Fosun posts 4.3b yuan net loss following 'highly profitable' Cainiao investment

Fosun International (0656) described its Cainiao investment as a highly profitable project, though it registered a one-time, non-cash impairment loss of about 5.1 billion yuan (HK$5.47 billion) from the investment.

This led to a net loss of over 4.3 billion yuan in 2024, a steep decline compared to a profit of nearly 1.4 billion yuan in 2023.

Chief financial officer Gong Ping called 2024 the group’s worst year in terms of financial figures but its best in overall condition. Excluding this significant one-off effect, the company made a 750 million yuan net profit.

He said Fosun will focus on asset-light operations and exit less competitive heavy-asset projects, expressing confidence in the company’s profitability and growth this year.

Chairman Guo Guangchang said the company’s annual industrial operating profit stands at around 5 billion yuan and aims to double it to 10 billion yuan within five years.

Meanwhile, co-chief executive Xu Xiaoliang said the group remains committed to expanding its investment in artificial intelligence-related initiatives. Xu said the group has leveraged AI in drug development for three years, with some AI-designed drugs already entering clinical trials.

He expects AI to significantly boost research efficiency and aims to collaborate with national research institutions to establish a public AI-driven drug development platform.

STAFF REPORTER