HONG KONG and SHANGHAI, Aug. 30, 2024 /PRNewswire/ -- On 29 August 2024, Guo Guangchang, Chairman of Fosun International stated at the Fosun International 2024 interim results presentation that Fosun aims to build a consumer group centered on core industries, ensuring more predictable development and profits. At both the group level and within each business unit, Fosun is committed to creating corporate value for its customers and investors that is manageable in terms of risk and promotes steady growth.
That morning, Fosun International held its 2024 interim results announcement in Shanghai. Guo Guangchang, Chairman of Fosun International, Wang Qunbin, Co-Chairman of Fosun International, Chen Qiyu and Xu Xiaoliang, Co-CEOs of Fosun International, and Gong Ping, CFO of Fosun International attended the event. They engaged in in-depth discussions with analysts, investors and media representatives on key topics of market interest, including company strategy, operating indicators, investment in innovation, and global operations.
Fosun always regards innovation and globalization as its core development strategies. Guo Guangchang said that Fosun takes great pride in its four innovation platforms in pharmaceuticals, including Shanghai Henlius, CAR-T cell therapy, da Vinci surgical robot, and magnetic resonance image guided focused ultrasound brain therapy system (i.e. MRgFUS brain therapy system, Exablate Neuro). Fosun highly values these world-class innovations that truly address customer needs and create value for customers. With the successful development of these four platforms, Fosun has significant potential for growth in the healthcare sector. Looking ahead, Fosun will continue to increase its investment in cutting-edge technologies such as biopharmaceuticals and advanced medical devices.
Guo Guangchang believes that in addition to innovating from 0 to 1, innovation also encompasses product innovation, integrated innovation and scenario innovation. Recently, Dongjia, a subsidiary of Fosun, launched a new brand "Dongjia Gold", which uses gold as a medium for artistic innovation in collaboration with artists. It integrates oriental lifestyle aesthetics that Fosun value into the design philosophy. In addition, Fosun's Atlantis Sanya, the upcoming Super Mediterranean project, and the overseas debut of Yuyuan Garden Lantern Festival are all exemplary cases of scenario innovation, serving as the driving forces for Fosun's future development.
Speaking of globalization, Guo Guangchang said that Fosun's overseas revenue has accounted for 47% of total revenue and will continue to increase in the future. Fosun's globalization capabilities were not developed in a day, but were established through over a decade of global development. Fosun has a first-mover advantage in globalization and must leverage it effectively. Previously, Fosun's globalization strategy was mostly about investment. Today, it emphasizes building global R&D and sales capabilities as the core of its globalization strategy.
Since the beginning of the year, in light of changes in domestic and international market conditions, Fosun has continued to advance the business streamlining and core business-focused strategy. Wang Qunbin, Co-Chairman of Fosun International, stated that while focusing on family customers and advantageous industries, Fosun is committed to streamlining its business, adopting an asset-light strategy and collaborating with key partners, and executing its focused strategy. The objective is to raise Fosun International's ratings to "investment grade" and the key is to center around family customers and Fosun's robust product lines, improve asset-light operation capabilities and industry vertical integration capabilities, and strengthen cooperation with domestic and overseas capital markets. While managing and adjusting asset optimization, Fosun will maintain a good pace and continuously create value for shareholders and customers.
In the first half of 2024, Fosun's integrated innovation model under a global vision became more mature, and a number of groundbreaking achievements continued to bring stable profits to Fosun. Chen Qiyu, Co-CEO of Fosun International, said that Fosun and Fosun Pharma have been pursuing globalization and taking products global for nearly 20 years. Generally speaking, this journey involves three key aspects. Firstly, Fosun and Fosun Pharma have been focusing on taking products to 'go global'. The PD-1 product, serplulimab, exemplifies differentiation and innovation as key factors in becoming a leading product. Secondly, Fosun and Fosun Pharma have been focusing on building regional capabilities, starting from Africa, Europe, the U.S., and extending to rapidly growing markets in Southeast Asia and the Middle East. Thirdly, Fosun and Fosun Pharma have been effectively addressing global markets by developing clinical and registration capabilities in R&D that aligns with the globalization strategy, which are essential for the successful launch of innovative drugs overseas. Fosun aims to establish a comprehensive system that serves both itself and the Chinese pharmaceutical industry.
Amid the current domestic economic "involution", going global has become a "must-do" for Chinese companies. Xu Xiaoliang, Co-CEO of Fosun International, said that there's a saying regarding globalization: "Go global or go home." Fosun, which began its globalization journey early, has largely established a global presence. The next important step is to operate globally, focusing on global R&D, business development, and marketing. Fosun encourages all its subsidiaries to pursue globalization, but the goal is not merely to expand, it is to leverage globalization capabilities, integrate resources and better serve customers worldwide. Fosun's global development holds great promise for the future, with significant room for improvement.
During the reporting period, Fosun continuously optimized its asset portfolio, reduced leverage, maintained a sound financial position. As of the end of the reporting period, the Group's adjusted total debt-to-capital ratio was 50.2%, maintaining a downward trend since 2020. Gong Ping, CFO of Fosun International stated that in the face of a complex and ever-changing economic landscape, Fosun has remained committed to long-termism and strategic focus to drive the development of its four major business segments and achieve steady growth. The Group will continue to refine its financial strategy to navigate the economic cycle by leveraging a diversified global business portfolio, exiting non-strategy and non-core assets, optimizing financing channels and empowering asset-light operations.
Guo Guangchang believes that in the future, investors will place greater emphasis on the growth of core industries and the stability of cash flow. "One-off asset sales are only short-term solutions. The growth of core businesses is crucial for a company to achieve stable profits." Fosun aims to build a consumer group centered on core industries, with sustainable profit growth as its core, ensuring more predictable development and profits.
On the evening of 28 August 2024, Fosun International announced its 2024 interim results. During the reporting period, the Group's revenue continued to grow, reaching RMB97.84 billion. Industrial operation profit maintained growth, reaching RMB3.47 billion, and profit attributable to owners of the parent was RMB720 million. The four core subsidiaries, namely Yuyuan, Fosun Pharma, Fosun Insurance Portugal, and Fosun Tourism Group, achieved a total revenue of RMB72.17 billion, maintaining year-on-year growth and accounting for 74% of the Group's total revenue.
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