The Lombard Odier Group Reports Results for the First Half of 2014

GENEVA, Aug. 28, 2014 /PRNewswire/ —

  • Total client assets on 30 June 2014 amounted to CHF 211 billion of which assets under management were CHF 156 billion 
  • Consolidated net profit was CHF 62.5 million for the Group 
  • Fully-loaded Basel III CET1 ratio stood at 23.8%  

Assets under management and strategic diversification across three business lines 

Several years ago, Lombard Odier decided to accelerate the expansion of its private client business in Europe, Asia and Switzerland, to sharpen the scope of its asset management business and to turn its technology platform into a profit centre. This long-term strategic evolution is showing steady progress and positions the firm for the future.

As a result, today the Group is organised around three business lines with total client assets at the end of June 2014 of CHF 211.0 billion. Total client assets in the private clients business amounted to CHF 114.7 billion. Asset management clients invested CHF 47.8 billion. Technology and banking services clients entrusted an additional CHF 48.5 billion of assets to Lombard Odier.

Solid earnings 

The Group’s consolidated income in the first six months was CHF 527.1 million and the operational cost base was CHF 429.7 million. Operating cost-income ratio for the Group stood at 80%, reflecting long-term investments in three strategic areas: the private client businesses in Europe, Asia and Switzerland; asset management expertise for institutional clients; and further developments into the technology platform that Lombard Odier provides to third parties.

“These results are in line with our expectations and reflect both the investments we make towards our strategic objectives as well as the conservative use of our balance sheet,” said Patrick Odier, Senior Managing Partner. “Our Group is increasingly diversified, more international and more balanced between private and asset management clients and we are expanding our partnerships with financial services providers. Our solid net profit allows us to continue investing in all three businesses.”  

Strong and liquid balance sheet 

The consolidated balance sheet totals CHF 17.1 billion and is conservatively invested. The Group has no external debt and is well capitalised with a fully-loaded Basel III CET1 ratio of 23.8%, which is well above the FINMA’s 12% target. The Liquidity Coverage Ratio was 653%.

One of the Group’s objectives is to remain one of the best capitalised banks in the world. Lombard Odier’s strong capitalisation is a foundation of its clients’ trust in the firm.

About Lombard Odier 

Lombard Odier provides its private clients with a full range of bespoke services such as succession planning, discretionary and advisory portfolio management, tax reporting and custody services. With a view to remaining close to its clients’ needs, the Group is able to harness expertise and technology to provide wealth management solutions across the globe. Lombard Odier has developed significant private banking operations in Europe, Asia and Switzerland.

Lombard Odier Investment Managers (LOIM), the Group’s asset management unit, seeks to deliver performance by identifying sources of both risk and return through absolute return, smart beta and high conviction strategies. LOIM offers its clients a range of innovative solutions including risk-based asset allocation, thematic equity investments, convertible bonds and absolute return as well as alternative strategies.  

Lombard Odier provides its technology and banking clients with its own IT and operational infrastructure as well as global custody and reporting services.

The Lombard Odier Group has a presence in the world’s main financial centres and offers its clients a global perspective through its network of offices in 19 jurisdictions. The Group employs about 2,000 people.

The Group has a AA- Fitch rating with a “stable” outlook.

Lombard Odier is headed by eight Managing Partners, who represent up to the seventh generation of bankers running the Firm. They are both owners and managers and are involved with leading the firm’s strategy and management as well as serving clients. Since its founding in 1796, the Firm has stayed true to its primary vocation of preserving and nurturing the assets entrusted to it and helping to hand them to future generations.

For more information: http://www.lombardodier.com

Bank Lombard Odier & Co Ltd
Rue de la Corraterie 11
1204 Geneva
http://www.lombardodier.com

Warren Giles
Media Relations (English)
Tel: +41(22)709-31-57
w.giles@lombardodier.com

Christoph G. Meier
Head of Communications
Tel: +41(0)22-709-17-46
c.meier@lombardodier.com

Marionna Wegenstein
Pressverantwortliche (Deutsch)
Tel: +41(44)214-14-10
m.wegenstein@lombardodier.com

Media Relations
Tel: +41(22)709-21-21

Francois Mutter
Relations Medias (Francais)
Tel: +41(22)709-93-64
f.mutter@lombardodier.com

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China Fordoo Holdings Limited (Stock Code: 2399) Announces 2014 Interim Results

— Turnover Reached RMB766.2 Million

— Gross Profit Increased by 13.0% to RMB269.1 Million

HONG KONG, Aug. 28, 2014 /PRNewswire/ — China Fordoo Holdings Limited (“Fordoo” or the “Company” and, together with its subsidiaries, the “Group”, Stock Code: 2399), a reputable menswear brand in the PRC, is pleased to announce its interim results for the period ended 30 June 2014 (the “period”).

