China: Fosun Returns to Profit Growth as Overseas Revenue Reaches 56.5%

International

First-half profit attributable to shareholders rises 160.3% to RMB1.72 billion as the group sharpens its focus on insurance, pharmaceuticals and global expansion

Fosun International reported a significant improvement in profitability for the first half of 2026, while overseas operations generated more than half of the Chinese group's revenue. Total revenue reached RMB86.96 billion, with revenue outside China amounting to RMB49.16 billion, equivalent to 56.5% of the total.

Profit attributable to owners of the parent rose 160.3% year on year to RMB1.72 billion. Fosun presented the figures to investors, analysts and media representatives in Hong Kong on 28 August, marking the first time in six years that the group had held its results presentation in the city.

Chairman Guo Guangchang attributed the improvement to strategic adjustments made in recent years. “Over the past few years, and especially last year, we have been ‘repairing the roof of our home on a sunny day’ and ‘repairing the car roof on a sunny day’ – to strengthen Fosun's foundation, enabling it to embark on a path of accelerated, steady growth,” he said.

Four core businesses generate almost three quarters of revenue

Fosun continues to concentrate resources on a smaller number of core businesses. Fosun Pharma, Yuyuan, Portuguese insurer Fidelidade and the group's tourism operations together accounted for 73.5% of total revenue during the first six months of 2026. Pharmaceuticals and insurance delivered particularly strong performances.

The group sees closer links between its insurance operations and other businesses as an important source of future growth.

“For more than three decades, integrating our insurance business with industries where we hold competitive advantages has been a strategic priority for Fosun – a core pathway we have long sought to unlock. I believe we have now achieved it,” said Guo. He expects the approach to strengthen operational capabilities and future profitability.

Co-Chairman Wang Qunbin said Fosun would continue streamlining its portfolio while focusing on insurance and industries in which it has established competitive strengths. Improving the credit profile of Fosun International, with the longer-term objective of reaching investment-grade status, remains another priority.

Innovation investment rises to RMB4.2 billion

Technology and product development remain central to the group's strategy. Fosun invested RMB4.2 billion in technological innovation during the first half of 2026, an increase of 16.7% compared with the same period last year.

A substantial part of this work is concentrated in pharmaceuticals and healthcare. Fosun has developed technology platforms covering monoclonal, bispecific and multispecific antibodies, antibody-drug conjugates, fusion proteins, small molecules, CAR-T therapies and radiopharmaceuticals.

Its research pipeline covers areas including solid and hematological cancers, immunology and inflammation, neurodegenerative diseases, cardiovascular conditions and metabolic disorders.

Co-CEO Chen Qiyu identified China, the United States and emerging markets as the three principal markets for the healthcare business. After years of investment in research, he sees global commercialization as the next major challenge for Chinese biopharmaceutical companies.

Fosun therefore intends to develop a more integrated international operating structure spanning research, production and commercialization.

Global resources combined with international sales networks

Globalization represents the second major pillar of Fosun's strategy. The group distinguishes between using international research and manufacturing resources to develop products and building operating and marketing networks capable of selling them worldwide.

Co-CEO Xu Xiaoliang described innovation as a broader process extending beyond research laboratories. Fosun's strategy covers four areas: R&D, products, processes and application scenarios.

The objective is to combine global resources with capabilities developed in China while creating commercial networks tailored to customers in individual markets.

Balance sheet remains a priority

Alongside operational growth, Fosun is continuing to restructure its asset portfolio and reduce debt. CFO Gong Ping said revenue remained stable during the first half while the revenue mix and profitability improved. The group also continued to strengthen asset quality and its balance-sheet structure while maintaining stable credit ratings.

Management nevertheless regards the first-half recovery as an intermediate step rather than the end of the restructuring process. Fosun's board has set a medium-term objective of restoring annual profit to around RMB10 billion.

Guo said even that figure should not be regarded as the company's ultimate ambition. “While the results Fosun International delivered in the first half of the year have been well received, they are still far from our ultimate goal. Nor is the Board's medium-term target of restoring annual profit to the RMB10 billion level our ultimate goal.”

Following several years dominated by portfolio restructuring and balance-sheet repair, Fosun is therefore shifting its emphasis towards growth. Insurance, pharmaceuticals, tourism and other businesses in which the group sees established competitive advantages are expected to form the core of that next phase.