FOSUN INTL(00656) 智通财经·2025-03-28 13:52Core Viewpoint - Fosun International (00656) issued a profit warning, projecting a loss of approximately RMB 4.2 billion to RMB 4.4 billion for the fiscal year 2024, primarily due to adjustments in the book value of its investment in Cainiao Smart Logistics Network Co., Ltd. [1] Group 1: Financial Performance - The expected loss for 2024 is mainly attributed to the adjustment of the book value of the Cainiao project, with a projected profit of RMB 700 million to RMB 900 million when excluding this factor [1] - The book value of Fosun's 564.18 million shares in Cainiao was approximately USD 1.05 billion at the end of 2023 [1] - Alibaba Group plans to repurchase shares from minority shareholders at USD 0.62 per share, significantly lower than the book value, leading to a potential one-time non-cash loss of approximately RMB 5.1 billion for Fosun in 2024 [1] Group 2: Investment Insights - Analysts noted that the adjustment of the fair value of investment equity under Hong Kong accounting standards is a non-cash accounting change and does not directly impact the company's operational performance or cash flow [2] - Fosun has invested approximately RMB 1.5 billion in the Cainiao project and has recouped about RMB 4.4 billion, achieving an internal rate of return (IRR) of approximately 34% [2] Group 3: Operational Resilience - Fosun's subsidiaries have shown strong growth and operational resilience, with Fosun Pharma reporting revenue of RMB 41.067 billion and a net profit of RMB 2.770 billion, a year-on-year increase of 16.08% [3] - Other subsidiaries, such as Fuhong Hanlin and Yuyuan, also reported significant revenue and profit growth, indicating a healthy overall operational performance [3] - Fosun International is expected to release its full-year 2024 performance report, which will provide further insights into the operational metrics of its core industries [3]