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Overview of Fosun International
Fosun International Limited (symbol: FOSUY) is a global innovation-driven consumer group headquartered in China. Founded in 1992 and listed on the Hong Kong Stock Exchange in 2007, Fosun has evolved into a diversified conglomerate with a focus on creating a global ecosystem for health, happiness, and wealth. Operating in over 35 countries and regions, Fosun's business spans multiple industries, including healthcare, tourism, insurance, and consumer goods, catering to the needs of families worldwide.
Core Business Segments
Fosun's operations are structured around three primary sectors: health, happiness, and wealth, with its four major subsidiaries—Fosun Pharma, Fosun Tourism Group (FTG), Fosun Insurance Portugal, and Yuyuan—contributing significantly to its revenue. This diversified portfolio enables Fosun to mitigate risks while leveraging synergies across industries.
- Health: Fosun Pharma is a leader in biopharmaceuticals, innovative drug development, and medical devices. Its products, such as biosimilars and CAR-T therapies, are marketed globally, demonstrating Fosun's commitment to technological innovation and healthcare accessibility.
- Happiness: Fosun Tourism Group operates premier brands like Club Med and Atlantis Sanya, emphasizing immersive, family-oriented travel experiences. These offerings align with Fosun's strategy to cater to the growing demand for experiential tourism.
- Wealth: Fosun Insurance Portugal, the largest insurer in Portugal, provides comprehensive insurance solutions. Its global expansion into markets like Africa and Latin America underscores Fosun's focus on high-growth regions.
Business Model and Strategic Focus
Fosun employs a dual strategy of globalization and innovation to drive growth. Its 'global operations + local organization' model enables the company to integrate resources across regions effectively. Additionally, Fosun has embraced an asset-light operational approach, focusing on enhancing profitability through operational capabilities rather than asset ownership. This strategy is evident in its tourism and healthcare sectors, where it leverages partnerships and industrial funds to achieve scalable growth.
Competitive Position and Market Significance
Fosun differentiates itself through its ability to operate globally while maintaining deep roots in the Chinese market. Its competitive advantages include a robust global supply chain, diversified revenue streams, and a strong focus on family-oriented products and services. Fosun's strategic investments in high-growth sectors and regions further solidify its market position.
Challenges and Risk Management
Fosun faces challenges such as managing its debt structure and navigating complex regulatory environments across multiple jurisdictions. The company has proactively addressed these issues by optimizing its debt portfolio, reducing leverage, and focusing on core businesses. Its improved credit ratings and strong liquidity position highlight its commitment to financial stability.
Technological Innovation
Innovation is central to Fosun's growth strategy. The company invests heavily in R&D across its business segments, particularly in biopharmaceuticals and advanced medical devices. Fosun Pharma's breakthroughs, such as the world's first anti-PD-1 monoclonal antibody for small cell lung cancer, exemplify its leadership in healthcare innovation.
Global Impact and Sustainability
With nearly half of its revenue generated from overseas markets, Fosun has established itself as a truly global enterprise. The company's focus on ESG (Environmental, Social, and Governance) principles, including its AA MSCI ESG rating, reflects its commitment to sustainable development. Initiatives like the Rural Doctors Program further underscore its role in addressing social and healthcare challenges.
Conclusion
Fosun International is a dynamic and diversified conglomerate that leverages its global reach, innovative capabilities, and strategic focus on family consumption to create long-term value. Its ability to adapt and thrive in a complex, ever-changing global landscape positions it as a significant player in its core industries.
Fosun International Chairman Guo Guangchang addressed the 25th Annual Conference of Yabuli China Entrepreneurs Forum, emphasizing that private enterprises thrive with fair competition opportunities and commitment to product excellence. Despite economic challenges, Fosun has seen positive consumer response across its portfolio, with high occupancy at Atlantis Sanya, strong sales growth for Shede Spirits, and successful tourism ventures.
Over the past two years, Fosun has strategically divested over RMB80 billion in non-core assets, significantly reducing debt and successfully navigating its "maturity wall." The company is now focusing on its core advantages in health, tourism, and consumption sectors. Recent initiatives include establishing a RMB5.0 billion biomedical industry fund with Shenzhen Municipal Government and advancing tourism projects.
Fosun's global presence spans 35 countries and regions, with notable success in biopharmaceuticals through Shanghai Henlius, which recently launched its PD-1 monoclonal antibody in the European Union. The company is actively integrating AI technology across its business sectors to enhance efficiency and drive innovation.
Fosun International has signed a Memorandum of Strategic Cooperation with the Abu Dhabi Investment Office (ADIO) on February 20, 2025, marking a significant expansion into the Middle East region. The agreement will provide Fosun with tailored investment support, streamlined market access, and strategic resource connections in key sectors including healthcare innovation, wealth management, fintech, tourism, and Hive City projects.
The company has already made notable progress in the Middle East market over the past six months: Roc Oil completed an acquisition of Tethys Oil AB's oilfield blocks in Oman; Henlius entered a strategic collaboration with SVAX in Saudi Arabia; and FFT formed a joint venture with Khaled Juffali Company to provide automated production line solutions for Saudi Arabia's electric vehicle industry.
Fosun International (HKEX: 00656) has been selected for the S&P Global's Sustainability Yearbook 2025 for the second consecutive year, highlighting its strong ESG performance. Out of 7,690 companies assessed across 62 industries, only 780 were selected, with just 10 from the industrial conglomerates sector.
The company achieved a CSA score of 70 in 2024, placing it in the top 5% among global peers and approximately 40 points above the industry average. Fosun has maintained an MSCI ESG rating of AA since 2021 and holds an HSI ESG rating of AA-.
