Guo Guangchang: Fosun Emphasizes Strategic Advancement and Exits, Focuses on Core Businesses, and Leverages Operational Capabilities to Participate in Global Markets
HONG KONG, Feb. 25, 2025 /PRNewswire/ -- On 21 February, Guo Guangchang, Chairman of Fosun International spoke at the 25th Annual Conference of Yabuli China Entrepreneurs Forum 2025, stating that private enterprises are not afraid of competition as long as there are fair opportunities for participation. A strong commitment to product excellence will certainly lead to market opportunities.
The annual conference, themed "Cultivating New Productivity and Empowering High-Quality Development", was held in Yabuli, Heilongjiang from 21 to 23 February. Guo Guangchang said in his keynote speech that over the past two decades of globalization, Chinese private enterprises have never shied away from competition. While competition is fierce, it has fostered competitiveness and core technologies, enabling these enterprises to compete globally.
Guo Guangchang pointed out that, although the overall economy has not yet fully recovered, several positive signs have emerged. During this year's Spring Festival, the occupancy rate at Atlantis Sanya, a resort under Fosun, exceeded 98%; sales of Shede Spirits' T68 baijiu surged over 80% year-on-year; the Yuyuan Garden Lantern Festival in Shanghai attracted nearly 4 million visitors; and accommodation at the ski resorts in Yabuli, China and Hokkaido, Japan was in high demand. These achievements indicate that consumers are still willing to pay for high-quality products and services, emphasizing that product competitiveness is the key to business success. A strong commitment to product excellence will certainly lead to market opportunities.
Globalization was a hot topic at this year's conference. As one of the private enterprises that went global early and has established a profound industrial presence in 35 countries and regions, Fosun's biopharmaceutical subsidiary, Shanghai Henlius, has achieved significant milestones in its 15 years. It has not only become the first Hong Kong-listed "18A" first-in-class pharmaceutical company to turn a profit through product sales, but it has also made significant breakthroughs in globalization. Notably, its independently developed PD-1 monoclonal antibody, HANSIZHUANG (serplulimab), was successfully launched in the European Union this month, making it the first PD-1 monoclonal antibody approved for first-line treatment of extensive-stage small cell lung cancer. In addition, HANQUYOU (trastuzumab), commenced commercial supply globally, and HANBEITAI (bevacizumab) received approval for overseas sales, with several products poised for substantial revenue.
Addressing the concerns of private entrepreneurs regarding the business environment, Guo Guangchang pointed out that the rule of law constitutes the best business environment and provides entrepreneurs with a sense of security. The fairness of law enforcement is as important as the outcome itself, ensuring that clear standards and expectations are established for all business activities.
In recent years, Fosun's divestment from several non-core assets has garnered significant market attention. Guo Guangchang revealed that, in response to economic and consumer pressures over the past few years, Fosun has actively pursued a business streamlining and core business-focused strategy by divesting from several non-core assets. For example, the divestment of its private banking operations from HAL, a 220-year-old private bank in Germany, not only generated over EUR700 million but also helped ABN AMRO Bank, a Dutch bank, secure a position among the top three in wealth management in Germany. Meanwhile, Fosun retained HAL's asset servicing business, which manages assets totaling EUR200 billion, achieving win-win outcomes with its partners.
Statistics show that over the past two years, Fosun has strategically divested assets worth over RMB80 billion, significantly reducing both onshore and offshore public debts and successfully navigating the "maturity wall".
Guo Guangchang believes that given the current circumstances, opportunities to start afresh in a new industry are becoming more limited. Therefore, it is essential to concentrate on advantageous sectors and deepen their development. For Fosun, the focus will remain on advantageous industries such as health, tourism, and consumption, leveraging its operational capabilities to generate profits. By embracing innovation and globalization, Fosun will continue to penetrate both domestic and global markets, fully integrating AI to enhance efficiency.
Recently, Fosun has made significant moves across various sectors. In the health segment, it partnered with the Shenzhen Municipal Government to establish a RMB5.0 billion biomedical industry fund. In the tourism sector, it signed the Taicang Alps Resort phase II project, and commenced the ULTRAMED Hainan project, alongside a privatization plan for Fosun Tourism Group aimed at accelerating its development with greater flexibility.
In response to the AI wave, Guo Guangchang said that Fosun is actively incorporating AI across its industries. For example, Fosun is integrating AI elements into project planning for ULTRAMED Hainan and China Mall in Chongqing. Fosun Pharma has recently launched the PharmAID decision intelligence platform, which is the first self-developed AI decision intelligence platform in the pharmaceutical industry. In addition, the medical aesthetics platform Sisram is using AI to analyze skin conditions. "Looking ahead, I am particularly optimistic about two areas: first, leveraging AI to empower vertical industries for reconstruction and upgrading; second, the revolutionary changes in productivity and production relationships brought about by the integration of physical and virtual AI."
SOURCE Fosun
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