During the period, benefited from the growing recognition of the Group’s “FORDOO” brand and an increase in the average wholesale price of products, the Group’s turnover increased to RMB766.2 million, representing an increase of 6.8% over the corresponding period last year (1H2013: RMB717.4 million). The expansion of distribution network further strengthened the profitability of the Group. Net profit increased by 8.5% to RMB128.7 million over the corresponding period in 2013. Basic and diluted earnings per share were RMB36 cents, representing an increase of 8.5% as compared to the corresponding period last year (1H2013: RMB33 cents).

Mr. Kwok Kin Sun, Executive Director, Chief Executive Officer and Chairman of the Board said, “In the first half of 2014, China’s economic growth continued to slowdown and the retail market remained weak. For the apparel retail industry, the total retail sales of garments, hats, footwear and knitwear recorded a 10.0% year-on-year increase, which was 1.9 percentage points lower than that of the corresponding period in 2013. Therefore, the Group adopted a prudent operation strategy and focused on improving the distribution channel management and enhancing product quality and design. We are very satisfied that the purchase orders from the sales fair held in March 2014 increased by 24% from the ones held in September 2013.”

Business Review

As a reputable menswear brand in the PRC, by product type, Fordoo continued to lead the market in the men’s trousers segment. In the first half of 2014, turnover from men’s trousers increased by 16.9% to RMB458.1 million as compared to the corresponding period last year (1H2013: RMB392.0 million). In addition, sales of trousers remained the major contributor to the total turnover with a proportion of 59.8%. In terms of product style, the Group maintained a healthy growth in the business formal and business casual series. The business casual series continued to be the largest turnover contributor to the Group with a proportion of 63.4% (1H2013: 61.1%).

The Group has been striving to optimize its retail and sales network for the sustainable business growth. As of 30 June 2014, the retail and distribution network of the Group further expanded to 52 distributors and 180 sub-distributors. During the period, the Group had a total 1,353 retail outlets (including 2 self-operated retail stores), representing a net increase of 53 retail outlets as at 31 December 2013, spanning over 240 cities and 31 provinces, autonomous regions and central government-administered municipalities in the PRC. The increase in retail outlets was a strategy to further penetrate into the markets in the second and third-tier cities.

In the first half of 2014, as part of the Group’s marketing and promotion plan to enhance and reinforce its brand image, the renovation of 41 existing stores had completed, and the plan for renovating another 59 stores by the end of the year remained on track. In addition, the Group continued to actively carry out regular advertising and promotion campaign through various channels, such as advertisements in fashion magazines, promotion activities in the internet and other media, as well as advertisements on large outdoor billboards in airports, highways and well-known department stores.

Prospects

Looking ahead to the second half of 2014, the Group sustains its cautiously optimistic view with respect to the growth of consumer demand in menswear market in China. It is confident that the ongoing urbanization and expanding middle class in China will generate a strong demand on apparels in the long run. Therefore, the Group maintains its target for distributors of adding approximately 200 retail outlets within the year. In the coming 2014 spring/summer sales fair to be held in September 2014, the Group will launch a new casual fashion line targeting young customers aged 18 to 30.

Mr. Kwok concluded, “Fordoo will strive to seize the opportunities arising from the continuous growth of the men’s casual wear and trousers market in PRC, as well as strengthen its cooperation with the distributors and sub-distributors. The Group will equip itself for the future development through enhancing its product design and development capability and kicking off the implementation of the ERP system. Driven by the success of men’s trousers, business formal and business casual series, it is believed that the Group could continue its sustainable growth and maximize shareholders’ returns.”

