Subsidiaries of FOSUN INTL listed on the A-share market have been disclosing their financial reports for the first quarter of 2026 since April. This period is viewed by the market as a critical window to observe the company's operational recovery and profit realization following its risk clearance. Previously, adhering to the principle of prudence, FOSUN INTL recorded one-time non-cash impairment charges during the 2025 fiscal year for certain real estate projects showing signs of devaluation and for the goodwill and intangible assets of some non-core business segments. This strategic move aims to better concentrate resources and focus on high-growth core sectors.
The Chairman of FOSUN INTL, Guo Guangchang, described this strategic decision as "mending the roof while the sun is shining," driving the company towards a "lighter, healthier, and more sustainable development path." Data from the first-quarter reports show that Fosun Pharma, a core subsidiary in the Health segment, achieved revenue of 10.073 billion yuan in Q1 2026, a year-on-year increase of 6.93%. Net profit attributable to shareholders reached 871 million yuan, up 13.87% year-on-year. After adjusting for non-recurring gains and losses, the net profit attributable to shareholders saw a significant increase of 21.96%.
Yuyuan Tourist Mart, a core subsidiary in the Happiness segment, reported revenue of 9.649 billion yuan for Q1 2026, an increase of nearly 10% year-on-year. Net profit attributable to shareholders surged by 203% to 157 million yuan. Additionally, Shede Spirits and Hainan Mining also posted substantial profit growth, with Q1 2026 net profits reaching 232 million yuan and 201 million yuan, respectively.
"The uniformly positive trend in the subsidiaries' first-quarter performance fully confirms that FOSUN INTL is on a clear and certain growth trajectory after the risk clearance in the 2025 fiscal year," an analyst commented. Overall, FOSUN INTL's foundational businesses—including pharmaceutical health, insurance finance, and tourism—remain solid. Coupled with the steady recovery of the consumer sector, the company's growth momentum is expected to continue being released.
The innovative drug pipeline continues its explosive growth trend, unleashing high-growth potential. "Pharmaceutical innovation has always been our commitment. By continuously enriching our innovative product pipeline and accelerating the clinical translation and commercialization of innovative technologies and products, we currently have several heavyweight potential candidates in reserve," Guo Guangchang emphasized in his 2026 letter to shareholders, highlighting the importance placed on innovative drugs.
In 2026, the translation of FOSUN INTL's innovative drugs is accelerating. On April 28th, Fosun Pharma released its Q1 2026 report, indicating that during the period, marketing applications for 4 innovative drugs were accepted, and clinical trial applications for 14 innovative drugs (based on approval numbers) received approval from domestic and international regulators. Among these, Denosumab Injection (HLX14) was approved for marketing in Canada, the marketing application for Bevacizumab Injection (HLX04) was accepted in the US, and marketing applications for Succinic Acid Furetinib Capsules,盐酸莫托咪酯注射液, and an additional indication for Fumaining were accepted by the National Medical Products Administration.
This report card generally continues the strong momentum of innovative drug breakthroughs seen in 2025. Data shows that in 2025, Fosun Pharma gained marketing approval for 16 indications across 7 innovative drugs in various markets, with marketing applications accepted for 6 innovative drugs. Revenue from innovative drugs reached 9.893 billion yuan, a increase of 29.59% year-on-year, accounting for 33.16% of the pharmaceutical business revenue. By the end of 2025, nearly 40 clinical trials for innovative drugs had received approval from regulators in China, the US, and Europe, with several core products entering key clinical stages, laying a solid foundation for future commercial growth.
As a flagship enterprise for FOSUN INTL's innovative drugs, Henlius has seen particularly rapid progress in R&D and commercial落地 since the beginning of 2026. In R&D, breakthrough progress has been made with H药汉斯状 and HLX07, and several potential "first-in-class" layouts are accelerating into the clinical validation stage. Globally, an exclusive commercialization and co-exclusive development and manufacturing license agreement for H药汉斯状 was reached with Eisai Co., Ltd. in Japan, with a potential total value exceeding $300 million. A subsidiary obtained a Class I Pharmaceutical Manufacturing and Marketing License issued by Tokyo, opening a growth path for deeper penetration into Asian and global mainstream pharmaceutical markets.
