July 6 (NBD) -- Chinese conglomerate Fosun International Limited (00656. HK) Wednesday announced that it has submitted an application for the proposed spin-off and separate Hong Kong-listing of its wholly-owned subsidiary, Fosun Tourism and Culture Group (Cayman) Company Limited (FTC).

FTC and its subsidiaries constitute an integrated tourism group that provides customers with one-stop tourism and leisure lifestyle experiences.

According to financial results of Fosun International for the year 2017, the company reaped approximately 88.03 billion yuan (13.3 billion U.S. dollars) in revenue, and the profit contributable to shareholders of the parent company stood at 13.16 billion yuan (2.0 billion U.S. dollars), to which the happiness sector (mainly tourism and culture businesses) only contributed 3.8 percent, far lower than the health sector's 10.4 percent and the wealth sector's 85.8 percent.

Happiness, health and wealth sectors make up Fosun International's customer-to-maker (C2M) ecosystem.

With regard to the reason why Fosun International chose to spin off the tourism and culture businesses with relatively small profit contribution, Shen Meng, executive director of Chanson Capital, explained Fosun International may get a head start amid market downturn. However, Shen also mentioned the possibility of financial strain caused by concentrated listings in Hong Kong in a short period of time. 

Email: tanyuhan@nbd.com.cn