– End –

About China Fordoo Holdings Limited

Fordoo is a reputable menswear brand in the PRC. Positioned in the middle-upper menswear segment, Fordoo primarily targets men aged 30 to 60. According to Frost & Sullivan, Fordoo brand was ranked sixth in the middle-upper menswear market with a market share of 2.9%, fifth in both the middle-upper business casual menswear segment and the middle-upper business formal menswear segment with respective market share of 4.0% and 2.9%, and second in the men’s trousers category with a market share of 3.0%, all of which were in terms of retail sales in 2013. Fordoo manages and operates the business through a strategically integrated model, comprising brand management and marketing, design and product development, ordering process, procurement of raw materials, self-production and outsourced production and sales and distribution. As of 30 June 2014, Fordoo’s distribution network comprised of 52 distributors, 180 sub-distributors and 1,353 retail outlets (excluding the two self-operated stores).

Issued by Porda Havas International Finance Communications Group for and on behalf of China Fordoo Holdings Limited.

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Frost & Sullivan: Lean Strategies and Decentralized Value Chains Fuel RFID Uptake in Manufacturing

— Automotive and aerospace industries represent key growth areas

MOUNTAIN VIEW, Calif., Aug. 27, 2014 /PRNewswire/ — The business model and structure of the manufacturing industry has grown well beyond the scope of a single enterprise and location, making radio frequency identification (RFID) solutions indispensable to its functioning. With increasing adoption of lean manufacturing strategies prompting most industry players to focus on and outsource niche operations within global supply chains, RFID solutions will help sustain high levels of performance.

Frost & Sullivan

Frost & Sullivan

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New analysis from Frost & Sullivan, Analysis of the Global RFID in Manufacturing Market, finds that the market earned revenues of $1.29 billion in 2013 and estimates this to nearly quadruple to $4.99 billion in 2020. The study covers passive, active and battery-assisted passive RFID. Over the forecast period, demand for active RFID will increase to fulfill business needs more efficiently.

For complimentary access to more information on this research, please visit: http://bit.ly/XPtW5v.

Use of RFID technologies enhances supply chain visibility and total control of inventory, operations and logistics across diverse manufacturing points. As RFID solutions facilitate real-time tracking of assets in different locations, it increases productivity enabling cost-effective allocation of resources. These benefits, along with reduced labor requirements, information accuracy, improved sales and customer service boost RFID adoption among manufacturing participants looking to realize higher return on investment.

“Opportunities for RFID solution providers exist across all application segments within the manufacturing industry,” said Frost & Sullivan Measurement & Instrumentation Senior Research Analyst Nandini Bhattacharya. “Growth prospects in the automotive and aerospace manufacturing sectors are especially promising owing to supportive industry regulations.”

However, as long as the economic situation remains uncertain, customers — particularly small and medium enterprises — will be reluctant to invest in RFID solutions unless they see a direct correlation between implementation of these technologies and cost-saving advantages. Cost is, therefore, a discerning factor for consumers’ RFID purchasing decisions. Scalability of solutions and technology support will be important criteria influencing uptake.

“Partnerships and acquisitions are rampant and necessary for this market to continue to expand,” noted Bhattacharya. “Without such collaborations, the breadth of knowledge and expertise needed for success is typically too wide even for the largest of companies.”

Analysis of the Global RFID in Manufacturing Market is part of the Automatic Identification (http://www.autoid.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Analysis of the Global 2D-Barcode Scanners Market, Analysis of the Global RFID Tags Market, Analysis of the Global RFID and Bar Code Printers Market, and Emerging Opportunities in Global Biometrics Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Global RFID in Manufacturing Market
ND1A-11

Contact:
Ariel Brown
Corporate Communications – North America
P: +1.210.247.2481
E: ariel.brown@frost.com

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South-East Asian Leaders Discuss the Progress and Challenges with ASEAN Integration At The Economist Events’ South-East Asia Summit

JAKARTA, Indonesia, Aug. 27, 2014  /PRNewswire/ — Regional leaders from across government, business, academia, multilateral institutions and non-government organisations (NGOs) came together today at The Economist Events’ South-East Asia Summit to discuss the political, economic and strategic rationale for South-East Asian nations seeking a more integrated region. The event, held in Jakarta at the Ritz-Carlton Hotel, Mega Kuningan, brought together more than 160 high-level executives to explore how greater regional integration is affecting South-East Asia’s economic growth and its interaction and connections with the rest of Asia.

