Guo Guangchang's Letter to Shareholders: "Repair the Roof While the Sun Is Shining" -- Fosun Aims to Go Further with Greater Stability
Rhea-AI Summary
Fosun (OTC:FOSUF) reported 2025 operating revenue of RMB173.4 billion and a loss attributable to owners of the parent of RMB23.4 billion, driven mainly by non-cash impairment provisions on certain historical projects and goodwill.
The Group said core businesses remain stable: four core enterprises generated RMB128.2 billion (74% of revenue), overseas revenue was 54.7%, operating cash flow stayed positive, and credit ratings remained stable.
Positive
- Operating revenue of RMB173.4 billion
- Core enterprises revenue RMB128.2 billion (74% of total)
- Overseas revenue at 54.7% of group sales
- Insurance growth: Pramerica scale premium RMB13.28 billion
Negative
- Loss attributable to owners: RMB23.4 billion due to impairments
- Non-cash impairments on goodwill and certain projects
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | ESG reporting award | Positive | +2.0% | Recognized with ESG reporting excellence certificate and highlighted large sustainability-linked loan. |
| Jan 21 | ESG index inclusion | Positive | -17.2% | FTSE4Good inclusion with higher FTSE Russell ESG score and strong external ratings. |
| Dec 21 | ESG awards, products | Positive | -11.5% | TVB Outstanding ESG Award plus updates on biopharma partnerships and product reach. |
| Nov 20 | ESG leadership award | Positive | -12.5% | Named ESG Leading Enterprise with strong ESG ratings and impact metrics disclosed. |
| Nov 06 | Sustainability awards | Positive | -1.1% | Won Gold Award and Best Sustainability Team with reaffirmed carbon and ESG commitments. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive ESG and sustainability news has often coincided with negative price reactions, indicating a pattern of the stock selling off or failing to hold gains on good news.
Over the past several months, Fosun’s news flow has centered on ESG recognition and sustainability leadership. From November 2025 through February 2026, the company collected multiple ESG awards and index inclusions, alongside strong ratings from MSCI, FTSE Russell, HSI, and S&P Global. Despite these positive reputational milestones, shares frequently traded lower after such announcements. Today’s letter shifts focus to 2025 financial performance, non‑cash impairments, core business growth, and medium‑term financial goals, adding a profitability and balance-sheet dimension to a narrative previously dominated by ESG achievements.
Key Terms
impairment provisions financial
goodwill financial
intangible assets financial
biosimilar medical
antibody-drug conjugate ("ADC") medical
cell therapy medical
radiopharmaceuticals medical
artificial intelligence ("AI") technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Dear shareholders,
Today, I would like to have an open and honest conversation with our shareholders, reflecting on Fosun's journey in 2025, sharing our thoughts, and outlining where we are heading next.
In 2025, the Company recorded a loss attributable to owners of the parent of
A loss is never desirable. Such a result is also unprecedented in Fosun's more than thirty years of development. Although the loss is mainly non-cash items, we missed our profit expectations. As the Company's Chairman and Founder, I would like to express my sincere apologies to all shareholders and partners who care about Fosun's development. Over the years, Fosun has been bold in exploring and experimenting. We have had our share of successes and some missteps, each coming with valuable lessons learned. In recent years,
In terms of operating fundamentals, Fosun recorded operating revenue of
It is precisely this strong foundation, together with the continued support of our partners, that gives us the confidence and determination to "repairing the roof on a sunny day". This is the moment to shed historical burdens and pursue predictable, sustainable growth. We must strengthen our core businesses with greater focus and depth to achieve steadier, longer-term growth in the next phase.
Smart innovation and integrated innovation driven by innovation
Going global or going obsolete. Innovation works the same way. Innovate or be left behind. In this fast-paced era, we must remain committed to innovation, especially smart innovation. We must collaborate with others and learn from others. Innovation is not a solo endeavor, nor should it happen behind closed doors. That is why I have always emphasized "integrated innovation", building an innovation system with two core capabilities, "global research and development ("R&D") + global business development ("BD")".
In 2026, we will place even greater emphasis on innovation as our top priority, steering Fosun's transition from scale expansion toward quality enhancement, and from resource integration toward value creation.
We have always been committed to pharmaceutical innovation. As early as 2006, we began systematically building our pharmaceutical R&D capabilities, starting with high-value generic drugs and steadily advancing toward true innovation. In 2019,
Looking back, we now have nearly 70 major pipeline projects on innovative drugs (calculated by indications), forming a tiered pipeline spanning "early-stage frontier research, mid-stage proof-of-concept, and late-stage clinical expansion". By continuously strengthening our innovation pipeline, we are accelerating the clinical translation and commercialization of innovative technologies and products. We currently have multiple blockbuster candidates in the pipeline.
Take Henlius as an example. It has already achieved dual-engine growth driven by both biosimilars and innovative drugs. Core products like HANLIKANG, HANQUYOU, and HANSIZHUANG have been approved for marketing in around 60 countries and regions worldwide. HANSIZHUANG has not only been launched in
In terms of artificial intelligence ("AI"), I have been following it closely over the past few years. However, we are not chasing the concept of large language models. For us, AI is not about appearances; it is about solving real problems. And we have already made tangible progress. Fosun Pharma's PharmAID® Pharmaceutical Intelligence Platform now delivers T+1 data updates, accelerating drug R&D; FTG's AI G.O intelligent system makes tourism services more personalized. More importantly, AI is now deeply integrated into Fosun's daily operations to enhance decision-making efficiency and optimize operating costs. Going forward, we will continue to invest in AI to make it a truly practical operational tool, maximizing efficiency across the Group.
