Fosun Management on 2023 Annual Results: Focusing on Core Industries with Established Advantages

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HONG KONG, March 28, 2024 /PRNewswire/ -- "We are even more clear that we must focus on building sustainable, predictable, and enterprise with stable growth. "

Speaking at the 2023 annual results conference on March 28th, Fosun International Chairman Guo Guangchang said, "We are even more clear that we must focus on building sustainable, predictable, and enterprise with stable profit growth. Our core strategy revolves around directing our efforts towards enterprises where we have already established advantages. We used to "prospecting" and "exploration" across various industries and locations worldwide, and now we have evolved to 'deep mining' and 'developing good mines'. We will actively invest and expand particularly in sectors where we hold competitive edges. Looking ahead, amidst all uncertainties, we must rely on our own stronger capabilities and greater certainty to navigate challenges."

Chairman Guo, along with Co-Chairman of Fosun International Wang Qunbin, Co-CEOs Chen Qiyu and Xu Xiaoliang, and CFO Gong Ping, engaged in in-depth discussions on company strategies, operational performances, innovation and technology investment, and global operations, addressing queries from investors.

In 2023, Fosun continued to implement core business-focused strategy, maintain steady development and improve its operating capabilities in advantageous industries During the Reporting Period, the Group achieved a total revenue of RMB198.2 billion, profit attributable to owners of the parent was RMB1.38 billion. Meanwhile, Fosun has continued to optimize its debt structure and strengthen liquidity management to prepare for the next phase of steady development. As a result, total debt continued to reduce both at consolidated statements of the Group and at the Group level. International credit agency S&P raised Fosun's rating outlook to "stable", recognizing Fosun's financial strategy and the sustainability of future development.

In addressing investors' questions about the financial situation, Wang Qunbin said Fosun will maintain its strategic focus and continued to promote its business streamlining strategy, with the goal of upgrading the rating to "investment grade" by S&P. He elaborated further, saying, "Firstly, we will continue our 'asset-light strategy' and continue to push forward the implementation of the divestment of non-strategy and non-core assets; Secondly, we will concentrate on development, focusing on our advantageous and sustainable growth businesses, especially those with cash flow and profit growth."

Guo Guangchang also emphasized future focus on asset-light operation. "We need to continue reducing the proportion of heavy assets, not because we are not developing, but to concentrate our development on asset-light ventures, generating profits through such endeavors. Simply put, we need to rely on our "operational capabilities" to make money, not just by money itself. It's about earning through capability and expertise, and this is our unwavering commitment."

Speaking at the conference, Co-CEO Chen Qiyu elaborated on Fosun's technology innovation strategy, stating, "In this new strategic cycle, we prioritize the development of globally competitive businesses and continuously enhance product competitiveness through technology innovation. Take Shanghai Henlius as an example, we not only invest in research and development but also focus on being 'smart and efficient.' Shanghai Henlius has become a pioneer in achieving sustainable profitability through product management, which is also empowered by technology innovation. In the future, we will continue to adhere to this approach and increase technology innovation investment across all sectors of Fosun."

When discussing global business presence, Co-CEO Xu Xiaoliang said, "Fosun has now basically completed its global industrial deployment and entered the second stage of globalization, which is global operations. From initially 'viewing the world from China' to now 'viewing the world from the world,' there are significant operational opportunities and areas for product research and development, supply chain integration, and global marketing. In the future, Fosun will further leverage global operations to unearth more valuable ' good mines' and achieve sustainable business growth."

Gong Ping, the CFO, introduced Fosun's financial performance for the full year of 2023 and elaborated on the future financial strategy. He stated that Fosun aims to maintain a well-balanced financial portfolio through high-quality global business combinations and revenue from the four major sectors to provide effective hedging. Fosun will also continue to diversify its financing methods, reduce liabilities through divestment of non-strategic and non-core assets, adhere firmly to the asset-light operational approach, and support industrial growth through the development of industry funds.

Guo Guangchang emphasized, "We must be proactive, yet we also frequently remind ourselves and others to tread cautiously, as if walking on thin ice or standing at the edge of an abyss, approaching our tasks with utmost care and dedication."

SOURCE Fosun