Fosun International (656) H2 2025 earnings summary

Executive summary

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

• Net loss attributable to owners was RMB 23.40 billion, primarily from real estate and non-core business impairments, not a deterioration of core operating fundamentals.

• Four core subsidiaries contributed RMB 128.24 billion in revenue, up 3% YoY excluding Yuyuan, and accounted for 74% of group revenue.

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

• The group focused on streamlining, deleveraging, and optimizing asset structure through disposals and spin-offs.

Financial highlights

• Investment in technology and innovation reached RMB 7.80 billion, emphasizing R&D efficiency and pipeline development.

• Industrial operating profit was RMB 4.00 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.

• Public markets financing in 2025 totaled RMB 27.8 billion; average cost of debt declined to 5.0%, down 60bps YoY.

• Basic and diluted loss per share was RMB 2.88, compared to RMB 0.53 in 2024.

Outlook and guidance

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

• 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 accelerating divestment of non-core assets.

• Plans to reduce total debt below RMB 60 billion and generate RMB 60 billion in cash returns at the group level.

• Enhanced shareholder returns through share buybacks and management share purchases.