FOSUN INTL (00656) reported a mid-year profit growth of 160.3% year-on-year for 2026. The "roof repair in sunny weather" has been fulfilled as scheduled, and innovation combined with globalization accelerates growth.

On August 27, FOSUN INTL (00656) announced its interim performance for 2026: total revenue during the reporting period reached RMB 86.96 billion, with a profit attributable to parent company shareholders of RMB 1.72 billion, a year-on-year increase of 160.3%; overseas revenue amounted to RMB 49.16 billion, accounting for 56.5% of total revenue; and the total debt to total capital ratio decreased to 55.7%. From the data, this performance falls in the higher range of the profit forecast made by the company on July 29 (net profit attributable to the parent company between RMB 1.5 billion and 1.8 billion, a year-on-year increase of approximately 127% to 172%). This marks that after completing systematic adjustments referred to as "repairing the roof on a sunny day," Fosuns profitability has returned to a growth trajectory. In recent years, Fosun has taken a rather unusual path. Since 2022, facing the enormous market impact caused by the pandemic, the company has pursued a "streamlining and focusing on the main business" strategy, having cumulatively exited assets and businesses, recovering approximately RMB 75 billion; in March 2026, based on prudence, it made a one-off non-cash impairment provision and revaluation of goodwill and intangible assets for certain real estate projects and non-core business segments. This move drew market attention, and Fosun INTL Chairman Guo Guangchang detailed at the 2025 annual performance briefing at the end of March: "This time is 'repairing the roof on a sunny day,' allowing Fosun to better concentrate resources and efforts on high-growth core tracks." Today, the market responded to Fosun's "repairing the roof on a sunny day" from the announcement of the impairment provision in early March to just before the mid-term results announcement on August 25, FOSUN INTL's stock price rebounded significantly, rising from HKD 3.6 to HKD 5.41, an increase of over 50%, with "risk clearance" gradually being recognized and digested. Moreover, the profit growth brought by the business has also begun to materialize. A solid business foundation, with impressive performance in pharmaceuticals and insurance First, lets look at the business fundamentals. In the first half of 2026, Shanghai Fosun Pharmaceutical, Shanghai Yuyuan Tourist Mart, and Fosuns insurance and tourism cultural segments collectively generated revenue of RMB 63.88 billion, accounting for 73.5% of the group's total revenue, further demonstrating the impact of the "focusing on the main business" strategy. Among them, the performance of the pharmaceuticals and insurance sectors was particularly outstanding. In the first half of the year, Shanghai Fosun Pharmaceutical achieved operating revenue of RMB 20.442 billion, with a net profit attributable to the parent company (excluding non-recurring gains and losses) of RMB 1.144 billion, a year-on-year increase of 19.09%, achieving a leap in profit quality despite a complex industry environment. Its biopharmaceutical innovation platform HENLIUS generated revenue of RMB 3.5882 billion, a year-on-year increase of 27.3%; with a net profit of RMB 430.4 million, up 10.3%, continuing its trend of dual growth in revenue and profit. The commercialization of innovative drugs continued to pay off, with seven innovative drugs from Shanghai Fosun Pharmaceutical approved for 20 indications in domestic and overseas markets during the reporting period, while the proportion of revenue from innovative drugs continued to rise, becoming the main engine for growth in the pharmaceutical business. The insurance sector performed especially well this time, with all of Fosun's domestic and overseas insurance companies showing positive trends. As Fosun's most important overseas subsidiary, Fosun Portugal Insurance holds a 30.1% overall market share in Portugal, with international business accounting for 26.7% of total business scale; in the first half, it achieved a net profit attributable to the parent company of 16.5 million, a year-on-year increase of 23.8%, maintaining steady growth. Domestically, Fosun Well Hope Life achieved a premium scale of RMB 8.38 billion, a year-on-year increase of 52.2%; net profit reached RMB 780 million, up 270%, with half-year net profit already exceeding the total for 2025. Fosun United Health Insurance had a revenue growth of 36.2%, realizing a net profit of RMB 572 million. Dingrui Reinsurance reported a year-on-year increase of 25% and 11.8% in reinsurance revenue and gross premiums, respectively, recording a post-tax net profit of USD 89.7 million. Moodys upgraded its rating from Baa1 to A3 in April 2026, with a stable rating outlook. "Successfully navigating the cycle again" is the markets evaluation of Fosuns recent adjustment. A deeper analysis reveals that Fosuns path to navigating the cycle is clear on one hand, it has been "streamlining," continuously recovering funds; in the first half, the group completed the exit of non-strategic and non-core assets, recovering over RMB 12 billion in equivalent, while the total debt to total capital ratio decreased to 55.7%, with cash and bank deposits totaling RMB 61.214 billion; on the other hand, the innovation and globalization strategies that have been advanced for many years are entering a value realization phase, becoming the core engine for profit recovery. Leading innovative strategies for future layouts, continuously "bearing fruit" Since the surge of innovative drugs in the domestic market in 2025, Fosun has repeatedly "stepped out," with several innovative drug business developments receiving high market attention. "One minute on stage, ten years of hard work off stage," a series of innovative results stem from Fosuns forward-looking approach to laying out innovation strategies nearly twenty years ago. In particular, over the past decade, Fosun has built a global innovation system with a "self-research + investment incubation + ecological cooperation" trinity along its core business track, maintaining a high level of investment in technology innovation. In the first half of this year alone, technology innovation investment reached RMB 4.2 billion, a year-on-year increase of 