Fosun International (656) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB87.28 billion, down 10.8% year-over-year, mainly due to declines in the Happiness segment and divestment of non-core businesses.

• Net profit attributable to owners was RMB661.2 million, an 8.2% decrease year-over-year, with EPS at RMB0.08.

• Overseas revenue rose to RMB46.67 billion, accounting for 53% of total revenue, up 6.6 percentage points year-over-year.

• The group continued to streamline operations, focus on core industries, and invest in technology innovation, especially in healthcare.

• Four core subsidiaries contributed 73% of total revenue, maintaining a stable share.

Financial highlights

• Health segment revenue fell 3.0% to RMB22.57 billion, but profit rose 48.3% to RMB755.8 million, driven by Fosun Pharma.

• Happiness segment revenue dropped 21.9% to RMB33.72 billion, with a loss of RMB434.6 million, mainly due to Yuyuan's decline.

• Wealth segment revenue increased 3.3% to RMB27.83 billion; insurance revenue grew 13.2% to RMB20.89 billion, with profit up 3.7%.

• Intelligent Manufacturing revenue declined 24.6% to RMB4.02 billion, but profit surged 205.5% to RMB137.8 million.

• Adjusted NAV per share rose to HKD18.0, with cash and bank balances at RMB67.83 billion and average borrowing cost at 5.26%.

Outlook and guidance

• The group will continue to focus on core industries, optimize asset allocation, and enhance global operational capabilities.

• Emphasis remains on technology innovation, international expansion, and cost efficiency.

• Targeting reduction of interest-bearing debt to RMB60 billion and industrial operating profit/net profit to reach RMB10 billion.

• No interim dividend declared for the period.

• Club Med bookings for H2 2025 expected to grow 9% year-on-year; H1 2026 bookings projected up 17%.