Business / Companies

Fosun reports profit rise of 24 percent

By Hu Haiyan ( Updated: 2015-03-27 15:27

China's largest domestic private investment company, Fosun International, has announced that its profits last year rose 24.2 percent to 6.85 billion yuan ($1.1 billion). The value of its net assets rose 24.7 percent to 4.94 billion yuan, the company said in its annual report.

"With a twin-driver strategy of insurance and investment, Fosun has accomplished major achievements on both financing and assets, as well as optimizing the overall asset structure," said Guo Guangchang, Fosun Group's chairman.

Insurance has become Fosun's most important activity, affecting its operations and its profits, Guo said. Profits from insurance grew significantly, the report said.

On December 31 the value of Fosun's managed assets exceeded 113.1 billion yuan, accounting for 34.8 percent of the group's total assets.

Operating revenue from insurance rose 2,742.3 percent to 7.86 billion yuan for the year, accounting for 12.7 percent of group revenue.

Profit from insurance rose119.4 percent to1.15 billion yuan, accounting for 16.8 percent of group profit.

Fosun's adjusted ratio of net debt over shareholder equity fell to 73.3 percent in 2014 from 86 percent in 2013, and the company said this is expected to fall in a stable way in future.

The company said that last year it concentrated on planning the organization of its "healthcare and happy and fashionable lifestyle" activities, in addition to setting up Studio 8 as a controlling shareholder, privatizing Club Med and investing in Thomas Cook.

Revenue in the healthcare and happy and fashionable lifestyle areas rose 20.3 percent to 11.94 billion yuan, accounting for 19.3 percent of group revenue.

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