The privatization vote passed smoothly, FOSUN TOURISM (01992) enters a new stage of light asset strategic transformation.

Privatization has finally been approved, and FOSUN TOURISM (Fosun Travel Culture, stock code: 01992) may accelerate its comprehensive transformation towards a light-asset strategy, marking a new phase in the company's development. On March 4th, Fosun Tourism held a court meeting and a special shareholders' meeting, announcing that the privatization proposal had been passed with high votes, with all resolutions being passed by a proportion of over 99%. Following the approval, the company plans to formally complete the delisting process from the Hong Kong Stock Exchange on March 19, 2025. Fosun Tourism stated that the successful approval of the privatization marks a new phase in the company's strategic transformation. After privatization, the company will accelerate its transformation into a light-asset mode, to seize the opportunities brought by the upgrading of the cultural and tourism industry and technological innovation with a more agile approach, consolidate its leading position in the industry, and continue to provide outstanding and distinctive holiday experiences for global customers. The high premium privatization plan facilitated the efficient completion of privatization. Since the announcement of privatization in December 2024, until the approval of the plan on March 4, 2025, Fosun Tourism only took less than three months to efficiently advance the privatization process, far exceeding market expectations. The buyback cancellation price for this privatization is HK$7.8, representing a 111% premium compared to the closing price of HK$3.70 on the last trading day before the privatization announcement on November 25, 2024. This exceptional premium immediately received positive feedback from the market. Since the announcement of the privatization plan, Fosun Tourism's stock price has quickly surged close to the cancellation price, with the turnover rate being below 0.2% for most trading days. In recent years, the overall liquidity of the Hong Kong stock market has been tight, leading to increased industry differentiation and limiting the stock performance of even fundamentally solid companies. Fosun Tourism mentioned that the company's stock liquidity has been consistently low, making it difficult for shareholders to sell large stakes without further affecting the stock price. In the current uncertain market environment, privatization provides a good exit opportunity for shareholders. The financial advisor hired by the company for this privatization, Houde Capital, stated that based on evaluations of the announcement, circulars, financial statements, and past financial data and market performance of the company, as well as the reasons for privatization, this transaction is fair and reasonable for independent shareholders, and they recommended shareholders to accept the privatization proposal. The efficient completion of this privatization also reflects shareholders' high recognition of the company's future strategy. In fact, since the official announcement of focusing on core businesses and transitioning to a light-asset mode in 2023, Fosun Tourism has demonstrated strong strategic execution and made substantial progress in various key areas. In terms of focusing on core business and optimizing asset structure, Fosun Tourism has actively adjusted its strategic layout by proactively exiting non-core businesses such as Thomas Cook, CasaCook, and converting some of its self-owned resorts into a light-asset model through sale and leaseback. As of June 2024, out of the 67 resorts worldwide, 56 are under a leasing and management model, accounting for 85%. These measures have not only significantly optimized the asset structure but also enabled the company to concentrate resources on building core competencies, further enhancing operational efficiency and profitability. Moreover, in expanding light-asset projects, Fosun Tourism has also shown remarkable performance. In June 2024, the company successfully signed a contract for the second phase of the Tai'an Alpine International Resort, with an investment exceeding RMB 5 billion, funded by the Tai'an municipal government platform and operated by Fosun Tourism, which marks an important milestone in the deep integration of the company's ice and snow strategy with the light-asset model. In October of the same year, the Hainan Super Mediterranean project was officially launched, with the project planning covering various product formats such as cultural performance centers, luxury hotels, crystal lakes, fashionable sports, surfing, and diving, in which Fosun Tourism plans to participate through the light-asset model. Therefore, privatization is not the end but a new beginning for Fosun Tourism. After delisting, the company will enhance decision-making efficiency and accelerate the implementation of its strategy without being affected by short-term capital market volatility and investor sentiment. At the same time, reducing the resources required to maintain a listing status will enable the company to focus more on business expansion and global market deployment. Leveraging its global scale advantages, brand strength, product capabilities, and IP operation capabilities, Fosun Tourism is expected to further expand its market share and consolidate its leading position in the industry. Additionally, in February of this year, Fosun Tourism officially announced the establishment of the AI Lab (Artificial Intelligence Innovation Center) to embrace the AI wave and empower its businesses through AI. The AI Lab will focus on the application and implementation of artificial intelligence technology in the tourism and resort industry, including technological innovation, customer experience optimization, operational efficiency enhancement, and technology implementation, especially through AI G.O (AI Resort Butler) to provide personalized services throughout the entire journey for customers. Currently, the tourism industry is transitioning from a "developer mindset" to an "industry operation mindset," and light-asset capabilities such as brand strength, product capabilities, and IP operation are becoming the foundation for long-term development of tourism companies. From these perspectives, even though Fosun Tourism has exited the Hong Kong stock market, with a clear strategic direction, strong execution capabilities, and a more agile market response speed, we are full of expectations for its future development.