How will the Chinese economy be in 2019? I am optimistic. First of all, China’s reforms and open policy will continue to unleash the potential of the Chinese economy. Secondly, the fundamental impetus to China’s development comes from the people’s strong pursuit of happiness. China has a large economy of vast size and resilience. I think that both the Chinese economy and the global economy are very vibrant.

Self-Reflection Everyday

When facing problems, the external environment is beyond control, and what can be controlled is to do your own things well. I used to have problems with managing my time and energy. How much time was spent on customers? How much time was spent on experiencing Fosun’s products’ user experience? We should also ask ourselves questions like what is our return on investment on R&D and innovation, on learning a new business format, and reorienting to a new direction. How much time and effort has Fosun taken every day to organize, cultivate, and introduce new talents? Always ask yourself if you are willing to dedicate yourself to the right things, especially the ones that only pay off in the long term.

Focus on Products, People, Scientific Research, and Development

I have changed a lot over the past year in my hope to focus more on products, people, scientific research, and development. You may consider this common sense. One needs to understand that, from a management perspective, the hardest thing to stick to is common sense.

We all know that health is very important, but do you really care about your everyday health? I have been promoting Tai Chi, but health conscious people do not appreciate its importance. I can feel the effectiveness of when I promote Tai Chi with unhealthy people or people who have been sick. In fact, common senses such as not drinking too much, or going to bed early every day are the most valuable but hard things to stick to. Fosun usually would not invest in projects such as bicycle sharing, but why did we invest in Hellobike? Because the CEO of Hellobike told me that “we are not that noble, we are just doing a bike rental business”. No, because I listened and thought he could do this well and make a profit. When others are burning money and overlooking management, Hellobike stays focused on the details of management and becoming successful.

What is the top priority for Fosun? We want to create a happiness ecosystem. How do we create this? Fundamentally, we are focusing on enhancing product competitiveness, brand strength, and creating a network of industrial groups in an extensive ecosystem.

Our Products Must Solve Problems and Touch People Deeply

What is product competitiveness? I remembered a saying, “There is always something that can bring you to tears with joy and touch you deep inside.” Of course, products must solve problems, but they must also connect with people with feelings and warmth. When was the last time you could recall a product that moved you to tears? Some women at advanced maternal age might have some difficulties in having the second child, but not with the help of United Family Healthcare. How can they stop those happy tears when welcoming the new life! CAR-T can help patients with only three months of left to live. Artesunate has saved countless lives of mothers and children in Africa, enabling them to live out happy lives. What is product strength? My hope is that Fosun’s products may bring tears of joy.

What kind of brand should Fosun craft to impress and attract people of all ages? What kind of customers should Fosun target? What does Fosun have to offer society? We are clear that Fosun stands for health + happiness + wealth. Fosun is committed to enabling an optimistic lifestyle with health, happiness and wealth.

Advance Vertical Integration to Create Individual Industrial Groups

We must proceed with vertical integration to build individual industrial groups with powerful products and brands. Therefore, CEO Wang has made it very clear that we must shape a network of industrial groups featuring a 1+N structure. We have clearly defined the entire organizational structure and development, but what are the next steps? How do we create a Fosun ecosystem for customers on the basis of these industrial groups?

What is the happiness ecosystem? What we want to do is that, no matter what stage of life you are at, what state of life you are in, and what role you play in the family, Fosun will always support you and take care of you. This is the ecosystem that Fosun wants to form.

The development of a company requires good strategies, good tools and good teams. We also need more strategic tools, such as globalization, C2M, technology leadership, and the twin drivers of organic growth and investment. We have a clear understanding of them and have been working on them for a long time, but we must keep iterating and evolving.

Globalization 2.0

Fosun’s first strategic tool is globalization. Fosun will continue to develop the product lines for the global market as well as organize the industrial resources to improve the product chain.

Fosun is a global company rooted in China. To build such a global company, we have to be “Glocal”, a slogan that we put forward to support a global plus local approach. Talent must be global, just like the football club Wolverhampton Wanderers, and not prejudiced in terms of nationality, skin color, or language. We want to offer the same happy life, a home of entrepreneurship, and the same treatment to all Fosun people around the world. Therefore, we will continue to have more outstanding Fosun people from all over the world to be Fosun’s global partners.

Deep Industry Operation + Investment

Fosun’s second strategic tool is deep industry operation + investment. Many people used to say that Fosun was an investment group, but in fact, Fosun has always aspired to make a difference in industrial operations. We have recognized so that investment is not our aim, but to provide a happiness to our customers. However, we still have investment genes. Right investment, value investment, and global investment have played a major role in the development of Fosun.

