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
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.
Wang’s statement came after Fosun reduced its interest-bearing debts, such as bank loans and corporate bonds, by 15 billion yuan to 211.9 billion yuan in the 12 months to December, 2023.
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. Its revenue grew 8.6 per cent to 198.2 billion yuan.
