Guo Guangchang's Letter to Shareholders: Fosun International Pursues Progress through "Strategic Advancements and Exits"
Fosun International (FOSUY) Chairman Guo Guangchang's shareholder letter highlights the company's 2024 performance and strategic direction. The company executed significant asset divestments totaling RMB17.5 billion at group level and RMB30.0 billion at consolidated level, focusing on core business streamlining.
Key developments include: overseas revenue reaching 49.3% of total revenue, technology innovation investments of RMB6.9 billion, and premium income growth in insurance operations with Pramerica Fosun Life Insurance surging from RMB4,346 million to RMB9,251 million. The company repaid RMB11.1 billion in matured public bonds and successfully issued USD300 million in offshore bonds.
Fosun's core focus remains on health, tourism, culture, consumption, and insurance sectors, implementing an asset-light strategy while strengthening global operations. The company maintains an MSCI ESG rating of AA for four consecutive years.
Il presidente di Fosun International (FOSUY), Guo Guangchang, nella lettera agli azionisti evidenzia le performance e la direzione strategica dell'azienda per il 2024. L'azienda ha effettuato significative dismissioni di attivi per un totale di 17,5 miliardi di RMB a livello di gruppo e 30,0 miliardi di RMB a livello consolidato, concentrandosi sulla razionalizzazione del core business.
Sviluppi chiave includono: il fatturato estero che raggiunge 49,3% del fatturato totale, investimenti in innovazione tecnologica per 6,9 miliardi di RMB, e la crescita dei premi nell'operatività assicurativa con Pramerica Fosun Life Insurance che è salita da 4.346 milioni di RMB a 9.251 milioni di RMB. L'azienda ha rimborsato 11,1 miliardi di RMB in obbligazioni pubbliche scadute e ha emesso con successo 300 milioni di USD in obbligazioni offshore.
Il focus principale di Fosun rimane sui settori della salute, del turismo, della cultura, dei consumi e delle assicurazioni, implementando una strategia leggera in termini di attivi mentre rafforza le operazioni globali. L'azienda mantiene un rating ESG MSCI di AA per quattro anni consecutivi.
El presidente de Fosun International (FOSUY), Guo Guangchang, en su carta a los accionistas destaca el rendimiento y la dirección estratégica de la empresa para 2024. La compañía llevó a cabo desinversiones significativas de activos que totalizaron 17.5 mil millones de RMB a nivel de grupo y 30.0 mil millones de RMB a nivel consolidado, enfocándose en la racionalización del negocio principal.
Los desarrollos clave incluyen: ingresos en el extranjero alcanzando 49.3% del ingreso total, inversiones en innovación tecnológica de 6.9 mil millones de RMB, y un crecimiento en los ingresos por primas en las operaciones de seguros, con Pramerica Fosun Life Insurance aumentando de 4,346 millones de RMB a 9,251 millones de RMB. La compañía reembolsó 11.1 mil millones de RMB en bonos públicos vencidos y emitió con éxito 300 millones de USD en bonos offshore.
El enfoque principal de Fosun sigue siendo en los sectores de salud, turismo, cultura, consumo y seguros, implementando una estrategia ligera en activos mientras fortalece las operaciones globales. La empresa mantiene una calificación ESG MSCI de AA durante cuatro años consecutivos.
포순 인터내셔널 (FOSUY)의 회장인 궈 광창은 주주 서한에서 회사의 2024년 성과와 전략 방향을 강조했습니다. 회사는 그룹 차원에서 총 175억 위안에 달하는 중요한 자산 매각을 실행했으며, 통합 차원에서는 300억 위안에 달하여 핵심 사업의 효율화를 집중적으로 추진했습니다.
주요 발전 사항으로는: 해외 수익이 총 수익의 49.3%에 도달했으며, 기술 혁신에 대한 투자가 69억 위안에 달하고, 프라메리카 포순 생명보험의 보험 운영에서 프리미엄 수익이 43억 4,600만 위안에서 92억 5,100만 위안으로 급증했습니다. 회사는 만기된 공공 채권 111억 위안을 상환하고, 성공적으로 3억 달러의 해외 채권을 발행했습니다.
포순의 핵심 초점은 건강, 관광, 문화, 소비 및 보험 분야에 있으며, 자산 경량 전략을 구현하면서 글로벌 운영을 강화하고 있습니다. 회사는 4년 연속 AA의 MSCI ESG 등급을 유지하고 있습니다.
Le président de Fosun International (FOSUY), Guo Guangchang, dans sa lettre aux actionnaires, souligne les performances et la direction stratégique de l'entreprise pour 2024. L'entreprise a réalisé d'importantes cessions d'actifs totalisant 17,5 milliards de RMB au niveau du groupe et 30,0 milliards de RMB au niveau consolidé, en se concentrant sur la rationalisation de son activité principale.
