Source: Bloomberg Business Week Online (Chinese Edition)

Date: 2024.04.12

Xu Xiaoliang, Executive Director and Co-CEO of Fosun International

In 2023, the Group’s core financial indicators performed remarkably, with total revenue reaching RMB198.2 billion in 2023, representing a year-on-year increase of 8.6%. In particular, the total revenue of the four core subsidiaries, namely Yuyuan, Fosun Pharma, Fosun Insurance Portugal and Fosun Tourism Group (FTG), amounted to RMB142.69 billion, representing a year-on-year increase of 8%. The revenue from these subsidiaries accounted for 72% of the total revenue for the year, establishing a solid business foundation. In addition, thanks to the Group's long-term global business expansion and innovation-driven efforts, the Group's industrial operation profit reached RMB4.9 billion in 2023, representing a year-on-year increase of 20%.

Over the years, Fosun has been continuously exploring high-quality assets globally, “prospecting" and "exploration" across various industries and locations worldwide to seek high-quality industries. It has gradually completed its global expansion and industrial presence, progressing towards “deep mining” (which means focusing on the development of core industries) and “developing good mines” (which means tapping into industries with high value-added development and growth potential), anchoring itself in the household consumption sector and striving to intelligently create healthy, happy and wealthy lives for families worldwide. In 2023, the Group continued to deepen its focus on the four major business segments and strengthen and expand its advantageous industries.

Looking back at the Group's development in the past year, Xu Xiaoliang, Executive Director and Co-CEO of Fosun International, stated that the Group will focus on the strategy of “deep mining” and “developing good mines,” with stable profit growth as the core objective of Fosun's operations. In addition, Fosun will continue to implement its business streamlining strategy. On the one hand, it will step up its efforts in divesting some of the non-core and non-strategy assets to continuously reduce debt and consolidate its liquidity cushion, preparing for the next phase of growth. On the other hand, it will further focus on core businesses in the household consumption sector and increase investment in advantageous industries. “Overall, Fosun remained committed to the business streamlining strategy, asset-light strategy and establishing cooperation with key partners, while balancing investment and divestment in 2023. The collective efforts of the Fosun team resulted in a more solid positioning and growth across each business segment,” Xu Xiaoliang said.

Technology innovation serves as an important driver for Fosun's development. In 2023, Fosun invested RMB7.4 billion in technology innovation, representing a year-on-year increase of 14%. Its continuous investment in technology innovation has led to the continuous optimization of Fosun Pharma's product mix, with several new products and indications being approved and launched. “The Health segment primarily focuses on innovative drugs. On the one hand, we are increasing investment in research and development and expanding our pipeline. On the other hand, we are strengthening collaborations with leading companies and teams worldwide that possess exceptional technologies. Moreover, we are replicating Fosun's high-end medical care model to offer comprehensive health protection to more families worldwide,” Xu Xiaoliang said.

In the Heath segment, Fosun Pharma achieved a revenue of RMB41.2 billion in 2023, with rapid revenue growth driven by new products developed in the industry. Additionally, Fosun Pharma’s biopharmaceutical platform, Shanghai Henlius, achieved the first full-year profits and an operating revenue of RMB5.39 billion, representing a year-on-year increase of 67.8%. Shanghai Henlius’ independently developed and produced HANQUYOU (trastuzumab injection) has been approved for marketing in more than 40 countries and regions worldwide, making it the domestically-produced biosimilar drug with the highest number of market approvals. Moreover, Fosun’s first innovative drug HANSIZHUANG (serplulimab injection) was approved for marketing in Indonesia at the end of 2023, becoming the first domestically-produced anti-PD-1 monoclonal antibody successfully approved for marketing in a Southeast Asian country.

