Fosun Internatio Stock Price, News & Analysis

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.

Fosun International (FOSUY) Chairman Guo Guangchang's shareholder letter highlights the company's 2024 performance and strategic direction. The company executed significant asset divestments totaling RMB17.5 billion at group level and RMB30.0 billion at consolidated level, focusing on core business streamlining.

Key developments include: overseas revenue reaching 49.3% of total revenue, technology innovation investments of RMB6.9 billion, and premium income growth in insurance operations with Pramerica Fosun Life Insurance surging from RMB4,346 million to RMB9,251 million. The company repaid RMB11.1 billion in matured public bonds and successfully issued USD300 million in offshore bonds.

Fosun's core focus remains on health, tourism, culture, consumption, and insurance sectors, implementing an asset-light strategy while strengthening global operations. The company maintains an MSCI ESG rating of AA for four consecutive years.

Fosun International (FOSUY) reported its 2024 annual results with total revenue of RMB192.14 billion and industrial operation profit of RMB4.9 billion. The company's four core subsidiaries generated RMB134.65 billion, representing 70.1% of total revenue.

Key financial metrics include:

• Total debt to capital ratio: 52%
• Cash and bank balance: RMB106.34 billion
• Overseas revenue: 49.3% (up 6.2% YoY)
• Technology innovation investment: RMB6.9 billion

The Group reported a loss attributable to owners of RMB4.35 billion, primarily due to a one-off non-cash loss. Excluding this effect, profit was RMB0.75 billion. The company completed asset divestments worth RMB17.5 billion at group level and RMB30.0 billion at consolidated level. In November 2024, Fosun successfully returned to the offshore USD bond market and maintained its BB- credit rating with stable outlook from S&P.

Fosun International (FOSUY) has successfully refinanced a USD 870 million equivalent syndicated loan due March 28, 2025. The refinancing includes a new USD 675 million three-year sustainability-linked syndicated loan, jointly led by major Chinese and international banks.

The new loan, representing the largest syndicated loan for a Chinese private enterprise this year, was led by Bank of China, China Construction Bank, Bank of Communications, BNP Paribas, Commerzbank, HSBC, MUFG, and Standard Chartered. The deal includes a greenshoe option for additional bank participation.

Additionally, Fosun High Technology, a wholly-owned subsidiary, secured a RMB 1.23 billion three-year syndicated loan in China. The company also successfully resumed USD bond issuances in November 2024 and January 2025, demonstrating its progress in diversifying financing channels.

Fosun International Chairman Guo Guangchang addressed the 25th Annual Conference of Yabuli China Entrepreneurs Forum, emphasizing that private enterprises thrive with fair competition opportunities and commitment to product excellence. Despite economic challenges, Fosun has seen positive consumer response across its portfolio, with high occupancy at Atlantis Sanya, strong sales growth for Shede Spirits, and successful tourism ventures.

Over the past two years, Fosun has strategically divested over RMB80 billion in non-core assets, significantly reducing debt and successfully navigating its "maturity wall." The company is now focusing on its core advantages in health, tourism, and consumption sectors. Recent initiatives include establishing a RMB5.0 billion biomedical industry fund with Shenzhen Municipal Government and advancing tourism projects.

Fosun's global presence spans 35 countries and regions, with notable success in biopharmaceuticals through Shanghai Henlius, which recently launched its PD-1 monoclonal antibody in the European Union. The company is actively integrating AI technology across its business sectors to enhance efficiency and drive innovation.

Fosun International has signed a Memorandum of Strategic Cooperation with the Abu Dhabi Investment Office (ADIO) on February 20, 2025, marking a significant expansion into the Middle East region. The agreement will provide Fosun with tailored investment support, streamlined market access, and strategic resource connections in key sectors including healthcare innovation, wealth management, fintech, tourism, and Hive City projects.

The company has already made notable progress in the Middle East market over the past six months: Roc Oil completed an acquisition of Tethys Oil AB's oilfield blocks in Oman; Henlius entered a strategic collaboration with SVAX in Saudi Arabia; and FFT formed a joint venture with Khaled Juffali Company to provide automated production line solutions for Saudi Arabia's electric vehicle industry.

Fosun International (HKEX: 00656) has been selected for the S&P Global's Sustainability Yearbook 2025 for the second consecutive year, highlighting its strong ESG performance. Out of 7,690 companies assessed across 62 industries, only 780 were selected, with just 10 from the industrial conglomerates sector.

The company achieved a CSA score of 70 in 2024, placing it in the top 5% among global peers and approximately 40 points above the industry average. Fosun has maintained an MSCI ESG rating of AA since 2021 and holds an HSI ESG rating of AA-.

Notable achievements include ranking in the top 1% in S&P Global's Sustainability Yearbook 2024 (China Edition) and recognition as an "Industry Mover". The company's "Rural Doctors Program" was also featured among the UN Global Compact's "20 Cases of Private Sector's Sustainable Development in China for 20 Years" in November 2024.

Fosun International (HKEX: 00656) has signed a strategic cooperation agreement with Natixis Corporate & Investment Banking on January 16, 2025. The agreement strengthens their partnership that began in 2010 and was enhanced in 2014. Under the new agreement, Natixis CIB will provide Fosun with consulting and financial services in financing, transaction structuring, and risk hedging, leveraging its expertise in specialized fields and operations in Europe and the Americas.

The agreement was signed at the Bund Finance Center by Zhang Houlin, Senior Vice President and Co-CFO of Fosun International, and Liu Hong, Senior Country Manager, Greater China, Natixis CIB. Fosun, which operates in more than 35 countries, will benefit from Natixis CIB's network and resources to support its global development strategy. Natixis CIB, a subsidiary of French banking group Groupe BPCE, will utilize its high credit ratings and stable funding sources to support this partnership.

Fosun International has achieved a significant milestone in S&P Global's 2024 Corporate Sustainability Assessment (CSA), scoring 70 points and ranking in the top 5% among global peers. This represents an improvement from their previous score of 68 points and top 6% ranking last year, significantly outperforming the industry average of 30 points.

The company received balanced scores across key dimensions: 72 in governance and economic, 68 in environmental, and 71 in social aspects. Notable achievements were recorded in Business Ethics, Environmental Policy, Energy, Climate Strategy, Risk Management, Human Capital Development, and Customer Relationship Management.

Fosun's commitment to ESG is further evidenced by its inclusion in S&P Global's Sustainability Yearbook 2024, its AA rating from MSCI ESG (unique among Greater China conglomerates), and its consistent presence in the FTSE4Good Index Series. The company recently launched its sustainable development strategy 'Create IMPACT' to drive innovation and global sustainability initiatives.