To all shareholders of Fosun:

 

Thank you for your trust in Fosun and the management all these years!

 

As I stated in the letter to shareholders last year, “Fosun has undeniably entered a high-growth superhighway”. During the past year, we did make substantial progress on top of our achievements made in the previous year. Specifically, benefitting from its unique “insurance + investment” twin driver core strategy in the past year, Fosun continued to make great strides in financing, investment and the optimization of its overall asset-and-liability structure.

 

These improvements were directly reflected by the consistent and substantial growth in the major indicators of Fosun’s performance during the past few years. As at 31 December 2015, the total assets of the Group reached RMB405.34 billion, representing a year-on-year growth of 24.8%; equity attributable to owners of the parent reached RMB75.3 billion, representing an increase of 52.3% from the end of 2014, and the net asset has a CAGR of 43.1% for 11 consecutive years since 2004. Profit attributable to owners of the parent reached RMB8.04 billion, representing an increase of 17.3% from that of 2014 and also a CAGR of 24.0% for the last four years. The Board resolved to recommend payment of a final dividend of HKD0.17 per Share for the year ended 31 December 2015.

 

The rapid growth of Fosun was not incidental but was a result of how we have built up our strength for the long-term development. Especially in the complex and ever-changing global economy environment, the Board, the management and I as a whole are fully aware of what Fosun has to do, and that is to be more focused on its organic growth, to discover, invest and nurture “Unicorns” to penetrate internal and external core resources of Fosun, to polish our products with artisan spirit, so as to provide middle class families with one-stop solution integrating wealth, health and happiness and to serve our clients well while creating value for them.

 

In 2015, we achieved exciting results in many different aspects. We are confident that the growth in these areas will continue in 2016.

 

 

Insurance remains the most significant business segment of Fosun. In 2015, we further increased our shareholding in Fidelidade to 84.986%, and injected supplemental capital of Euro500 million in December 2015. We successfully completed two important transactions, namely the acquisition of Ironshore, which is a global insurance company focusing on specialty insurance, and MIG, a US property and casualty insurance company with rich experience in labour insurance. Fosun, therefore, has begun to take its own shape of global insurance business network that consists of Yong’an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance, Fosun Insurance Portugal, Ironshore and MIG.

 

As at 31 December 2015, the total assets under the insurance segment of Fosun already reached RMB180.6 billion, accounted for 44.6% of the Group’s total assets, representing an increase from 32.9% at the end of 2014. Total investable assets reached RMB160.4 billion, representing a significant increase of 50.2% compared with that of 2014. Profit attributable to the owners of the parent from the insurance business segment rose by 88.4% year-on-year to RMB2.10 billion, which accounted for 26.2% of the net profit of the Group. The profit attributable to owners of the parent from the insurance segment increased at the CAGR of 100.5% from 2013 to 2015.

 

The growth in the scale of the insurance segment continued rapidly, but a more important meaning to us was that the insurance-

oriented integrated financial gene of Fosun that comes from its insurance business has been rapidly evolving and developing. It had a profound impact on our overall operation and profit model:

 

First of all, each of the insurance companies under Fosun performed excellently in terms of cost control. As to the non-life insurance business, other than MIG, which was newly consolidated, that had a net consolidated ratio of 100.3%, the net consolidated ratios of Ironshore, Yong’an P&C Insurance and Fosun Insurance Portugal were less than 100%, namely 96.7%, 98.0% and 98.4% respectively. As to the life insurance business, Fosun Insurance Portugal had an average guaranteed interest rate of 2.2% for the existing deposit life insurance, of which, the average guaranteed interest rate of the new deposit life insurance was only 1.8%. The average guaranteed interest rate of the relevant products of Pramerica Fosun Life Insurance was 2.7%. The insurance segment has cost control capability that makes it

 

competitive in the industry. This, together with Fosun’s competencies in professional global investment, allowed the insurance segment to maintain its average spread1 at 2.9% in the volatile and fluctuating global capital market in 2015.

