Fosun International Issues Significant Profit Warning for FY2025

Date: 6 March 2026
Chairman: Guo Guangchang

Key Highlights from Fosun International’s Profit Warning

• Substantial Full-Year Loss Expected for 2025: Fosun International Limited (“Fosun”, or the “Company”) has announced that it anticipates a significant loss attributable to its shareholders for the financial year ended 31 December 2025. The expected loss is approximately RMB21.5 billion to RMB23.5 billion, a sharp increase compared to the loss of RMB4.35 billion recorded in 2024.
• Main Cause – One-Off, Non-Cash Asset Impairments: The dramatic increase in book loss is primarily due to the Company adopting a prudent financial approach by making substantial one-off, non-cash impairment provisions and value revaluations on certain assets.

Details of Impairments and Financial Impact

1. Real Estate Segment Under Pressure:
   The real estate market continued its downward cycle in 2025, with weak demand exerting pressure on Fosun’s real estate business. As a result, the Company made significant asset impairment provisions for real estate projects that showed impairment indicators. Fosun states it will adapt its operating and sales strategies, increase marketing and inventory clearance efforts, and accelerate cash recovery to navigate ongoing market challenges.
2. Non-Core Business Impairments:
   Due to changing market conditions, the Company also made impairment provisions on goodwill and intangible assets within certain non-core business segments, aiming to reflect these assets’ fair value objectively.

Implications for Shareholders and Potential Impact on Share Price

• Material Non-Cash Provisions: These impairments are non-cash in nature and will not affect the Company’s overall operations or cash flow. However, the scale of the book loss is substantial and could significantly affect market sentiment and Fosun’s share price.
• Financial Position Remains Stable: Despite the headline loss, Fosun’s fundamentals are described as stable. Core segments – especially pharmaceuticals, healthcare, insurance, and finance – continue to display positive development trends.
• Strategic Focus: The Company reaffirms its ongoing strategy to focus on core principal businesses, streamline operations, and strengthen its business model, aiming to ensure long-term value creation and sustainable, stable returns for shareholders.
• Results Not Finalized: The announcement is based on unaudited management accounts for FY2025. The final audited results could differ from the figures cited in this profit warning. Fosun will release its audited 2025 annual results in due course, per Hong Kong Listing Rules.

Investor Guidance

Shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s securities. The magnitude of the anticipated loss and impairment provisions is a material, price-sensitive event that may influence trading activity and valuation in the near term.

Board of Directors

At the date of this announcement, Fosun’s executive directors are Guo Guangchang, Wang Qunbin, Chen Qiyu, Xu Xiaoliang, Gong Ping, Huang Zhen, and Pan Donghui. Non-executive directors include Li Fuhua and Luo Yuanli. Independent non-executive directors are Zhang Shengman, Zhang Huaqiao, David T. Zhang, Dr. Lee Kai-Fu, and Tsang King Suen Katherine.

Disclaimer: This article is a summary and analysis of Fosun International Limited’s profit warning announcement for FY2025, prepared for informational purposes only. The financial data is preliminary and unaudited. Investors should exercise caution and await the Company’s audited results before making investment decisions. This is not an offer or solicitation to buy or sell any security.

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