Investors, analysts, good morning. Welcome to Fosun International 2024 annual results announcement. I am the General Manager of Investor Relations Department, Sun Lu. First, let me introduce the participants from Fosun International. We have Chairman of Fosun International, Mr. George Guo. Co-Chairman of Fosun International, Mr. Benny Wang. Executive Director and Co-CEO of Fosun International, Mr. Brian Chen. Executive Director and Co-CEO of Fosun International, Mr. Edward Xu. And Executive Director, Executive President and CFO of Fosun International, Mr. Alex Gong. Today's meeting will be divided into morning and afternoon sessions. In the morning, Fosun International's management team will share the financial and strategic part of Fosun International. Then in the afternoon, we will have the head of four business segments to share their 2024 business. First, let's give the floor to CFO of Fosun International, Mr. Alex Gong, to share the financials of Fosun International.
Dear investors, analysts, good morning. Welcome to Fosun International 2024 annual results announcement. Firstly, I will briefly talk about the financials in 2024. With the changes in geopolitical positions and the Trump going to office, we have seen changes in tariffs and capital markets. The global economy is gradually easing, and Chinese economy is still seeing strong resilience. Faced with complexities in overseas and domestic markets, Fosun is using a long-term vision to keep streamlining our business, to promote the steady development of our business. In 2024, Fosun reached a total revenue of CNY 192.1 billion, down by 3.1%. As for our industrial operating profit, it reached CNY 4.9 billion, remaining stable year-on-year. We got to see that our overseas revenue ratio increased to 49%, reaching CNY 94.78 billion. The company's profit attributable to a parent was a negative CNY 4.35 billion.
This is mainly because of the Cainiao impairment of CNY 5.1 billion non-cash impact. Excluding this impact, the net profit attributable to owner would be CNY 750 million. We have recovered CNY 4.4 billion in this project with our CNY 1.5 billion investment. The IRR is 34%. In terms of our international operation, we are seeing strong results, and we are using strong investment in tech and innovation to accelerate our achievements, and we have made CNY 6.9 billion of investment. This year, in 2024, the dividend payout ratio is 20%. As for the asset quality, because of impact from the capital market, it was slightly decreased, but it remained stable. Overall, the adjusted NAV is HKD 17.6 per share, far exceeded share price. In terms of the different business segments, we have health, happiness, wealth, intelligent manufacturing overall seeing steady revenue, and consumer business saw pressure.
The health business had 0.5% of revenue growth, and Happiness segment reduced 13.8% of revenue. The wealth segment had strong performance with 6.4% year-on-year growth, reaching CNY 55 billion revenue. Intelligent manufacturing reached a revenue of CNY 15.5 billion, up by 22.2% year-on-year. For our four core subsidiaries, they are the strong foundation for us. Fosun Pharma reached CNY 40.9 billion of revenue, maintaining stability. Fosun Insurance Portugal reached CNY 29.8 billion of revenue. Fosun Tourism Group maintained at CNY 17 billion of revenue, and the Yuyuan experienced a drop. The four core subsidiaries contributed 70% of the total revenue, maintaining stable. In terms of the capital market, the group had steady balance sheet management. In 2024, the group's public market financing reached CNY 13.6 billion, and we continue to optimize our debt structure, maintaining around 51% of our leverage ratio.
As interest rate cut cycle begins, our average cost of borrowing has been improving. At the consolidated level, the average cost of borrowing is 5.6%. Fosun International remains committed to assets balancing and improving our credit ratings. We continue to improve the quality of our assets. In November 2024 and in February, we have issued U.S. dollar bonds twice. S&P Global reiterated Fosun International's BB- and stable outlook rating, and fully recognized the improvements of our financing environment, expanding the financing channels. We are also continuously improving our finance strategy, combining to firmly execute non-core asset divestment and using the SLI operations. We are further focusing on our core strategies, divesting non-core asset divestments to optimize our portfolio. We can see our further efforts in the finance strategy. Our overseas business is becoming the new growth driver for us.
Fosun overseas revenue 11-year CAGR reached 49%, and the overseas revenue accounted for 49% of our total revenue. The core subsidiaries' overseas revenue had robust growth, including Fosun Pharma and Fosun Insurance Portugal. For Fosun Insurance Portugal, the international business accounted for a large percentage, and over 50% of the profit was coming from the international business, retaining strong position in Peru and Bolivia. Club Med also reached new high in terms of business volume, and it had one new resort in China and two new resort in finance. By the end of 2024, Club Med operates 68 resorts globally. Henlius had a 30% year-on-year increase in its overseas revenue and having products approved in U.S. and Canada, and there are a lot of products going to overseas markets.
As for Hainan Mining, the Bougouni lithium mine project is about to put into production. Roc Oil completed a full tender offer to secure oilfield rights in four blocks in Oman. We are also accelerating our presence in the Middle East. In February 2025, Fosun International signed MOU with ADIO. For Henlius and Easun Technology and Hainan Mining, they are all expanding their business in the Middle East. The second finance strategy is firm execution of our non-core asset divestment. We are continuously optimizing our asset portfolio. In 2024, the group contract value of divestment was roughly around CNY 17.5 billion, and contract value of divestment at consolidated level exceeded CNY 30 billion. The group and subsidiaries are also using methods like stock repurchase, increasing holdings and privatizations while divesting non-core assets.
In order to promote the stable development of our group, we are also consolidating our cash buffer and reduce debt. By the end of 2024, the interest-bearing liabilities in consolidated statement reached CNY 210 billion, and group interest-bearing liabilities reached CNY 89.4 billion. The group continued to extend duration and strengthen the cash buffer. The group continued to smooth financing channels with diversified counterparties and financing instruments. In 2024, we completed a domestic syndicated loan refinancing with a credit line of CNY 5 billion. As for the overseas part, in early May, we completed a $888 million of syndicated loan, and it is the largest of its kind for Chinese private enterprises, making successful organization of overseas syndication for eight consecutive years. We are also organizing the 2025 syndication. The first closure reached around $700 million.
We are participating with domestic and international banks, including HSBC, Standard Chartered, BNP Paribas, MUFG, JP Morgan. We have also reopened the U.S. bond market after three years, but the cost of capital is high, so it will not be our main finance in China. It also shows that we have meaningfully broadened the company's financing channels. In 2024 and 2025, we have been accelerating our profits in issuing domestic bonds. Even though the market environment for private enterprises was generally passive, domestic bond investors' recognition of Fosun's standalone credit worthiness remained high. Now we have, in China, we have issued CNY 5.1 billion bonds, and the capital cost is a little bit over 4%. The group is also deepening the SLI operations and strengthen core competitiveness to enhance our competitiveness.
