Fosun Tourism Group, the leisure and tourism unit of Chinese conglomerate Fosun International, said on Wednesday that it is “financially sound”, amid reports that its parent firm is mulling the sale of a stake in the luxury Atlantis Sanya resort to cope with debt.
Fosun International has been in talks with potential buyers – including state-backed companies and investors from the Middle East – over the sale of a part or all of its stake in the resort on Hainan, an island province in southern China known for its tropical climate and sandy beaches, Reuters reported on Tuesday. The value of a potential stake sale is unclear, the report said.
“Fosun Tourism is always reviewing and optimising its business portfolio, focusing on the growth of its core businesses and strengthening its operational capabilities,” Fosun Tourism said in a written response to the Post.
“Currently, [Fosun Tourism] is operating well, and it is financially sound.”
Fosun International, whose businesses include tourism, real estate and financial services, had recorded a total revenue of 97.1 billion yuan (US$13.48 billion) for the six months to the end of June last year. Its “happiness” segment, covering brands, tourism and leisure, accounted for more than 44 per cent of total revenue, according to the group’s interim report.
With 220.9 billion yuan of total debt as of the end of June last year, Fosun International has been making plans to sell assets in recent months.