Fosun Pharma extends billions in guarantees for subsidiaries

Shanghai Fosun Pharmaceutical Group (Fosun Pharma) has provided a series of guarantees for its various controlled subsidiaries, totaling approximately 23.6bn yuan as of September 12, 2025. These guarantees represent 49.94% of the group's net assets as of December 31, 2024. All guarantees are for existing controlled subsidiaries and are within previously approved shareholder limits.

Key guarantees include 9.6bn yuan for Fosun Pharma Industrial, comprising $25m and 670m yuan, and $85m for Fosun Industrial. Other significant guarantees extend to Fosun Health for 2bn yuan, Sun Pharmaceutical for 220m yuan, Fosun Yali Peak for 871.65m yuan, and Heshun Hospital for 236.99m yuan. Most of these involve either joint and several liability or maximum amount joint and several liability.

The company noted that some guaranteed subsidiaries have a debt-to-asset ratio exceeding 70%, indicating a degree of financial risk. Despite this, Fosun Pharma considers these guarantees necessary and reasonable for its subsidiaries' operational needs, with risks deemed manageable and no overdue guarantees reported.