On July 23, 2024, Hong Kong / PRNewswire / -- "In the future, Fosun will continue to firmly advance the global development strategy and turn the globalization capability into sustained profit growth." On July 20, Guo Guangchang, Chairman of Fosun International, said at the Fosun mid-term meeting in 2024, "Our globalization did not start today, it has been done for a period of time, and we have become one of the few capable Chinese companies rooted in China and able to layout operations worldwide. This is something we are very proud of."
Fosun's globalization has been going on for nearly 17 years. In 2007, Fosun International listed in Hong Kong, opening the journey of globalization. Over the next 10 years, Fosun seized opportunities, continuously allocated global high-quality assets, expanded diversified businesses, strengthened the industry chain, and gradually built a global industrial ecosystem that fits its own development logic. Today, Fosun has a deep industrial layout in more than 35 countries and regions around the world. In 2023, Fosun's overseas income reached RMB 89.2 billion, accounting for 45% of total income, with a 10-year compound growth rate as high as 55%.
With industries all over the world under its umbrella, how can Fosun further integrate different business formats and resources in various countries and regions, improve member company's global operational capabilities, and tap into potential value?
Guo Guangchang believes that the most important thing is to turn the ability of globalization into tangible dividends and profit growth. "Different member companies, different business units, and the degree of global layout are different, and the ability is different. We hope that each one can be done well, and build the ability in the Middle East besides traditional overseas markets, and establish the ability in Latin America, Southeast Asia and Africa."
Club Med, the global "refined all-inclusive" vacation brand born in France, officially joined Fosun in 2015. Guo Guangchang once said that successfully acquiring Club Med was an important milestone in Fosun's globalization. After nearly ten years of cultivation by Fosun, Club Med continuously expanded its global market and has become one of the most important sources of income and profits for its parent company Fosun Tourism Group.
After many years of development, the gene of globalization has deeply rooted in various industry sectors of Fosun. Fosun Pharma is the early representative among Fosun's member companies to go global. As early as 2007, Fosun Pharma, as a leader in the research and development of antimalarial drugs, walked into Africa, and now its sales network has covered more than 30 African countries and regions. Under the enabling of Fosun's global ecosystem, Fosun Pharma's global integrated innovation model is also becoming increasingly mature.
In June of this year, Fosun Pharma announced the privatization of its subsidiary Henlius. As an outstanding representative of domestic self-developed innovative drugs, Henlius has created a batch of innovative drugs such as Hanqiou and Hanshuang, and its production and commercialization capabilities to meet the needs of patients in different regions have been fully proven by the market. For example, its independently developed biosimilar drug Hanqiou became the first "Chinese nationality" monoclonal antibody biosimilar drug approved in China, the European Union, and the United States, and has been approved for listing in more than 40 countries and regions. In 2023, Henlius became the first profitable Hong Kong "18A" biopharmaceutical company with a net profit of RMB 0.546 billion for the whole year.
"Our overseas enterprises also need to develop globally, and Fidelidade, Fosun's Portuguese insurance company, has done a good job in this regard." Guo Guangchang listed Fidelidade as a "high achiever" at the meeting on July 20, encouraging more overseas member companies of Fosun to expand their global business. Data shows that after joining Fosun, Fidelidade's global operational capability has significantly improved. Not only has it maintained its leading position in Portugal, but its share of premium income in overseas markets has increased from 6% in 2017 to 33% in 2023. With the steady expansion of its business scale, Fidelidade continues to improve its profitability level, achieving a net profit of EUR 0.18 billion in 2023.
In recent years, there have been voices opposing globalization. Regarding this, Guo Guangchang said: "Ultimately, the trend of globalization convergence and openness will not change in the longer term. We believe that Fosun has always insisted on doing the right things, and will continue to do so."