1 Based on total investment yield.

 

 

Furthermore, as the insurance companies under Fosun were located across the world, our liabilities and assets were denominated in a more diversified and balanced portfolio of currencies. As at 31 December 2015, assets denominated in Euro, USD, RMB and HKD accounted for 42.7%, 38.7%, 8.8%, and 4.2% respectively of the total investable assets of the insurance segment. Apart from the assets denominated in the above-mentioned currencies, there were a few held in GBP, JPY and other currencies. This diversified insurance liability structure allowed us to deal with the increasing volatility in the global exchange rates with ease and form a natural hedge position to mitigate the risks.

Additionally, the insurance companies under Fosun provide diversified products and services of risk management and wealth protection to the middle class and also provide stable and rapidly increasing profits for Fosun. We are confident about the prospect of Fosun’s insurance business. Either at present or in the future, our core competence is to build up a global insurance business network with the resources and support from Fosun. The synergies between different businesses of the different insurance companies and the flow and development of talents have let the value of the whole insurance segment keep rising.

 

Our operations will have two focuses in 2016 and the coming year -- strengthening post-investment management so as to expand and improve the existing insurance companies and, at the same time, formulating comprehensive mechanisms for post-investment management. While consolidating our post-investment management, we will continue to identify quality businesses as investment targets. We will look for acquisition targets which enable synergies with existing insurance companies and whose products can supplement ours. For example, Peak Reinsurance acquired 50% shareholding of a Caribbean property insurance company, namely NAGICO Holdings Limited, which is under regulatory approval. On the other hand, we will actively explore new models for the growth of the investable assets of our insurance business, for example, the Run-off of insurance assets. In this way, we will be able to steadily expand our foothold in insurance segment to build a first-class insurance group in the world.

 

 

During the past few years we discovered a very important trend, China is experiencing a “quality revolution” in consumer goods. As at the end of 2015, retail consumption already contributed 66.4% of China’s GDP growth. Middle-class families were rapidly emerging in China, and they are no longer content with low-end and cheap goods. They were already seeking for high-quality products. The middle class families are becoming the key driving force of the consumption growth of China. We believe that the future growth of China will be increasingly driven by consumption. Wealth preservation and appreciation, health management and happy lifestyle of each person will feature prominently in consumption. These are also the same values being pursued by the middle class families all over the world. Therefore, our asset-end will focus more firmly on Business-to-Family (B2F). We will make the middle class families wealthier, healthier and happier through Fosun’s products and services.

 

As at 31 December 2015, the total scale of the assets of the three business segments, namely wealth, health and happiness rose by 47.7% compared to that as at the end of 2014 to RMB303.4 billion, which accounted for 74.8% of the total assets of the Group. Their net assets increased by 77.2% compared to that as at the end of 2014 to RMB44.3 billion, which accounted for 45.1% of the Group’s total net assets. Operating revenue grew by 84.6% compared to the same period of 2014 to RMB38.7 billion, which accounted for 49.1% of the total revenue of the Group. Profit attributable to owners of the parent increased by 47.7% compared to the same period of 2014, to RMB7.7 billion, which accounted for 95.3% of the profit of the Group attributable to owners of the parent.

 

Wealth segment: Fosun hopes to provide its customers with omnibearing solution of wealthy life through the development and accumulation of its wealth segment. We are devoted to building a global platform of family wealth management, which includes not only the risk management and the wealth protection provided by different insurance products, but also integrated financial services in a more diversified manner including families’ wealth development management allocation and Internet finance. As at the end of 2015, total investable assets of our insurance business were RMB160.4 billion; the size of fund under the Group’s direct management was RMB63.39 billion. We had multiple business licenses to support the diversified development of Fosun’s finance business. We wish to provide our clients with diversified investment options and higher investment return by combining the wide scope of Fosun’s businesses and its competence in investment.