For example, Club Med operates 68 resorts, and the self-owned resorts dropped to 15% in March and in June. We have also signed agreements with Taicang and Chongqing governments to be responsible for the SLI operation of these two projects. In 2024, we have also achieved significant results in terms of our fund business. We added nine new funds with a total AUM of over CNY 10 billion . In addition, in terms of rehabilitation, nursing services, and commercial management, we have also seen strong results in SLI operation, especially in terms of working with low-cost state-owned capital and insurance capital. Moving forward, based on the above-mentioned financial strategies, we are having strong confidence in our future. We have set the following goals for our operations. Firstly, we will have prioritization in the group's portfolio pruning, and focus resources on cultivating business with the potential to become industry leaders.
Secondly, we will continue to implement SLI strategies for divesting from heavy asset projects that lack funding advantages. In terms of global operation, the overseas revenue share would steadily increase, and the group's interest-bearing debt would decrease from CNY 80 billion to approximately CNY 60 billion, and the industrial operating profit would exceed CNY 10 billion . In the following years, we will gradually increase our dividend payout ratio from the current 20% to 50%, and we will continue to improve our credit rating to investment grade. That's all for the financials of Fosun International. In summary, in 2024, the group is focused on the operation of core business and achieving strong results. Moving forward, we will give more time to the two CEOs to introduce both International's business and strategy. Now let's give the floor to Co-CEO of Fosun International, Mr. Edward Xu.
Dear online, offline investors, analysts, media friends, good morning. Over the past year, the global economy was in the stage of low growth normal, and we are seeing uncertainties in macro economy. Fosun keeps focusing on four segments with steady growth, navigating smoothly through last year. Next, I will report on the business highlights in health, happiness, wealth, and intelligent manufacturing segments. In 2024, health segment recorded CNY 46.5 billion with a slight increase. Its core business, Fosun Pharma, recorded CNY 40.91 billion with a stable development. Its innovative drug recorded growing revenue, and Fosun Pharma maintained continuous investment in innovative areas with over CNY 5.55 billion of R&D investment and CNY 3.64 billion R&D expenditures. In details, the net profit to parents was CNY 2.77 billion , up by 15.46%. Net profit after one-off gain was CNY 2.3431 billion , up by 15.1%.
Operating cash flow was CNY 4.48 billion with a significant growth. In 2024, Fosun Pharma kept working on a sustainable, innovative pipeline. Seven key products with 16 indications was approved for launch. Through self-R&D and license in, eight products has entered the key clinical and approval stages, and 18 innovative drug biosimilars was approved for clinical trials. Over the past year, Fosun Pharma kept deepening its global presence in innovative R&D, license in, operation, manufacturing, commercialization. It practiced international strategies. It has already covered U.S., EU, Africa, India, Southeast Asia, and other overseas markets. In 2024, Fosun Pharma registered overseas revenue outside China of CNY 11.3 billion , up by 8.9%, contributing to 27% of total revenue. As for medical devices and diagnostics, in aesthetics, Sisram kept launching new generation aesthetics devices.
In professional medical device and respiratory care, the da Vinci robot was installed by 58 units, amounting to over 460 units in total. Ion system was approved to launch in China Mainland and has already achieved commercialization for the first unit. As for the diagnostics, we kept working on products and launching the diversified pipelines. As for the healthcare services and health management, Fosun Health is the leading private hospital, and it has continuously elevating academic level. It added 13 provisional and municipal key specialties, totaling 68. In general, we have seen that the health segment is working on its ecosystem resources, has achieved healthcare plus insurance plus wellness, and healthcare plus wellness. As for the Happiness segment, its revenue was CNY 76.7 billion . For its core listed company, Yuyuan Inc, generated CNY 46.9 billion , and FTG generated CNY 17 billion of revenue.
Together, they're contributing 80% of the total revenue of Happiness BG. The overseas revenue has maintained stable, contributing 33% of the total revenue. Yuyuan Inc's operation maintained stable. The gross margin was CNY 5.7 billion , with smaller proportion from real estate business. The net operating cash inflow was CNY 4.25 billion , maintained positive cash inflow for two consecutive years. As for fashion jewelry, it generated CNY 30 billion of revenue. It continued channel optimization with over 800 smart selection stores. It has been upgrading its products to drive up the gross margin. As for the liquors, in 2024, Shede Spirits generated CNY 5.36 billion . It kept focusing on its Aged Baijiu Strategy, focusing on balanced price mix. T68 Tuopai Exceptional delivered solid year-on-year growth. Yuyuan Tourist Mart continued to grow with over 40 million of visits, up by 7%.
Its GMV reached CNY 3 billion , up by 16%, a record high. Yuyuan Lantern Festival is the most influential cultural IP in Shanghai and the global markets, and it kept expanding its influence. In 2025, the Lantern Festival was held for 42 days, with 4 million of visits. GMV reached CNY 916 million , over 3.5 billion global exposure.
This summer, Yuyuan Lantern Festival would be held in Thailand, celebrating 50th anniversary of China-Thai diplomatic relationship. As for cultural tourism, FTG generated CNY 1.19 billion , up by 6%. Adjusted EBITDA reached CNY 3.56 billion , up by 3%. Operating net profits was CNY 1.4 billion . This March, FTG was successfully delisted with over 99% of votes, and this is making strategic retreat for future advancement, seeking for more flexible development. As for FTG global operation, Club Med generated CNY 16.15 billion, up by 7% of revenue, a record high.
The ADR was nearly 0.18, up by 7%. Club Med completed its upscale strategy. Its high-end and premium series contributing 100% of its resource. As for FTG China, Atlantis generated CNY 1.54 billion of revenue, and the occupancy rate has recorded a record high, reached 83.8%, and with over 6.29 million visits. As for asset management, Taicang Alps received 590,000 visits. Lijiang received over 250,000 of visits, up by 30%. The ULTRAMED project in Hainan has been officially launched. It will further integrate multiple businesses and will be the first AI-themed resort. As for the asset light projects, we have already signed for Taicang second phase . Taicang municipal party will provide the funding of CNY 5 billion , and we have also signed the contract for Chongqing China Mall. FTG will be responsible for renovation and operation.
