On 30 March, Fosun International announced its 2025 annual results. “The management team, including myself, has full confidence in the Company’s future development. I believe Fosun has the ability to navigate through cycles. While we may face some short-term challenges, these efforts will position Fosun for steadier, longer-term growth.”

In the face of a complex macroeconomic environment, what gives Fosun’s management the confidence to remain bullish on the future despite short-term challenges? What are Fosun’s “trump cards” and “hole cards”?

Solid fundamentals as the “ballast stone”

To understand Fosun’s“trump cards” and “hole cards”, we must first look at its foundation. Despite the impact of a one-off non-cash impairment provision, Fosun’s core operating metrics remained solid: in 2025, Fosun International’s total revenue reached RMB173.43 billion, and adjusted industrial operation profit amounted to RMB4 billion.

More importantly, Fosun’s margin of safety remained strong. As at the end of the period, Fosun held RMB61.1 billion in cash and bank balances, with unutilized banking facilities reaching RMB144.2 billion. Thetotal debt to total capital ratio remained stable at 57%. Adjusted net asset value (NAV) was RMB133.5 billion, with a NAV per share reaching HKD18.1. International rating agency S&P also assigned a “stable” outlook, representing a strong vote of confidence.

Fosun is also actively optimizing its financial structure. “We remain committed to ‘streamlining operations and strengthening the businesses, and focusing on development, continuously improving our global ratings, and striving to reduce the parent company’s debt to below RMB60 billion over the medium term.”

What appears to be a contraction in scale is in fact strategic evolution. By exiting non-core businesses, Fosun has deepened its focus on its core segments: “pharmaceuticals and healthcare, insurance and finance, culture, tourism and resorts, and consumer brands”.

In 2025, the four core subsidiaries—Fosun Pharma, Yuyuan, Fosun Insurance Portugal, and Fosun Tourism Group—contributed 74.4% of the Group’s total revenue.

“These businesses are capable of generating sustainable profit and cash flow, laying the foundation for Fosun’s continued growth and providing the confidence to take this significant impairment. We believe future operating results will more accurately reflect the underlying quality of our core businesses.”

Innovation powers long-term development

While a solid financial position forms the foundation, innovation serves as the growth driver.

“Fosun will further focus on building its innovation capabilities. Our pharmaceutical business, such as Henlius, has been honing its capabilities for over a decade. We are now gradually seeing positive development trends and encouraging results.”

In 2025, Fosun invested RMB7.8 billion in technology innovation and established a global innovation system integrating “independent R&D + investment incubation + ecosystem collaboration”.

High-intensity R&D investment has continued to translate into globally competitive innovations. From HANSIZHUANG’s continuous breakthroughs to HLX43’s great potential, from FUMAINING filling the gap in the treatment of rare tumors in China to FUTUONING offering a brand-new treatment option for breast cancer patients, innovative drug breakthroughs are emerging as the core driver for resilient growth.

Amid the wave of AI, Fosun is not standing still—it is fully embracing AI as a “leading adopter”.

Globalization builds a lasting “moat”

After 20 years of global operations, Fosun has entered the 3.0 era of “Combining Global Resources with China’s Capabilities”.

“Fosun has been pursuing globalization for nearly two decades, and globalization is the result of our proactive strategic planning. After more than ten to twenty years of persistence and exploration, we have gradually built our own global operating capabilities across various business areas.”

In 2025, overseas revenue reached RMB94.86 billion, accounting for 54.7% of total revenue. These figures not only represent trade but also reflect Fosun’s comprehensive globalization across commercialization, R&D, and supply chain.

In insurance and finance,Fosun’s insurance business saw growth both domestically and internationally. Fosun Insurance Portugal maintained its leadership in the local market, while international operations contributed approximately 30%. Driven by its global diversification strategy, Peak Reinsurance delivered a performance breakthrough. Meanwhile, the two domestic insurance companies also reached a new stage of profitable and high‑quality growth.

In pharmaceuticals, Fosun accelerated the expansion of innovative products into overseas markets, unleashing new growth momentum. In culture, tourism and resorts, Club Med continued to deepen its global operations and once again achieved record-high performance. Hainan Mining steadily established a global resource network.

(Fosun Pharma’s global licensing deal of the GLP-1 target YP05002 garnered an upfront payment of USD150 million and potential total payments of USD2.085 billion.

Henlius had 10 products approved for launch in nearly 60 countries and regions worldwide, benefiting over 1 million patients globally.

HANSIZHUANG has been approved in more than 40 countries and regions and recorded global sales revenue of RMB1.4926 billion in 2025, up 13.7% year-on-year.

HANQUYOU has been approved in over 50 countries and regions and has been included in reimbursement systems in China, the U.K., France, Germany and other countries. It recorded global sales revenue of RMB2.9645 billion, up 5.5% year-on-year.

Club Med, a subsidiary of Fosun Tourism Group that operates 67 resorts worldwide, delivered another record-high performance in 2025, with revenue reaching RMB17.97 billion, up 2.1% year-on-year.

Hainan Mining has established a global resource network covering various strategic mineral resources. Its Bougouni lithium mine in Mali produced 45,000 tons of lithium concentrate in 2025. Hainan Mining also completed the acquisition of the Oman oilfield project.)

“After years of continuous exploration and evolution, we have developed ‘Fosun’s Globalization 3.0’. It requires building commercialization capabilities (i.e. sales capabilities), product development capabilities, supply chain capabilities, and globalization capabilities across our core businesses.”

These high-barrier, hard-to-replicate global operating capabilities form Fosun’s strongest “moat”.

“We recognize that overseas markets and globalization offer significant value, but they also come with high barriers to entry and are not easily accessible to everyone. For these reasons, globalization remains a long-term competitive advantage for Fosun. Accordingly, the proportion of our overseas sales revenue has risen steadily year after year, with another notable increase in 2025, reflecting a long-term trend and competitive edge for the Group.”

Fosun’s solid fundamentals are its “hole cards”, while innovation and globalization are its “trump cards”, driving its long-term competitiveness through cycles.

“In the future, Fosun will sharpen its focus on core businesses, concentrating on industries where it has already established a competitive advantage. From a long-term perspective, Fosun has entered a new stage of development, focusing its resources on core, high‑growth areas and steering the Company toward a leaner, healthier, and more sustainable future. The management team has full confidence in this direction.”