Fosun International: Total Revenue in 2025 Reaches RMB173.43 Billion, with Overseas Revenue Accounting for 54.7%，Aiming to Achieve“RMB10 Billion in Profit”

On 30 March, Fosun International (00656.HK) announced its results for the 12 months ended 31 December 2025. In 2025, Fosun's fundamentals remained solid, core industries such as pharmaceuticals and healthcare and insurance and finance demonstrated a good development trend, and the twin drivers of innovation and globalization delivered strong momentum.

During the Reporting Period, the Group's total revenue reached RMB173.43 billion, and adjusted industrial operation profit amounted to RMB4 billion. The four core subsidiaries generated RMB128.2 billion in revenue, accounting for 74% of the Group's total revenue. Among them, Fosun Pharma, a core subsidiary in the Health segment, achieved a net profit attributable to shareholders of the parent of RMB3.371 billion, representing a year-on-year increase of 21.69%; Fosun Insurance Portugal, a core subsidiary in the Wealth segment, reported a net profit attributable to owners of the parent of EUR201 million, up 15.8% year on year.

During the Reporting Period, the Group's investment in technology innovation reached RMB7.8 billion, and 16 indications of 7 innovative drugs were approved for marketing in China and overseas markets. In addition, nearly 40 innovative drug clinical trials were approved by regulatory authorities in China, the United States and Europe, while multiple core products entered key clinical phases, laying a solid pipeline foundation for subsequent commercial growth.

During the Reporting Period, the Group's overseas revenue reached RMB94.86 billion, accounting for 54.7% of total revenue, representing a year-on-year increase of 5.4 percentage points.For innovative drugs, total upfront payments from licensing-out and co-development for the year exceeded USD260 million,with total potential milestone payments exceeding USD4 billion. Club Med once again achieved record-high performance, while insurance companies in China and overseas delivered broad-based growth.

Fosun has continued to advance its strategy of "streamlining operations and strengthening the business, focusing on core businesses". During the Reporting Period, pursuant to the principle of prudence, Fosun made non-cash impairment provisions and value revaluations on certain real estate projects with impairment indicators and goodwill and intangible assets of certain non-core business segments, resulting in a book loss of RMB23.4 billion for the year, of which real estate-related impairment accounted for approximately 55%, while impairment of non-core assets accounted for approximately 45%. These provisions do not affect the Company's overall operations and cash flow.

In his letter to shareholders, Guo Guangchang, Chairman of Fosun International, stated: "Some of the projects we invested in years ago are now indeed valued differently under current market conditions from what we expected at the time of investment. Accordingly, the Board has prudently chosen to complete this asset impairment, allowing Fosun to better concentrate its resources and efforts on high-growth core sectors. As the global economy presents opportunities amid fluctuations and China's innovation industry gains momentum, deepening our strategic focus now allows us not only to optimize our asset structure, but also to seize industry opportunities, positioning Fosun as a leaner, healthier, and more sustainable company."

At the same time, Fosun has maintained a healthy financial position, with ample cash reserves, a solid net asset base, and positive net cash inflow from operating activities. As at the end of the Reporting Period, total debt to total capital ratio was 57%; in addition to cash, bank balances and term deposits of RMB61.1 billion, unutilized banking facilities amounted to RMB144.6 billion. A healthy debt ratio and ample funds not only strengthen the Company's risk resilience, but also enhance its capacity to seize opportunities. International rating agency S&P has affirmed the outlook for Fosun International's credit rating as "Stable".

"It is precisely this strong foundation, together with the continued support of our partners, that gives us the confidence and determination to 'repair the roof while the sun is shining' - to shed burdens at this stage and pursue predictable, sustainable growth for the future. We must strengthen our core businesses with greater focus and depth. This is the path for Fosun to move more steadily and go further in the next phase," said Guo Guangchang.

Fosun also announced its medium-term financial targets: to strive to gradually restore annual profit to around RMB10 billion; to target the recovery of RMB60 billion in cash at the Group level, reduce total Group-level debt to below RMB60 billion, and work to achieve an "investment-grade" rating.

In terms of further enhancing shareholder returns, in addition to share purchases by the controlling shareholder and management, as well as the Company's continued share buybacks, Fosun announced that it plans to increase its target dividend payout ratio for the 2026 financial year from the current 20% to 35%, and is committed to further raising the payout ratio over time.Based on the Company's accumulated distributable profits, dividends for the 2026 financial year are expected to be no less than HKD1.5 billion.

"For the future, Fosun will not pursue short-term gains; instead, we will build a solid foundation for enduring growth," said Guo Guangchang.