On top of the past achievements of Fosun’s wealth segment, we have made progress in numerous areas in 2015. This included the official opening of Mybank, which was jointly established by a number of shareholders, including Ant Financial and other parties. Following its investment in IDERA in Japan, Fosun set up a real estate investment and asset management platform, Resolution Property, in the United Kingdom (UK) and an integrated financial platform, Fosun Eurasia Capital, in Russia. It also established innovative financial entities such as Yuntong Small Loan, Fosunling and Fortune Credit in China. The Group announced its acquisition of the 100% equity interest in H&A, one of the largest private banks in Germany. The transaction is now pending for regulatory approval. Apart from the above, Hani Securities (H.K.) Limited, wholly-owned by Fosun was officially renamed as Fosun Hani Securities in early 2016, which will become an integral component in our global wealth management network. The family wealth management model of wealth segment helps the Group obtain long-term and stable management income by managing and operating the light-assets.

 

Health segment: Since the establishment of Fosun, pharmaceuticals and healthcare have been one of its core industry segments. After more than 20 years of development, the health segment of Fosun has become the pioneer in the pharmaceutical and healthcare industry in China. Absolute competitive advantage had been formed over various aspects such as pharmaceutical industry, pharmaceutical distribution and retail, medical devices and diagnosis, as well as healthcare services. The global pharmaceutical and healthcare industry is now undergoing a new round of explosive growth. In particular, there is a lot of room for development in market segments such as hospitals, senior living, health insurance and Internet medical care.

 

Against this backdrop, the health segment of Fosun is ready to grasp opportunity for consolidating its advantages and it is to focus on four main areas, namely population aging, newborns, sub-health and tumors. We will build a closed-loop ecosystem for the mega-health industry by comprehensively upgrading medical services and medical technology, connecting health management and health insurance, and actively adopting modern information technology. Here, I would like to emphasize the three new directions for the health segment of Fosun:

 

Firstly, it is about the establishment of the medical service system of Fosun, for which the core is comprised of hospital and senior living, which we undertook in the past few years. As at 31 December 2015, we had already invested in 13 hospitals, 2 healthcare units, 7 private clinics with a total of 3,777 beds, the total area of our senior community opened for business was 96,700 sq.m., with 1,090 beds; the total area under construction was 342,259 sq.m., with 2,977 beds in 2015. On such basis, we also consolidated offline medical care services with mobile Internet medical care, thus forming a closed-loop mega-health ecological system that comprises “Insurance + Medical Care + Rehabilitative Elderly Care” through health insurance.

 

Secondly, it is about health management + health insurance. This is the most powerful driving force in enhancing the value of Fosun’s health segment. In Portugal, Fosun Insurance Portugal and Luz Saúde cooperated in launching the product MultiCare, which is a leading product in the industries of local health management and health insurance. And a series of products that the two companies have since developed also enhanced their competitiveness in the market. In China, Yong’an P&C Insurance launched health insurance products with United Family Hospital and Foshan Chancheng Hospital separately and launched healthcare management with Star Healthcare, thus became important participants and innovator in the industry within a short time. The key to the development of “health management + health insurance” is bringing satisfaction to the customers through products, services of premium quality and protection that is timely and convenient. Moreover, we also hope that the incident rate of customers’ illnesses will be at a low level, and that our customers enjoy a healthy life by using our products and services. This is in fact our ultimate wish.

 

Thirdly, it is about the innovative medical care based on modern information technology such as mobile Internet and big data. We had invested in a number of distinguished new medical projects. We had also set up venture capital teams and Angel investment teams that are specialized in Internet health, aiming to create incubation platforms suitable for the rapid development of new healthcare models. These initiatives enable us to predict the future trend of medical services and technologies proactively so that better technologies, services and business models can be adopted to bring healthier life to the middle class families.

 

Happiness segment: A memorable family vacation, a wonderful show or movie, a delightful meal, and fashionable clothes -- every good experience formed a part of our happy life. Fosun is searching for the best resources in the world to bring such happiness to our clients.

 

In 2015, we completed the acquisition of Club Med, a global brand of high-end tourism chain. We invested in Thomas Cook, a leisure travel group in the UK, and Cirque du Soleil, which is part of the quintessence of Canada, as well as Sliver Cross, a high-end brand of baby products in the UK. Meanwhile, Studio 8 had invested in four films including two films directed by Lee Ang, one of which will be released in the second half of 2016. Yuyuan also acquired Hokkaido Hoshino Tamamu Resort, which is one of the most popular vacation destinations for tourists in Japan. These were achievements that my partners and I felt proud of.

