Guo Guangchang: Fosun has entered a new stage of development, and the management team is fully confident in future growth.

When it comes to stock trading, look to the Golden Qilin analyst research reports—authoritative, professional, timely, and comprehensive. Help you uncover high-potential themes and opportunities!

On the morning of March 31, Guo Guangchang, Chairman of Fosun International, said at Fosun International’s 2025 results press conference that the RMB 23.4 billion impairment provision made by Fosun International is “prudent accounting treatment, not evidence of a problem in operations.” This impairment is “like fixing the roof on a sunny day,” and management has confidence in the company’s future development.

Guo Guangchang emphasized that, in the long run, this impairment treatment marks Fosun’s entry into a brand-new stage of development. “We firmly exit those assets with poor profitability and value that doesn’t meet standards, concentrate resources on high-growth core tracks, and push the company toward a lighter, healthier, and more sustainable direction.”

He added that, based on the operating performance of Fosun’s various business segments, Fosun’s core industries are operating steadily. In the pharmaceuticals segment, global business breakthroughs have continued; multiple products have been listed overseas, and there are also several in-development pipelines with huge potential. In the insurance segment, both domestic and international businesses are growing; the expansion of Fosun Portugal insurance into regions such as Latin America and Africa, as well as improved domestic profitability for Fosun United Health and Fosun Prudential Life, with significantly increased earnings. In the culture and tourism segment, Club Med’s performance has also hit a historic high.

“These industries have the ability to continuously generate profits and cash flow, which is what gives Fosun the confidence to maintain growth. After this large impairment write-down, future operating results will certainly more truly reflect the operating quality of Fosun’s core industries. I believe Fosun has the capability to see through cycles. There may be pain in the short term, but in the long run, everything we do is to help Fosun move more steadily and go farther,” Guo Guangchang said.

He said that Fosun’s management has certain expectations for the company’s future development and is fully confident. After the adjustment, Fosun International’s net asset value (NAV) is RMB 133.5 billion, with NAV per share reaching HKD 18.1. The company’s board has announced a share repurchase plan, and the major shareholders and management team will also increase their holdings. Going forward, Fosun will, in light of improvements in operations and cash-flow conditions, actively study and gradually roll out more shareholder-return initiatives, including optimizing the dividend distribution mechanism, and more.

On the evening of March 30, Fosun International released its 2025 performance results. In the reporting period, the group’s total revenue reached RMB 173.43 billion, and adjusted industrial operating profit was RMB 4.0 billion. The four main core subsidiaries generated revenue of RMB 128.2 billion, accounting for 74% of the group’s total revenue. Of these, Fosun Pharma’s net profit attributable to shareholders was RMB 3.37B, up 21.69%; Fosun Portugal insurance’s net profit attributable to shareholders was EUR 201 million, up 15.8%.

Compared with prior years, Fosun’s overall performance figures have remained steady. However, during this year, Fosun made one-time non-cash impairment provisions and value revaluations for goodwill and intangible assets related to certain real-estate projects with impairment indicators and for some non-core business segments, resulting in an annual book loss of RMB 23.4 billion, of which real-estate impairment accounted for 55% and non-core asset impairment accounted for 45%. (End)

		Sina statement: The content published on Sina.com is for the purpose of transmitting more information, and does not imply that Sina agrees with these viewpoints or verifies the descriptions. The article content is for reference only and does not constitute investment advice. Investors act on it at their own risk.

Massive information, precise analysis—available on the Sina Finance app

责任编辑：常福强