HONG KONG, Mar 31, 2025 - (ACN Newswire) - On 30 March, Fosun International (00656) announced its 2024 annual results, reporting a total revenue of RMB192.14 billion. The Group’s 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. The loss attributable to owners of the parent amounted to RMB4.35 billion, mainly attributable to Alibaba Group’s repurchase of Cainiao’s shares at a low price, which significantly reduced the carrying value of those shares. Excluding the effect of this factor, Fosun International’s profit attributable to owners of the parent in 2024 amounted to RMB750 million, and the industrial operation profit, which reflects Fosun’s fundamentals and growth potential, reached RMB4.9 billion.
According to the announcement, the Company provided a detailed explanation, along with sufficient supporting data, for the one-off book loss related to the Cainiao investment during the reporting period. Fosun International pointed out that, during the investment period, Fosun recorded Cainiao investment at fair market value based on market transactions, and the carrying value of Fosun’s holding of 564.18 million shares in Cainiao was approximately USD1.05 billion as at the end of 2023. In 2024, Alibaba Group repurchased shares in Cainiao held by its minority shareholders at USD0.62 per share in order to implement further adjustments to Cainiao’s business, which represents a substantial decrease compared to the carrying value of the Cainiao investment held by Fosun as at the end of 2023. Therefore, the carrying value of the Cainiao investment was adjusted according to the repurchase price of USD0.62 per share, resulting in a one-off non-cash book loss of approximately RMB5.1 billion in its 2024 financial statements. Fosun is still in ongoing negotiations with Alibaba Group regarding the subsequent arrangement related to the Cainiao investment.
It is understood that prudent adjustments to the fair value of investment equity, made by Hong Kong-listed companies in accordance with Hong Kong accounting standards, are regarded as non-cash book changes. Such adjustments do not have a direct impact on the company’s operations or cash flow. Fosun International also emphasized in its announcement that this book adjustment is a one-off non-cash adjustment. “The Company’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.”
In addition, the announcement disclosed Fosun’s investment and exit information regarding the Cainiao investment: “The Group’s total investment in Cainiao was approximately RMB1.5 billion. As at the end of 2024, the accumulative proceeds from historical divestments reached approximately RMB4.4 billion, yielding an internal rate of return (IRR) of approximately 34%.”
It is worth noting that, from an investment perspective, Fosun has already achieved considerable returns on the Cainiao investment. The non-cash book loss resulting from the decline in Cainiao’s valuation is a standard financial adjustment, and does not reflect the company’s actual operations. However, it could potentially create misconceptions about Fosun’s operational performance.
In fact, a clear strategic focus and solid industrial operational capabilities are becoming key perspectives for the market to observe Fosun’s long-term steady development. Recently, Fosun’s subsidiaries have successively announced their 2024 annual results, demonstrating consistent growth momentum and operational resilience.
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%; Henlius achieved operating revenue of approximately RMB5.72 billon, representing a year-on-year increase of 6.1%, while net profit reached RMB820.5 million, representing a year-on-year increase of 50.3%; 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; Yuyuan’s asset-liability ratio further reduced to 67.82%, which is considered safe and reasonable, and the company had ample cash on hand of RMB10.69 billion; Fosun Insurance Portugal achieved growth in both domestic and international business. Its total gross written premiums reached EUR6.17 billion, while overseas revenue reached EUR1.84 billion. Through overseas expansion, the proportion of international business increased from less than 5% in 2014 to over 29.8%; Hainan Mining 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 year-on-year increase of 23.72%.
Fosun also maintained a healthy and stable operating cash flow. As at the end of 2024, the Group’s total debt to total capital ratio was 52.0%, and cash and bank balance and term deposits amounted to RMB106.34 billion.
In 2024, Fosun continuously advanced its core business-focused and business streamlining strategy by divesting non-core assets and heavy assets to focus on core operations, reduce debt, and optimize its capital structure. 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.
In November 2024, after an absence of three years, Fosun returned to the offshore USD bond market and successfully issued long duration USD bonds, substantially expanding its offshore financing options. In terms of bank financing, Fosun refinanced its three-year unsecured syndicated loan with upsize from matured loan, achieving the successful launch of offshore syndicated loans for 8 consecutive years. Fosun High Technology issued several super short-term commercial papers, raising a total of RMB5.1 billion. In June 2024, the international credit rating agency S&P fully recognized the Group’s steady improvement in credit matrix, and reaffirmed the BB- rating and a stable credit outlook.
Recently, Fosun International has successfully completed the refinancing of a USD870 million equivalent syndicated loan due on 28 March 2025. Of this amount, USD675 million equivalent was secured through a newly arranged syndicated loan. This syndicated loan represents the largest of its kind for a Chinese private enterprise so far this year, demonstrating strong recognition from leading international banks for Fosun’s strategic development in recent years.
Looking ahead, Fosun will remain focused on its core businesses. Leveraging its globalization and innovation capabilities, along with the efficient execution of “strategic advancements and exits”, Fosun is set to maintain ample capital flow, thereby supporting its continued steady development.