As for the fashion business, Lanvin Group generated EUR 330 million of revenue. The artistic director, Peter Copping, for Lanvin, has already debuted in Paris Fashion Show and has also received good reviews. This marked the brand has already got the full return and expansion in global markets. As for the sports business, the Wolves generated CNY 40 million of net profit, turned around, and for Baihe, its revenue has reached CNY 620 million . The sales fees has been down by 37%, and management fee has been decreased by 26%. Its customer satisfaction has been improved. As for wellness business, the total revenue was CNY 55.1 billion , up by 6.4%. For its core businesses, Fidelidade generated the GWP of EUR 6.17 billion , with the largest market share in Portugal.
As for the insurance companies, the total premium was CNY 74.5 billion , with over CNY 204.5 billion of AUM.
We have seen the global operation capabilities has been improved. The total premium from the Fidelidade was CNY 40 billion , and its international profits contributing over 50% of the total profits. As for the China's insurance companies, Pramerica Fosun's new single-pay premium has been increased for 61%, and for the Fosun United Health, single-pay premium has been up by 157%. As for the asset management in 2024, the total AUM has already reached CNY 2.2 trillion . We have returned to the core of industry plus investment plus insurance, creating top-tier leaders through investment and financing. Our major investment includes Laopu Gold, Chagee, and Hello Bike. As for intelligent manufacturing, the total revenue was CNY 15 billion , up by 22.2%. Among the core companies, Hainan Mining reached net profits to parents of CNY 710 million , up by 12.97%. Easun Technology registered CNY 8.63 billion .
We have seen that the main business of Hainan Mining was rising steadily with underground iron ore mining reached production. It further expanded in the overseas markets, acquired oil field rights in four blocks in Oman. Wansheng focuses on supply and sells synergy, focusing on improving operation, and it has improved its patent numbers. So in general, over 2024, Fosun continuously to focus on streamlining and asset light, asset heavy, and investment-divestment balance. We keep focusing on the family consumption businesses and further enhance our operation capabilities. We further leverage our globalization and tech advantages and has made a resilience development. In the future, we will keep focusing our strategy, enhance global cooperation capabilities, strengthen R&D to intelligently manufacturing the healthy, happy, and wealthy life for global families. Next, I'll give the floor to Brian Chen to talk about the strategy.
Now, I will introduce both the international strategic developments. In 2025, with uncertainties in the global market, we will remain steadfast progress. I will not talk too much about the external environments, including geopolitical crisis, de-globalization, global supply chain restructuring, the massive adoption of AI models driving industrial transformation, and the global asset repricing amid the volatile financing markets. We see the global markets are facing changes a lot. This actually presents both opportunities and challenges to companies. For Fosun, we have been using a long-term vision in our business. Faced with the current situation and challenges, the core for us is to have focus on our core business and navigate through economic cycles for better, healthier development in the future. Over the past 30 years, while we have been emphasizing a lot about our founding stage before 2000.
In early 2000s, we were focusing on domestic development. From 2008- 2018, we experienced global expansion, and in recent years we have been deepening operations. Starting for 2024, we have been focusing on our development to optimize our asset structure and debt structure. As Edward mentioned, in the past phase, we have established our core business segments and we have built our core business platforms. We can see the performance of our overseas revenue in 2024, it accounted for 49% of our total revenue. So indeed we are seeing strong progress. For our four core segments, in the health segment, Fosun Pharma remains the strong pillar, and we have Henlius after 15 years of development. It is now going global for long-term profitability for sustainable growth.
Fosun Kite was where we acquired the external stake, and we renamed it to Fosun Kairos, that produce a first-in-class drug for CAR T-cell therapy. We are adamantly pushing forward with its global commercialization. In our generic drug business in India, we have Gland Pharma, and in China we have Yao Pharma and Wanbang . These are all solid foundation for Fosun's health business. In 2024, Henlius reached CNY 5.72 billion of revenue, achieving better performance and stronger profit. In the happiness segment, we have Yuyuan and FTG. Yuyuan reached CNY 5 billion in new product sales in 2024.
Successfully hedging the impact of the gold business. For FTG, Club Med reached a new high in its revenue, reaching CNY 2.1 billion, up by 7% year-on-year. In terms of vacation operation and expansion of our gold network and baijiu distribution, we are all seeing progress. In the wealth segment, let's look at Fidelidade. It has received strong performance in its international business, and it will continue to expand the international markets, especially Latin America. In the domestic market, we have both Fosun United Health Insurance and Pramerica Fosun . With the support of the foundation, it is ensuring stable growth. Hainan Mining is expanding its business for strategic resources, including iron ore, oil and gas, and new energy. We also need to seize the opportunities brought by AI to fully embrace AI across the board.
Recently, we have seen the rise of ChatGPT and DeepSeek. We have strongly felt the opportunities and challenges brought by AI applications. For Fosun, in 2021, we have started to monitor the application of AI across our industries. With the successful development of the large models, now we have the opportunities to apply better tools to be more responsive. For example, in the Health segment, we are using AI in drug discovery. We started in 2022 in using AI for drug discovery. We also invested in Insilico, which is a leading company in AI drug discovery. We are also collaborating with Tsinghua University to develop PharmAID, which is a proprietary decision intelligence platform empowering drug R&D. It can help us improve efficiency across all of the parts. Henlius is also collaborating with DP Technology to develop new products.
Fosun Aitrox as early as 2017 or 2018, it has started using AI for medical imaging. For Foshan Fosun Chancheng Hospital, it has been using AI for patient follow-up. As for the Happiness segment, Club Med is using AI in marketing and customer service. FTG is trying to implement AI G.O these are all very in time application. In the jewelry fashion business, we are also using AI to assist in design. Shede Spirits is using AI for quality inspection and digital avatars. In the wealth segment, we are using AI in customer service. These are adopted by Fidelidade, Fosun Wealth, and Fosun United Health Insurance. AI is helpful in document processing, investment advising, and processing outbound calls or automate claims processing. AI is also fully used in our intelligent manufacturing. We can use AI in mechanical and electrical design. We are building AI knowledge base.
