04/01/2025
HONG KONG, Apr 1, 2025 - (ACN Newswire via SeaPRwire.com) - Fosun International (HKEX: 0656), which is committed to advancing its core business-focused and business streamlining strategy, announced its 2024 annual results on 30 March.According to the results announcement, in 2024, Fosun International’s total revenue reached RMB192.14 billion, representing a slight decrease of 3.1% from 2023. Its four core subsidiaries – Yuyuan, Fosun Pharma, Fosun Insurance Portugal, and Fosun Tourism Group (“FTG”) – generated a total revenue of RMB134.65 billion, accounting for 70.1% of the Group’s total revenue. Due to a one-off book loss related to an individual investment during the reporting period, the Group’s loss attributable to owners of the parent for the year amounted to RMB4.35 billion.“In the past year, we sustained steady growth momentum and demonstrated robust resilience in the face of global economic fluctuations and market challenges. We continuously advanced our core business-focused and business streamlining strategy by divesting non-core assets and heavy assets to focus on core operations, reduce debt, and optimize our capital structure. In the course of asset divestment, the adjustment in the carrying value of an individual investment impacted our 2024 financial performance. Nonetheless, Fosun’s overall operational fundamentals remain stable, the core businesses are under healthy development, and the industrial operation profits and operating cash flows stay healthy and stable,” Guo Guangchang, Chairman of Fosun International, stated in the letter to shareholders.CITIC Securities released a research report based on Fosun International’s 2024 annual results on 30 March, stating that the company’s industrial operations remain stable, while the loss is mainly attributable to the one-off impairment from its investment. In fact, excluding the one-off non-cash impairment loss, Fosun International’s profit attributable to owners of the parent for 2024 amounted to RMB750 million, and the industrial operation profit, which reflects Fosun’s fundamentals and growth potential, reached RMB4.9 billion.Additionally, Fosun’s financial position remained sound. As at the end of 2024, the total debt to total capital ratio was 52%, and cash and bank balance and term deposits amounted to RMB106.34 billion, representing an increase of approximately RMB13.88 billion from the previous year. Healthy debt ratios and strong liquidity buffer not only strengthen the company’s resilience against risks but also enhance its ability to seize development opportunities.“We believe that our clear strategic focus and robust industrial operational capabilities are the key to driving Fosun’s long-term steady growth,” Guo Guangchang said.Pursuing “strategic advancements and exits”, further deepening focus on core industriesSince last year, Guo Guangchang has summarized Fosun’s current strategy as “strategic advancements and exits” on multiple occasions. He noted that in the past few years, Fosun has mainly prioritized “exit” to streamline its business. However, starting in 2024, it has placed greater emphasis on “strategic advancements and exits”. By pursuing “advancements” in core operations, it has leveraged development to address challenges.The results announcement indicated that from 2022 to 2024, Fosun completed the divestment of approximately RMB75.0 billion of non-strategic and non-core assets. In 2024, the signed asset divestment amounted to approximately RMB17.5 billion equivalent at the group level, and approximately RMB30.0 billion equivalent at the consolidated level.Fosun’s steadfast commitment to divesting non-strategic and non-core assets has not only strengthened its liquidity buffer, but also provided robust support for accelerating its focus on core industries, including health, tourism and culture, consumption, and insurance.In 2024, Fosun continuously pursued advancements in core businesses. In the health business, Fosun Pharma increased its stake in Fosun Kairos to 100%, further focusing on the research and development (“R&D”), manufacturing and commercialization of CAR-T cell therapy. In the tourism and culture business, the ULTRAMED Hainan project in Sanya was officially launched. FTG also signed an asset-light operation agreement for the Jinsha Bay project in Shenzhen, marking the launch of the first Club Med in the Greater Bay Area. In addition, the Taicang Alps Resort Phase II project is about to commence, it is developed by Taicang municipal government platform and managed by FTG. In March 2025, FTG successfully completed its privatization, providing the company with greater flexibility and efficiency in accelerating its asset-light transformation.According to the 2024 financial results, the four core subsidiaries, which contributed more than 70% of Fosun’s total revenue, delivered solid performance. Among which, Fosun Pharma achieved operating revenue of RMB41.07 billion and net profit attributable to shareholders of RMB2.77 billion, representing a year-on-year increase of 16.08%; Fosun Insurance Portugal’s total gross written premiums reached EUR6.17 billion and net profit reached EUR173.5 million; FTG achieved sustained profitability, with Club Med’s business turnover reaching a record high of RMB16.15 billion, while Atlantis Sanya’s business turnover remained at a high level; despite the impact of structural adjustments in the domestic consumption patterns, Yuyuan lowered its asset-liability ratio to 67.82% through active adjustment. The company also boasted ample cash on hand of RMB10.69 billion, positioning it for future growth.It is worth noting that after years of accumulation and cultivation, Fosun’s two domestic insurance companies have ushered in a period of rapid development. The total premium income of Pramerica Fosun Life Insurance surged from RMB4,346 million in 2023 to RMB9,251 million in 2024, while Fosun United Health Insurance also experienced steady growth in premium income, and both companies achieved profitability. In 2024, the profit attributable to owners of the parent of the insurance segment was RMB1.716 billion, representing a significant increase of 117% year-on-year.