BRIEF: Fosun Tourism may have dropped into the red last year
Fosun Tourism Group (1992.HK), operator of the Club Med resort chain, said on Monday that it may have lost money last year, or reported a small profit. The company said it expects to report its bottom line last year ranged between a 50 million yuan ($6.9 million) loss and a 10 million yuan profit, compared with a 307 million yuan profit in 2023.
The company blamed its weak performance last year mainly on China’s sluggish real estate market, which led to a decline in property sales.
Fosun International (0656.HK) proposed privatizing Fosun Tourism at the end of last year at an offer price of HK$7.80 per share, representing a 95% premium over the price of HK$4 before a trading suspension. Shares of Fosun Tourism opened flat on Tuesday at HK$7.39 and were still unchanged late in the morning session.
By Lau Chi Hang
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