AI application has been fully integrated with our products and services. In the future, we hope that AI can be a useful tool for industrial upgrades and for transformative innovations. We aim to use AI to better increase our marketing efforts and to improve customer satisfaction. We have been stressing our four core capabilities in driving high-quality development. These core capabilities include global operations, innovation-driven FC2M E cosystem, and FES system. Across Fosun's developments, we mentioned that in 2024, our overseas revenue reached 49% of our total revenue. This percentage was mainly contributed by two parts. The first part is Chinese companies going overseas, exporting products. We have Henlius and Wansheng exporting products. We have self-developed drugs manufactured in China and going overseas.
We have a lot of pharmaceutical drugs, including artesunate injection, going to Africa. We have medical devices going to global markets. We have chemicals from Wansheng entering global markets. The second part is from the overseas companies. With international investment and M&A, we have overseas companies achieving growth in international expansion. By investing in overseas assets, the key for Fosun is to help the companies improve their operation and channel our capabilities in the overseas companies. In the past 5- 10 years, we have seen strong results in our expertise, where there are many good examples like Fidelidade, and Club Med, and Gland Pharma, and also Easun Technology, FFT.
After investing in these companies, Fosun also delivered the entrepreneurial and the pioneering spirits to these companies, and we deliver our expectations for revenue growth and for overseas expansions to these companies, and we share the value-sharing mechanism and partner culture in these companies. We also channel the strong application of digital technologies in these overseas companies. Let's take Fidelidade as an example. In Portugal, it has a strong market share, but it is also expanding its overseas business, going to Latin America, and the profit from international business accounted for 50% of its total revenue. During COVID, we have companies massively reducing their operating costs for better operations. From 2020- 2024, Fosun, we have core overseas companies reaching five-year CAGR of 15.6%, which is a strong achievement for us. The net profit CAGR reached 37.6%.
The strong global operation remain a priority for Fosun, and it can help Fosun deliver competitiveness. We will focus on our core business and the core industries, and deepen our global expansion and global operations. In terms of innovation, we support innovation in many fields to increase product competitiveness and support the global business growth. As for R&D innovation, Fosun Pharma remains committed to further investment in R&D investment. In Henlius, our goal is to have higher global sales revenue, and Henlius will continue to fulfill the unmet medical needs in tumor treatment, in self-immune system treatment, and in metabolism. We will continue to expand our first-in-class drugs development. In terms of the inhibitors and for the ADC drugs, we will also continue to develop. We will focus on more investments in cell treatment. In medical device, we will actively introduce or develop more innovative medical devices.
In the happiness segment, we will focus on more use cases for product innovation. For example, Xinjiang Tourism developed the Silk Road Express, marked the first domestic innovation in this category. We are applying an international standard to build this product. We are also employing oriental aesthetics and using cutting-edge technology to provide innovative products. We welcome all of you to experience these products if you have the chance. In terms of content innovation, Yuyuan Garden Lantern Festival has become a new cultural icon of Shanghai Spring Festival. We are using VR to integrate virtual and real worlds, and we continue the theme of the Legends of Mountain and Sea. Not only in China, Yuyuan Lantern Festival is also going overseas. In FTG, we are using more digitalization. Club Med is accelerating its digital transformation.
It has launched GM Copilot in seven markets worldwide, using large models to provide fully automated booking and consultation service. Fidelidade's digitalization is also accelerating. The digital user is around 20% of Portugal's population, and we are further increasing our investment in AI. We are advancing the creation of ecosystem value. Fosun has a lot of different businesses, and that help us in creating a strong ecosystem. With the FC2M strategy, we want to connect our families, clients, supply chains, and products. We now have 12 million consumer members at the group level. In the future, we want to provide more products for our customers to create a virtuous cycle. Last year, we have also reached CNY 1.4 billion of cost reduction in procurement. We have 94 new innovative products, and every year we have been implementing, we have been hosting the Fosun Family Season.
In 2025, we will continue to do this campaign to further integrate our ecosystem. FES is also a tool that we have been using for the past few years to further enhance our operation capabilities. We are learning from the Danaher projects through the DBS system. In the past few decades, they have achieved strategic evolution, and they have been improving their tactics, strategies, and organizations and business. Fosun is committed to building the FES system. Over the past few years, through this system, we have been advancing in lean management, in company strategy evolution, and in organization evolution. We have been improving our business operation capabilities and efficiencies in building lean and strong management, and in cultivating strong management talent to further improve our business and cooperation. Over the past year, we have achieved significant progress. In the next three years, we aim to release over 100 tools.
In the past year, we have released 55 tools. In terms of expert certification, we have certified over 1,400 experts, and we want to cover over 200 expertise for the FES leader certification, and we aim to have over 40 optimization activities, and we have improved. We have made 976 projects with improvements. As a global organization, Fosun International also need to continuously improve our organization capabilities to further make our organization healthier and providing solid foundation for our strategy evolution. We emphasize that the core of organization is about the frontline companies, it is about our PLs. For the group, we also want our capability to empower our portfolio companies in going global, in making more innovative initiatives to have higher returns and stronger efficiency. Fosun is also having global shared service centers to share our expertise and to further reduce costs.
Fosun has a partnership mechanism that we have been adopting for over 10 years. We have been using this mechanism to drive organizational vitality. We have over 200 Fosun global partners, and we are also building a young partners team. We already have over 1,000 line partners, and we also have innovation partners. These four types of partners make up of our top-level partners. We have successful entrepreneurs and top-level management joining our global partners. For the industry line or innovation partners, they are the core strength. As for the young partners, they are young people with high potential. Innovation partners share the responsibilities of innovation. Through this system, we want to build a pyramid shape partner system. For Fosun's development, apart from business, we are also focusing on global services to advance corporate sustainable developments. In ESG, we have been recognized in many areas by multiple parties.
In terms of carbon neutrality, we have very specific goal. That is to reach peak carbon emission by 2028 and achieve carbon neutrality by 2050. We have a regular mechanism for EHS management framework. In terms of Rural Doctors Program, we have implementing that, and we are also using artesunate to help malaria patients, and we are also accelerating our disclosure for corporate governance. We have been rated as A A for four consecutive years in the MSCI ESG rating, and we have been selected as constituent in many of the ESG indexes. That is all from me. Thank you.
Thank you, Brian Chen. Thank you the management team of Fosun International's report. Now we will move on to the Q&A session. If you have any questions, please raise your hand. We will give you a microphone.