Les développements clés incluent : des revenus étrangers atteignant 49,3% du chiffre d'affaires total, des investissements dans l'innovation technologique de 6,9 milliards de RMB, et une croissance des primes dans les opérations d'assurance, avec Pramerica Fosun Life Insurance passant de 4.346 millions de RMB à 9.251 millions de RMB. L'entreprise a remboursé 11,1 milliards de RMB en obligations publiques arrivées à échéance et a réussi à émettre 300 millions de USD en obligations offshore.
Le principal axe de Fosun reste la santé, le tourisme, la culture, la consommation et les secteurs de l'assurance, mettant en œuvre une stratégie légère en actifs tout en renforçant ses opérations mondiales. L'entreprise maintient une note ESG MSCI de AA depuis quatre années consécutives.
Der Vorsitzende von Fosun International (FOSUY), Guo Guangchang, hebt in seinem Aktionärsbrief die Unternehmensleistung und strategische Ausrichtung für 2024 hervor. Das Unternehmen hat bedeutende Vermögensverkäufe in Höhe von insgesamt 17,5 Milliarden RMB auf Gruppenebene und 30,0 Milliarden RMB auf konsolidierter Ebene durchgeführt, wobei der Fokus auf der Straffung des Kerngeschäfts liegt.
Wichtige Entwicklungen umfassen: Auslandsumsätze, die 49,3% des Gesamtumsatzes erreichen, Investitionen in technologische Innovationen von 6,9 Milliarden RMB und ein Wachstum der Prämieneinnahmen im Versicherungsbereich, wobei Pramerica Fosun Life Insurance von 4.346 Millionen RMB auf 9.251 Millionen RMB anstieg. Das Unternehmen hat 11,1 Milliarden RMB an fälligen öffentlichen Anleihen zurückgezahlt und erfolgreich 300 Millionen USD an Offshore-Anleihen emittiert.
Fosuns Hauptaugenmerk liegt auf den Bereichen Gesundheit, Tourismus, Kultur, Konsum und Versicherungen, wobei eine asset-light Strategie implementiert wird, während die globalen Operationen gestärkt werden. Das Unternehmen hält seit vier aufeinanderfolgenden Jahren eine MSCI ESG-Bewertung von AA.
- Significant premium income growth in insurance business, with Pramerica Fosun Life Insurance more than doubling to RMB9,251 million
- Strong overseas revenue contribution at 49.3% of total revenue
- Successful debt management with RMB11.1 billion bond repayment and USD300 million new offshore bond issuance
- Both insurance companies (Pramerica Fosun Life Insurance and Fosun United Health Insurance) achieved profitability
- Substantial asset divestments of RMB17.5 billion (group) and RMB30.0 billion (consolidated) strengthening balance sheet
- Adjustment in carrying value of individual investments impacted 2024 financial performance
- Heavy asset investments not yielding returns aligned with capital costs in current market environment
- Company still facing market pressures despite signs of recovery
Dear shareholders,
The year 2024 concluded successfully, thanks to the collective efforts of all Fosuners. Looking back on the past year, we sustained steady growth momentum and demonstrated robust resilience in the face of global economic fluctuations and market challenges. We continuously advanced our core business-focused and business streamlining strategy by divesting non-core assets and heavy assets to focus on core operations, reduce debt, and optimize our capital structure. The signed asset divestment amounted to approximately
Focusing on core businesses, achieving success through "strategic advancements and exits"
Over the past few years, we have remained committed to our core business-focused and business streamlining strategy. While some companies and teams have bid farewell to the Fosun family during this period, I can assure you that we have never sold any company at a low price merely to offload assets. Their departure was not a result of hasty sale, but rather a deliberate decision made in line with our long-term strategy to sharpen focus on future development. Throughout this collaborative journey, we have consistently fostered win-win outcomes with our partners. The value achieved by these companies underscores our unwavering commitment and effective management over the years, continually driving enhancements to their intrinsic value. I am deeply grateful to the management teams who have led these outstanding companies forward, as their exceptional performance has enabled Fosun to navigate challenging environments with stability.
In 2022 and 2023, we dedicated ourselves to a business streamlining strategy that reinforced our foundation and enabled us to advance with greater agility. In 2024, we placed greater emphasis on "balanced investment and divestment, strategic advancements and exits". While remaining committed to the divestment of non-core businesses, we also prioritized the "advancement" of our core operations, thereby ensuring sustainable growth for the Company and creating greater value for our shareholders. As a result, throughout the past year, we made notable "advancements" by focusing on our core industries. In health business, Fosun Pharma increased its stake in Fosun Kairos to
With years of accumulation and thoughtful cultivation, we have ushered in key development opportunities for the two domestic insurance companies. The total premium income of Pramerica Fosun Life Insurance surged from
After more than 30 years of steady development, Fosun has developed strong competitive advantages across multiple sectors and has gained a profound understanding of its core capabilities. Accordingly, we will concentrate on these competitive and advantageous industries, pursuing our vision of "helping global families live in health, happiness, and wealth until the age of 121". We will focus on "deep mining", which involves prioritizing the development of our core industries, including health, tourism and culture, consumption, and insurance, thereby achieving stable profit growth in the long run.
