Fosun International Shares Drop After 2022 Earnings Miss Estimates

Fosun International Shares Drop After 2022 Earnings Miss Estimates

Fosun International Ltd. shares fell after the conglomerate said its full-year net profit declined sharply, missing analyst estimates.

The conglomerate’s Hong Kong-listed shares fell as much as 9.3% to 5.54 Hong Kong dollars (US$0.71) in Thursday morning trading.

In 2022, Fosun’s net profit fell 95% to 538.7 million yuan (US$78.2 million), missing expectations of CNY6.96 billion in net profit from a poll of seven analysts compiled by FactSet.

Its revenue was CNY175.39 billion, which also missed a FactSet consensus of CNY182.09 billion.

The conglomerate’s business segments were hurt by strict lockdowns across China amid the pandemic, it said late Wednesday.

Fosun said it dealt with the challenges by divesting itself of several noncore businesses.

The company said it expects 2023 to be a better year, particularly for its tourism sector, which is showing early signs of a revival as China’s borders reopen.

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