Source: Hong Kong Economic Journal

Chen Qiyu, Executive Director and Co-CEO of Fosun International has conducted an interview with Hong Kong Economic Journal right after the 2023 Interim Results Announcement. The article has been published on 14 September with title of “Focus on Core Businesses and Seize the Opportunity of Economic Recovery, Globalization + Innovation to Promote the Long-term Development of Fosun”. Here below is the translation of the article.

Focus on Core Businesses and Seize the Opportunity of Economic Recovery

Globalization + Innovation to Promote the Long-term Development of Fosun

Founded in 1992, Fosun is a global innovation-driven consumer group. The globalization journey of Fosun began with the listing of Fosun International (HKEX stock code: 00656) in 2007. After 16 years, Fosun has established business presence in more than 35 countries and regions. Rooted in China, Fosun has been developing globally and has long adhered to the two core growth engines of “globalization” and “innovation”. Fosun is one of the few domestic companies that is equipped with global operational and investment capabilities, and has accumulated profound technology and innovation capabilities. Chen Qiyu, Executive Director and Co-CEO of Fosun International, said that while optimizing its business operations, Fosun upholds its original aspiration of “Contribution to Society” and is committed to promoting the sustainable development of ESG globally, driving the high-quality development of society and creating greater value for shareholders.

Establish a global business presence and accelerate the development of global operational capabilities

In recent years, as the strategy of global operations has been continuously refined and upgraded, Fosun’s globalization strategy entered the “global organization + local operations” stage, fostering the cross-regional, cross-cultural, and cross-organizational operational capabilities of Fosun’s global business ecosystem, thereby providing new impetus for the improvement of Fosun’s industry operations. In the first half of 2023, overseas business became an important driving force for the Fosun’s development, with overseas revenue reaching RMB44.09 billion, accounting for 45.4% of total revenue.

Chen Qiyu said, “Fosun’s globalization strategy takes a holistic approach to the world. Through deepening its global business presence and building a diverse talent pool, Fosun aims to use the most suitable resources to deeply cultivate key areas, achieve mutual empowerment and rapid growth within the ecosystem, and leverage global resources to create more value for customers worldwide.”

From Chen Qiyu’s standpoint, in addition to business diversification and the continuous expansion of overseas assets, Fosun is also gradually increasing the brand influence of its global businesses. Fosun successfully introduced some internationally renowned brands such as the French resort brand Club Med into the Chinese market. At the same time, it brought outstanding Chinese companies to the world stage and improved the market position of Chinese companies globally.

Leverage innovation to foster “world’s first” and “China’s first” achievements, poised for a new round of growth

Fosun’s robust technology innovation capabilities are also an important growth engine for the Group. The Group’s research and development (“R&D”) investment for the first half of the year amounted to approximately RMB4.2 billion. Fosun’s long-term accumulation of technology innovation capabilities is continuously being transformed into industrial achievements: HANSIZHUANG, the biopharmaceutical innovative drug self-developed by Shanghai Henlius, has been approved for three indications in China, and has become the world’s first monoclonal antibody drug targeting PD-1 for first-line treatment of extensive-stage small cell lung cancer; Yi Kai Da, China’s first CAR-T cell therapy developed by Fosun Kite has obtained conditional approval for the marketing for second-line indication.

Chen Qiyu further pointed out that, “In the future, Fosun will adhere to the two growth engines of globalization and technology innovation. First, Fosun will establish global sales and markets, develop cross-regional technology R&D and innovation capabilities, meanwhile, it will improve the construction of a global supply chain as the current strategy and focus to promote the internationalization of businesses, so as to become a competitive unit with globalization capabilities in the industry. ”

Focus on core businesses and seize the opportunity of macroeconomic recovery

Since 2023, the complexity in the global economy and politics has continued to escalate. In the face of the complex macro environment, Fosun has been focusing on household consumption as the top-priority sector, concentrating on the development of core businesses where it boasts clear competitive advantages. As the economy and society fully returned to normalcy in the first half of 2023, the government continued to introduce favorable policies, consumer confidence and spending gradually picked up, and China’s economy saw a recovery and improvement.

Chen Qiyu said, “China has continued to issue favorable policies, especially the introduction of the 31-measure guideline to bolster the private economy, providing guidance for the high-quality development of private enterprises. As the economy continues to recover, Fosun, which is committed to global operations and innovation-driven development, will embark on a new phase of high-quality development. ”

Remarkable ESG performance, remain true to its original aspiration of “Contribution to Society”

Fosun has been actively carrying out global ESG public welfare programs, participating in the fields of global emergency relief, assisting Africa in fighting against malaria, rural doctors, education and culture, and entrepreneurship support. In the fight against malaria in Africa, Fosun Pharma’s independently developed Artesun (artesunate for injection) has treated more than 56 million severe malaria patients worldwide. In June 2023, Argesun, the second-generation artesunate for injection became the first artesunate injectable presented with a single solvent system approved by the WHO prequalification, which will further enhance the accessibility of innovative antimalarial drugs and save more lives.

On the environmental front, Fosun made a commitment to society - “strive to peak carbon emissions by 2028 and achieve carbon neutrality by 2050”. In April 2023, Fosun issued its first Task Force on Climate-Related Financial Disclosures (TCFD) report, demonstrating its commitment to climate action to the international community and calling on all sectors to promote carbon neutrality.

Chen Qiyu said, “The Group is actively exploring ways to undertake more social responsibility. It is also committed to further optimizing corporate governance, mainly focusing on the healthy development of sustainable businesses, extending from the Board of Directors (the ‘Board’) to daily operations. Fosun has set up an ESG Board Committee under the Board to oversee and promote the implementation of ESG strategies at all levels.”

Leveraging its remarkable ESG performance, Fosun International received an AA MSCI ESG rating of AA and became the only conglomerate in Greater China with such rating. Looking ahead, Fosun will firmly implement the core business-focused strategy, adhere to global operations and innovation, and continue to promote the sustainable development of the Group.

Fosun and its charitable partners contribute “Chinese solutions”,

so as to jointly build a malaria-free world