Guo Guangchang New Year’s Sharing: Believe in the Power of Perseverance
In a blink of an eye, we have entered the last day of 2021. Looking back on this year, the battle between mankind and the COVID-19 pandemic has changed from a "skirmish" to a protracted battle. Domestically, we have witnessed sporadic COVID-19 outbreaks this year, and new COVID-19 variants have emerged overseas that leading to a continuous recurrence of pandemic. Fortunately, each of us held fast to our own position and fought unremittingly. It is this perseverance that led Fosun's various businesses to grow steadily this year. Here I would like to express my gratitude to all Fosuners and wish everyone a happy new year!
In the past two years, I believe that most people have thought about this question at a certain point, “if there is no COVID-19, what would happen to this world? How would I be?” For me, I have also wondered that if there were no pandemic, how would Fosun’s development path differ from now?
Indeed, the COVID-19 pandemic has changed the world a lot. In 2021, many matured industries and business models have undergone fundamental changes. However, there are also many things that remain the same. As far as Fosun is concerned, in the past decade or so, we have always been committed to becoming a globalized enterprise rooted in China; we insist on increasing investment in technology and innovation, strengthening our industry operations and industrial investment, and driving growth with innovation; we firmly practice our original aspiration of "Contribution to Society" and strive for the well-being of society. Regardless of the pandemic, we have remained committed to these strategies and will continue uphold these strategies after the pandemic ends. As the market becomes more volatile, the challenges become more complex, and Fosun’s perseverance to stay firm on its strategy will become increasingly important. It is this perseverance that makes Fosun unique today.
Committed to becoming a globalized enterprise rooted in China
As a global consumer group rooted in China, Fosun's most important gain in the past few years is the continuous deepening of its globalization capabilities. I have always wanted to say that the COVID-19 pandemic seems to have put a halt to the process of "globalization" and the voices for "de-globalization" have become increasingly prevalent recently. However, it is precisely the pandemic that has blocked our communication and exchanges, and has made everyone understand the value of globalization and the preciousness of global communication and global cooperation. For instance, the COMIRNATY® COVID-19 mRNA vaccine jointly developed by China and Germany has already become one of the most widely used vaccines in the world. Without the global cooperation, this vaccine would not be available within a few months after the outbreak. I believe that from a long-term perspective, countries around the world have to build a coopetition (cooperation + competition) relationship, in which cooperation is more important than competition. At the end of the day, the common interests of mankind are far greater than differences.
In the future, we will continue to take root in China, strengthen our industry operations and continue to exert more efforts in going global. I hope that through Fosun’s globalized industrial capabilities, on the one hand, it will help Chinese companies to further expand and achieve greater heights overseas; on the other hand, it will also assist overseas member companies to expand their business footprints and solidify their development in local market while accelerating the development in the Chinese market. For instance, in 2021, single-store sales of Lanvin in the US market increased significantly, while salesgrowthof Lanvin in China also recorded strong momentum, and penetrated deeply into the online market.
Adhere to the technology and innovation-led strategy and increase investment in technology innovation
2021 was a year marked with great rise and falls. Some industries faced the throes of transformation, while new things and new impetus continued to emerge. Particularly, in addition to the past Internet entrepreneurial model of "old technology + new model", a group of "hardcore technology" companies that persist on technology and innovation and work in obscurity have finally found their own industrial cycle and gained recognition from the market and society.
In fact, from the perspective of the national and corporate development, the technology and innovation capability are the most important indicator to measure the strength of an enterprise at any time. We say that science and technology is the country's primary productivity, and scientific research and innovation must also be the primary productivity and core competitiveness of an enterprise, and it is the driver for rapid development of an enterprise. Fosun has attached great importance to the driver of technology since the very beginning of its business. Over the years, through continuous industrial accumulation and R&D investment, we have gained profound technology and innovation capabilities and have continuously reaped results.
-"Gospel for lymphoma patients”, China's first CAR-T therapy Yescarta® developed by Fosun Kite was approved for launch;
-The da Vinci Robotic Surgical System continues to strengthen its presence in China with its first Asia-Pacific innovation center established in Shanghai;
-Against the background of the failures of multiple anti-PD-1 monoclonal antibodies worldwide to treat small cell lung cancer, Henlius’ phase 3 clinical study of Serplulimab has met its primary endpoint. It is expected to become the world's first first-line treatment of PD-1 inhibitor for small cell lung cancer.
I believe that continuous investment in technology and innovation capabilities will accumulate more powerful development momentum for Fosun and leave a huge room for growth.
Business for good, uphold our original aspiration of “Contribution to Society”
Fosun is turning 30 this year. “Self-improvement, Teamwork, Performance, and Contribution to Society” have been the corporate values of Fosun since the start of its business. Business should do good for society and the greatest value of an enterprise must be its value to society. While creating value for families worldwide, Fosun has always insisted on fulfilling its social responsibilities in various ways and giving back to the community and society.
In the past decade, Fosun Pharma has supplied more than 200 million artesunate injections to the international market, which saved tens of million lives of patients with severe malaria. In 2021, we helped rural doctors through the Rural Doctors Program to better perform their duties and mitigate the problem of villagers returning to poverty due to illness, assist in rural revitalization and promote common prosperity in rural areas. In addition, we helped the underprivileged through other public welfare programs such as education, culture, employment, etc. We encouraged our employees to contribute to charitable activities and helped the poor. We contributed to narrow the income gap between regions, urban and rural areas, and residents, endeavoring to achieve common prosperity in the society.
In a turbulent waterway, contenders float and sink. Only the unswerving reef rooted in the earth can overcome the tides and stay the mainstay for a long time. 2022 marks a new year. We will witness the known trends and see opportunities for new life. Fosun will resolutely do the right things, the difficult things and do things with patience, persevere to overcome the pandemic and market volatility, embrace opportunities and challenges ahead, and bring greater health, happiness and wealth to more families.
Once again, I wish all Fosuners a happy new year!