Dear management team, I am from Nomura Securities. Thank you for this opportunity. We talked with the market a lot, so we have two questions. The first is that we have seen a big variance in financial report. Could you further elaborate on the reasons and the project information about this specific loss? If we exclude this loss, what is the actual operation in 2024 and what are the highlights? That is my first question. The second question, considering that the complex geopolitical environments and the challenges of the China market, do you think Fosun also face the same challenges? What is the strategy and goal for Fosun's development?
How will the company achieve long-term sustainable development? These are the questions that we gather from the investors.
Thank you for your question. For the first question, I think Mr. Alex Gong, you can answer this question. Alex Gong says, okay, I will answer your first question.
Fosun International reported a net loss of CNY 4.35 billion, and this is the lowest in the history. However, we are in our best shape. The CNY -4.35 billion of loss is primarily driven by the downward adjustment of the book value of our investment in Cainiao Network. After discussing with the auditors, we want to include this into our financial report. Excluding this impact, actually the adjusted profit to parents would have been around CNY 750 million. Actually, we have made a lot of money from this project.
Fosun total investment in Cainiao reached CNY 1.5 billion by the end of 2024. We have cumulatively recovered about CNY 4.4 billion through divestment with an IRR of 34%. During the investment period, the market-based transactions were used as the benchmark for assessing Cainiao book value. It was as high as $20 billion. However, in 2024, Alibaba repurchased minority shares of Cainiao at the price of $0.62 per share. I want to highlight here, this is a non-cash impairment and actually this project is very profitable to us.
Alex Gong, please give us further introduction about our overall operation and performance if we exclude this item.
I have been mentioned that excluding this impact, the adjusted profits to parents would have been around CNY 750 million. This does not affect our overall management. Actually, we are very confident in our 2025 performance and management operation. About our strategy, Chairman Guo, do you have anything you want to add? Chairman Guo says, okay.
I know that the loss is not a good thing, so I think the management team needs to work harder. We need to make sure that the company can achieve sustainable growth. As for Cainiao project, I want to say thank you to Alibaba and the Cainiao project. Actually, we have very good returns, CNY 1.5 billion of investment. We recovered CNY 4.4 billion. I think we are very grateful for Cainiao team for their extraordinary job. We grow with Cainiao together. As for Cainiao, this is not only an investment for us. Actually, in 2023, we also participated to start this company, and we made the initial investment. After 11 years, we grew with each other.
That's my first point. Secondly, we are streamlining our businesses starting from 2024. We're trying more about investment, divestment balance. As you know that we tried to delisting last year. First is Henlius. I think at that time the price offering was good. The stock price was 16, but we offered 24. But the minority rejected it. We felt sorry, but we also feel thankful for our minority shareholders because I think that shows they have strong confidence in Henlius, and they want to grow with us in the long term. And right now, the price of Henlius has already reached 35 per share. So I think our minority shareholders have good eye, and we are very thankful for our shareholders, and we will try all of our best to make money for them. As for Henlius, I think it has full potential in the future.
I think we have a lot of products that are worth CNY 10 billion, and also we are very confident that we will have products worth over $10 billion. This is our priority. We will give full support. Of course, [inaudible], Fosun, [inaudible] , they are all good. We will focus on innovation, focus on the company's products that can further grow. That's our strategy of investment, divestment, balance. We will further divest the asset-heavy projects, but we will further invest in the products and services that can provide sustainable growth. We know that right now, the environment has been changing, and that poses challenges to not only international companies, but also companies that's only working in a single country. I think we cannot escape from this influence. It's impossible for us to escape.
The best way to adapt to it is to further build our international global operation capabilities. Over the past decade, we have been keep working on our global operation capabilities, and I think this will benefit our future. I have strong confidence in this. Right now, our overseas revenue contributing 49% of total revenue. As Brian Chen mentioned, that the overseas revenue are generated by the Chinese companies, as well as our overseas companies, especially Fidelidade. Half of its revenue coming from international markets outside Portugal. I think this is very unique. For strategy, we are very clear that we will further divest heavy assets. Heavy assets are good. If the returns can reach 5%, then that's very good. For Atlantis, I think it's very hard for us to replicate. The return was very, very good.
In reality, I think the return on heavy assets, if it can reach 5%, then that's very good. However, for Fosun, we need to meet the expectation of the shareholders. If we use our equity to invest, then the return will not meet our requirements. Because I think it will make sense for the state-owned capitals or insurance firms because their finance cost is only 2%-3%. We are reallocating our resources. We will allocate more resources to innovation, but we will further divest from heavy assets. I think right now we are all expecting the rate cuts from the Fed, although it's not there yet, but I think it will come. It will further decrease our financial cost. Right now, our industrial operation profits would be around CNY 5 billion. We hope that we can double it and reach CNY 10 billion operating profit.
If we can further decrease our interest rate and improve our net profit, then I think we can all look for it. Streamlining businesses and all the other strategic initiatives. Of course, we will face challenge during the process, but that requires us to stay strong and stick to our strategy. In Fosun, we said we will insist on the right things and hard things. I know doing the right thing is hard. It requires patience and time, but we are reaching another milestone. We have already passed the streamlining business phase. Right now, we are making the balance between investment and divestment, and we will further deleverage focusing on industrial operation. So that's my reports to you. I agree with Brian Chen. Actually, we give full attention to AI. It's hard for us to build the large models, but we focus on application.
We will further use the cutting-edge technologies to further improve our efficiency and innovation. So that's all from me. Thank you, all. Thank you for your support.
Thank you, Chairman Guo, for your sharing. I'd like to quote Chairman Guo's words in the letter to shareholders, Fosun will continue to ride the waves and make higher achievements. As for Alex Gong's comments in the financial profile of Fosun International, is there any additional comments? Alex Gong says.
As mentioned before, for the 2025 profit and revenue, we remain confident, especially, as mentioned before, for our core subsidiaries, they are keeping improving their operations. For example, Pramerica Fosun and Fosun United Health Insurance, and P3 have been achieving profitability. And Yuyuan and Fidelidade have been on a steady path for growth. And we expect that Fed will start rate cuts soon, although the pace may be slow. It would have strong impact on our financing efforts. So we remain confident in our future in the next three to five years.
Echoing Chairman Guo's words, we aim to achieve CNY 10 billion in our core operating profit, and we aim to increase our dividend payout ratio from 20% to 50% to generate more value to the shareholders.
Thank you, Alex Gong, for your answer. Now we will have the second question. Let's have someone in row four. The gentleman in white.
