Breaking Through Starting Anew Fosun International 2025 Annual Results 2026-03-31 | Shanghai 1 Disclaimer This document is not intended to provide a full explanation of any relevant matters of Fosun International Limited ("Fosun" or the "Company"). You must refrain from relying on any information set out in this document. No statement, guarantee or undertaking is or will be made or given at present or in the future in respect of the accuracy, fairness, reasonableness, correctness or completeness of this doc ...

Core Viewpoint - Fosun International reported a total revenue of RMB 173.43 billion for the fiscal year 2025, with an adjusted operating profit of RMB 4 billion, despite a significant one-time non-cash impairment loss of RMB 23.4 billion, primarily from real estate and non-core assets [1][2] Financial Performance - The company achieved a total revenue of RMB 1734.3 billion, with a notable adjusted operating profit of RMB 40 billion [1] - The reported net loss of RMB 234 billion was largely due to impairment charges, with real estate impairments accounting for approximately 55% and non-core asset impairments for about 45% [1] - Cash and bank deposits reached RMB 61.1 billion, with unused bank credit totaling RMB 144.6 billion, maintaining a healthy financial status [8] Business Segments - The four core subsidiaries generated RMB 128.2 billion in revenue, representing 74% of total group revenue, indicating the success of the "focus on core business" strategy [3] - Fosun Pharma reported a net profit of RMB 3.371 billion, a year-on-year increase of 21.69% [3] - The overseas subsidiary, Fosun Portugal Insurance, achieved a net profit of €201 million, a 15.8% increase, and received an A rating from S&P [3] Strategic Focus - The company is emphasizing innovation and globalization as core strategies, with Fosun Pharma's innovative drug revenue growing by 29.59% to RMB 9.893 billion [5][6] - The global revenue for Fosun reached RMB 948.6 billion, accounting for 54.7% of total revenue, reflecting a 5.4 percentage point increase year-on-year [6] Future Outlook - The company aims to restore a profit scale of RMB 10 billion and reduce total liabilities to below RMB 60 billion, targeting an "investment-grade" rating [9] - Plans to increase the dividend payout ratio from 20% to 35% for the fiscal year 2026, with expected dividends of no less than HKD 1.5 billion [8]

Core Viewpoint - Fosun International and its subsidiaries reported a solid performance for the year ending December 31, 2025, with total revenue reaching 173.43 billion yuan and adjusted operating profit of 4 billion yuan, driven by strong growth in core sectors such as healthcare and insurance [2] Group 1: Financial Performance - Total revenue for the group was 173.43 billion yuan, with adjusted operating profit of 4 billion yuan [2] - The four core subsidiaries generated revenue of 128.2 billion yuan, accounting for 74% of the group's total revenue [2] - Fosun Pharma, a key subsidiary, reported a net profit of 3.371 billion yuan, representing a year-on-year growth of 21.69% [2] - Fosun Portugal Insurance, another core subsidiary, achieved a net profit of 201 million euros, up 15.8% year-on-year [2] Group 2: Strategic Initiatives - The company is implementing a "streamlining and focusing on core business" strategy, resulting in a non-cash impairment charge of 23.4 billion yuan due to asset revaluation, with real estate-related impairments accounting for approximately 55% [2] - The chairman emphasized the need to optimize asset structure and focus on high-growth sectors to seize industry opportunities amid global economic fluctuations [3] Group 3: Financial Health and Goals - The company's financial condition remains healthy, with a total debt to total capital ratio of 57% and cash reserves of 61.1 billion yuan [3] - Unutilized bank credit amounts to 144.6 billion yuan, enhancing the company's ability to manage risks and seize opportunities [3] - The mid-term financial goal includes restoring profit levels to 10 billion yuan and reducing total liabilities to below 60 billion yuan, aiming for an "investment-grade" rating [3]

Group 1: Financial Performance - In 2025, the company achieved a total revenue of RMB 173.4 billion, with overseas revenue accounting for 54.7% [1] - The four core enterprises—Fosun Pharma, Yuyuan, Fosun Portugal Insurance, and Fosun Tourism—generated total revenue of RMB 128.2 billion, representing a 3 percentage point increase in their contribution to the group's total revenue, reaching 74% [1] - The company's net cash flow from operating activities remained positive, and interest expenses and management costs showed a steady decline [1] Group 2: Debt Management and Financing - The company continues to implement an active and prudent liquidity and debt management policy, focusing on diversifying financing channels and increasing the disposal of non-core assets to solidify cash reserves [2] - In 2025, the company expanded its offshore dollar bond from USD 300 million to USD 500 million and issued a four-year USD 400 million bond and a five-year EUR 400 million bond, extending the debt maturity [2] - As of December 2025, the company's financing cost was 5.0%, a decrease of over 60 basis points compared to the end of 2024 [2] Group 3: Asset Optimization Strategy - Since 2020, the company has prioritized debt reduction as a key financial strategy, achieving an exit from non-strategic and non-core assets worth over RMB 17 billion [3] - The management remains committed to disposing of non-core assets to strengthen cash reserves and continuously reduce liabilities [3]

