Fosun International (656) H2 2025 earnings summary

Executive summary

• Total revenue for 2025 was RMB 173.43 billion, down 9.7% year-on-year, mainly due to currency effects, Yuyuan revenue decline, and changes in consolidation scope.

• Net profit attributable to owners was a loss of RMB 23.4 billion, primarily from non-cash impairment charges on real estate, goodwill, and non-core assets.

• Overseas revenue rose to RMB 94.86 billion, representing 55% of total revenue, up 6 percentage points year-on-year.

• Four core subsidiaries contributed RMB 128.24 billion in revenue, accounting for 74% of group revenue and maintaining a stable base.

• Strategic focus on streamlining, deleveraging, and unlocking portfolio value through asset disposals and spin-offs.

Financial highlights

• Industrial operating profit reached RMB 4 billion, stable excluding non-cash impairment provisions.

• Adjusted net asset value per share at end-2025 was HKD 18.1; book value per share was HKD 12.7.

• Cash flow from asset disposals and subsidiary dividends reached RMB 14 billion.

• Public markets financing in 2025 totaled RMB 27.8 billion; average cost of debt declined to 5.0%.

• Investment in technology and innovation reached RMB 7.8 billion, emphasizing R&D efficiency.

Outlook and guidance

• Medium-term target for net profit attributable to owners is RMB 10 billion or above.

• Plans to reduce group interest-bearing liabilities to below RMB 60 billion.

• Dividend payout ratio for 2026 targeted to rise from 20% to 35%, with dividends no less than HKD 1.5 billion.

• Continued focus on core businesses, refraining from large-scale investments and M&A, and enhancing shareholder returns through share buybacks and management share purchases.

• Accelerating divestment of heavy assets and non-core subsidiaries to optimize the portfolio.