Guo Guangchang: Fosun Achieves Stable Operations, Aiming for RMB10 Billion in Future Industrial Operation Profit

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Fosun International (FOSUY) held its 2024 annual results presentation, reporting total revenue of RMB192.14 billion and industrial operation profit of RMB4.9 billion. The company recorded a loss of RMB4.35 billion attributable to owners, primarily due to Cainiao investment value adjustment. Excluding this adjustment, profit was RMB750 million.

Chairman Guo Guangchang emphasized that the financial adjustment was not due to operational issues, highlighting that core businesses remain healthy. The company's overseas revenue comprised 49.3% of total revenue in 2024. Fosun aims to reduce interest-bearing debts from RMB80+ billion to RMB60 billion and targets RMB10 billion in both industrial operation profit and profit attributable to owners in the future.

The company continues its strategy of divesting heavy assets while advancing in innovative industries. Notable developments include the privatization of Fosun Tourism Group, while attempts to privatize Henlius were unsuccessful due to minority shareholder opposition.

Positive

• Strong overseas revenue contribution at 49.3% of total revenue
• Healthy industrial operation profit of RMB4.9 billion
• Strategic divestment of heavy assets to improve financial position
• 34% internal rate of return on Cainiao investment

Negative

• Net loss of RMB4.35 billion in 2024
• High interest-bearing debt of over RMB80 billion
• Failed privatization attempt of Henlius
• One-off carrying value adjustment impacting financial results

HONG KONG AND SHANGHAI, April 1, 2025 /PRNewswire/ -- On 1 April 2025, Fosun International Limited (HKEX stock code: 00656, "Fosun International"), together with its subsidiaries ("Fosun" or the "Group") held its 2024 annual results presentation in Shanghai. Addressing investors' concerns about profitability, Guo Guangchang, Chairman of Fosun International, responded that the financial adjustment in 2024 is not due to Fosun's poor operations or decline in market competitiveness, but rather a one-off carrying value adjustment. Nonetheless, Fosun's operations remain stable and its core businesses are under healthy development.

He stated that, excluding the carrying value adjustment of the Cainiao investment, Fosun's industrial operation profits and operating cash flows stay healthy and stable. Management must nevertheless remain committed and work diligently to maintain the Company's steady development in the future.

Guo Guangchang said that, in 2024, Fosun had been advancing the business streamlining strategy and pursuing "strategic advancements and exits, and balanced investment and divestment". During the year, Fosun promoted the privatization of Fosun Tourism Group and Henlius. While it is unfortunate that minority shareholders voted against the privatization of Henlius, he expressed gratitude to them, as their decision reflects their confidence in Henlius.

"Henlius is one of Fosun's most promising companies with the greatest potential, and we are optimistic about its potential to achieve product sales of USD10 billion in the future. It represents the future 'Mount Everest' of Fosun, symbolizing its most strategic advantages, and we will provide full support for its development. Fosun has always placed a strong emphasis on innovation, as well as on companies and products with significant growth potential. In our approach to 'strategic advancements and exits', we aim to divest from heavy assets and non-core operations, while pursuing advancements in innovative industries that offer immense potential and vast opportunities," said Guo Guangchang.

Regarding changes in the global landscape, Guo Guangchang noted that geopolitics affects all companies, and there is no escaping it. The key lies in how a company responds. The best approach is to develop globalization capabilities. For more than ten years, Fosun has consistently focused on building globalization capabilities, and today Fosun is increasingly reaping the rewards. In 2024, Fosun International's overseas revenue accounted for 49.3% of its total revenue. On the one hand, Fosun's globalization strategy promotes Chinese companies and advantageous industries to go global. On the other hand, it helps Fosun's overseas companies expand globally. For example, Fosun Insurance Portugal currently has 29.8% of its income from markets outside Portugal, with international business profits contributing over 50%. 

In discussing Fosun's future goals, Guo Guangchang said that Fosun will continue to divest from some heavy assets to reduce financial leverage and maintain "strategic advancements and exits, and balanced investment and divestment", while deepening its industry operations. In 2024, Fosun's industrial operation profit amounted to approximately RMB4.9 billion, and the Company aims to double it to reach RMB10 billion in the future.  Achieving this goal will require sustained efforts to drive growth in operating profits, and it is a target that we can strive for and anticipate.

"Fosun will face temporary challenges while making strategic adjustments. This process is not easy. It requires strategic determination and time to do it step by step. Fosun has always persisted in doing the right things, difficult things and things that take time to develop, and we remain dedicated to this commitment," said Guo Guangchang.

On 30 March, Fosun International announced its 2024 annual results. In 2024, the Group's total revenue reached RMB192.14 billion; industrial operation profit reached RMB4.9 billion; loss attributable to owners of the parent amounted to approximately RMB4.35 billion, mainly due to an adjustment in the carrying value of the Cainiao investment. Gong Ping, CFO of Fosun International, stated that Fosun achieved an internal rate of return of approximately 34% on the Cainiao investment. Excluding the effect of the carrying value adjustment, the profit attributable to owners of the parent in 2024 amounted to RMB750 million.

Fosun's management expressed confidence in Fosun's net profit for 2025 and is committed to steadily enhancing profitability in the future. In the next few years, the Group aims to gradually increase the proportion of overseas revenue in its global operations; progressively reduce the Group's interest-bearing debts from the current level of more than RMB80 billion to RMB60 billion; and strive to achieve RMB10 billion in industrial operation profit as well as in profit attributable to owners of the parent. Meanwhile, it will continuously improve its operational capabilities, endeavoring to attain "investment grade" ratings.

View original content:https://www.prnewswire.com/news-releases/guo-guangchang-fosun-achieves-stable-operations-aiming-for-rmb10-billion-in-future-industrial-operation-profit-302416884.html

SOURCE Fosun

FAQ

What is Fosun's (FOSUY) target for industrial operation profit in the future?

Fosun aims to double its industrial operation profit from RMB4.9 billion to RMB10 billion in the future.

How much was Fosun's (FOSUY) revenue and loss in 2024?

Fosun reported total revenue of RMB192.14 billion and a loss of RMB4.35 billion attributable to owners in 2024.

What percentage of Fosun's (FOSUY) revenue came from overseas in 2024?

Overseas revenue accounted for 49.3% of Fosun's total revenue in 2024.

What is Fosun's (FOSUY) debt reduction target?

Fosun plans to reduce its interest-bearing debts from over RMB80 billion to RMB60 billion.

What was Fosun's (FOSUY) profit excluding the Cainiao investment adjustment in 2024?

Excluding the Cainiao investment value adjustment, Fosun's profit attributable to owners was RMB750 million in 2024.