 

What was more exciting was that under the strategy of “Combining China’s Growth Momentum with Global Resources”, Club Med substantially expanded its development in China. There are now four resorts, located in Yabuli, Guilin, Zhuhai Dong’ao Island and Sanya and there are plans to open 15 more resorts in the coming three years. Fosun had formed a joint venture with Thomas Cook in China to encourage overseas tourists to visit China and Chinese tourists to travel overseas. The construction of Sanya Atlantis is on schedule and it is expected to have a soft opening in July 2017 and an official opening sometime in the second half of 2017. Cirque du Soleil has built its first permanent venue for performance in Hangzhou, which is the first one in China. The latest world tour Toruk – The First Flight had its premiere in December 2015 in Canada, it is planned to be shown in China in 2017.

 

 

Fosun is a responsible global financial enterprise. Therefore, we have to be very proactive in controlling risk and abiding by local laws and regulations. This is our corporate culture and also our values. Meanwhile, there is another point that is very important to us, we have to enhance our financial strength through ongoing optimization. From 2013 onwards, our net gearing ratio declined from 86.0% of 2013 to 73.3% of 2014, and to 69.3% as of 31 December 2015. At present, we have stated a clearer goal - Fosun has to optimize its financial structure and maintain its financial stability with the fastest speed from now on, aiming for a higher global rating of Fosun, that is, investment grade.

 

First of all, we will integrate with the capital market better, keep speeding up the liquidity of the invested enterprises. This will enhance our advantage in asset liquidity continually. For example, we are actively seeking to list our investment projects on the stock exchanges. In 2015, there were already eight projects that were listed as A shares or H shares and four projects listed on NEEQ. We create a “listed companies + PE” investment model, to realize the market liquidity of the investment project outside China through the A-share stock market. We also make our efforts to exit investments. For example, in 2015, we exited the investment in Focus Media, and collected USD547.0 million in cash; we exited the investment in BHF project and collected Euro218.0 million; we exited the investment in Chang Yuan project and collected RMB1,012.0 million. We also exited the investment in China International Travel Service project and collected RMB932.0 million.

 

Secondly, we fully take advantage of the low interest rate and the rate cut cycle in China to optimize the debt structure so as to reduce financing cost, extend the loan tenure and increase RMB liability. As of 25 March 2016, the total amount of approved issuance of long-term bonds was RMB36.8 billion and the total amount of issued medium-long-term bond was RMB16.8 billion. Specifically, from 1 January 2016 to 25 March 2016, Shanghai Fosun High Technology (Group) Co., Ltd. issued RMB4.0 billion worth of corporate bonds, with a term of five years and a coupon rate of 3.78%. Fosun Pharma issued RMB3.0 billion worth of corporate bonds with a term of five years and a coupon rate of 3.35%. Forte issued RMB1.0 billion worth of corporate bonds, with a term of three years and a coupon rate of 3.6%. Yuyuan issued RMB0.4 billion worth of medium term notes, with a term of three years and a coupon rate of 3.5%. Sinopharm also issued RMB4.0 billion worth of corporate bonds with a term five years and a coupon rate of 2.92%. Meanwhile, we are also actively promoting asset securitization. For example, Forte launched property management fee asset-backed securitization (ABS), with total amount of RMB1.5 billion. At present, the debts which will mature in three years or beyond accounted for 40.0% of Fosun’s total debts as at the end of 2015, up from the 31.1% as of 31 December 2014 in its consolidated financial statements.

 

Thirdly, with respect of the industries we are operating, we will continue to benefit from strong economic growth in China, and we will continue to develop our businesses in wealth, health and happiness. Currently, the total assets of the three major segments of wealth, health and happiness already accounted for 74.8% of the total assets of Fosun. As previously mentioned, we have to deliver to our clients the best one-stop integrated solution, based on our concept that we, through our three business segments, can tap into the same middle class which invested in the core demands that are related to wealth, health and happiness. This will also allow us to  minimize the risk of over-reliance on a certain industry, use an asset-light business model to operate asset-heavy industries and improve the return on assets as a whole.

