Fosun International (656) H2 2023 earnings summary

Executive summary

• Revenue rose 8.6% YoY to RMB198.20bn, the third consecutive year of growth; overseas revenue was RMB89.20bn, or 45.0% of total, up 6.0%.

• Profit attributable to owners of the parent turned positive at RMB1.38bn from a RMB0.83bn loss in 2022; industrial operation profit rose 20.4% on a comparable basis, excluding exited operating enterprises.

• Strategy remained focused on core household-consumption businesses, technology innovation, global operations and asset disposals to reduce debt and strengthen liquidity.

Financial highlights

• Revenue was RMB198,200.3m, up 8.6% YoY; profit before tax was RMB7,871.7m versus RMB10,691.4m, while profit for the year was RMB5,347.1m versus RMB2,996.6m.

• Profit attributable to owners was RMB1,379.1m versus a loss of RMB831.8m; basic and diluted EPS were both RMB0.17 versus a loss per share of RMB0.10.

• Net interest expenditures rose to RMB12,074.2m from RMB10,474.3m; finance costs increased to RMB12,393.6m from RMB10,886.7m.

• Tax expense fell to RMB2,524.6m from RMB7,694.8m, primarily reflecting lower taxable profit.

Outlook and guidance

• Management expects continued focus on core businesses and growth of core enterprises to support higher recurring profit and a gradual increase in dividend distribution.

• 2024 priorities include deepening industry operations, expanding asset-light cooperation, and investing in advantageous sectors; stable profit growth is a stated operating objective.

• Hainan Mining targets 2.75m tonnes of finished ore and 7.15m barrels of oil-and-gas equity production in 2024; lithium projects are targeted to advance on schedule.

• Shede Spirits plans to pursue national expansion, higher-end market share and brand internationalization in 2024; Lanvin Group expects marketing and product launches to support sales growth.

• The outlook anticipates a gradual interest-rate reduction cycle and improved domestic and overseas financing conditions, while actual results remain exposed to known and unknown risks.