In 2023, Fosun’s Wealth segment reported a revenue of RMB51.77 billion and a profit attributable to owners of the parent of RMB240 million, representing a year-on-year increase of 105%. Fosun Insurance Portugal, which maintained its market leadership in Portugal, continued to expand its presence in overseas markets, such as South America and Africa. In 2023, its international business reported a premium revenue of EUR1.70 billion, representing a year-on-year increase of 11%. Fosun Insurance Portugal’s MyFidelidade APP has surpassed 1.6 million registered users, exceeding 15% of Portugal’s total population. In particular, the number of telemedicine services reached close to 2 million tele-consultations, and the online consultation rate for serious diseases reached 41%.

In the Intelligent Manufacturing segment, Fosun has been deepening its focus on high technology, new energy, new materials, and other industries, promoting business upgrades through industrial investment and industry operations. In 2023, driven by the revenue growth of Easun Technology, the Intelligent Manufacturing segment reported a revenue of RMB12.7 billion, representing a notable year-on-year increase of 23%.

As the fog of the pandemic lifted, the Happiness segment centered around tourism and consumer industries reported a revenue of RMB88.9 billion in 2023, with the revenues of Yuyuan and FTG accounting for nearly 85% of the segment’s total revenue.

In 2023, the Yuyuan Garden Lantern Festival, a national intangible cultural heritage event that has been held for 29 consecutive years, successfully made its overseas debut in Paris, France, attracting nearly 200,000 local visitors. “Many young visitors at the lantern festival were delighted to experience the charm of oriental lifestyle aesthetics and Chinese intangible cultural heritage. It was of great significance for us to hold the event in Paris and in the Year of the Dragon, coinciding with the 60th anniversary of the establishment of diplomatic relations between China and France, the China-France Year of Culture and Tourism, as well as France's hosting of the Olympic Games. The lantern festival successfully spurred the development of tourism industry in both China and France, serving as a bridge to promote cultural exchanges among people,” Xu Xiaoliang said.

The Festival Dragons et Lanternes attracted nearly 200,000 local visitors and successfully spurred the development of the tourism industry in both China and France

In 2023, FTG achieved record-breaking performance in its core business and witnessed a fundamental shift in its revenue structure. During the year, 93% of its revenue came from resort operations, while 7% came from real estate sales. It also successfully turned losses into profits. Xu Xiaoliang stated, “Following the pandemic, global tourism experienced a fundamental transformation, shifting from sightseeing tourism to resort tourism. Therefore, Fosun has been actively expanding its presence in urban and ice and snow vacations domestically, creating a ‘vacation-like lifestyle.’ Internationally, we have been focusing on expanding into markets such as Brazil, Canada, Indonesia, and Thailand, while also collaborating with Fosun's different industries in health, sports, fashion, and more, creating a ‘lifestyle-based vacation.’ As of the end of 2023, Club Med operated 68 resorts in more than 40 countries and regions across six continent, including 10 resorts in China.”

FTG’s one-stop marine-themed resort Atlantis Sanya hosted the “Chinese New Year Mermaid Show,” drawing visitors from around the world to take photos and create lasting memories

“Fosun has always been a company driven by investment and operations. Currently, investment is no longer the end goal but a means to better empower industry operations. Through investment, we supplement, extend, strengthen the value chains of existing advantageous industries, rapidly bridging gaps in technology, branding, distribution channels, research and development, and achieving better integration with other industry chains to generate comprehensive effects. Additionally, through investment, Fosun identifies precise targets among companies in advantageous sectors, facilitating industrial acquisitions and mergers,” Xu Xiaoliang explained.

Fosun International has established a comprehensive ESG management system and was included in S&P Global’s Sustainability Yearbook 2024 and recognized as an Industry Mover for the first time.

Looking ahead, Fosun will continue to focus on core businesses, leveraging its unique strengths to enhance its capabilities and strengthen its foundation, and actively invest and expand in advantageous sectors. Through forward-looking planning, Fosun will deeply explore the capabilities and value of the Fosun ecosystem. “All in all, Fosun has consistently adhered to the principle of sustainable development and successfully navigated various industries and economic cycles, with a steadfast focus on household consumption sector. We firmly believe that Fosun’s years of strategic focus will pave the way for a brighter future.”