FOSUN INTL has reported its largest-ever financial loss since its establishment. On March 30, the company released its 2025 performance report, revealing a total annual revenue of 173.43 billion yuan, a decrease of 9.7% compared to the previous year. The net profit attributable to shareholders showed a loss of 23.396 billion yuan, a significant increase of 437.97% from the 4.349 billion yuan loss recorded a year earlier.
This performance is unprecedented in FOSUN INTL’s more than three decades of operation. As the founder, I extend my sincere apologies to all shareholders and partners who have supported FOSUN’s development, said Guo Guangchang, Chairman of FOSUN INTL, during the earnings conference on March 31.
In response to the challenging situation, Guo outlined the company’s mid-term financial targets: gradually restoring profitability to the scale of tens of billions of yuan, raising 60 billion yuan at the group level, reducing total group debt to below 60 billion yuan, and striving to achieve an investment-grade credit rating to steer the company back to stable growth.
The substantial loss of 23.396 billion yuan did not stem from operational collapse but from one-time impairment charges. The board adopted a prudent approach by making non-cash impairments on certain historical projects and writing down goodwill and intangible assets in non-core business segments, FOSUN INTL explained.
Analysis of the loss reveals two main contributors: real estate-related projects accounted for 55% of the impairments, approximately 12.87 billion yuan, while non-core asset impairments made up the remaining 45%, or about 10.53 billion yuan.
Looking back, the fair value of some projects we invested in has fallen far below initial expectations under current market conditions. We must adhere to accounting standards and eliminate the泡沫, Guo stated.
Yuyuan Tourist Mart emerged as a major contributor to the loss. As a core platform within FOSUN’s happiness segment, it recorded a net loss attributable to shareholders of 4.9 billion yuan for 2025, largely due to significant impairments on commercial real estate projects and goodwill. About 70% of the impairments originated from residential projects in the Yangtze River Delta and areas around Beijing, where sluggish market conditions and sales rates below 40% necessitated inventory write-downs, with the single largest impairment exceeding 1.5 billion yuan.
Such large-scale asset impairments are often interpreted as a financial cleanup in capital markets. However, FOSUN aims to position it as a strategic move to shed burdens.
Over recent years, the real estate sector has undergone structural adjustments. Although real estate represents a small portion of FOSUN’s business, it is natural for the market and investors to question whether our real estate projects face challenges. The situation is not that simple, Guo remarked.
Financial data indicate that real estate-related impairments constituted over 55% of the total, signaling a comprehensive reassessment of FOSUN’s past real estate investment strategy. Assets once considered ammunition have now turned into inventory requiring clearance.
Despite the significant loss, FOSUN’s management emphasized the company’s underlying health and sufficient cash flow during the earnings conference. They pointed to growth in core businesses as evidence: among the 173.43 billion yuan total revenue, four core subsidiaries—FOSUN Pharma, Yuyuan Tourist Mart, Fidelidade (FOSUN’s Portuguese insurance arm), and FOSUN Tourism Group—contributed 128.2 billion yuan, accounting for 74% of group revenue, up 3 percentage points year-on-year.
Notably, FOSUN Pharma’s global operations continued to advance, with net profit attributable to shareholders rising by 21.69% to 3.371 billion yuan. Fidelidade saw a 15.8% increase in profit, while Club Med, part of the tourism segment, achieved a record-high revenue of 17.97 billion yuan.
In terms of liquidity, FOSUN INTL held 61.1 billion yuan in cash, bank balances, and term deposits as of the reporting period, with an additional 144.6 billion yuan in unused bank credit facilities. This suggests that despite the paper loss, the company is not facing a cash crunch.
However, market concerns persist, particularly regarding FOSUN’s debt levels. By the end of 2025, total debt stood at 224.19 billion yuan, with the debt-to-capital ratio rising from 53% to 57%. Medium- to long-term debt accounted for approximately 53.5%, while short-term interest-bearing liabilities amounted to about 104.2 billion yuan, remaining substantial in absolute terms.
Amid increasing difficulties in disposing of real estate assets, can FOSUN continue to reduce short-term debt by exiting non-core assets without over-relying on refinancing? investors questioned.
Guo presented a clear debt-reduction roadmap, targeting total group debt below 60 billion yuan in the medium term. This underscores FOSUN’s commitment to transitioning toward lighter assets and reducing leverage.
Since 2022, the FOSUN group has raised approximately 80 billion yuan through divestments, including stakes in Nanjing Iron & Steel and German private bank Bankhaus Lampe.
On the financing front, FOSUN has taken proactive steps. On the day of the earnings conference, it announced a full buyback offer for the remaining $205 million of bonds maturing in May 2026, funded entirely by internal resources. Earlier, on March 20, FOSUN secured agreements with 16 banks for the first tranche of its 2026 offshore syndicated loan, totaling $522 million.
We are determined to exit underperforming assets that fail to meet value expectations and concentrate resources on high-growth core sectors, driving the company toward a lighter, healthier, and more sustainable future, Guo affirmed.
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