Fosun International's Financial Performance and Future Strategy
Fosun International Announces Strong Annual Results
2024 Annual Results Highlights:
Total revenue reached RMB192.14 billion;
Industrial operation profit amounted to RMB4.9 billion;
Core subsidiaries generated total revenue of RMB134.65 billion, which is 70.1% of total revenue;
Debt to total capital ratio was 52%; cash and deposits were RMB106.34 billion;
Overseas revenue rose to 49.3%, a year-on-year increase of 6.2%;
Investment in technology innovation reached approximately RMB6.9 billion.
Fosun International Limited (HKEX stock code: 00656, "Fosun International") recently reported its annual results, showcasing a resilient financial performance amid fluctuating global markets.
In executing its strategy of focusing on household consumption, Fosun's total revenue reached RMB192.14 billion for the year. This growth was largely fueled by the solid performances of its four core subsidiaries: Yuyuan, Fosun Pharma, Fosun Insurance Portugal, and Fosun Tourism Group. They collectively produced RMB134.65 billion, accounting for over two-thirds of the Group's revenue.
The Group reported an industrial profit of RMB4.9 billion, indicating solid operational fundamentals. However, there was a loss attributable to the parent company of RMB4.35 billion, primarily due to a significant non-cash loss. When adjusted for this loss, the profit attributable to the owners stood at RMB0.75 billion.
Maintaining healthy operating cash flow, Fosun effectively optimized its asset portfolio. Total divestments equated to approximately RMB17.5 billion at the group level, further enhancing liquidity and balance sheet strength. By year-end, the total debt to total capital ratio was a manageable 52.0%, supported by cash resources totaling RMB106.34 billion. This financial position underscores Fosun's resilience to external challenges and its investment capacity.
In late 2024, Fosun marked its return to the offshore USD bond market after three years, successfully extending its financing avenues. Additionally, Fosun refinanced its syndicated loans, marking another successful year for offshore financing. S&P acknowledged the Group's improving credit quality, maintaining a BB- rating with a stable outlook.
Guo Guangchang, Chairman of Fosun International, expressed confidence in their strategic focus on core sectors as essential for long-term growth. He emphasized Fosun's commitment to leveraging internationalization and innovation capabilities, aiming at delivering consistent value to shareholders.
Globalization Efforts and Overseas Revenue Growth
Fosun International has made significant strides in expanding its global footprint, extending operations across 35 countries. In 2024, the Group’s overseas revenue illustrated a promising increase of 6.2%, constituting 49.3% of the overall revenue. This trend highlights the positive shift towards a diversified global operational model.
Among its international successes, Henlius reported overseas sales revenue of RMB121 million, a remarkable increase of 30.76% compared to the previous year. Notable product approvals in key markets such as the EU and North America further validate Fosun’s successful globalization strategy.
Fosun Insurance Portugal also achieved substantial growth, with total gross written premiums of approximately EUR6,172 million. The increase in international business underscores Fosun's effective strategy of marrying global reach with local market expertise, evidenced by overseas revenue growing significantly since 2014.
Strategic divestments, such as the sale of equity interest in HAL, underline Fosun’s adaptability in the financial services sector, while maintaining key stakes in growth-oriented entities to foster synergies within its portfolio.
Technology Innovation Driving Growth
Technology innovation remains a central theme at Fosun, with approximately RMB6.9 billion invested during the reporting period. The establishment of over 20 global technology innovation centers facilitates the continuous launch of new technologies and products across various sectors.
After gaining rapid approvals for several innovative pharmaceuticals and medical devices, Fosun is making notable strides in drug development. For instance, its tracking progress with multiple biosimilars shows successful R&D efforts contributing to market readiness.
In its cultural pursuits, the Yuyuan Garden Lantern Festival has adopted innovative technology to enhance visitor experiences. This year’s festival themes, inspired by classical Chinese literature, leverage immersive technologies and widespread digital engagement.
Fosun’s Sustainable Business Practices
Fosun International upholds its commitment to responsible corporate practices reflected in its launched "Create IMPACT" sustainable development strategy. By synergizing commercial goals with social contributions, Fosun has strengthened its role in promoting global sustainable development, impacting countless lives.
In support of community health initiatives, Fosun Pharma has committed significant resources to address public health challenges, providing essential medications and participating in cooperative networks to enhance health outcomes across regions.
In recognition of its sustainable initiatives, Fosun has earned high ratings in ESG criteria, showcasing its dedication to corporate responsibility. These efforts position Fosun favorably in the competitive market, attracting attention toward its positive impact on society.
Frequently Asked Questions
What are the key financial highlights of Fosun International for 2024?
The total revenue reached RMB192.14 billion, with an industrial profit of RMB4.9 billion, showcasing stable operational performance despite challenges.
How has Fosun International's overseas revenue changed?
Fosun’s overseas revenue grew by 6.2%, accounting for 49.3% of the total revenue, reflecting their globalization strategy's success.
What are the future strategies of Fosun International?
Fosun aims to focus on core industries, enhance technology innovation, and deepen its commitment to sustainability while adapting to global market dynamics.
How does Fosun handle its financial management?
Fosun maintains a robust asset portfolio, with a manageable debt to capital ratio and significant cash reserves, allowing for resilience against external risks.
What is Fosun’s approach to technology and innovation?
Fosun invests heavily in technology innovation, establishing centers for R&D that drive new product developments across its various sectors.
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