs in China, we have [ Yaui ], [ Idahu ] and [ Chai ]. Based on this foundation, they will be further connected to the 4 resorts we have in Hokkaido and the rest of the 17 mountain PAIs in the rest of the world so that we can connect China to South -- to APAC to the rest of the world. Also in China, we will have two new ideas. One is ultra resorts. There are a lot of 5A or 4A [indiscernible] in China. And we believe in the future, there will be more 5A or 4A resort destinations in China. In Hainan, we have started the ultramat planning.

In Lijiang, we have also started the [ Amaze Ultra Destination ]. In Taicang, we have Alps Ultra Destination. So these are the ultra destinations in China with really strong potential. And the last product line is the [ Ultra Culture Tourism Mall ]. For China's real estate development, we see a lot of existing properties. Some are low efficient. So we see undifferentiated properties in China. But in Thailand, there are a lot of examples that integrate culture, tourism and complexes. So we want to learn from them and build ultra malls. The first example is Chongqing, which will be opened next year. These are the product lines and the plan we have for the future for FTG.

We believe that better holiday, better life, and we hope that for our investors and analysts and friends from media, if you have time, we welcome you to visit our resorts in China and the rest of the world, and we will organize more events for you to visit there. We hope that all of you can have a quite work-life balance and enjoy happier life. Thank you.

Thank you, management team. So that's the end for our morning session. So Chairman Guo, do you have any closing remarks? Okay. Chairman Guo said thank you, everyone. Okay. We will see you in the afternoon session. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]