(SeaPRwire) –   HONG KONG, March 31, 2026 — During Fosun International’s 2025 annual earnings briefing on the morning of March 31, Chairman Guo Guangchang addressed the company’s RMB 23.4 billion impairment provision, characterizing it as a “prudent accounting step” rather than an indicator of operational distress. He likened the move to “repairing the roof while the sun is shining,” expressing strong confidence in the firm’s future trajectory.

Guo highlighted that this impairment signals a new phase for Fosun. He stated, “We are committed to divesting from assets that underperform or fall short of value targets, concentrating our resources on core, high-growth sectors to build a leaner, more resilient, and sustainable organization.”

He noted that the performance of Fosun’s business units confirms the strength of its core operations. The pharmaceutical division continues to advance its global footprint with new international product launches and a robust pipeline. The insurance segment saw growth both at home and abroad, with Fosun Insurance Portugal expanding into Africa and Latin America, while domestic entities like Fosun United Health Insurance and Pramerica Fosun Life Insurance reported substantial profit gains. Additionally, the culture and tourism sector saw Club Med reach record-breaking results.

“These segments generate reliable profit and cash flow, providing a solid base for our ongoing expansion. Following this significant impairment, our future financial reports will more accurately reflect the true quality of our core businesses. I am confident in Fosun’s ability to navigate market cycles. While we may encounter short-term hurdles, these actions will pave the way for more stable, long-term growth,” Guo added.

Guo reaffirmed management’s positive outlook for the company. Fosun International’s adjusted net asset value (NAV) stands at RMB 133.5 billion, or HKD 18.1 per share. The Board has initiated a share buyback program, and both major shareholders and the management team intend to increase their stakes. Looking ahead, the company plans to explore further shareholder rewards, such as optimizing dividend policies, contingent upon operational performance and cash flow.

Fosun International released its 2025 annual results on the evening of March 30, reporting total revenue of RMB 173.43 billion and an adjusted industrial operation profit of RMB 4 billion. Its four primary subsidiaries contributed RMB 128.2 billion, representing 74% of total revenue. Notably, Fosun Pharma saw its net profit attributable to parent company shareholders rise by 21.69% year-on-year to RMB 3.371 billion, while Fosun Insurance Portugal’s net profit grew 15.8% to EUR 201 million.

While overall results remained largely stable compared to previous years, the company recorded a book loss of RMB 23.4 billion in 2025 due to non-cash impairment provisions and revaluations. These were applied to specific real estate projects showing signs of impairment, as well as goodwill and intangible assets within certain non-core segments. Real estate-related impairments accounted for approximately 55% of this total, with non-core asset impairments making up the remaining 45%.

SOURCE Fosun