Fosun International (656) H1 2024 earnings summary

Executive summary

• Total revenue for H1 2024 was RMB 97.84 billion, up 0.8% year-over-year, with core subsidiaries contributing 74% and overseas revenue accounting for 47% of the total.

• Profit attributable to owners was RMB 720 million, down 47% year-over-year, mainly due to one-off disposal losses of non-core assets.

• Industrial operation profit rose 3% to RMB 3.47 billion, supported by strong performance in core subsidiaries.

• S&P Global affirmed BB- rating with stable outlook, citing improved financing, deleveraging, and asset quality.

• The Group continued to streamline operations, divest non-core assets, and focus on global expansion and innovation.

Financial highlights

• Revenue from four core subsidiaries rose 1.42% year-over-year to RMB 72.17 billion.

• Adjusted NAV was HKD 17.4 per share, exceeding share price.

• Total assets increased 1.7% to RMB 821.89 billion compared to end-2023.

• Net cash from operating activities was RMB 10.65 billion; cash and bank balances rose to RMB 109.55 billion.

• Basic and diluted EPS were RMB 0.09, down from RMB 0.17 in H1 2023.

Outlook and guidance

• Focus on core businesses, asset-light operations, and further deleveraging, with a target to reduce interest-bearing debt to RMB 60 billion within three years.

• Aims to increase industrial operation profit above RMB 10 billion and elevate credit ratings to investment grade.

• Continued investment in innovation, digitalization, ESG, and global expansion, especially in health and consumer sectors.

• No interim dividend declared for the period.