Fourthly, besides the operational performance, a growth in equity attributable to owners of the parent is also noteworthy. As of 31 December 2015, our equity attributable to owners of the parent grew by 52.3% to RMB75.3 billion, and equity attributable to owners of the parent per share increased by 22.5% to RMB8.74. Fosun attained a CAGR of 43.1% in the equity attributable to owners of the parent in the past 11 years. Meanwhile, the cumulative share dilution of the controlling shareholders is less than 30.0%.

 

 

Fosun provides clients with products and services related to wealth, health and happiness. Meanwhile, it constantly optimize its debt structure, aiming for a higher rating of the Group. This means that we have to vigorously develop light-asset strategy and “Unicorn” strategy and keep refining the products.

 

Let us start by discussing our light-asset strategy. “Light-asset” is probably a catchphrase on most people’s lips. However, when we emphasize “Light-asset”, we do not mean that Fosun will not work on asset-heavy businesses. In a nutshell, we will make the best use of investment platforms from different levels of listed industry companies, insurance companies and funds, etc. under control to help to control the Group’s capital expenditure and capitalize on the high leverage of insurance. Furthermore, Fosun will combine its asset-light strategy with asset-heavy businesses, thus building up its capability of operating both asset-light and asset heavy assets.

 

Fosun’s core competence in “light + heavy” assets management is to upgrade the capability of operating light asset by refining the products and services, and then leverage its light assets to operate heavy assets thereby enhancing the rate of return on assets as a whole. During the past year, we had finalized a number of projects through the model of “Insurance + Industry + Hive 1 + 1 + 1”, including the Ningbo Rehabilitation Medical Care Community and Shenyang Yulongcheng, etc.. Now, some heavy assets are lying idle or not adequately utilized in China, and we will build up our competences in “Wealth +”, “Health +” and “Happiness +” more quickly so as to demonstrate the extent of vertical integration and competitive advantages enjoyed by Fosun. We have to utilize Club Med and Atlantis to explore investment opportunities poorly managed hotels. We have to deploy the management of United Family Hospital and Luz Saúde to revitalize the hospitals which have been run with low efficiency. We will utilize Cirque du Soleil to add impetus to a large number of performing arts venues which are lying idle in China. Our insurance assets should also be managed and operated with a light-asset model to secure stable revenue in the long term. As a part of the light-asset strategy, how to define “Unicorn” enterprise? In my opinion, first of all, the “Unicorn” gene is necessary, and product is the most important criteria to determine. It may be the product, or the business model underlying the product, which can be used to revitalize enormous resources which have been run with low efficiency or have been lying idle. In other words, the development of a “Unicorn” requires the support of enormous resources. This is an advantage of Fosun. Secondly, in order to become a real “Unicorn”, one has to focus on clients and products, so that the Unicorn is forged step by step with artisan spirit.

 

In addition to the Internet companies in the past, we can also create a number of competitive Unicorn companies in the industries related to wealth, health, happiness and innovative manufacture with our capability of combining light and heavy assets. We can achieve this by adopting mobile Internet and artificial intelligence in traditional industries and by using mature products or business models to assemble the idle and low-cost resources.

 

Based on the logic mentioned above, we will make effort to seek for “Unicorn” enterprises for investment. We will endeavor to transform the existing projects into “Unicorn” enterprises and enhance the cooperation with enterprises with “Unicorn” gene. The Group will also work to develop itself into a “Unicorn” enterprise in the long term. These are the initiatives we will take under our “Unicorn” strategy in 2016. We want to identify the enterprises with the best “Unicorn” gene. We will combine full advantages of Fosun’s resources to speed up the development of the Group into a “Unicorn” in the industry.

