Fosun Tourism & Culture Group, a wholly-owned subsidiary of Fosun International, has submitted an IPO prospectus to the Hong Kong Stock Exchange, The Paper reported.

The prospectus shows that the company has continued to lose money in the past three years.

In 2015, 2016 and 2017, the net loss was approximately 954 million yuan (US$139.37 million), 473 million yuan and 295 million yuan. The loss in the first half of 2018 was approximately 135 million yuan.

It can be seen from the prospectus that high financing costs may be the main cause for losses. The latter have reached 426 million yuan, 497 million yuan, 433 million yuan and 199 million yuan respectively in 2015, 2016, 2017 and the first half of 2018.

About 20% of the funds raised in the IPO will be used to expand existing businesses, including resort business, children’s playing and learning business, cultural events, performing arts and live entertainment business.

About 30% will be used to develop the company’s Lijiang and Taicang projects and to explore new tourist destinations.