Fosun Investment Philosophy

Wang Qunbin: Be Grateful for the Reform and Opening-up, and Assist Shanghai-HK Cooperation to Make Every Family in the World Happier


Overview: On June 7, the 9th Shanghai-HK Metropolis Development Seminar was held at Xijiao State Guest Hotel in Shanghai. The seminar was jointly organized by Shanghai Chinese Overseas Friendship Association and Hong Kong Shanghai-HK Economic Development Association, with a theme of “new era, new economy, new cooperation and new development - commemorating the 40th anniversary of reform and opening-up”, and aiming to publicize and introduce the policies and achievements of reform and opening-up after 40 years as well as promote the cooperation and exchange between Shanghai and Hong Kong in finance, culture, technology and youngsters. Zheng Gangmiao, Member of the Standing Committee and Director of the United Front Work Department of CPC Shanghai Committee; Xu Kunlin, Deputy Mayor of Shanghai; Paul Chan Mo-po, Financial Secretary of Hong Kong SAR Government; Henry Tang Ying-yen, Chairman of the Board of Hong Kong West Kowloon Cultural District Authority; Jonathan Choi Koon-shum, Chairman of Chinese General Chamber of Commerce, Hong Kong; Andrew Yao Cho-fai, Hong Kong-Shanghai Economic Development Association; Zhao Fuxi, Deputy Director of the United Front Work Department of CPC Shanghai Committee; Wu Junfu, Deputy Director of Shanghai Financial Service Office; Victoria Tang Chung-man, Director of the Hong Kong Economic and Trade Office in Shanghai (SHETO) of the Government of HKSAR; Zhou Yajun, Deputy Director of Shanghai Hong Kong and Macao Affairs Office, and other leaders attended the event.


Wang Qunbin, Executive Director and CEO of Fosun International, spoke on behalf of Fosun at the keynote speech. Born and grown in Shanghai, Fosun began its own globalization process after being listed in Hong Kong. After years of development, Fosun has become an industrial group originated in China, with a global presence and total assets of more than RMB530 billion. Looking ahead, Fosun is committed to serving one billion families around the world and creating ecosystems in health, happiness and wealth. Fosun will actively support Shanghai-HK cooperation and create value for the development of Shanghai and Hong Kong by promoting the landing of promising projects.


Following is the speech by Mr. Wang


I am very pleased and honored today to attend the meeting and speak on behalf of Fosun and Chairman Guo Guangchang. The theme of my speech today is “Be Grateful for the Reform and Opening-up, and Assist Shanghai-HK Cooperation to Make Every Family in the World Happier”.


Be Grateful for the Reform and Opening-up


This year marks the 40th anniversary of the reform and opening-up and also the 26th anniversary of the entrepreneurship by Fosun team. In 1992, inspired and encouraged by the speech made by Deng Xiaoping during his Southern Tour, a group of graduates from Fudan University, including Chairman Guo Guangchang, set up Fosun with a initial fund of RMB38,000. After arduous venture and unremitting efforts, and also with the concern and support of Shanghai leaders at all levels, the Company has continued to grow. In 1998, Fosun Pharma was listed on the Shanghai Stock Exchange as the first private enterprise and achieved a very important leap. At the same time, with the deepening of Shanghai-HK cooperation, Fosun set up an office in Hong Kong in 2005. After several years of efforts, Fosun International was listed in Hong Kong in 2007 as a whole. We have profoundly felt that the Shanghai-HK cooperation has not only built a very good platform for Fosun’s development toward the world, but also laid a very good foundation for Fosun’s pace of globalization.


As a private enterprise born and rooted in Shanghai, growing together with the Chinese economy and continuing to develop in Hong Kong, Fosun has always been grateful for the reform and opening up as well as the good environment created by the Party and the country. Therefore, on behalf of Fosun, I would like to express our special thanks to the CPC Shanghai Committee, Shanghai municipal government and all levels of government and all walks of life for your concern, support and help to Fosun! At the same time, I would like to express our special thanks to Hong Kong SAR Government and all walks of life in Hong Kong for your concern, support and help to Fosun!


To Be a Creator of “a Better Life” in the New Era


In the past year of 2017, Fosun generated revenue of more than RMB88 billion and net profit of more than RMB13 billion, employing more than 60,000 people worldwide, serving more than 35 million families, and being ranked among Forbes 500.


Facing the future, Fosun’s main mission and vision is to provide products and services in “health, happiness and wealth” to 1 billion families around the world. We also very much hope that we can become a creator of “a better life” in the new era and provide more excellent, innovative and differentiated products and services in “health, happiness and wealth” to global families.