 

 

The demographic dividend of China’s huge population is now transferring from the huge cheap labor force in manufacturing industry to the growth of the biggest middle class consuming market based on its huge middle class population and the increase in the biggest mobile Internet market based on its largest internet-using population in the  world. The new technologies, such as artificial intelligence (AI), virtual reality (VR), augmented reality (AR), big data and Industrie 4.0 and etc. are emerging one after another. Even the mobile Internet is already becoming the past to some extent. The speed of technological development had far exceeded everyone’s imagination, whilst the rapid development of technology had greatly accelerated the pace of information dissemination. Now, no matter what had happened at anywhere in the world, this would soon impact the whole world. As to China, due to the spread of smartphones and mobile Internet, progresses in informatization and Internet coverage accelerated in the whole society, including the rural areas. It is hard to predict what would happen when the united economy of 1.3 billion of population are all relying heavily on the mobile Internet. Maybe all principles of economics in the past will fail, as this is something that has never happened in human history before.

 

Against this backdrop, I sincerely believe that China has great opportunity – traditional industries are adopting “intelligent economic entity” business models by adopting such modern information technologies as, mobile Internet, big data and cloud computing. Such industries and China can emerge as “Unicorns”.

 

Fosun is most well-positioned to capitalize on this situation because it is the earliest company to have further developed in the industries in China from a global perspective and to have acquired and consolidated resources and combined them with the driving forces in the country. In recent years, we have also explored Internet and adopted it in traditional industries. Now, there are successful examples of such attempts in recent years:

 

Firstly, with mobile Internet technology, Fosun has built a strong middle and back offices, this includes an APP named “Fosunlink”, which is the unified mobile Internet platform for our business development and overall internal management enabled on mobile telecommunication devices, share the resources from all over the world within the Group, in order to achieve the goal of “Front-end essential team + Globally big Group resources”. Currently, Fosunlink covers about 40,000 employees in over 100 enterprises. In the future, the middle office and the back office of Fosun will be refined and assembled based on the mobile Internet. This is not to turn the personnel at middle and back offices into a group of bureaucrats who are far removed from the battle, but to make them a part of the battle force, embed them who have been engaged in the operation process into the business process, support the staff at “the front” with “bullets” and “firepower” at all time. Meanwhile, our staff in “the front” should be more compact, flexible and agile.

 

Secondly, vigorous promotion of the Star Plan which is based on the data-driven Online to Offline (O2O) solutions achieves the resources sharing between all the invested enterprises of the Group and the huge middle class family clients. The plan already covered the business of finance, health, happiness, real estate and etc. with real consumption behaviour data of over 30 million users. Specially, Fosun is paying attention to the rising consumption of the E-generation, who are born Internet followers and live with the mobile Internet. We have to create astonishing products which are pleasant surprises through mobile Internet.

 

Thirdly, Fosun always has sensitivity, judgement and preparation to the new technology and new business models. We set up Fosun Kinzon Capital teams and Angel investment teams that are specializing in Internet finance, Internet health, Internet real estate and vehicle, O2O operations, Internet education, online tourism, medium small enterprises’ services and etc.. As of 31 December 2015, Fosun Kinzon Capital team invested in 35 projects, with a total invested asset of approximately HKD1,452 million. On the other hand, we actively invest in and cultivate wealth-related, health-related and happiness-related APPs, especially those that combine traditional business with Internet. For example, the model of Redcollar Kute Smart in which the investment focuses on Customers-to-Manufactory (C2M) suit-making on a large scale has been promoted to the whole industry. Other projects like Mybank, Cainiao and guahao.com（掛號網）etc. show big room for growth as well.

 

 

There is another thing I wish to share with you. Fosun is evolving into an elite organization. At the beginning of 2016, we announced the first 18 global partners1 of Fosun at the group level. I also wrote a letter to the global partners. In the letter, I had discussed a lot of my thoughts. But I would like to repeat the most important things here. I still wish to share with you why Fosun has to establish the global partner system. What can the global partner system bring to Fosun?

1It refers to the core management of the Group, which is different from the legal concept of “partners” under partnership.

 

Fosun has been an organization that never get tired of learning. We keep learning from the world’s most outstanding enterprises, and flexibly apply what we have learnt to our development. Specifically, Fosun was most attracted to three models: the first one was Buffet’s “insurance + investment” twin drivers core strategy; the second one was the model we learnt from GE, that is, the one that enables us to enhance productivity while reinforcing the advantages of Fosun’s industries. The third model was the culture of elite organization and partnership we should learn from Goldman Sachs.