Hello, management team. Thank you. I am Dule from Dongbei Securities. I have this question. With the group strategy in asset-intensive to asset-light, Fosun International is divesting from some heavy asset project. And Fosun has also acquired land in Yuyuan and Hong Kong Clear Water Bay, so I wonder what's the logic behind this?
Let's have Chairman Wang to answer this question. Chairman Wang says thank you for your question.
I would like to thank all of the investors and analysts, both in the room and online.
Thank you for your support for Fosun International. As mentioned by Chairman Guo, as mentioned by the two CEOs, in the near future, our focus is on business streamlining and development on core business. For our focus business, we will shift from asset-intensive to asset-light. We will balance investment and divestment. For our family customers, for our industries with competitive edge, including health and biopharmaceuticals and culture tourism, we have divested some heavy asset projects. We have also explored many asset-light operation projects. As mentioned by Mr. Edward Xu, we have the Taicang Alps Resort Phase II and the Chongqing China Mall, including the one in Shenzhen. In terms of biopharmaceuticals, we have established a biopharmaceutical fund with Shenzhen government, and we have a cooperation project in Shenzhen. We have a Club Med resort in Shenzhen.
We are making strong progress in our asset-light operation in health and happiness segments. Indeed, we have seen that we are also making investments in some projects. Actually, the logic is coherent. These are high-quality projects with legacy of Fosun International, including the Yuyuan project, the Clearwater Bay project, and the Club Med project. These are all high-quality projects. For the Fuyou Road Phase III project in Yuyuan, it is a great bridge between Yuyuan and the BFC. This Fuyou Road project can help us create a commercial zone, and we want to build this zone into a leading commercial zone, no matter it is in China or in Asia or in the rest of the world. This can also help us further enhance our asset-light operation capability. This can also further reflect the values of heavy assets.
We will have further collaboration with heavy asset partners or divest through methods like REITs. As for the ULTRAMED project, it is actually an extension of Atlantis Sanya, and it is extraordinary. With Atlantis Sanya and ULTRAMED joining hands, we can further enhance our SLI operation capability and culture and tourism industry, and we can further enhance the value of those heavy assets. As for the Clear Water Bay projects in Hong Kong, it is also a promising project. We have been holding this asset for 10 years. Last year, with the real estate cycle, we experienced the bottom in the cycle. So we acquired that land at a low price. We want to build this a benchmark project in Hong Kong. Moving forward, this project can better help us in value enhancement, in cooperating with heavy asset partners, and in divestment.
These are the additional investments based on our current portfolio in order to enhance our SLI operation capabilities. These three are excellent products, and the customers of these products align with Fosun strategies. We can generate great synergies from these projects. These projects reflect our strategy in balancing investment and divestment to fully unleash our value for better collaborations and divestment, and to further support our strategy of shifting from asset-intensive to asset-light. This is the 33rd year of Fosun's development. We remain committed to co-entrepreneurship. In this context, we will further implement our strategy of going from asset-intensive to asset-light. As mentioned by our CFO, we are very confident to the 2025 business and profit. In the future, we are confident in our global innovation and business operation. Thank you.
Thank you, Chairman Wang, for your answer. Let's move on to the next question. The lady in red, please.
Thank you for this question opportunity. From the securities, I know that we have very good international business performance. In the context of 2024, we have seen the global businesses contributing a lot to Fosun. I know that a lot of companies are going overseas. My question is that in terms of global presence, what is the strength or future of Fosun's global capabilities?
Thank you for your question. The question will be answered by Edward Xu. Edward Xu says.
Thank you for your question. I think that is a very good question. Fosun was listed in 2007 in Hong Kong. After 18 years of efforts, we are now having the footprint in over 35 countries and regions in 2024.
Overseas revenue was CNY 94.78 billion, and 50% of staff are overseas staff and 50% based in China mainland. We have been working on global footprint for 17 years. Before, we are talking about leveraging Chinese momentum to integrate global resources, but right now we are utilizing global momentum to connect global resources. We, right now, will move into global operation, and this will be our key focuses in the future. For that, we still need several key capabilities. I can give you a few examples. First is the global resource integration capabilities. Let us take Fosun Pharma as an example. As we can see, Fosun Pharma generated over CNY 11.3 billion from the overseas market, up by 7.9%, contributing 27% of its total revenue. This structure was benefited from its capability to integrate global resources. As for R&D, they are very smart.
They are collaborating closely with the smartest institutions in the global world. Also for the manufacturing resources, we also integrate the manufacturing resources in India and in Africa, and also we are building a network for global BD and global sales. So we integrate the resources in production, manufacturing, and supply chain. I think this is very important. Secondly, I think the footprint and presence is also very important. We invested in several international companies, and how can they further extend over the board, that is also very important. For example, Fidelidade, half of their revenue coming from the markets outside Portugal, 50%. The growth benefited from two factors. First is our asset management platforms in different companies, including the OECD companies. Secondly, it benefited from its own international strategy, keep expanding its main businesses.
Over the past few years, Fidelidade was growing very quickly in Latin America regions. It was number one in Bolivia and number four in Peru. Of course, it also has strong presence in Africa, including the Portuguese-speaking countries, Mozambique and Angola. Its premium growth can reach double digit. So global presence is also very important. As for the global operation, local capabilities is also very important. Take Club Med as an example. It has 75 years of history and very classic business model. However, in China, customers' preferences is very different. We have a lot of 5-star hotels. However, we do not have any holiday hotels, so we need to focus on the holidays in cities and ski holidays, and better leverage our business model and adapt to the China's market needs.
In China, Club Med innovated Joyview and Urban Oasis product lines, further embed in China culture and preferences. I think these are the key capabilities, global resource integration, global expansion, and the local operation. These are the key capabilities. Thank you for your question. We will remain committed to our global presence and global operation. I think this is one of our strong competencies comparing to other competitors.
Thank you, Mr. Edward Xu, for your answer. Now let's move to the right. Let's have the lady in row three.
Hello, everyone. I am from Kaiyuan Securities. Thank you for this opportunity. I would like to congratulate the company for achieving great results, and I have a question about innovation. We know that innovation is one of the core capabilities of Fosun. In terms of innovation, especially in areas like AI or robotics, what are the highlights and how do you see this AI trend?
Thank you for your question. We will have Mr. Brian Chen to take this question.
