Guo Guangchang, Chairman of Fosun International Limited, issued a letter to its shareholders, outlining the Company’s strategic direction, accomplishments, and future plans.
Dear shareholders,
I would like to have an open and honest conversation with our shareholders, reflecting on Fosun’s journey in 2025, sharing our thoughts, and outlining where we are heading next.
In 2025, the Company recorded a loss attributable to owners of the parent of RMB 23.4 billion. It should be noted that this loss does not reflect a deterioration in the Company’s operating fundamentals. Instead, it was primarily attributable to the Board’s prudent decision to recognize non-cash impairment provisions on certain projects arising from the Company’s past development; it also involved impairment provisions on goodwill and intangible assets of certain non-core business segments. These provisions will not affect the Company’s day-to-day operations, cash flow or business activities. Our core businesses such as pharmaceuticals and insurance continue to demonstrate steady growth.
In terms of operating fundamentals, Fosun recorded operating revenue of RMB173.4 billion in 2025, with overseas revenue accounting for 54.7% of the total. Net cash flow from operating activities remained positive, average cost of debt continued to improve, and credit rating agencies such as S&P maintained stable ratings. Meanwhile, our financing capacity remained strong and our funding channels open. Our high-quality and resilient assets position us well for future growth. The total revenue of the four core enterprises – Fosun Pharma, Yuyuan, Fosun Portugal Insurance and FTG – reached RMB 128.2 billion, accounting for 74% of the Group’s total revenue, a year-on-year increase of 3 percentage points.
It is precisely this strong foundation, together with the continued support of our partners, that gives us the confidence and determination to “repairing the roof on a sunny day”. This is the moment to shed historical burdens and pursue predictable, sustainable growth. We must strengthen our core businesses with greater focus and depth to achieve steadier, longer-term growth in the next phase.
Smart innovation and integrated innovation driven by innovation
Going global or going obsolete. Innovation works the same way. Innovate or be left behind. In this fast-paced era, we must remain committed to innovation, especially smart innovation. We must collaborate with others and learn from others. Innovation is not a solo endeavor, nor should it happen behind closed doors. That is why I have always emphasized “integrated innovation”, building an innovation system with two core capabilities, “global research and development (“R&D“) + global business development (“BD“)”.
In 2026, we will place even greater emphasis on innovation as our top priority, steering Fosun’s transition from scale expansion toward quality enhancement, and from resource integration toward value creation.
We have always been committed to pharmaceutical innovation. As early as 2006, we began systematically building our pharmaceutical R&D capabilities, starting with high-value generic drugs and steadily advancing toward true innovation. In 2019, China’s first biosimilar, HANLIKANG, received marketing approval, marking a major milestone. By 2023, Henlius had turned profitable, 17 years since we first embarked on this journey. Throughout the years, we have remained true to our original aspiration of “always striving to heal”, and to our vision of helping people live to 121.
Looking back, we now have nearly 70 major pipeline projects on innovative drugs (calculated by indications), forming a tiered pipeline spanning “early-stage frontier research, mid-stage proof-of-concept, and late-stage clinical expansion”. By continuously strengthening our innovation pipeline, we are accelerating the clinical translation and commercialization of innovative technologies and products. We currently have multiple blockbuster candidates in the pipeline.
Take Henlius as an example. It has already achieved dual-engine growth driven by both biosimilars and innovative drugs. Core products like HANLIKANG, HANQUYOU, and HANSIZHUANG have been approved for marketing in around 60 countries and regions worldwide. HANSIZHUANG has not only been launched in Europe, but has also been included in public reimbursement programs in seven countries, including Germany, Italy, and Spain. Fosun Pharma has progressively established a high-value pipeline portfolio focusing on core therapeutic areas including oncology (solid tumors, hematologic tumors), immunology, inflammation and neurodegenerative diseases. Moving forward, Fosun Pharma will continue to strengthen its core technology platforms encompassing antibodies, antibody-drug conjugate (“ADC“), small molecules and cell therapy, while actively expanding its presence in cutting-edge technologies such as radiopharmaceuticals and small nucleic acids, enhancing our R&D ecosystem. We are currently planning the spin-off and separate listing in Hong Kong for our vaccine platform, Fosun Adgenvax, aiming to leverage the capital market to improve its governance standards and sustainable development capabilities, thereby creating greater value for our shareholders.
In terms of artificial intelligence (“AI“), I have been following it closely over the past few years. However, we are not chasing the concept of large language models. For us, AI is not about appearances; it is about solving real problems. And we have already made tangible progress. Fosun Pharma’s PharmAID® Pharmaceutical Intelligence Platform now delivers T+1 data updates, accelerating drug R&D; FTG’s AI G.O intelligent system makes tourism services more personalized. More importantly, AI is now deeply integrated into Fosun’s daily operations to enhance decision-making efficiency and optimize operating costs. Going forward, we will continue to invest in AI to make it a truly practical operational tool, maximizing efficiency across the Group.