Analysts point out that FOSUN INTL's innovative pipeline has entered a phase of密集 approval and commercial scaling. R&D investment and market returns are forming a positive feedback loop, providing strong support for the sustained performance growth of the segment and enhanced competitiveness in the global market.
The strong performance across multiple subsidiary segments has increased the certainty of the "Ten-Billion-Yuan Profit" target. The growth momentum of innovative drugs signals a clear boost to FOSUN INTL's performance. Concurrently, Yuyuan Tourist Mart, previously affected by real estate impairments, has successfully navigated the industry adjustment period, effectively addressing a previous weak spot.
In Q1 2026, Yuyuan Tourist Mart's net profit attributable to shareholders reached 157 million yuan, a 203% year-on-year increase. "Although the absolute Q1 profit figure is not large, the high growth rate reflects a positive inflection point in Yuyuan's fundamental operations. It is expected that the momentum for further performance recovery will be released," an analyst noted.
Shede Spirits, also part of FOSUN INTL's consumer sector, has successfully returned to a growth track. In Q1 2026, it achieved revenue of 1.481 billion yuan, a sequential increase of 106.45%, and a net profit of 232 million yuan, surpassing the full-year 2025 level of 223 million yuan.
Notably, Hainan Mining from the Intelligent Manufacturing segment delivered an outstanding performance. Driven by growing downstream demand for energy storage and power batteries, Hainan Mining reported Q1 2026 revenue of 1.193 billion yuan and a net profit attributable to shareholders of 201 million yuan, a year-on-year increase of 25.13% and a significant sequential increase of 69%. Its integrated lithium resource industrial chain operated stably, contributing 99 million yuan in net profit for the quarter and becoming a core growth driver. Additionally, its oil and gas business maintained stable production and efficiency, achieving equity oil and gas output of 3.1865 million barrels of oil equivalent during the period, up 15.78% year-on-year.
"The significantly accelerated profit growth across multiple subsidiary segments undoubtedly strengthens market expectations for the certainty of FOSUN INTL's future profit growth," an analyst stated. Previously, at the 2025 annual results presentation, FOSUN INTL's management clearly outlined its mid-term financial targets: to strive for a gradual recovery to a profit scale of ten billion yuan, to recoup 60 billion yuan at the group level, to reduce total group-level debt to below 60 billion yuan, and to strive for an "investment-grade" rating.
Regarding the specific plan to achieve the "Ten-Billion-Yuan Profit" target, the management elaborated on a "8424" restructuring framework. The "8" refers to the four core subsidiaries—Fosun Pharma, Yuyuan Tourist Mart, Fidelidade (Portugal), and Fosun Tourism Group—contributing 8 billion yuan in profit. The first "4" indicates that secondary梯队 companies, such as Hainan Mining and Peak Re, will collectively achieve 4 billion yuan in profit. The "2" represents investment companies contributing approximately 2 billion yuan in profit collectively. The final "4" means the group aims to control various costs, including financial expenses, at the FOSUN INTL headquarters level within 4 billion yuan. Through this "addition and subtraction," the target of ten billion yuan in profit is expected to be regained.
"The Q1 performance of subsidiaries across various segments not only meets market expectations following FOSUN INTL's 'roof-mending' strategy but also significantly reinforces the certainty of regaining the 'Ten-Billion-Yuan Profit' target in the future," the analyst emphasized. With the continued commercial scaling of innovative drugs, the rapid growth of the insurance business, and the bottoming-out and stabilization of the tourism and consumer sectors, FOSUN INTL is poised to further release its growth momentum. Its full-year performance growth and valuation repair are worth watching.
Reflecting confidence in the company's long-term development, FOSUN INTL is actively repurchasing its shares. Since the announcement of its 2025 annual results on March 30th, and up to April 27th, FOSUN INTL has cumulatively repurchased 25.41 million shares. According to relevant announcements, the repurchases are expected to continue. Recently, leading domestic and international brokerages such as Citi, UBS, Guotai Junan, Haitong Securities, and China Securities have published research reports expressing optimism about FOSUN INTL's future market performance. Citi specifically highlighted that, based on the improving fundamental situation, it anticipates strong performance from FOSUN INTL in 2026.
Comments