Okay, thank you for your question. As for innovation, over the past three decades, Fosun has been committed to R&D investment in the pharmaceutical field. As for the other businesses, including the consumer goods business, we have been focusing on innovation in technology, in products, and scenarios. As for our wealth segment, we have insurance business, applying total technologies, big data, and AI. For Fosun, we have been focusing on the power of innovation in product iteration and in building best-selling products in R&D, and in services, and in customer interactions. For biopharmaceuticals, we established several platforms like those for macro molecules like Henlius. I have elaborated that before, so I will not go into details. As for AI, it's heavily related to our products. I have also mentioned this in the previous report.
Starting from digitalization, then we moved to the internet era, and with the rise of big data, we are now stepping into the AI era. Technologies iterate very fast, and the emergence of AI is very unique. That is based on the foundation of digitalization, and this time is truly something else. We see AI big models emerging in the markets, and the iteration speed is really, really fast. That also drives the structural changes in many industries. Let's take biopharmaceuticals as an example. We believe that it is a most valuable field for AI application because the structure of those creatures is very complex, and it requires high computing power and complex algorithms to support drug discovery. AI is very valuable in drug discovery, in clinical treatments, and in medical imaging. AI is a very hot topic in biopharmaceuticals.
I mentioned before that we have been using AI in drug discovery for three years, and we have achieved results. There are AI-discovered drugs in the clinical stage, and we are using PharmAID to support process optimization and to support decision-making. AI can greatly help us increase efficiency in drug R&D. We also want to enhance our collaboration with national institutions to co-create AI drug discovery platform. Of course, we need to work with different parties in the society. It's not that we must invest heavily in this segment, but as a leading power in this industry, we can better leverage AI to have smarter R&D. We have Fosun Aitrox, which is an incubator in medical imaging. We had several rounds of financing, and we have received certification, and it has been applied in many hospitals.
We have built deep collaboration with many of the medical device providers. In Chancheng Hospital, we are also using AI for patient-doctor interaction, and this can be heavily used in the patient follow-up program. As for FTG, it has started the AI lab. It's also driving the application of AI in vacations and in tourism. You also mentioned robotics. We can see the application of robotics in FFT, which is under Easun Technology. It's devoted to manufacturing for major auto makers, including BMW and Mercedes-Benz, and there are also other clients of those EV makers in China. In their business, they can use AI to automate car making, and we will have further experiments in this. In terms of medical treatments, we have da Vinci Surgical Robot system, which was designed by Intuitive.
We have a joint venture with Intuitive, and we want to build this platform to further commercialize da Vinci Surgical Robots and the Ion robotic bronchoscopy. We have also incubated a platform based on VR. There can be a VR device, develop high-precision, minimally invasive diagnosis and treatment system. As for investment side, we have also been making investments in AI and robotics, like [inaudible] and DeepRoute and the laser radar business. These are all related to robots and AI. We are focusing on these areas in terms of our own business and in terms of investments. We want to be fully devoted to AI application in our product design, R&D, et cetera. For any industry, AI is unavoidable. For any company's operation, if you want to survive, AI would be an essential tool. Without AI, you would be eliminated.
Without AI, you would lose your edge in product design and in customer interaction. Using AI is essential for us to improve the company's value. We will remain committed to our investments in this field. Thank you.
Thank you, Brian Chen, for your answer. The lady on the third row.
Thank you. I am from Yinhe Securities . I know that pharmaceutical business is a very good business for Fosun, and the management team has mentioned innovation and globalization. These are also the highlights for the pharmaceuticals. I have two questions for the management team. Fosun Pharma established 30 years ago. What is your experience in international business? My second question, Henlius, the core company for health segments. Right now, we withdrew the privatization plan, and how will that affect Henlius and Fosun Pharma? That is my two questions. Okay, thank you for your questions.
I think Brian Chen can answer your questions. Brian Chen says.
For the Henlius privatization, I think Chairman Guo has already mentioned this. Henlius is one of the company that started very early among all the biopharmaceutical companies.
We started in 2009, and we positioned ourselves from biosimilar and innovative drugs. We apply international standards for R&D and manufacturing. All the products have the qualities to enter the international markets. As you can see, R&D, no matter it is PD-1 or other pipelines, we have a lot of products that are going overseas. In 2019, Henlius was listed in The Stock Exchange of Hong Kong. Since then, Hong Kong market has changed, its valuation, liquidity, and other factors. We think that over a very long period, the stock price did not actually reflect Henlius valuation. Cash burning may not be sustainable, and we have been emphasizing on R&D, innovation, focusing on operating cash flow, and has already achieved profit for Henlius. Also we have very good PD-1, strong pipeline. We worked hard to let the investors to see our efforts and the strength.
However, still, the price did not reflect our values. I think privatization plan is actually a very responsible plan. That is why that we proposed privatization plan last year. However, after our proposal, it was welcomed by many investors, but some investors are still having some doubts about our offering price, or they are very confident about our future. That is why that they still want Henlius remain listed. We respect the market rules. Through votings, we can all have a decision vote.
That is why that the privatization did not go through. Actually, by proposing privatization plan, actually drew more attention from the market as we have been working hard, and also we are seeing that the price has been increased. Before privatization plan, it was only HKD 15 per share, and after privatization plan, it remained over HKD 20 per share. But right now, the price was very good.
I think right now we are very happy about this. But of course, for companies, stock price is not our goal. Our goal is sustainable growth. The market decided Henlius remain listed, so we are responsible and also we have confidence to bring Henlius into next high. We believe Henlius is one of the leaders in biosimilars. Comparing to other strong competitors, we are still having strong development responsibilities, but we are very confident that we will remain in the leading position in biotech. This is also benefiting Fosun Pharma, which means we have shown our capability to further support the development of Henlius, and Fosun Pharma has been benefiting this. Also, we are using the board to keep govern the company. As for the global operation in 2024, the overseas revenue was CNY 11.3 billion , up by 10%, contributing 27% of the total revenue.
This, comparing to other competitors, this is leading. Our overseas products are also making money and making profits. We are making money from the pharmaceutical products and also devices. We have two listed companies. Comparing to other competitors, Fosun Pharma started very early in terms of going global. Starting from 2004, 2005, our anti-malaria products has entered African market. We overcome the challenges. Right now, the artesunate still is a very important antimalarial drug. Also we have a very strong Africa sales network, over 100 sales representatives. Also, we are working in the U.S. market for several years. Your question is about our experiences, but I think marketing is the most strong capability that we need to have. For our generic drugs, we have a very good performance and strong growth. As for devices, Sisram, Alma , it has already covered 100 countries and regions.
