Fosun International (656) H2 2024 earnings summary

Executive summary

• 2024 revenue was RMB192.14 billion, down 3.1% year-on-year, with overseas revenue rising to 49% of total revenue and an 11-year CAGR of 13%.

• Reported net loss of RMB4.35 billion due to a RMB5.1 billion non-cash impairment on Cainiao; adjusted net profit attributable to owners was RMB750 million excluding this impact.

• Core subsidiaries contributed 70% of total revenue, with mixed performance across health, wealth, happiness, and intelligent manufacturing segments.

• Strategic focus on streamlining, asset-light operations, global expansion, and divesting non-core or heavy assets to optimize the portfolio.

• Overseas revenue grew 6.2% year-on-year to RMB94.78 billion, accounting for 49.3% of total revenue.

Financial highlights

• Industrial operating profit was RMB4.9 billion, stable year-on-year.

• Dividend payout ratio set at 20% for 2024, with accumulated dividend payments reaching HKD25.7 billion over 17 years.

• Adjusted NAV per share was HKD17.6, exceeding share price.

• Interest-bearing liabilities at consolidated level reached RMB210 billion; group level at RMB89.4 billion.

• Average cost of borrowing improved to 4.7% by year-end.

Outlook and guidance

• Targeting industrial operating profit above RMB10 billion and reducing group interest-bearing debt to RMB60 billion.

• Plans to gradually increase dividend payout ratio from 20% to 50%.

• Continued focus on global expansion, innovation, asset-light strategies, and achieving investment-grade credit rating.