Notable achievements include ranking in the top 1% in S&P Global's Sustainability Yearbook 2024 (China Edition) and recognition as an "Industry Mover". The company's "Rural Doctors Program" was also featured among the UN Global Compact's "20 Cases of Private Sector's Sustainable Development in China for 20 Years" in November 2024.
Fosun International (HKEX: 00656) has signed a strategic cooperation agreement with Natixis Corporate & Investment Banking on January 16, 2025. The agreement strengthens their partnership that began in 2010 and was enhanced in 2014. Under the new agreement, Natixis CIB will provide Fosun with consulting and financial services in financing, transaction structuring, and risk hedging, leveraging its expertise in specialized fields and operations in Europe and the Americas.
The agreement was signed at the Bund Finance Center by Zhang Houlin, Senior Vice President and Co-CFO of Fosun International, and Liu Hong, Senior Country Manager, Greater China, Natixis CIB. Fosun, which operates in more than 35 countries, will benefit from Natixis CIB's network and resources to support its global development strategy. Natixis CIB, a subsidiary of French banking group Groupe BPCE, will utilize its high credit ratings and stable funding sources to support this partnership.
Fosun International has achieved a significant milestone in S&P Global's 2024 Corporate Sustainability Assessment (CSA), scoring 70 points and ranking in the top 5% among global peers. This represents an improvement from their previous score of 68 points and top 6% ranking last year, significantly outperforming the industry average of 30 points.
The company received balanced scores across key dimensions: 72 in governance and economic, 68 in environmental, and 71 in social aspects. Notable achievements were recorded in Business Ethics, Environmental Policy, Energy, Climate Strategy, Risk Management, Human Capital Development, and Customer Relationship Management.
Fosun's commitment to ESG is further evidenced by its inclusion in S&P Global's Sustainability Yearbook 2024, its AA rating from MSCI ESG (unique among Greater China conglomerates), and its consistent presence in the FTSE4Good Index Series. The company recently launched its sustainable development strategy 'Create IMPACT' to drive innovation and global sustainability initiatives.
Fosun International has been awarded the prestigious 'Outstanding ESG Award' along with 'Best in ESG Practices' and 'Best in ESG Report' at the TVB ESG Awards ceremony held on December 13, 2024, in Hong Kong. The company, which operates in over 35 countries across healthcare, tourism, consumption, and insurance sectors, was recognized for its comprehensive ESG management system and sustainable development initiatives.
Notable achievements include their commitment to peak carbon emissions by 2028 and achieve carbon neutrality by 2050, the establishment of a Carbon Neutrality Committee, and significant healthcare innovations. Their pharmaceutical division has made breakthrough developments, including Yi Kai Da, the first CAR-T cell therapy approved in mainland China, and artesunate injections that have treated over 72 million severe malaria patients globally.
The company has implemented its 'Create IMPACT' sustainable development strategy, focusing on innovation, mindful operation, people-oriented approach, advanced governance, climate positivity, and transparency.
Atlantis Sanya hosts the 2024 China Mermaid Open Grand Final and Asian Cup on December 12th-13th, marking the first Asian Cup for mermaid sports. Over 70 top athletes from various Asian countries and regions compete at the Ambassador Lagoon, featuring 13,500 tonnes of seawater and an 11-metre-deep open-air setting.
The event, jointly hosted by multiple Chinese sports authorities and Fosun Tourism Group, represents a significant step toward internationalizing mermaid sports. The venue's 16.5-metre-wide, 10-metre-high acrylic viewing panel allows spectators to witness the underwater performances up close.
This marks the fourth consecutive year Atlantis Sanya has hosted the Mermaid Open, contributing to Hainan's development as a sports tourism destination and supporting China's national sports development strategies.
Fosun International (HKEX: 00656) has received five prestigious ESG awards from two global media outlets, highlighting its excellence in environmental, social, and governance practices. The company earned the ESG Leading Enterprise Award and ESG Leading Social Initiatives Award from Bloomberg Businessweek/Chinese Edition, alongside three awards from Global Banking and Finance Review.
The company's achievements include its 'Create IMPACT' sustainable development strategy, focusing on Innovation, Mindful Operation, People and Partner Orientation, Advanced Governance, Climate and Planet Positivity, and Transparency. Notable initiatives include the Rural Doctors Program, which has supported 25,000 rural doctors and benefited 3 million grassroots families, and their malaria treatment program, which has treated over 68 million patients globally.
Fosun International maintains an MSCI ESG Rating of AA, outperformed 94% of global peers in S&P Global's Corporate Sustainability Assessment, and operates responsibly in more than 35 countries and regions.
Fosun's Rural Doctors Program has been selected as one of the '20 Cases of Private Sector's Sustainable Development in China for 20 Years' by the United Nations Global Compact (UNGC). The program, launched in 2017, has reached 78 counties across 16 provinces in China, supporting 25,000 rural doctors and benefiting 3 million grassroots families. Fosun, which holds an MSCI ESG rating of 'AA', is the only conglomerate in Greater China to achieve this rating. The program has received multiple recognitions, including the 'National Advanced Collective in Poverty Alleviation' and 'China Charity Award'.
Fosun, China's largest private investor in Portugal, marks a decade of significant market presence since 2014. The company has built a robust ecosystem focused on insurance, banking, and healthcare through key investments: Fidelidade (Portugal's largest insurer), Luz Saúde (major healthcare group), and Millennium BCP (largest listed private bank). Fidelidade reported €2.808 billion in premiums (+5.9% YoY) and €104 million net income (+5.3% YoY) as of June 2024. The company has expanded to 13 countries, with international operations contributing over 30% of total premiums and 40% of profits. Digital transformation initiatives have shown success, with Fidelidade's app reaching 1.6 million users and BCP achieving €856 million in net profit in 2023.