In the U.S., in China, in Europe, we have strong direct sales network. For Fosun Pharma, we started a joint venture in Middle East. We can further leverage local manufacturing for local sales. We have two companies in the Middle East. We have a local R&D company and a local manufacturing company. In Southeast China, in Southeast Asia, we have already established a marketing company, and we are also working on the opportunities in South America. We have been discussing about the marketing capabilities in India for Gland Pharma. India market only contributing 4% of its total revenue. However, Indian market is rising, so we are also discussing about the capabilities in India. I think we need to first build their global marketing capabilities and then build the R&D, BD capabilities, and also products that can be adapted to different products.
For the pharmaceutical business, as the innovative products are always the best products and the most valuable products. So we need to build a portfolio. We need to first build the marketing network and use the innovative drug to make profit, and also further sell generic drugs in the global markets to generate quantities. That's my sharing. Thank you.
Thank you. Let's have the last question in row five. The gentleman in row five.
Thank you for taking this opportunity. I am Soyo from Haitong Securities. We noticed that in 2024, FTG also announced privatization. I wonder how should we interpret this move. After privatization, what is FTG's strategy? What is our future direction?
All right, thank you for this question. We will have Mr. Edward Xu to answer this.
All right. Thank you for your question. The privatization of FTG was the fastest one in the Hong Kong market, with only three months. Mr. Brian Chen also mentioned for the Hong Kong capital market, the liquidity remains a pain point. So for FTG, we saw limited room for refinancing in The Hong Kong stock market , and the short-term return remained limited for our shareholders. Given such considerations, we decided to delist to further advance in the future so that we can have more flexible operations and further optimize our business. So we completed the privatization very fast. The strategy for FTG is very clear. For Fosun International, we are committed to building products in four segments and for the Happiness segment, FTG plays an important role. We can see the Chinese government has made the culture tourism industry a pillar industry for economic growth.
The Chinese government, after the Winter Olympics in Beijing, it also announced that the ice and snow tourism would be a pillar for the tourism industry. So we see a new stage of development in tourism business. We can see the FTG strategy in two dimensions. In terms of the global dimension, we see Club Med has navigated many economic cycles with 75 years of development, and it has developed a unique PAI business model. Now it operates 68 resorts worldwide, and in the future it will further expand, especially in Southeast Asia, in Brazil, and in North America, including Canada. There is huge room for Club Med's PAI resorts. The second dimension is in China. We see this trend in China and the rest of the world that has shifted from sightseeing tours to vacation tours. So FTG is all in vacation.
Our presence in vacation resorts determines our future.
In China, we have a lot of f ive-star business hotels. However, there's a gap in urban vacation hotels in cities or city clusters. FTG has this advantage, and Club Med has such strong heritage. That's why we decide to further enhance our capabilities in vacation in city clusters, and in ultimate destinations like the one in Hainan. There's another core strategy for us that is to be devoted in the ice and snow strategy because we have the full support from the Chinese government, and we have all the assets in our process. In China, we have three ski resorts, and in Japan, we have four ski resorts managed. In Europe, there's 17 more. Together, there are 24 ski resorts covering China, Japan, and the rest of the world. In terms of the indoor ski domes, we have seen strong success for Taicang Phase I.
Moving forward, we will develop the Phase II project to make the largest indoor ski dome. So in terms of the skiing business, we have strong presence in indoor, outdoor ski areas, and in the ski resorts. That is why we are all in vacation, whether in China's urban vacation or in the rest of the world. The path is long, the skiing slope is long, and the journey ahead is also long for FTG. We believe there's promising future for FTG, and thank you again for your question.
Thank you, Edward Xu, for your answering. Because time is limited, we now open the opportunity for the last question.
Thank you for giving me this opportunity. I am from Hong Kong. In 2024, Fosun issued the green shoe loan. After three years, we went back to the U.S. dollar bond, and also have recovered valuation. So my question was: What are the financing channels in domestic and overseas markets? How does the group balance its deleveraging goals with new debt insurance?
Okay, so thank you for your question. Since it's about the financing and capital structure, I'll give the floor to Alex Gong, CFO of Fosun International.
Okay, so thank you for your question. For Fosun International in 2024 and 2025, in the first quarter, we issued two syndicated loans, and also we completed the three-year syndicated loan.
We are a very diversified private company, and we also went back to the overseas, domestic, and overseas market. You have mentioned the U.S. dollar loan. Actually, the cost is still a little bit high than our expectation, 7%-8%. However, the reason that we choose this is because we want to demonstrate to the market that we have this choice. As for the debt management, we need to be able to manage the debt duration and the debt cost. Actually, the syndicated loan can help us to elongate the duration. However, we will not rely on this. Especially in domestic markets, we have very diversified financing channels. For example, the loan that we issued last year, the cost was only 4%. Also, we have issued a two-year bond, the cost was only 4.7%.
In domestic and overseas market, we have diversified counterparties and partners and also the channels. With the uncertainties of rate cut from the Fed, we will still focusing on debt management. As for the heavy asset and projects, we still need to be able to rely on the low-cost partners. We will further collaborate with the patient capitals, including the state-owned companies and insurance firms, the firms from the Middle East, and the U.S. dollar investors. Yesterday, Fosun United Health increased their shares and also introduced two international partners. I think that has contributing to our success. We will further move on to our financing channels. Our debt has been further deleveraged to only CNY 80 billion now, and we will further deleverage to CNY 60 billion. We will further manage the cost, manage the duration, and have better structure.
In addition, we will focus on the syndicated loan. We will further issuance and also pay back, and we will pay back more than our new insurance. Especially for the past three years, public traded loan has been reduced to over 20% from 50%. I think that is a very good initiative that we have took. Also, we will be committed to the strategy that we have. The subsidiary companies will further give dividends to the parent, and also we will further divest the non-core assets. The cash that we collected from the divestment has already exceeded over CNY 220 billion. Thank you for your question.
I think that's all for today's report. Thank you for your questions. We can keep talking after the announcement. Thank you again, online, offline, media friends, analysts, and investors. That's the end for the morning session of Fosun International 2024 annual results announcement. Our afternoon session will broadcast live at 2:00 P.M. Thank you for your watching. Thank you