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Overview of Fosun International
Fosun International (FOSUY) is a global innovation-driven consumer group with an extensive operational footprint crossing diverse industries such as pharmaceuticals, tourism, insurance, technology, and financial services. Established in 1992 and listed on the Hong Kong Stock Exchange in 2007, Fosun has evolved through a robust strategy that emphasizes global operations, an asset-light strategy, and cutting-edge innovation. With a philosophy rooted in creating happier lives for families worldwide, Fosun has developed a global happiness ecosystem that integrates health, leisure, and wealth management with sophisticated business practices.
As a conglomerate with a strong balance sheet, Fosun International has consistently adapted to changing market dynamics by focusing on its core strengths. The company undertakes a strategic shift from merely exploring various sectors to deep mining its established core industries. This refined approach has allowed Fosun to optimize asset portfolios, improve liquidity, and enhance operational efficiencies across its multiple business units.
Diversified Business Model
Fosun’s business model is characterized by diversified revenue streams, which are derived from a carefully structured portfolio of subsidiaries operating in high-value sectors. Key subsidiaries include:
- Pharmaceuticals: Fosun Pharma and its associated research and development initiatives, including breakthrough efforts in innovative drug production, drive significant growth while addressing global healthcare needs.
- Tourism and Lifestyle: Through entities like Fosun Tourism Group, the company capitalizes on the high-end, immersive lifestyle experiences delivered via globally recognized hospitality and resort brands.
- Insurance: With operations in regions such as Portugal, Fosun Insurance has maintained strong local market positions and furthered its reach internationally through robust product and service offerings.
- Technology and Innovation: Fosun continually invests in advanced technology solutions, such as automation, digitalization, and biotechnologies, to reinforce its competitive edge and drive transformational growth.
Global Operations and Strategic Partnerships
Operating across more than 35 countries, Fosun International employs a "global organization + local operations" model that successfully marries global strategic insight with local market expertise. This dual approach has enabled Fosun to leverage international financing channels, optimize asset-light operations, and maintain a strong financial position despite fluctuating global economic conditions.
Fosun’s strategic partnerships with international banks, technology providers, and local government agencies have further augmented its global reach. These alliances have not only reinforced its financial stability through diverse funding channels but also enhanced its research, development, and market penetration efforts across multiple geographies.
Focus on Innovation and Asset-Light Strategy
One of Fosun’s defining features is its relentless commitment to innovation. Through continuous investment in technology, R&D, and global market expansion initiatives, the company consistently achieves breakthroughs in pharmaceutical developments and advanced medical devices, among other areas. Fosun’s asset-light strategy focuses on reducing dependencies on heavy assets, thereby facilitating greater agility and operational efficiency, which in turn supports sustainable profit growth.
This approach allows Fosun to maximize its core competencies while strategically exiting non–core or underperforming assets. In doing so, the company refines its portfolio to focus on high-value sectors and maintain an elevated standard of operational excellence.
Operational Excellence and Risk Management
Fosun International has honed its operational capabilities over three decades, ensuring stable development even in challenging economic conditions. The company’s prudent liquidity management, optimized debt structures, and robust risk control measures are key factors that underpin its solid financial standing. By continuously streamlining operations and focusing on profitable business segments, Fosun effectively balances growth opportunities with risk mitigation.
This balance of operational excellence and risk management is critical to delivering consistent value across its diverse array of businesses. Investors and stakeholders can appreciate the company’s methodical approach toward long-term stability, backed by documented efficiencies in financial strategy and operational execution.
Industry-Specific Terminology and Expertise
The detailed examination of Fosun’s business segments—particularly its emphasis on terms such as globalization, innovation-driven, and asset-light operations—underlines the company’s commitment to a sophisticated and integrated growth strategy. Fosun’s expertise in harmonizing multiple facets of business, from advanced technological integration to strategic financial planning, is evident in its methodical expansion and consolidation in diverse market segments.
Fosun’s enduring focus on core industries means that each of its investments and strategic initiatives is thoroughly vetted for high-value, long-term potential. This integrated approach not only strengthens its market position but also generates a higher degree of trust among global investors, ensuring that the company remains a prominent player on the international stage.
Conclusion: A Comprehensive Global Ecosystem
Fosun International’s comprehensive global ecosystem is a testament to its strategic vision, exceptional operational capabilities, and unwavering commitment to innovation. By consistently focusing on its core competencies and leveraging global partnerships, the company creates an enduring framework that supports high-quality business performance across a multitude of sectors.
This detailed analysis illustrates that Fosun is not merely a conglomerate but a dynamic entity that has established deep-rooted expertise in managing diversified business operations. Its methodical approach to risk management, innovative product development, and stringent operational oversight underscores its capability to generate sustainable value and enduring growth over a prolonged period.
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.
Fosun International (HKEX: 00656) has been awarded The Asset ESG Corporate Awards 2024 - Platinum Award and Best Initiative in Social Responsibility at a ceremony in Singapore. The company's ESG strategy 'Create IMPACT' demonstrates its commitment to sustainable development.
Fosun has achieved significant milestones in ESG performance, being the only Greater China conglomerate rated AA by MSCI ESG Ratings and ranking in the top 1% of S&P Global's Sustainability Yearbook 2024 (China Edition). The company's innovations include breakthrough medical treatments, with Fosun Pharma's artesunate injection treating over 68 million malaria patients globally.
The company's 'WE Volunteer' program has engaged over 4,500 employees in public welfare activities, contributing 34,476 hours. Through Fosun Foundation, established in 2012, the company supports various social initiatives, including the Rural Doctors Program which has benefited 3 million grassroots families.
Fosun participated in the 7th China International Import Expo (CIIE), showcasing its latest healthcare innovations at the Fosun Pharma booth. The company highlighted several breakthrough products, including the Ion Robotic Bronchoscopy system, which received domestic approval in March 2024 and completed its first commercial application in September. The company also presented the new V2 model of the Exablate Neuro FUS system for treating neurological disorders. Fosun's participation has helped transform many exhibits into market-ready products, with the company investing RMB 3.5 billion in technological innovation in the first half of the year.