Fosun rebounds after property clean-up with core focus on growth, innovation
Fosun International is emerging from a painful clean-up of its property portfolio with a sharper focus on pharmaceuticals, insurance and tourism, betting that years of asset sales and debt reduction have cleared the way for a return to growth. The group swung back to stronger profitability in the first half, helped by the absence of the heavy impairments that weighed on 2025 earnings. Chairman…
Fosun International is gradually recovering from a harsh cleanup of its property assets, placing greater emphasis on pharmaceuticals, insurance, and tourism industries. The company's profitability improved in the first half of the year, with shareholders' profit rising 160% to 1.72 billion yuan. Chairman Guo Guangchang attributed the turnaround to successful asset sales and debt reduction efforts, which have allowed Fosun to return to its growth trajectory.
Overseas operations now represent more than half of the group's revenue, while pharmaceuticals, insurance, and tourism are expected to drive the next phase of growth. Fosun has invested 4.2 billion yuan in technology and has seven innovative drugs approved for various indications. The company continues to expand global presence, with overseas revenue increasing 5.3% in the first half.
Guo Guangchang emphasized the importance of innovation-driven and global development in sectors where Fosun holds a competitive advantage. However, some businesses, such as the baijiu maker Shede Spirits, are still facing challenges due to weak consumption and high inventories. The company is currently in the final stages of developing a 10 billion yuan property redevelopment project in Hong Kong.
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