Fosun has maintained a strong commitment to strategy in the past few years. We have a clear vision about what to do and where to go. But in the future, we still need to make some tweaks in the investment strategy on the basis of the original strategic direction and strategic tools. First of all, we must make reinforced investments for industrial groups that have strategically secured a vantage point in the industry; as such, we hope to make more holding-form investments. Of course, we must actively support allocated investments led by value investment and compatible with our insurance business, including bond investments. However, as the core investment of Fosun’s core resources, we must strengthen strategic investment, industrial investment, and holding-form investment, and increase investments that can empower Fosun and have much significance in the formation of the two ends of the entire C2M ecosystem.

Close Integration of Capital and Industry

Again I want to say that capital and industry must be closely integrated. A large ecosystem is impossible without capital support. We must access the capital market via multiple channels, closely watch the operating cash flow, control the debt-to-equity ratio, and improve the rating to investment grade as soon as possible.

Lead by Technology

There is another critical strategic tool – technological leadership. In this respect, I want to particularly emphasize a viewpoint by CEO Wang who said that the future KPI is designed to assess the investment in scientific research + profits, as well as the ROI. People may ask what about short-term profits? We must make it clear that we should never pursue short-term interests at the cost of long-term development.

C2M

We must try hard to have as much business as possible to reach the customers. We need to focus more on the offline traffic, and get to know and work with more people. What is the biggest challenge? As the traffic has not been integrated, there are too many information silos. The situation is that portfolios have traffic separately, with massive traffic in our ecosystem is scattered around, and not integrated. Hence we still have a lot of work to do.

Intelligent Manufacturing

The process of intelligent manufacturing needs to be reshaped. It can take place in the manufacturing industry such as the fashion business, or in the service industry, for example, how can the service industry use information technology to meet everyone’s personalized needs, and do a better job? There is much to do.

The second half of the Internet sector is about the 2B business and the transformation of manufacturing. This requires a platform with a solid industrial foundation, and Fosun indeed has a profound industrial accumulation. We provide numerous opportunities, with AI technology and big data are at its core. If Fosun wants to outperform the Internet incumbents and become a pioneer, the first thing is to go deep into the “soil”, develop strong capabilities in industry operation, and gain an insight into the industries. Fosun is very fortunate to have a group of people who recognize our cultural values ​​and work hard to develop the industries.

The second is to have a top-level design in place. In the past, we thought that vertical and horizontal management was very important, but we had not done enough to promote the creation of a large ecosystem in a top-down approach. We always talk about what we must do, what to do in the middle office, how to improve the organizational structure, and how the teams can cooperate with each other. Starting today, our partners at all levels worldwide are expected to have a better understanding of the “top-level design”, and think carefully about how to do better through reshaping the architecture.

Bottom-line and Strict Discipline

Fosun’s adherence to the bottom-line and strict discipline has helped us get to where we are today. To achieve the long-term success, we must maintain robust financials, value customer feedbacks, build a global complaint system covering anti-corruption complaints and customer complaints, and have a global customer satisfaction system in place.

Fosun is also building up legal, audit and tax teams. For these teams, the first and foremost thing is to have the bottom-line. However, just like playing football, defenders also need to attack and score in addition to playing defense. I hope that in the future, legal, audit, tax and other teams can not only hold the bottom line, but also participate in the top-level design of the group to help Fosun create value.

People are the Most Valuable Asset That can Maximize an Organization’s Competitiveness

There is always a need for up-skilling our people as they are the most valuable asset to an organization. We always emphasize the eight things that Fosun people must know, and stress that everyone should be competent and always in a good state. Just like in sports, even the best players can’t play a match well in a bad state.

Why do we adopt the partnership model? This is not necessarily the best model as there is no fixed pattern of management. I’m not saying that this model is definitely better than others, but the partnership model is best suited for Fosun currently. The things Fosun wants to do are too big and too complicated, so Fosun needs intelligent people with a global vision to join us and help make our dreams come true.

We Wish to Make Fosun the Best of the Best!

Fosun has figured out where to go and how to get there. With all of you here, all of our teams, and all of our global partners and collaborators, I have confidence in the future. Fosun will continue to do the right things and the difficult things, move a bit faster than others every day and do a bit more every day. We will hang on until the last minute. As a member of Fosun, you are expected to get out of your comfort zone, always challenge yourself and keep learning. In 2019, let’s work together to do these well.