Core Insights - Fosun International (00656.HK) reported a total revenue of RMB 173.4 billion for the fiscal year 2025, a decrease of RMB 18.72 billion or approximately 9.7% year-on-year, primarily due to the cyclical downturn affecting Yuyuan Industrial Co., which saw a revenue decline of about 22.5% [1] - The group's asset base remained robust, with the top four subsidiaries (by revenue) contributing a total revenue of RMB 128.2 billion, accounting for 73.9% of the group's total revenue, an increase of 3.1 percentage points year-on-year [1] - The group's overseas revenue reached RMB 94.86 billion, increasing its share of total revenue from 49.3% to 54.7%, reflecting the success of its globalization strategy [1] Financial Performance - Yuyuan Industrial Co. reported a loss attributable to shareholders of RMB 4.9 billion, compared to a net profit of RMB 130 million in the same period of 2024, due to asset impairment tests on commercial real estate projects and goodwill [2] - Other core businesses showed stable performance, with Fosun Pharma's profit attributable to shareholders reaching RMB 3.37 billion, a year-on-year increase of 21.7%, driven by growth in innovative drug revenues and increased overseas commercialization transactions [2] - Fosun Portugal Insurance also demonstrated solid growth, with profits attributable to shareholders rising to EUR 200 million, up 15.8% year-on-year [2] Strategic Adjustments - The company adhered to financial prudence by recognizing non-cash impairment provisions for goodwill and intangible assets in real estate and some non-core businesses, resulting in a loss attributable to shareholders of RMB 23.4 billion for 2025 [3] - This impairment is part of a strategic asset value optimization process and does not affect the operational stability or cash flow of core businesses, aiming to strengthen the financial foundation for high-quality development [3]

Core Viewpoint - Fosun International (00656.HK) announced that its board has decided not to declare a dividend for the fiscal year ending December 31, 2025, in order to enhance shareholder returns through a revised dividend policy [1] Group 1: Dividend Policy Changes - The company aims to increase its dividend payout ratio from the current 20% to 35% by the fiscal year ending December 31, 2026 [1] - The company is committed to continuously improving its dividend payout ratio [1] Group 2: Dividend Forecast - Based on the company's accumulated distributable profits, the expected dividend for the fiscal year 2026 is projected to be no less than HKD 1.5 billion [1]

Core Viewpoint - Fosun International reported a strong financial performance for the year ending December 31, 2025, with total revenue reaching RMB 173.4 billion and overseas revenue accounting for 54.7% of total revenue [1] Group 1: Financial Performance - The company achieved a total revenue of RMB 173.4 billion in 2025, with a year-on-year increase in the contribution of its four core enterprises to 74% of total revenue, amounting to RMB 128.2 billion [1] - Operating cash flow remained positive, and interest expenses and management costs showed a steady decline during the reporting period [1] - The average cost of debt continued to improve, with a financing cost of 5.0% as of December 2025, down over 60 basis points from the end of 2024 [2] Group 2: Debt Management and Liquidity - The company maintained a proactive and prudent liquidity and debt management policy, focusing on diversifying financing channels and increasing cash reserves to navigate global market volatility [2] - In 2025, the company expanded its offshore dollar bond from USD 300 million to USD 500 million and issued additional bonds to extend debt maturity, including a USD 400 million bond in September and a EUR 400 million bond in November [2] - The company successfully exited over RMB 17 billion in non-core assets to strengthen cash reserves and reduce debt [3] Group 3: Strategic Focus - Since 2020, the company has prioritized debt reduction as a key financial strategy, implementing asset disposal to optimize its asset portfolio and enhance the ability of subsidiaries to distribute dividends [3] - The management remains committed to disposing of non-core assets to further solidify cash reserves and continue lowering liabilities [3]