Combining global growth momentum with global resources
Fosun is both a practitioner and beneficiary of globalization. In 2024, our overseas revenue proportion further increased to
In terms of global expansion, all our segments achieved new breakthroughs. In health business, Fosun Pharma has evolved from adopting a "product export model" to establishing global operational capabilities that encompass the "comprehensive internationalization of research, manufacturing, and sales". Henlius has made significant strides in global market expansion. Taking the independently developed monoclonal antibody HANQUYOU as an example, it was approved for marketing in more than 50 countries and regions, and in 2024, it further expanded its commercial supply to the North American market. In insurance business, Fosun Insurance Portugal fully leveraged Fosun's "global organization + local operations" capabilities, with gross written premiums reaching approximately
Driving long-term development with innovation
We fully recognize that in today's fiercely competitive market, mere extensive and repetitive development is no longer adequate to overcome challenges and may easily result in the pitfalls of involution. We must enhance our competitiveness by developing core technologies through innovation to drive long-term development. Accordingly, Fosun firmly positions technology innovation as its strategic core. In 2024, the Group's total investment in technology innovation[1] reached approximately
As time passes, our innovative achievements have evolved and undergone qualitative transformations. As one of the first
Last year, I shared our perspectives on the artificial intelligence (AI) era, and we were envisioning its potential. This year, the application of AI has rapidly infiltrated various aspects of our lives, developing at a pace that far exceeds our expectation. Fosun's approach to AI is not to develop a large model by ourselves, but rather to deeply integrate AI technology into our diverse scenarios to drive innovation and enhance efficiency. For instance, Fosun Pharma launched the PharmAID decision intelligence platform, which integrates information extraction, patent insights, business forecasting, and more. With data updated at T+1, it supports accurate and efficient decision-making to accelerate and improve the drug R&D. Sisram is also exploring the use of AI for precise skin analysis and personalized skin care solutions. The ULTRAMED Hainan project is set to create the world's first AI-themed resort by utilizing AIGC technology for guest room customization. It will also introduce the digital human G.O (Gentle Organizer) service to enhance tourist experience. Regarding corporate operations and management, I encourage Fosuners to consider how to fully integrate AI into daily work comprehensively for more precise decision support and strategic assessments.
Harnessing the flywheels of "insurance + industry + investment", leveraging operational capabilities to implement the asset-light strategy
To achieve more effective resource allocation and drive sustainable value growth, we have integrated Fosun's profound industry expertise, extensive investment experience, and high-quality commercial resources with the operations and investments of insurance companies, forming a three-dimensional "insurance + industry + investment" flywheel-driven strategy. The collaborative growth of domestic and international insurance companies and Fosun's various industries has laid a strong foundation for the "insurance + industry + investment" flywheel-driven strategy that we have always advocated.
At the same time, Fosun's unique ecosystem synergy model further amplifies the flywheel effect. In 2024, we successfully implemented the "health care + insurance" ecosystem policy model, with 14,000 community health care policies sold, totaling premiums of
As part of our strategic direction, we made significant progress in asset-light operations in 2024. Fosun Pharma together with the Shenzhen Guidance Fund and other investors established a
Healthy financial position, "Contribution to Society" through ESG initiatives
We adhere to a prudent financial management strategy, continuously optimizing our capital structure and financing channels to gain the trust of capital markets. During 2024, Fosun repaid a total of
Fosun remains steadfast in its commitment to "Self-improvement, Teamwork, Performance, and Contribution to Society" and "Developing Business for Good". In 2024, we officially launched the "Create IMPACT" sustainable development strategy to closely integrate commercial value with social value. The "Rural Doctors Program" initiated by Fosun Foundation was recognized as an excellent case for sustainable development practice by the United Nations, serving as a model for enhancing primary healthcare and showcasing the international impact of Fosun's philanthropic efforts. Fosun Pharma has supplied a cumulative total of over 400 million doses of Artesun® (artesunate for injection) to the global market, saving more than 80 million severe malaria patients worldwide. Our sustainable development practices have also received recognition from international authorities, with an MSCI ESG rating maintained at AA for four consecutive years. In the future, we will continue to advance the "Create IMPACT" strategy and actively contribute to global sustainable development.
Looking ahead to 2025, despite still facing certain pressures, we have begun to see signs of recovery in the broader market, and our results have reflected this trend. During the Spring Festival, Atlantis Sanya achieved an outstanding occupancy rate of over
We extend our heartfelt gratitude to our shareholders for your unwavering understanding and support over the past year. We are well-prepared to tackle challenges and pursue progress through "strategic advancements and exits", while continuing to deepen our development in core industries. We are confident in our ability to maintain steady development, create long-term value for our shareholders, and contribute to healthier, happier, and wealthier lives for families worldwide.
Guo Guangchang
30 March 2025
[1] It includes scientific research investment (expensed and capitalized) but excludes digitalization expenses. |
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