16.7%. In the first half of this year, Fosun's innovative outcomes also landed intensively. HENLIUSs independently developed H drug for perioperative indications associated with gastric cancer has been approved by the National Medical Products Administration, opening a new paradigm of "chemotherapy-free" postoperative treatment, becoming the worlds first and only approved anti-PD-1 monoclonal antibody for this indication; core pipeline asset HLX43, as a potential best-in-class broad-spectrum anti-tumor PD-L1 ADC, has shown initial clinical efficacy of "high efficiency and low toxicity" in several solid tumors such as non-small cell lung cancer, with over 1,500 patients enrolled globally. To date, HENLIUS has ten products approved and launched in more than 60 countries and regions worldwide, benefiting over 1.1 million patients. Additionally, Shanghai Fosun Pharmaceuticals independently developed Fumai Ning (Luvomir) has been granted approval for the treatment of pediatric and adolescent patients with recurrent or refractory Langerhans cell histiocytosis, continuing to address the treatment gap for rare diseases; in the field of neurodegenerative diseases, Shanghai Fosun Pharmaceutical and AriBio have deepened their global cooperation on AR1001, expanding development and commercialization rights to key markets such as the United States, Europe, and Japan; the confirmatory clinical trials for the monosaccharide sodium capsules are proceeding steadily, with over 1,000 patients enrolled by July 31 of this year; the incubated company Hengtai Biologics has introduced HT001, an oral NLRP3 inhibitor for Parkinsons disease, which has commenced Phase I clinical trials in Australia. Fosun's innovative achievements highlight the foresight of its innovative layout and its accurate grasp of technological research and development tracks. As Guo Guangchang has always said, "Fosuns approach to innovation has never been to close the door and work in isolation, but to leverage Fosuns integration capabilities and approach smart innovation with a global perspective integrating the best technologies, the best teams, and the best supply chains globally to conduct innovation that truly solves problems. Only then can we have a broad market outlook." Globalization enters the "3.0 era," with "Chinese capabilities" driving value realization The globalization layout is another strategic move by Fosun, starting from its listing in Hong Kong in 2007 when most Chinese enterprises were still focused on the domestic market; Fosun had already taken the lead by venturing overseas. Nearly twenty years later, when many Chinese businesses shout "no overseas expansion, no survival," promoting "product exports" to capture overseas markets, Fosun has developed a deep industrial layout in over 40 countries and regions globally, successfully operating several Fosun eco-enterprises with local teams overseas. "Global operations" have become a distinct label of Fosun's globalization and the core engine supporting its business development. Data shows that in the first half of 2026, Fosuns overseas revenue reached RMB 49.16 billion, with the proportion of total revenue further increasing by 3 percentage points from 53.5% in the same period of 2025 to a new high of 56.5%. In the pharmaceutical and healthcare sector, Fosuns innovations and business development have yielded abundant results overseas. HENLIUS's drug Hanshuozhuang has been approved for three new indications in the EU, HLX11 (Pazopanib Injection) has been approved for marketing in the EU, and HLX14 (Daratumumab Injection) has been approved for marketing in Canada; at the beginning of the year 2026, Shanghai Fosun Pharmaceutical reached an agreement with Eisai Co., Ltd. concerning Hanshuozhuang, with a potential total amount exceeding USD 300 million the global value of Chinese innovative drugs is being re-evaluated by the international market. In the first half of this year, Shanghai Yuyuan Tourist Mart achieved operating revenue of RMB 532 million in the Hong Kong and Macau regions, a year-on-year increase of 285.83%, with revenue in the Japanese market reaching RMB 306 million, a year-on-year increase of 6.09%. The number of stores in the Hong Kong and Macau, overseas, and duty-free channels has reached 15; Club Med is also continuing to advance its global layout, with the Mediterranean White Ark Hangzhou Longwu Resort and the Coastal and Safari Resort in South Africa now operational and in trial operation. The insurance sector, Fosun Portugal Insurance, has leveraged Fosun's global ecosystem, extending its business beyond the Portuguese market to Lusophone countries and various markets in Europe, Latin America, and Africa, with international business accounting for 26.7% of the merged total business scale; Dingrui Reinsurance has also maintained steady growth through its globalization business layout. The fundamental logic of Fosun's globalization is "Chinese capabilities connecting with global resources" the deep integration of China's manufacturing capabilities, service capabilities, and innovation dividends with the global market. As Guo Guangchang noted at an internal meeting, "The manufacturing capabilities, service capacities, and innovative dividends brought by Chinese scientists, engineers, doctors, and entrepreneurs are becoming the most scarce things globally. What Fosun needs to do is to integrate these Chinese capabilities with global brands, markets, and clients." From initially completing its industrial layout with China Shipbuilding Industry Group Power, to the mutual empowerment of "China and the World," today, Fosun has entered the "global organization + local operation" phase 3.0. At this stage, Fosun is "looking at the world from a global perspective," forming cross-regional, cross-cultural, and cross-organizational ecological synergies, driving sustained growth in Fosun's overseas revenue. Regarding Fosun's development goals, Guo Guangchang stated: "The performance recovery in the first half of the year is not a coincidence, but the inevitable result of Fosun's commitment to long-termism and continuous focus on its main business. Looking to the future, we will continue to advance innovation-driven and globalization strategies around our advantageous industries, confidently aiming to gradually restore profits to the scale of billions of RMB."