Core Viewpoint - The company reported a loss of RMB 23.4 billion for 2025, primarily due to non-cash impairment charges related to past projects and goodwill from non-core business segments, rather than a deterioration in operational fundamentals [1] Financial Performance - The loss of RMB 23.4 billion is attributed to non-cash losses, which will not impact the company's daily operations, cash flow, or business operations [1] - The core businesses, including pharmaceuticals and insurance, continue to show stable growth despite the reported loss [1] Strategic Focus - The board's decision to undertake asset impairment is aimed at allowing the company to better concentrate resources and efforts on high-growth core sectors [1]

Core Viewpoint - Fosun International Limited maintains a robust fundamental performance in 2025, with strong growth in core sectors such as healthcare and insurance, driven by innovation and globalization [1][2] Financial Performance - Total revenue for the group reached RMB 173.43 billion, with adjusted operating profit of RMB 4 billion [1] - The four core subsidiaries generated revenue of RMB 128.2 billion, accounting for 74% of total revenue [1] - Fosun Pharma's net profit reached RMB 3.371 billion, a year-on-year increase of 21.69% [1] - The net profit of Fosun Portugal Insurance was EUR 201 million, up 15.8% year-on-year [1] Strategic Focus - The company is implementing a "streamlining and focusing on core business" strategy, resulting in a non-cash impairment charge of RMB 23.4 billion due to asset revaluation [1][2] - The impairment primarily affected real estate projects (55%) and non-core assets (45%) [1] Innovation and R&D - Fosun's R&D investment reached RMB 7.8 billion, with a focus on a three-pronged global innovation system [3] - Seven innovative drugs received approval for 16 indications, with six additional applications accepted [3][4] - Revenue from innovative drugs increased to RMB 9.893 billion, a growth of 29.59%, representing 33.16% of pharmaceutical business revenue [4] Globalization Efforts - Overseas revenue reached RMB 94.86 billion, accounting for 54.7% of total revenue, an increase of 5.4 percentage points year-on-year [6] - Fosun Pharma's core product, H drug, generated global sales of RMB 1.493 billion, a growth of 13.7% [6][7] - The company has established a global operational network covering multiple regions, enhancing its international business capabilities [7] Insurance Sector Performance - Fosun Portugal Insurance reported gross premium income of EUR 6.53 billion, with a net profit of EUR 201 million, reflecting a 15.8% increase [7][8] - The domestic insurance companies also showed significant growth, with Fosun Baodexin Life achieving a premium income of RMB 13.28 billion, up 41.6% [8] Commitment to ESG - Fosun is dedicated to sustainable development, with significant contributions to global health and rural revitalization initiatives [10] - The company received top ESG ratings, including MSCI ESG AAA rating and inclusion in various sustainability indices [10] Future Financial Goals - The company aims to restore a profit scale of RMB 10 billion and reduce total liabilities to below RMB 60 billion [11] - A plan to increase the dividend payout ratio from 20% to 35% for the fiscal year 2026 has been announced [11]

Core Viewpoint - Fosun International (00656.HK) reported a solid performance for the fiscal year ending December 31, 2025, with strong growth in its core sectors of healthcare and insurance, driven by innovation and globalization [1] Financial Performance - Total revenue for the group reached 173.43 billion yuan, with adjusted operating profit of 4 billion yuan [1] - Revenue from the four core subsidiaries amounted to 128.2 billion yuan, accounting for 74% of total revenue [1] - The healthcare subsidiary, Fosun Pharma, reported a net profit attributable to shareholders of 3.371 billion yuan, a year-on-year increase of 21.69% [1] - The insurance subsidiary, Fosun Portugal, achieved a net profit of 201 million euros, up 15.8% year-on-year [1] - The group's overseas revenue reached 94.86 billion yuan, representing 54.7% of total revenue, an increase of 5.4 percentage points year-on-year [1] Investment and Innovation - The group invested 7.8 billion yuan in scientific innovation during the reporting period [1] - Total upfront payments for licensing and collaborative development of innovative drugs exceeded 260 million USD, with potential milestone payments totaling over 4 billion USD [1] Financial Health - The company's financial condition remains healthy, with a total debt to total capital ratio of 57% as of the end of the reporting period [1] - Cash reserves amounted to 61.1 billion yuan, with unused bank credit totaling 144.6 billion yuan [1] Future Goals - Fosun aims to gradually restore a profit scale of 10 billion yuan and reduce total group liabilities to below 60 billion yuan [2] - The company plans to increase its dividend payout ratio from the current 20% to 35% for the fiscal year 2026, with expected dividends of no less than 1.5 billion HKD [2]