During the keynote panel discussion, Idris Jala, Minister in the Malaysian Prime Minister’s Department and Chief Executive Officer of the Performance Management and Delivery Unit (PEMANDU), expressed how South-East Asia was moving from a loose neighbourhood of states to a connected regional community, through greater political, economic and social integration and the growing importance of the Association of Southeast Asian Nations (ASEAN), in the lead up to the ASEAN Economic Community 2015. However, Jala remarked on how ASEAN still faced many challenges.

“The first challenge is that ASEAN countries are at very different levels of development…There has to be a self-assessment of where each country is in terms of achieving goals set down by ASEAN. A consolidated assessment of where we are. We will then know where the gaps are…ASEAN was never intended to be like the European Union, nonetheless though, if we really believe in greater ASEAN integration, we need to move to greater compliance with ASEAN Economic Community obligations and commitments.

“If you want ASEAN to progress, we need to define the obligations for collaboration and then define the rules for competition. The private sector wants clear rules….There is tremendous opportunities for companies laying a footprint across ASEAN, but we need to lay down clearer frameworks for them.”

Visit the South-East Asia Summit website here, which includes the full programme and speaker details.

To select and download photos from the event, please click here: https://edelmanftp.box.com/s/btgy6la9vh378iyt8opj

Supporters of The Economist Events’ South-East Asia Summit include HSBC as the Lead Sponsor. Asian Institute of Finance and Deloitte are the Supporting Sponsors. Melbourne Business School is the Academic Sponsor. Edelman is the Official PR agency.

Media Contact
Edward Parker
Email: Edward.Parker@edelman.com 
Phone: +62-21-721-59000

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Insurance Segment Taking Shape, Investments Gathering Strengths: Fosun Adheres Comprehensively to the Warren Buffett Model

HONG KONG, Aug. 27, 2014 /PRNewswire/ — Fosun International Limited (together with its subsidiaries, “Fosun” or the “Group”, HKEx stock code: 00656) announces today its interim results for 2014. As at June 30, 2014, net assets attributable to owners of the parent of the Group amounted to RMB43.99 billion, up 11.0% from end-2013. Profit attributable to owners of the parent of the Group amounted to RMB1.83 billion, up 8.4% from the same period of 2013.

Fosun has been persistently making a major stride towards becoming a world-class investment group underpinned by the twin drivers of “insurance-oriented comprehensive financial capability” and “industrial-rooted global investment capability” since the beginning of 2014 to date. Following the completion of the acquisition of the three insurance companies namely Fidelidade, Multicare and Cares under Caixa Seguros e Saude (“CSS”) of Portugal (“Fosun Insurance Portugal”); the successful investment in one of the largest independent private banks in Europe, BHF of Germany; the successful acquisition of the Japanese real estate capital management firm IDERA; and signing of an equity purchase agreement with the US insurance company Ironshore Inc., the Group’s “insurance-oriented comprehensive financial capability” under the twin drivers development model has already taken on firm foothold. Meanwhile, Fosun will continue to leverage and pursue its another driver of “industrial-rooted global investment capability”, seeking to deliver more successful investment cases under the value investing principle.

Insurance funds available for investments close to RMB120 billion

Significant enhancement of Fosun’s “insurance-oriented comprehensive financial capability”

Fosun has always been considering the development of the insurance business as a premium path in connecting its investment capability to long-term high-quality capital. Currently, Fosun’s insurance business comprises over one-third of its total assets. Fosun’s latest investment in insurance business was signing an equity purchase agreement with the US insurance company Ironshore Inc., for acquisition of 20% of its total outstanding ordinary shares (on a fully diluted basis) and to become its largest shareholder. Excluding the investment in Ironshore of which the acquisition has not yet been closed and completed, Fosun’s insurance segment comprises four companies, namely Yong’an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance and Fosun Insurance Portugal, constituting a comprehensive insurance platform underpinned by property and casualty, life, and re-insurance. Following the successful completion of the Fosun Insurance Portugal acquisition on May 15, 2014, Fosun successfully matched and commenced a total of 14 equity and debt investment projects for Fosun Insurance Portugal, including investments in the Portuguese power grid company Redes Energeticas Nacionais SGPS, S.A. (REN), China’s leading film distributor with an integrated business chain Bona Film Group, etc., aggregating an investment amount of approximately EUR460 million. Leveraging its successful connection to Fosun’s investment capability, the profit attributable to owners of the parent of insurance segment amounted to RMB114.5 million during the first half of 2014, up 19.9% from the same period of 2013, with an investible fund stood at approximately RMB119.06 billion.

