Since April, Fosun International (HKEX: 0656)’s A-share listed subsidiaries have released their Q1 2026 results. The market views this reporting season as a key window to gauge Fosun’s capacity to restore earnings and deliver profits following risk clearance.
In accordance with the principle of prudence, Fosun made one off noncash impairment provisions in the 2025 financial year on certain real estate projects with impairment indicators, as well as goodwill and intangible assets of noncore business segments. This move was aimed at sharpening focus on core businesses and high growth areas. Guo Guangchang, Chairman of Fosun International, described the above strategic decision as “repairing the roof on a sunny day”, steering the Company toward a “leaner, healthier, and more sustainable direction”.
According to the Q1 results, Fosun Pharma, a core subsidiary in Fosun’s Health segment, achieved operating revenue of RMB10.073 billion in Q1 2026, representing a year-on-year increase of 6.93%, while net profit attributable to shareholders of the parent reached RMB871 million, representing a year-on-year increase of 13.87%. Excluding non-recurring gains and losses, net profit attributable to shareholders of the parent increased by 21.96% year-on-year.
Yuyuan, a core subsidiary in Fosun’s Happiness segment, achieved operating revenue of RMB9.649 billion in Q1 2026, representing a year-on-year increase of nearly 10%, while net profit attributable to the parent company reached RMB157 million, representing a significant increase of 203% year-on-year. In addition, Shede Spirits and Hainan Mining recorded notable earnings growth, with net profits reaching RMB232 million and RMB201 million, respectively, in Q1 2026.
Market analysis indicates that the subsidiaries’ Q1 results reflect an overall improving trend, underscoring Fosun’s clear growth trajectory following risk clearance in 2025. Fosun’s fundamentals across pharmaceuticals and healthcare, insurance and finance, and cultural tourism remain solid, while steady recovery in the consumer segment is expected to further sustain growth momentum.
Innovative drugs show robust growth momentum, unlocking potential for rapid growth
“We have always been committed to pharmaceutical innovation. 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,” said Guo Guangchang. In his 2026 Letter to Shareholders, he repeatedly emphasized the Group’s strategic focus on innovative drugs.
Entering 2026, commercialization of Fosun’s innovative drugs is accelerating. On 28 April, Fosun Pharma announced its Q1 2026 results. During the reporting period, the new drug application (NDA) for 4 innovative drugs were accepted, and 14 clinical trial applications for innovative drugs (calculated by approval) were approved by domestic and overseas regulatory authorities. Among them, denosumab injection (HLX14) secured approval in Canada, the NDA for bevacizumab injection (HLX04) was accepted in the United States, and the NDA for foritinib succinate capsules, methoxy etomidate hydrochloride injection, and one additional indication for FUMAINING were accepted by the National Medical Products Administration (NMPA).
Overall, these results continue the robust growth momentum of innovative drug recorded in 2025. Results show that in 2025, Fosun Pharma had 16 indications of its 7 innovative drugs approved for marketing in China and overseas markets, while marketing applications for 6 innovative drug candidates were accepted. Revenue from innovative drugs reached RMB9.893 billion, representing a year-on-year increase of 29.59%, bringing the proportion of total pharmaceutical business revenue to 33.16%. As of the end of 2025, nearly 40 innovative drug clinical trials were approved by regulatory authorities in China, the United States and Europe, while multiple core products entered key clinical phases, laying a solid pipeline foundation for future commercial growth.
As a benchmark enterprise for Fosun’s innovative drugs, Henlius has achieved rapid progress in innovative drug research and development (R&D) and commercialization since early 2026. In terms of R&D, HANSIZHUANG and HLX07 have both achieved breakthrough advances, and multiple potential “first-in-class” drugs are accelerating into clinical validation stages. Regarding global commercialization, Henlius entered into an exclusive commercialization and co-exclusive development and manufacturing license agreement with Eisai Co., Ltd. for HANSIZHUANG in Japan, with an aggregate potential consideration exceeding USD300 million. Meanwhile a subsidiary of Henlius obtained a Type I Marketing Authorization Holder (MAH) License for Pharmaceuticals from Tokyo Metropolitan Government, laying a solid foundation for further expansion into major Asian and global pharmaceutical markets.
