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Fosun International's 2024 Annual Results Overview

Fosun International Limited, listed on the Hong Kong Stock Exchange under code 00656, has announced its annual results for the year ending December 31, 2024. The company reported robust financial metrics, including a total revenue of RMB192.14 billion and an industrial operation profit of RMB4.9 billion, showcasing the stability of its operational fundamentals amidst global economic uncertainties.

Key Highlights

During the reporting period, it was noted that Fosun’s core subsidiaries—Yuyuan, Fosun Pharma, Fosun Insurance Portugal, and Fosun Tourism Group—contributed a significant RMB134.65 billion, accounting for 70.1% of the Group's total revenue. The diversification and robust operational strategies seem to serve the company well, given the volatile market conditions.

Although the company reported a loss of RMB4.35 billion attributable to owners of the parent, this figure was largely impacted by a one-off non-cash loss. Excluding this, the profit attributable to owners stood at RMB0.75 billion, indicating healthier underlying operations.

Financial Stability

Fosun's operating cash flow remained well-managed, with a total debt to total capital ratio of 52%. The Group maintained liquid assets, with cash and bank balances totaling RMB106.34 billion, providing a buffer against external risks and enhancing its capacity to seize investment opportunities. In November 2024, Fosun successfully re-entered the offshore USD bond market, further broadening its financing options.

Global Expansion Initiatives

In 2024, Fosun achieved a 6.2% increase in overseas revenue, which now comprises 49.3% of total revenue. This growth illustrates Fosun's commitment to global market penetration and innovation in sectors like healthcare and tourism. For example, Henlius, one of Fosun's subsidiaries, achieved overseas sales revenues of RMB121 million, marking a 30.76% increase year-on-year.

Furthermore, Fosun Insurance Portugal reported significant growth in gross written premiums, reaching approximately EUR6,172 million, signifying its increasing foothold in both international and domestic markets.

Commitment to Technology and Innovation

Fosun's investment in technology innovation reached approximately RMB6.9 billion during the reporting period, highlighting its emphasis on continuous improvement and modernization across its business sectors. The Group established over 20 global innovation centers aimed at fostering R&D efforts, particularly in pharmaceuticals where they saw a series of product approvals over the year.

An impressive achievement this year included the approval of multiple innovative drugs and biosimilars developed or licensed in by Fosun Pharma, reflecting its commitment to bolstering its pharmaceutical portfolio amid increasing competition.

Strategic Advancements and Long-term Vision

As part of its ongoing strategy, Fosun has focused on both business streamlining and advancements. In 2024, Fosun Pharma completed the acquisition of full control over Fosun Kairos, signaling a stronger commitment to CAR-T cell therapy innovation. Additionally, the Group is pioneering the creation of the world's first AI-themed resort in Sanya, leveraging cutting-edge technology to augment guest experiences.

Guo Guangchang, Chairman of Fosun International, expressed confidence in the Group's clear strategic focus and operational capabilities as the key to sustainable long-term growth. The company is strategically positioned to create enduring value for its shareholders while optimizing its portfolio and maximizing efficiency across its business units.

Commitment to ESG and Community Impact

Fosun’s corporate strategy strongly incorporates environmental, social, and governance (ESG) principles. Their continuous efforts in community development were exemplified by the 'Rural Doctors Program' which has provided much-needed support across various counties, benefiting millions. Additionally, regional collaborations contribute to global public health initiatives, guaranteeing Fosun’s role as a responsible corporate citizen.

In conclusion, Fosun International’s 2024 annual results highlight the Group’s ability to navigate challenges while maintaining a robust operational foundation. Their commitment to innovation, globalization, and sustainable practices positions them well for future success in an unpredictable economic landscape.