Fosun International Holds 2025 Annual Results Presentation: Fosun Has the Ability to Navigate Through Cycles

On March 31, Fosun International held its 2025 annual results presentation in Shanghai. Attending were Guo Guangchang, Chairman of Fosun International; Wang Qunbin, Co-Chairman of Fosun International; Chen Qiyu and Xu Xiaoliang, Co-CEOs of Fosun International; Gong Ping, CFO of Fosun International; as well as representatives from various institutional investors and analysts.

On the evening of March 30, Fosun International announced its 2025 annual results. During the reporting period, the group's total revenue reached RMB 173.43 billion, with adjusted operating profit from industrial operations amounting to RMB 4 billion. Fosun International's adjusted net asset value (NAV) stood at RMB 133.5 billion, with NAV per share reaching HKD 18.1. The four core subsidiaries generated revenue of RMB 128.2 billion, accounting for 74% of the group's total revenue. Among them, Fosun Pharma reported a net profit attributable to shareholders of RMB 3.371 billion, a year-on-year increase of 21.69%; while Fosun Portugal Insurance recorded a net profit attributable to shareholders of EUR 201 million, a year-on-year increase of 15.8%.

Compared with previous years, Fosun International's overall performance data remained stable. However, this year, in accordance with the principle of prudence, Fosun International made non-cash impairment provisions and value reassessments on some real estate projects showing signs of impairment and goodwill and intangible assets in some non-core business segments, resulting in an annual book loss of RMB 23.4 billion. Of this, real estate impairments accounted for approximately 55%, while non-core asset impairments accounted for about 45%. This provision does not affect the company's overall operations or cash flow.

"Fixing the roof while the sun is shining"

Guo Guangchang, Chairman of Fosun International, emphasized that this financial impairment treatment is equivalent to 'fixing the roof while the sun is shining,' marking the beginning of a new development phase for Fosun in the long term. 'We are determined to exit assets that underperform or do not meet our value standards, focusing resources on high-growth core sectors and steering the company towards a more agile, healthier, and sustainable direction.'

He introduced that from the operating performance across Fosun’s various business units, the core industries remain robust. The pharmaceutical sector has achieved continuous breakthroughs globally, with multiple products launched overseas and several promising pipelines in development. Both domestic and international insurance operations have grown, with Portugal Insurance expanding into Latin America and Africa, while UnitedHealth and Fosun P&C Life Insurance have significantly improved profitability. Additionally, Club Med within the tourism and culture segment has set new historical highs in performance.

These industries possess the ability to continuously generate profit and cash flow, which is the foundation of Fosun’s growth. After this substantial write-down, future operational results will more accurately reflect the quality of Fosun’s core businesses,' Guo Guangchang said.

From the current perspective, there is no further pressure for impairment in the future.

Following the release of Fosun's earnings, one market focus was on the company’s future impairment pressures. Wang Qunbin, Co-Chairman of Fosun International, stated during the earnings call that based on the actual operating environment of each impaired asset and the valuation cycle of its respective industry, combined with the future growth and development prospects of these assets and businesses, and following the principle of prudence as well as the requirements of Hong Kong accounting standards, the company has made prudent and full provisions for all impairment items. From the current perspective, the company does not foresee further impairment pressures going forward. Since the announcement of the asset impairments, management has proactively engaged in deep and timely communication with rating agencies, key partner banks, and investors in public bonds, receiving recognition from its partners.

Wang Qunbin added that Fosun is highly confident in its future financing capabilities. Although the financing environment and costs have continued to improve both domestically and internationally, Fosun remains committed to streamlining operations and focusing on core developments while continuously enhancing its credit ratings.

High-quality breakthroughs achieved in multiple core sectors

When discussing the key directions of Fosun's business, Chen Qiyu, Co-CEO of Fosun International, noted that Fosun will continue to focus on core industries, driving long-term value growth. First, the company will concentrate on innovation and globalization strategies to pursue better, longer-term value. Second, Fosun has a strong global insurance business that will drive healthy growth in profits and cash flow, serving as a key cornerstone of future profitability. Third, the company will advance the travel and cultural segments by moving towards asset-light and global operations to better leverage resource capabilities for efficient growth. Moreover, efforts will be made to upgrade and achieve breakthroughs for high-quality assets and businesses such as Yuyuan's gold and jewelry, Swellfun, and Hainan Mining.

Xu Xiaoliang, Co-CEO of Fosun International, stated that despite the high level of uncertainty in the global macro environment last year, Fosun achieved continuous optimization of its financial structure and steady improvement in business operations by focusing on core businesses. High-quality breakthroughs were realized in multiple core sectors. Revenue across the four major business segments — health, happiness, wealth, and smart manufacturing — grew steadily, with overseas income continuing to rise. Innovation has become a core competitive advantage, globalization has accelerated further, and global operational capabilities have been continuously enhanced. Moving forward, Fosun will continue to push strategic focus, strengthen global operational capabilities, increase innovation efforts, and invest in the future with greater confidence and determination to achieve long-term, sustainable value growth.

Full confidence in the company's future development

In response to external concerns about Fosun's financing channels and debt situation, Fosun International CFO Gong Ping stated that the group's diversified financing channels remain open, and debt costs are steadily declining. Since 2025, Fosun International has completed four long-term bond issuances offshore and successfully issued several two-year credit bonds onshore, effectively extending the debt maturity and optimizing the debt structure. The proportion of medium- to long-term debt increased from 48.7% in 2024 to 53.5%. This includes Fosun's announcement this morning of a full repurchase offer for approximately USD 205 million of its outstanding US dollar bonds maturing in May 2026 at 100% of face value, with the repurchase funds coming from the group's own capital.

Gong Ping stated that in the future, Fosun will adopt a multi-pronged approach to make the group’s asset portfolio lighter and more transparent, accelerating valuation recovery. Management has set a clear midterm target of achieving consolidated net profit attributable to shareholders of over RMB 10 billion, mainly through accelerating the sale of heavy assets and non-core subsidiaries, optimizing the asset portfolio, reducing interest-bearing liabilities at the group level to below RMB 60 billion, and lowering financial expenses. At the same time, it will actively explore possibilities for non-listed assets to access the capital markets.

Fosun's management stated during the earnings call that they have full confidence in the company’s future development. The company's board has announced a share repurchase plan, and major shareholders and the management team will also increase their holdings. In the future, Fosun will actively study and gradually introduce more initiatives to reward shareholders based on improved operations and cash flow conditions, including optimizing the dividend mechanism.

I believe Fosun has the ability to weather cycles. There may be some short-term pain, but in the long run, all these efforts are aimed at ensuring Fosun progresses more steadily and goes further.Guo Guangchang said.

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