Chinese conglomerate Fosun International to accelerate asset sales as deleveraging campaign boosts financial profile

Fosun posted a net profit of 1.38 billion yuan for 2023, turning around from a net loss of 831.8 million yuan a year earlier, helped by a reduction in debt

The company aims to lower borrowings by 10 billion yuan (US$1.38 billion) annually in the next 2-3 years

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General view of recreational facilities located in front of Atlantis Sanya hotel in Sanya, Hainan province, China April 26, 2018. Photo: Reuters

Published: 3:46pm, 28 Mar 2024

Fosun International, one of China’s largest private sector conglomerates, will hasten its exits from noncore businesses to lower its indebtedness and focus on its cash-flow generating assets in a bid to sustain its turnaround.

The company, whose businesses span a wide range of industries including tourism, pharmaceuticals, real estate and financial services, aims to cut its debts by 10 billion yuan (US$1.38 billion) annually in the next two to three years and improve its financial profile, co-chairman Wang Qunbin told an earnings briefing on Thursday.

“We will exit some noncore businesses while focusing on assets that are sustainable and predictable,” he said. “Fosun plans to develop itself into a more [financially healthy] and sustainable company.”

He did not elaborate on which assets the Shanghai-based company planned to divest, but added that Fosun’s key assets must be cash flow positive.