Centering on our vision and mission, Fosun mainly has five core strategies:


Firstly, centering closely on families and through the “youlè” membership loyalty program, we link the industries, products and services operated and invested by us with customers more efficiently so as to better provide families with the ultimate customer experience.


Secondly, we promote and practice the C2M development model and create C2M ecosystems. Mainly by centering on C-end families, we make innovations at the M-end and 2Link-end so as to make the entire industry chain more efficient.


Thirdly, we stick to the leadership of technology and innovation. At the M-end, we have to provide more innovative products. For example, in the health ecosystem, Fosun’s monoclonal antibody biopharmaceutical platform has filed applications for more than a dozen new drugs worldwide, of which three were filed in the United States. In the happiness ecosystem, Atlantis and Club Med are brands with the ultimate product power. In 2Link technology, we are also making constant investments in new technologies including big data, blockchain, IoT and AI to better drive the industrial development. Fosun hopes to invest more than RMB20 billion in technology and innovation in the next three years and more than RMB100 billion in the same area in the next ten years, developing more innovative products and services through investment, incubation and R&D.


Fourthly, we adhere to in-depth industrial operations and use industrial investment as an important means of reinforcing the industry to promote the industrial development and innovation.


Fifthly, we insist on thorough globalization. As a company growing up in Shanghai, Fosun has deeply felt many benefits brought by Hong Kong, as an international financial center, to mainland companies in going global. In addition to going public, it is very important that we need to introduce a large number of global talents to support our global development in the course of going global. While going global, we have also supported the development of Hong Kong by facilitating overseas companies invested by us to be listed and set up offices in Hong Kong as well as to conduct businesses to introduce high-quality foreign companies. In 2017, we facilitated the listing of a world-leading Israeli medical device company in Hong Kong, also the first Israeli company to be listed in Hong Kong. We believe that more and more global companies invested by Fosun will come to Hong Kong.


Actively Practice Corporate Social Responsibility


Of course, Fosun has also actively practiced its own corporate social responsibility while developing its business. Through Fosun Foundation, we have actually promoted the landing of influential public projects. For example, the artesunate products of Fosun Pharma are helping the local people fight malaria around the world, especially in Africa. The Board of Directors of Fosun and Mr. Guo further stated that we must work together with the African people to eliminate malaria under the guidance of WHO. In addition, we launched the public project “Rural Doctor” this year in China, helping rural doctors solve their worries by protecting them, providing them with better training to improve the level of rural medical care at the grass-roots level, and achieving targeted poverty alleviation with Fosun characteristics. We also have projects that have promoted innovation and entrepreneurship by many young people. In Hong Kong, we mainly cooperated with HKUST and launched the “Technopreneur” program, encouraging young people in Hong Kong to give play to their entrepreneurial spirit of innovation and entrepreneurship, supporting young people in Hong Kong to engage in entrepreneurial activities, and promoting the development of technology and talent in Hong Kong.


As for Fosun and our globalization in the future, we will continue to be rooted in Shanghai and China, while relying on Hong Kong, supporting Hong Kong and going global.


Leaders and guests, the people of Shanghai and Hong Kong are closely linked with each other, the economy of the two cities is integrated, and the cooperation and exchange between the two cities are long-standing and well-established. Since Hong Kong’s return to the motherland in 1997, especially after the establishment of the mechanism of Shanghai-HK Conference on Economic and Trade Cooperation in 2003, the cooperation between the two cities in multiple fields such as trade and finance has continued to expand, and the cultural exchanges have become more frequent. Over the years, Fosun has deeply felt that, in the general context of Shanghai-HK cooperation, Shanghai has continuously strengthened its driving force of innovation and upgraded its economic transformation; Hong Kong has steadily improved its competitiveness and presented a prosperous and stable society. The two cities have performed a splendid “Tale of Two Cities” and created an irreproducible good external environment for the development of enterprises. Fosun will leverage its unique advantages of profound understanding of Shanghai and Hong Kong, give full play to its role as a bridge, use its own globalization capabilities accumulated over the years, respond to the national “Belt and Road” initiative, support the exchange and cooperation between Shanghai and Hong Kong through “going global and bringing in”, effectively promote the landing of high-quality projects, create value for the development of the two cities, and make contributions to a better life of the people in the two cities. We hope that the world will be a different place because of Fosun, be more “healthy, happy and wealthy” because of Fosun, and be more joyful and beautiful because of Fosun!