Besides investing in the insurance segment, Fosun also extended its footholds to the comprehensive financial area including banking, real estate capital management, securities brokerage and asset management. Fosun succeeded in investing in one of the largest independent private banks in Europe, BHF of Germany in the first half of 2014. For this transaction, Fosun acquired an approximately 19% interest in KBG to secure an indirect ownership of the BHF and the well-established UK private bank with a very long history, Kleinwort Benson, thereby gaining footholds in two big financial hubs, Frankfurt and London. Fosun will capitalize on their connections with billionaires and family enterprises to establish a platform and a network for Fosun’s investment businesses in Europe. It is the first time Fosun holds indirect interests in a private-banking business which will successfully enhance its comprehensive financial capability. In addition, Fosun completed the acquisition of a 98% equity interest in a Japanese real estate capital management firm IDERA. Japan is one of the important markets in the global property investment mix for institutional investors. IDERA will become the most important property investment and management platform in Japan for Fosun. After the IDERA acquisition, the Group can efficiently acquire capital and asset management capability in the Japanese property market. In July 2014, Fosun acquired Hong Kong Hani Securities (It is still waiting for the final approval by the SFC). Hani Securities has licenses including for dealing in securities and assets management. Looking forward, it will help secure a foothold for Fosun in supporting “Shanghai-Hong Kong Stock Connect” and start pursuing differentiated assets management business in Hong Kong, while engaging in further development with Fosun’s other financial platforms.

Investments gathering strengths

Accomplished successful large-scale global value investment cases based on deep industrial footholds in China

During the first half of the year, Fosun sped up establishment of localized investment capabilities in overseas markets. It proactively invested in local platform entities, put together local partner teams in Europe, the US, Japan, Hong Kong, Southeast Asian countries and regions. Ripping benefits from the significant acceleration of globalization of China’s growth momentum, Fosun completed many investments across Asia, Europe and North America. Fosun’s global investment strategies are based on “benefits from China’s growth momentum” to further implement its “industrial-rooted global investment capability”, accomplishing a long list of value investment cases.

On the top of its successful investments in the global leisure resort hotel chain Club Med of France and the Greek renowned fashion retail group Folli Follie, etc., Fosun took its “Combining China’s Growth Momentum with Global Resources” investment model further. Since last year until lately, Fosun and funds under its management invested, respectively, in the US high-end female apparel brand St. John, the premium Italian menswear manufacturer Caruso, the world’s leading medical and cosmetic energy-based device manufacturer Alma Lasers originated in Israel, the largest lifestyle restaurant chain group in Southeast Asia Secret Recipe, a leading German fashion and lifestyle brand TOM TAILOR, as well as a renowned Spanish premium ham, wines and spirits producer Osborne Group. Fosun believes in co-operation with its investees and partners to discover and share investment opportunities brought about by China’s sustaining economic growth.

Fully “Embracing the Mobile Internet”: already become a major mobile internet investor in China

Facing the comprehensive reform brought about by the internet, Fosun proactively implement its “Embracing the Mobile Internet Strategy”. Following the successful investment in Perfect World and completion of the Focus Media privatization, Fosun and funds under its management expanded their mobile internet investments comprehensively in many areas, including the internet medical company Scanadu; the online education companies such as Mofangge, and Uniquedu; the mobile game portal Joyme.com; and the online travel company Lailaihui.com; and Southeast Asia mobile internet company Main Spring, etc. Furthermore, Fosun also invested in high-growth traditional industries ancillary to the internet, including distribution warehousing, freight express, smart logistics systems, etc., such as China Smart Logistics Network (CSN) “Cainiao”. Fosun and funds under its management also invested in and pushed forward traditional enterprises to innovate and achieve O2O, for example, invested successfully in Ali Small-Loan and participated in its rapid growth. In the first half of 2014, the Group has a total of 18 PE and VC projects in the internet sector, for investment amounts aggregating approximately RMB1.85 billion.

Spearheaded investments in industries associated with middle-class lifestyles

Exponential growth in successful cases of experience-driven consumption and consumption upgrade

China’s middle class population is growing rapidly, and the middle class lifestyles are set to become the major driver of consumption in the country. Fosun is eyeing on investment opportunities brought about by the changing lifestyles of the middle class in China, extending its footholds in experience-driven consumption in tourism and the filming and television entertainment industry, as well as focusing on investments in consumption upgrades, etc.