Fosun always embraces ecosystem thinking. We believe innovation thrives through collaboration, not solo efforts. Take Fosun United Health Insurance's "Ruixingbao" as an example: through our "insurance + industry" model, we integrate insurance services with premier medical resources such as Ruijin Hospital, along with pharmaceutical, healthcare, and consumer offerings. This makes insurance the connector, linking our ecosystem to families and turning ecosystem advantages into product competitiveness. Looking ahead, we will launch more products that bring together ecosystem resources to meet the needs of customers and serve more families. This is where our deepest sense of fulfillment comes from.
Innovation keeps us young. Fosun was founded 34 years ago, but we still approach every day as if it were day one, with a constant hunger for new technologies, new opportunities, and new possibilities.
Deepening global operations: from business presence to product and brand globalization
Fosun's globalization journey began in 2007 with our listing on the Hong Kong Stock Exchange. At that time, we started building our overseas business presence through equity and debt investments. Over the years, our globalization journey has evolved through three phases: from "China Expertise + Global Capability", to "Combining China's Growth Momentum with Global Resources" and then to "Combining Global Resources with
Regarding the insurance sector, our acquisition of Fosun Insurance Portugal in 2014 has evolved far beyond the initial "buyout". While continuing to deepen its presence in the local market, we have also empowered it to expand beyond
Regarding the consumer sector, Yuyuan has accelerated product innovation and channel optimization. Its catering brand, Songhelou, opened its first overseas branch in
In the Intelligent Manufacturing segment, Hainan Mining, rooted in
More importantly, our globalization strategy has evolved from "acquiring globally" to the 3.0 era of "earning globally". Our products, brands, and services are now reaching customers around the world. The proportion of overseas revenue of Henlius' products such as HANQUYOU and HANSIZHUANG continues to rise. Our nationally recognized intangible cultural heritage event, the Yuyuan Lantern Festival, along with time‑honored Chinese brands such as Laomiao, Songhelou, and Nanxiang Steamed Buns Restaurant, and Shede baijiu are also gaining growing recognition among families in overseas markets. For Fosun, globalization is not a choice, it is inevitable. We have already proven that this path works, and we will go even further in the years ahead.
Staying true to our original aspiration and adhering to long-termism
Fosun has always stayed true to its original aspiration: to do the right things, the difficult things and the things that take time to develop.
We have always said that we must learn to move with the cycles while staying grounded in intrinsic value. Fluctuations in corporate value often stem from three overlapping cycles: the industry cycle, the capital market cycle, and the company's own cycle. The first two cycles are largely beyond our control. All we can do is to remain patient and wait them out. What we can change, however, is our own cycle. How well we manage our businesses and whether we have the right people in place are precisely the things we can improve through day‑to‑day operations and management. But patience takes time, and it also requires long-term capital. What kind of company does Fosun want to be? We need sufficient long-term capital to support our growth and the resilience to navigate through cycles. Just as importantly, we need the ability to continuously transform and strengthen our businesses.
This is why we must always remain committed to long-termism. Long-termism is not simply about "waiting". It is about continuously enhancing the Company's value in the process. As we wait for the industry cycle and capital markets cycle to turn, we must first manage our own cycle well. This is the key to Fosun's ability to navigate through cycles, and it is the long-termism we have upheld for over thirty years and will continue to uphold.
Doing good through business has always been part of our original aspiration. Over the past three decades, no matter the cycle, I have firmly believed that the value a company creates comes not only from its products, but also from the lives it touches and the social responsibilities it carries. Fosun Pharma has long worked to expand global access to artemisinin‑based medicines. In addition to improving drug quality through technology innovation, we have collaborated with many global charitable organizations to build local supply networks in
Fosun has integrated ESG principles into every aspect of its development. We are actively promoting carbon neutrality and continuously investing in green energy, energy conservation and emission reduction, and eco-friendly materials. We are committed to compliant operations and we continue to strengthen transparency in our disclosures, so shareholders and the society can better understand Fosun. For us, an outstanding company is one that delivers commercial value while also taking responsibility for society and the environment.
To our shareholders and friends, "repairing the roof on a sunny day" requires both courage and resolve. Our core businesses remain solid, our liquidity position is robust, and our banking relationships remain stable. That is what gives us the confidence to move forward with this round of provisions. As we recently announced, our major shareholder and management team plan to increase their holdings in the shares of the Company and we will also proceed with a share buyback program. With our core businesses continuing to grow and our strategic plans firmly on track, we are confident in our ability to support a return of the share price to fair value and better protect the long-term interests of our shareholders. Our medium‑term financial goals are as follows: we strive to gradually restore annual profit to the RMB10 billion level; at the group level, we aim to generate RMB60 billion in cash returns, reduce total debt to below RMB60 billion, and strive to achieve an investment‑grade rating.
I would like to thank our shareholders and friends for your trust, understanding, and steadfast support over the years. Over the past more than thirty years, Fosun has come a long way and weathered many challenges. Looking back, none of it was in vain. We are grateful to this era for the opportunities it has given us, and we are equally grateful for the lessons we have paid for, which have made us more clear-eyed and more resolute.
For Fosun's future, we do not seek short-term gains; we seek to build a foundation for lasting success. We look forward to working side by side with all of you and, with prudent and pragmatic resolve and action, embracing a future in which Fosun renews itself through transformation and gathers strength for new growth.
Guo Guangchang
30 March 2026
View original content:https://www.prnewswire.com/news-releases/guo-guangchangs-letter-to-shareholders-repair-the-roof-while-the-sun-is-shining--fosun-aims-to-go-further-with-greater-stability-302728803.html
SOURCE Fosun