 

What we expected to our partners, first, the global partners of Fosun are just like entrepreneurs. They have got to have such enterprising spirit and continuously operate the businesses with it. An entrepreneur has to keep on fighting. They must be that type of people who will try again and again to achieve the goal no matter what difficulties he would meet. Meanwhile, our partners should be versatile players, they should have expertise and spirit, understand and know each business segment of Fosun very well, have the capacity of quick learning and promote adaptability in management, core business operation (such as insurance), product enhancement and etc..

 

The global partners of Fosun must also have a consistent set of value propositions, who sincerely recognize the mission and vision of Fosun from the most inner parts of the mind. Since the partners are members of the “Fosun families”, we have to communicate frankly, we have to try our best in learning, and we have to achieve evolution on our own. We ask our partners to constantly think of innovating, creating, and learning. They have to think of new business models continuously, whilst having the ability and energy to implement them. I am very pleased that among the first batch of global partners, there were international faces like the CEO of Fidelidade. We believe that in the near future we will have more and more young, energetic new faces who are willing to learn and meeting our standards to join us.

 

The global partnership of Fosun is a management tool with visions and thinking, which can be demonstrated at every level. The partners are not engaged on permanent basis, and cannot be ranked in terms of seniority. Those who fail to meet the standard must withdraw. First of all, it is a culture, and ultimately it becomes a form of motivation. And it is complementary to the global partnership. The evolution of our organization is based on projects, with the aim of becoming an elite organization that is comprehensive, efficient and flat. We must take full advantage of mobile Internet technology to further reduce the hierarchy of the organization system so that it is becoming more and more efficient. Therefore we have developed the “Fosunlink”. I hope all our members of Fosun Family can create a transparent network structure on “Fosunlink” that covers the world with the fastest speed of response mapping our organization.

 

 

I also want to discuss with you a question I thought a lot recently, that is the relationship between “slow” and “fast” of an enterprise’s development. In the past, all of you witnessed the fast development of Fosun, but now we have to cultivate “Unicorn”, which have to focus on safe and sound assets. Therefore, we must handle the relationship between “slow” and “fast” in a proper manner.

 

First, we emphasize “slow” because we want to refine the products and services, and insist on doing the right things. If we do not pay attention to such details, and fail to proceed step by step, then our products will not be able to attract the customers. In such case, there will be no future for us. Therefore, we have to slow down, and we have to constantly refine our products. Only then can we emphasize the second word – “fast”. When we have a very good product, we will allocate all resources to it, so that it quickly develops into a “Unicorn”. Fosun eventually will become a giant “Unicorn” with enormous power.

 

Based on Fosun’s well-developed strengths and fundamentals, we will build up the capabilities of “wealth+”, “health+” and “happiness+”, quickly, enhance the products patiently, and replicate speedily the products and models which have become mature, fully apply the strength and advantages of Fosun’s businesses and create value for our clients consistently. For example, we have found that the “Mini Club” in the resorts of Club Med is always the most popular place among the children, and the parents also like it very much, since they get more leisure time because of it. We will speed up the promotion of the popular products like this in the future, for example, the real estate we introduce into Fosun Hive. For example, “Mini Club” will be located in BFC Shanghai to let people enjoy high-quality services in their daily lives. As another example, we will tap into the growth and the trading up of Chinese middle class’s demand for tourism by integrating the high-quality resources from Club Med, Cirque du Soleil, Atlantis, Thomas Cook and Yuyuan, to build a tourism ecosystem with tour destination and content as its core, tourism channel linked, supported by the capacity of comprehensive tourism development.

 

At last, I would like to thank again all of you for your trust in me and Fosun. Fosun and I deeply care for China, and love the staffs, clients and every partner all over the world! You have my words that both Fosun and I will sincerely and devotedly provide a broader platform for our family to grow! You have my words that Fosun will certainly become a great global multinational enterprise!

 

Guo Guangchang

30 March 2016