China's Fosun Group's 2022 profit plummets.

(Schematic, Bloomberg)

[Financial Channel/Comprehensive Report] China Fosun International released its 2022 annual report. The net profit attributable to the parent company is only RMB 540 million (approximately NT$2.39 billion), a sharp drop of 94.7% compared to 2021, of which the insurance and asset management business suffered a huge loss of RMB 3.5 billion (about NT$15.5 billion).

The stock price fell sharply in response, and Fosun's Hong Kong-listed shares fell by 9% in intraday trading on Thursday (30th).

Fosun International will frequently reduce its holdings of various assets such as insurance in 2022, which has attracted market attention.

Among them, insurance is the focus of Fosun International's reduction of holdings, and it is also the company's main source of liabilities.

In April 2022, Fosun International announced that it will sell 100% of the equity interest in AmeriTrust, an American insurance company, at a price of US$740 million.

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In August of the same year, Yuyuan, a subsidiary of Fosun International, announced that it planned to transfer 0.63% of the total share capital of Taikang Insurance Group, and the transfer consideration was about 1.156 billion yuan.

After the transfer is completed, Yuyuan will no longer hold shares in Taikang Insurance Group.

In September, Yongan Property & Casualty Insurance disclosed that many subsidiaries of Fosun Group will transfer their equity.

After the transfer is completed, Fosun's shareholding ratio will drop from 40.68% to 14.68%.

Even if Fosun throws assets to cash out, the operating performance in 2022 will still be poor. The annual report shows that Fosun International’s revenue is 175.393 billion yuan, an annual increase of 8.74%; The insurance business lost 1.599 billion yuan, and the asset management business lost 1.91 billion yuan.

However, the cultural tourism business has grown significantly. The revenue of the subsidiary "Fosun Tourism" in 2022 will be 13.778 billion yuan, an annual increase of 48.8%.

In 2023, Fosun International will continue to "lose weight", sell high-quality assets, and reduce debts.

In mid-March, Fosun announced that it signed an equity transfer agreement with Shagang Group in Nanjing Nangang Iron and Steel Co., Ltd., selling its 60% equity in Nangang Iron and Steel Group to Shagang Group at a transaction price of 13.58 billion yuan.

Affected by poor profits, Fosun's Hong Kong stocks fell sharply on the 30th, with an intraday drop of more than 9%. At 14:21 on the 30th, Taipei time, the drop was 6.87%.

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