Fosun further extended its investment footholds in experience-driven consumption in the first half of 2014, initiated at a high starting point in the filming and television entertainment industry by investing in Studio 8, an US Hollywood multi-platform media company; increased its holding in Bona Film Group and became the second largest shareholder; and signed a strategic cooperation agreement with one of China’s largest and strongest modern film groups Shanghai Film Group. For experience-driven tourism consumption investments, besides the investment in China International Travel Services and the increased holding in Shanghai Yuyuan Tourist Mart, Fosun continued to develop the world’s third ultimate high-end hotel and ocean theme park Atlantis Resort along the Haitang Bay National Coast in Sanya, Hainan, with Kerzner Group, while facilitated Club Med’s expansion in China and on the heels of Yabuli and Guilin resorts, Club Med has already beta-launched its third resort in China this year. Meanwhile, Fosun persists in its focus on investments in consumption upgrades. Since the beginning of 2014 to date, Fosun and funds under its management invested in the leading lifestyle restaurant chain group in Southeast Asia Secret Recipe, a renowned Spanish premium ham, wines and spirits producer Osborne Group, a leading German fashion and lifestyle brand TOM TAILOR etc.

Transformation of traditional property businesses: Full landing of “Hive Community”, a PPP urbanization model that pioneered provision of core urban functions, industry-backed urban development and urban-industry integration

Implementing the new model of urbanization is a major highlight of the Central Government, and a major driver of the sustaining economic development in China. Hive Community is a product integrated Fosun’s industrial resources to assist local governments in the construction of core urban functions, with a key feature of “industry-backed urban development and urban-industry integration”. Through providing core urban functions required by the cities, Fosun is able to take a lead in introducing its core industrial resources and to further introduce ancillary industries that support the core industries, with a view to promoting “Urban-Industry integration” by establishing a 24-hour plus 3-in-1 vibrant community for work, consumption and living, as well as introducing living and consumption services industries. The Hive Community products, therefore, provide clear and distinctive functions with active dispersal of peripheral services. They also provide adequate and diverse job opportunities (no more dormant cities, ghost cities), seeking to constitute functional communities that drive employment by industries. As such, a new model of communities which is self-sufficient and built with flexible combination of modules comprising different functions are established.

In the first half of 2014, Fosun combined its resources to fully extend property businesses migration, securing a foothold to the “Hive Community” development. Currently, Fosun has been exploring actively in this area with several satisfactory case studies: Financial Hive BFC on the Bund in Shanghai and Chengdu Financial Hive; Healthcare Hive — Shanghai Starcastle Senior Living community; Culture Hive — Shenyang Yulong City and Dongyang Woodcarving City; Tourism Hive — Atlantis Resort in Hainan; and Logistics Hive Tian Mao Plaza in Xiangyang and Ankang; comprising GFA aggregating 3.96 million sq.m.

Signficant results from long-term vigilance on and grasping of opportunities from China’s SOE mixed ownership reforms

The Third Plenary Session of the 18th Communist Party of China Central Committee proposed to “actively participate in mixed ownership reforms” which confirmed the overall direction for SOE reforms. Mixed ownership reforms are an important move for China’s further reform and opening up, deepening the SOEs reform and enhancing the state-owned assets management system and the economic system. In the past ten years, Fosun actively invested in 21 SOE restructuring projects in a number of industries, accomplished a base of valuable experiences. To grasp opportunities in history, Fosun has been actively participating in mixed ownership reforms since The Third Plenary Session of the 18th Communist Party, and invested in several leading corporates in China as Sanyuan Food in dairy industry, CNFC Fishery in overseas fishing industry and Zhongshan Public Utilities in professional environmental protection industry. (Sanyuan Food project and CNFC Fishery project are still waiting for final approval by the China Securities Regulatory Commission)

Outlook

Led by a spiritual courage of “Reinitiating two decades of entrepreneurship”, Fosun will follow the trends by combining resources, continue to enhance and implement its twin drivers of “insurance-oriented comprehensive financial capability” and “industrial-rooted global investment capability”, enabling the Group to better and timely grasp the value investing opportunities and making a major stride towards becoming a world-class investment group.

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