2026-03-10

Fosun Navigates Cyclical Volatility and Clears Risks as Management Reaffirms RMB10 Bn Profit Target for Next 3 to 5 Yrs

By Kanokwan

HONG KONG, Mar 10, 2026 – (ACN Newswire via SeaPRwire.com) – On March 9, Fosun International announced that it has received notices from its controlling shareholder and senior management stating their intention to increase shareholdings by up to HK$500 million within 12 months following the release of the Company’s 2025 annual results.

Previously, Fosun International (00656.HK) issued a profit warning announcement stating that the loss attributable to owners of the parent of the Company for the year ended 31 December 2025 is expected to be approximately RMB21.5 billion to RMB23.5 billion. The book loss is primarily attributable to one-off non-cash impairment provisions and value revaluations on certain assets made pursuant to the principle of financial prudence. The Company’s fundamentals remain solid. Fosun will continue to advance its strategies of focusing on core businesses and streamlining operations and strengthening the business, promote business growth through refined operations, and consolidate its long-term value.

At the investor conference call held on 8 March, Fosun’s management emphasised that this represents a thorough “risk clearance.” Through a one-off, concentrated recognition of non-cash impairment provisions, the Company expects to further strengthen the foundation of its financial statements and enhance asset quality, thereby facilitating the future release of earnings and ensuring that operating performance is more accurately reflected. The Company’s operating fundamentals remain stable, financing capacity remains solid with diversified and smooth funding channels, and its core businesses continue to demonstrate positive development momentum. Over the next three to five years, Fosun will continue advancing toward its target of achieving RMB10 billion in profit.

Fosun has also conveyed confidence to the market through ongoing share repurchases. On 2 March, Fosun International announced that, based on its assessment of the Company’s long-term development prospects, it plans to repurchase shares on the open market, with a total amount not exceeding HK$1 billion. Prior to this, on 27 February, Fosun International had already repurchased 13.027 million shares at an aggregate consideration of HK$48.2354 million.

Analysts point out that Fosun has been continuously signalling confidence to the market through a series of recent initiatives. A rational analysis suggests that following the one-off impairment provisions—which amount to a comprehensive “clean-up” of its balance sheet—the market can look forward to a fundamentally renewed Fosun.

On 9 March, Fosun International (00656.HK) closed higher, with its share price rising to HK$3.83, up HK$0.24 from the previous trading day, representing an increase of 6.69%.

On the same day, Guotai Haitong Securities initiated coverage of Fosun International for the first time, noting that the Company’s operating fundamentals continue to improve, earnings momentum is accelerating, and future earnings flexibility and upside potential are worth anticipating. The firm assigned a “Buy” rating with a target price of HK$7.24 and a net asset value (NAV) of HK$18.1 per share.

The report stated that Fosun’s “streamlining and strengthening” strategy has delivered notable results, with the Company focusing on four major segments and showing signs of navigating through cyclical inflection points. On the one hand, Fosun has substantially exited non-strategic and non-core assets to accelerate its focus on strategic core businesses with market leadership. On the other hand, it continues to integrate Chinese capabilities globally, driving accelerated performance release from its core businesses and progressively expanding into global markets.

Goldman Sachs also released a research report, maintaining its “Neutral” rating on Fosun International while raising the target price. The report highlighted that Fosun’s future profit growth will be driven by several factors, including robust growth from upcoming innovative drug launches, stable growth from insurance business, stability in the gold and jewellery retail segment, as well as operational improvements and better output in Intelligent Manufacturing segment

Why is Fosun advancing asset impairment at this point in time’ From a market perspective, Fosun’s one-off recognition of a substantial non-cash book loss represents both risk clearance and a transition from legacy growth drivers to new engines of growth. Following the resolution of risks in traditional segments such as real estate, their impact on Fosun is expected to diminish further. Going forward, Fosun’s growth will be increasingly driven by its core businesses in pharmaceuticals and healthcare, insurance and finance, and tourism, supported by innovative R&D and deep global industrial operations.

In the innovative drug segment, Fosun’s commercialization of innovative drugs in 2025 opened up substantial global market opportunities. The global exclusive licensing agreement signed with Pfizer carries a potential total value of over US$2 billion, while the strategic cooperation agreement entered into with biotechnology company Clavis Bio may entitle the Company to receive payments of up to US$7.25 billion. At the beginning of 2026, Fosun further entered into an agreement with Eisai Co., Ltd. in relation to HANSIZHUANG, positioning itself in Japan, the world’s fourth-largest pharmaceutical market, with a potential total value of over US$300 million.

In the insurance segment, Fidelidade recorded net profit of €170 million for the first three quarters of 2025, representing a year-on-year increase of 11.7%. Peak Reinsurance reported net profit of US$88.8 million for the first half of 2025. Recently, two of Fosun’s domestic insurance companies announced substantial growth in premium income and net profit for 2025. Fosun United Health Insurance recorded business income of RMB7.84 billion, representing a year-on-year increase of 50%, ranking among the fastest-growing specialised health insurers, and achieved net profit of RMB130 million for the year. Pramerica Fosun Life Insurance recorded annual insurance business income of RMB12.598 billion, representing a year-on-year increase of 36.17%, and achieved net profit of RMB647 million, representing a significant year-on-year increase of over 450%, marking a new level in both the scale and quality of profitability.

In addition, in the tourism and culture segment, several of Fosun’s business lines delivered a strong start to the year. During the core six-day Spring Festival holiday period, the average occupancy rate of Club Med’s five premium all-inclusive resorts in China reached 90%. Atlantis Sanya recorded total revenue of over RMB124 million during the nine-day Spring Festival holiday period, representing a year-on-year increase of 20% and achieving its best performance on record.

At the investor conference call on 8 March, management further stated that over the next three to five years, the Group will strive to achieve RMB10 billion in profit, while steadily advancing debt reduction and financial structure optimisation. The Company aims to reduce total debt to approximately RMB60 billion and seek to improve its overseas credit rating to investment grade. On the basis of gradually releasing profits, Fosun will continue enhancing shareholder returns.

For Fosun, this performance fluctuation represents a profound strategic adjustment. Market analysts expect that, with a healthier asset structure and stronger core capabilities following the completion of risk clearance, Fosun is well positioned to navigate business cycles more effectively and inject greater certainty into future performance. Its management also stated that “2026 will mark the beginning of a new era and a new development cycle for Fosun. We remain confident in the future.”