Fosun always embraces ecosystem thinking. We believe innovation thrives through collaboration, not solo efforts. Take Fosun United Health Insurance’s “Ruixingbao” as an example: through our “insurance + industry” model, we integrate insurance services with premier medical resources such as Ruijin Hospital, along with pharmaceutical, healthcare, and consumer offerings. This makes insurance the connector, linking our ecosystem to families and turning ecosystem advantages into product competitiveness. Looking ahead, we will launch more products that bring together ecosystem resources to meet the needs of customers and serve more families. This is where our deepest sense of fulfillment comes from.
Innovation keeps us young. Fosun was founded 34 years ago, but we still approach every day as if it were day one, with a constant hunger for new technologies, new opportunities, and new possibilities.
Deepening global operations: from business presence to product and brand globalization
Fosun’s globalization journey began in 2007 with our listing on the Hong Kong Stock Exchange. At that time, we started building our overseas business presence through equity and debt investments. Over the years, our globalization journey has evolved through three phases: from “China Expertise + Global Capability”, to “Combining China’s Growth Momentum with Global Resources” and then to “Combining Global Resources with China’s Capabilities”. This progression is not merely a matter of wording; it reflects the continuous evolution of Fosun’s globalization capabilities. What began as establishing business presence later evolved into capability building, and today, we are truly integrating operations and investments on a global scale.
Regarding the consumer sector, Yuyuan has accelerated product innovation and channel optimization. Its catering brand, Songhelou, opened its first overseas branch in London, the United Kingdom, while jewelry brand, Laomiao, opened its first overseas store in Kuala Lumpur, Malaysia. FTG, with Club Med as its core, has firmly strengthened lean management. During the core six-day Chinese New Year holiday period, Club Med’s five all-inclusive resorts in China recorded an average occupancy rate of 90%. During the nine-day Chinese New Year holiday period, Atlantis Sanya recorded business volume of over RMB124 million, representing a year-on-year increase of 20% and achieving its best Chinese New Year performance on record.
In the Intelligent Manufacturing segment, Hainan Mining, rooted in Hainan and expanding globally, focuses on the most upstream exploration, mining, processing and sales of strategic mineral resources. It has built a diversified global resource footprint spanning China, Southeast Asia, West Africa, and the Middle East, with mineral products covering various strategic mineral resources such as iron ore, lithium, oil, and natural gas. In 2025, supported by the steady advancement of overseas resource projects, the share of overseas assets rose to 46.04%.
More importantly, our globalization strategy has evolved from “acquiring globally” to the 3.0 era of “earning globally”. Our products, brands, and services are now reaching customers around the world. The proportion of overseas revenue of Henlius’ products such as HANQUYOU and HANSIZHUANG continues to rise. Our nationally recognized intangible cultural heritage event, the Yuyuan Lantern Festival, along with time‑honored Chinese brands such as Laomiao, Songhelou, and Nanxiang Steamed Buns Restaurant, and Shede baijiu are also gaining growing recognition among families in overseas markets. For Fosun, globalization is not a choice, it is inevitable. We have already proven that this path works, and we will go even further in the years ahead.
Staying true to our original aspiration and adhering to long-termism
Fosun has always stayed true to its original aspiration: to do the right things, the difficult things and the things that take time to develop.
We have always said that we must learn to move with the cycles while staying grounded in intrinsic value. Fluctuations in corporate value often stem from three overlapping cycles: the industry cycle, the capital market cycle, and the company’s own cycle. The first two cycles are largely beyond our control. All we can do is to remain patient and wait them out. What we can change, however, is our own cycle. How well we manage our businesses and whether we have the right people in place are precisely the things we can improve through day‑to‑day operations and management. But patience takes time, and it also requires long-term capital. What kind of company does Fosun want to be? We need sufficient long-term capital to support our growth and the resilience to navigate through cycles. Just as importantly, we need the ability to continuously transform and strengthen our businesses.
This is why we must always remain committed to long-termism. Long-termism is not simply about “waiting”. It is about continuously enhancing the Company’s value in the process. As we wait for the industry cycle and capital markets cycle to turn, we must first manage our own cycle well. This is the key to Fosun’s ability to navigate through cycles, and it is the long-termism we have upheld for over thirty years and will continue to uphold.
Fosun has integrated ESG principles into every aspect of its development. We are actively promoting carbon neutrality and continuously investing in green energy, energy conservation and emission reduction, and eco-friendly materials. We are committed to compliant operations and we continue to strengthen transparency in our disclosures, so shareholders and the society can better understand Fosun. For us, an outstanding company is one that delivers commercial value while also taking responsibility for society and the environment.
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