“We have integrated Fosun’s profound industry expertise, extensive investment experience, and high-quality commercial resources with the operations and investments of insurance companies, forming a three-dimensional “insurance + industry + investment” flywheel-driven strategy.” Guo Guangchang believes that the collaborative growth of Fosun’s domestic and international insurance companies and various industries has laid a strong foundation for Fosun’s flywheel-driven strategy.Unlocking value through core capabilities in “globalization + innovation”Thanks to its two core capabilities in globalization and innovation, Fosun has steadily developed its core businesses while pursuing strategic advancements and exits.In 2024, Fosun continued to deepen its business presence in more than 35 countries and region in the world, consolidating its global operational capabilities. Building on a high base from the previous year, its overseas revenue for 2024 grew 6.2% year-on-year to RMB94.78 billion, and the proportion of overseas revenue further rose to 49.3%.It is believed that amid the rising de-globalization trend, Fosun’s globalization capabilities are becoming increasingly scarce, and its high-quality global operations are emerging as a powerful engine for new round of growth.In 2024, Fosun’s innovative biopharmaceutical platform, Henlius, became a key player in the overseas expansion of Chinese innovative drugs. During the reporting period, Henlius’ overseas product sales revenue surged 30.76% compared to the previous year. HANSIZHUANG, the world’s first anti-PD-1 monoclonal antibody for the first-line treatment of small cell lung cancer, independently developed by the company, was approved for marketing in the European Union, extending its reach to more than 30 countries and regions; HANQUYOU was approved for marketing in the U.S. and Canada, embarking on a new journey of commercialization in North America; HANLIKANG, the first biosimilar approved in China, was approved for marketing in several countries in Latin America including Peru; HANBEITAI was approved for marketing in Bolivia. Henlius now has four self-developed and self-manufactured products approved for overseas marketing. Benefiting from the ongoing market expansion of key products, Henlius achieved operating revenue of approximately RMB5.72 billion and net profit of RMB820.5 million in 2024, representing a substantial increase of 50.3% year-on-year.Leveraging Fosun’s global ecosystem, Hainan Mining has accelerated its global resource strategy, successfully acquiring one overseas project each year for the past three years. During the reporting period, Hainan Mining completed the acquisition of oil interests in four oil blocks in the Sultanate of Oman and initiated the acquisition of two producing zirconium-titanium mines in Mozambique, planning to further increase its investment in Africa while entering the promising small metals and rare-earth industries. In addition, as at March 2025, the first phase construction of the project Bougouni lithium mine in Mali Africa had met the conditions for continuous and stable production. In 2024, Hainan Mining’s overseas subsidiaries achieved revenue of RMB1,968 million, accounting for 48% to the total revenue. Driven by the globalization strategy, the company reported a net profit attributable to shareholders of RMB706 million, representing a year-on-year increase of 12.97%, and a net profit excluding non-recurring gains and losses of RMB680 million, representing a significant increase of 23.72% year-on-year.Among overseas member companies, Fosun Insurance Portugal has continued to consolidate its leading position in the local market while fully leveraging Fosun’s “global organization + local operations” capabilities, achieving double-digit growth in international business. In 2024, its overseas revenue reached EUR1.84 billion and the proportion of international business rose to 29.8%.Following the successful overseas debut of Fosun’s iconic cultural IP, the Yuyuan Garden Lantern Festival, in Paris, France from late 2023 to early 2024, it has embarked on another overseas journey in 2025. In January 2025, the Yuyuan Garden Lantern Festival themed lantern installation made a stunning appearance in Hanoi, Vietnam, commemorating the 75th anniversary of the establishment of diplomatic relations between China and Vietnam. This year, it will also be featured in Thailand, continuing to showcase the charm of oriental culture globally.In Guo Guangchang’s view, innovation and globalization are complementary and are the most important pillars of Fosun. In 2024, Fosun’s investment in technology innovation reached approximately RMB6.9 billion. At present, it has established more than 20 global technology innovation centers covering various industries and fields, continuously fostering the launch of new technologies and products.In terms of R&D of innovative drugs, a total of 16 indications of 7 innovative drugs/ biosimilars independently developed and licensed-in by Fosun Pharma were approved for launch. In terms of medical devices and medical diagnosis, the Ion Robotic Bronchoscopy (“Ion System”) of Intuitive Fosun, and F-i6000 Automated Chemiluminescence Immunoassay Analyzer, F-C2000 Fully Automated High-Speed Chemiluminescence Analyzer, and Cytokine Detection Reagent (Chemiluminescence Method), which were independently developed by Fosun Pharma, were all approved for launch in Chinese mainland. During the reporting period, the pharmaceutical manufacturing segment of Fosun Pharma submitted 220 patent applications, including 3 American patent applications, 18 PCT applications, and Fosun Pharma has obtained 66 licensed invention patents authorization.Facing the burgeoning AI trend, Fosun has accelerated its development around its core businesses, deeply integrating AI technology into its diverse scenarios to drive innovation and enhance efficiency. For instance, Fosun Pharma launched the PharmAID decision intelligence platform, which supports accurate and efficient decision-making to accelerate and improve drug R&D; Sisram is exploring the use of AI for precise skin analysis and personalized skin care solutions; the ULTRAMED Hainan project in Sanya is set to create the world’s first AI-themed resort by utilizing AIGC technology for guest room customization and introducing the digital human G.O (Gentle Organizer) service to enhance tourist experience.“Looking ahead, we will further deepen our focus on core industries. By leveraging our globalization and innovation capabilities, we are confident in our ability to maintain steady development, creating long-term, stable value for our shareholders,” Guo Guangchang said. Copyright 2025 ACN Newswire via SeaPRwire.com.
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