Fosun’s innovative pipeline has entered a phase of frequent approvals and accelerated commercialization. R&D investment and market returns are reinforcing each other in a virtuous cycle, providing strong support for sustained earnings growth and enhancing global competitiveness.
Fosun subsidiaries across segments post solid results, reinforcing RMB10 billion profit target
The growth momentum of innovative drugs signals Fosun’s improved performance. Meanwhile, Yuyuan, which was previously affected by impairments on real estate projects, has successfully navigated through the industry adjustment period, strengthening Fosun’s weakest segment.
In Q1 2026, Yuyuan recorded net profit attributable to shareholders of the parent of RMB157 million, representing a year-on-year increase of 203%. Although the Q1 net profit remains modest, the strong growth momentum marks a positive turning point in Yuyuan’s operating fundamentals, with subsequent earnings recovery expected to further unfold.
Shede Spirits, another subsidiary in Fosun’s consumer segment, has also successfully returned to a growth trajectory. In Q1 2026, it achieved operating revenue of RMB1.481 billion, representing a quarter-on-quarter increase of 106.45%. Meanwhile, its net profit reached RMB232 million, surpassing the net profit of RMB223 million for the full year of 2025.
It is worth noting that Hainan Mining in the Intelligent Manufacturing segment delivered remarkable results. Driven by rising downstream demand for energy storage and power batteries, Hainan Mining achieved operating revenue of RMB1.193 billion and a net profit attributable to shareholders of the parent of RMB201 million in Q1 2026, representing a year-on-year increase of 25.13% and a significant quarter-on-quarter increase of 69%. The integrated lithium resource value chain operated steadily, contributing RMB99 million in net profit attributable to shareholders of the parent in Q1 and emerging as a core earnings growth driver. Additionally, the oil and gas business achieved stable production with improved efficiency. During the reporting period, the attributable oil and gas output amounted to 3.1865-million-barrel equivalents, representing a year-on-year increase of 15.78%.
Profit growth at subsidiaries across multiple segments is accelerating, strengthening market confidence in the certainty of Fosun’s future earnings momentum.
Previously, Fosun’s management team clearly set out its medium-term financial roadmap at the 2025 annual results presentation: aiming to gradually restore a profit to the RMB10 billion level, targeting RMB60 billion in cash returns at the group level, bringing group-level total debt down to under RMB60 billion, and striving to achieve an “investment-grade” rating.
To illustrate its plan to achieve the “RMB10 billion profit” target, Fosun’s management team explained the “8424” restructuring framework. The “8” corresponds to RMB8 billion in profit from the four core subsidiaries—Fosun Pharma, Yuyuan, Fosun Insurance Portugal, and Fosun Tourism Group; the first “4” reflects RMB4 billion in profit from second-tier subsidiaries such as Hainan Mining and Peak Reinsurance; the “2” represents approximately RMB2 billion in profit from investment-oriented enterprises; and the final “4” refers to a cap of RMB4 billion on group-level costs, including financing expenses. After these “additions and subtractions”, the Group aims to restore a profit level of RMB10 billion.
Fosun’s Q1 results across business segments not only met market expectations following its “repair the roof on a sunny day” efforts but also reinforced confidence in restoring the RMB10 billion profit level. Analysts note that continued innovative drug commercialization, rapid growth in insurance, and stabilization in cultural tourism and consumer businesses position Fosun to further unlock growth momentum. Investors are advised to closely monitor full year earnings growth and valuation recovery.
Backed by confidence in its long-term prospects, Fosun is actively repurchasing shares. Between 30 March, the date of the 2025 annual results announcement, and 27 April, Fosun International cumulatively repurchased 25.41 million shares. According to company announcements, the share buyback program is expected to continue.
Recently, leading domestic and international securities firms such as Citi, UBS, Guotai Haitong, and China Securities have published research reports expressing optimism about Fosun’s outlook. Citi highlighted that, based on the improving fundamentals, Fosun International is expected to deliver strong results in 2026.
