Fosun International Limited

2023 total revenue was RMB198.2 billion, up 8.6% year over year. Industrial operating profit was RMB4.9 billion, up 20% year over year, excluding discontinued businesses, and profit attributable to owners of the parent was RMB1.38 billion. Overseas revenue was RMB89.2 billion, accounting for 45% of total revenue; technology and innovation investment was RMB7.4 billion, up 14% year over year. Cash, bank balances and term deposits were RMB92.46 billion, consolidated interest-bearing liabilities were RMB211.9 billion, and the leverage ratio was 50.4%. The adjusted NAV was HKD19.0 per share. Management said 2024 will continue to emphasize core businesses, asset divestment, and deleveraging, with Wang Qunbin targeting debt reduction of RMB10 billion per year over the next two to three years. Gong Ping also said the group would aim to recover RMB30 billion a year from non-core asset disposals and would stay open to improving the current dividend policy.

Guo Guangchang said Fosun’s strategy is to focus on products, innovation, and market-leading businesses rather than chasing scale for its own sake. He emphasized that Fosun should “dig deeper for the good mines,” keep building global capabilities, and continue shifting toward asset-light businesses while reducing heavy assets and leverage. His tone was upbeat but pragmatic, acknowledging uncertainty and repeatedly stressing patience, discipline, and efficiency.

Gong Ping said the company kept growing revenue and improving profitability despite macro uncertainty, with 2023 revenue of RMB198.2 billion, industrial operating profit of RMB4.9 billion, and profit attributable to owners of RMB1.38 billion. He highlighted RMB92.46 billion of cash, bank balances and term deposits, RMB211.9 billion of consolidated interest-bearing liabilities, and a leverage ratio of 50.4%, while noting S&P had lifted the outlook to stable. He also stressed continued divestment of non-core assets, stable dividends at a 20% payout ratio, and multiple financing actions including a RMB12 billion domestic bank credit line, a $520 million syndicated loan, RMB3.5 billion of commercial paper issuance, and RMB700 million of medium-term notes.

Analysts focused on deleveraging, overseas expansion, and innovation investment. Management said the plan is to keep disposing of non-core assets, reduce debt by RMB10 billion per year in the next two to three years, and aim gradually for investment-grade credit. On overseas business, management said Fosun wants to raise the overseas revenue mix through global R&D, supply chain, sales, and registration capabilities rather than simply moving capital abroad; they also cited overseas revenue at 45% of total revenue and strong performance at Fidelidade and Club Med. On innovation, management said Fosun invested RMB7.4 billion in technology and innovation in 2023, and Guo Guangchang said the company would use partnerships and funds, including with Shenzhen, to support promising biotech projects while staying prudent on capital use.