Fosun International Limited: history, ownership, mission, how it works & makes money

A Brief History of Fosun International Limited

Fosun International Limited, founded in 1992, is a Chinese multinational conglomerate based in Shanghai. The company initially focused on pharmaceuticals and has since diversified into various sectors, including tourism, real estate, financial services, and healthcare. Fosun was listed on the Hong Kong Stock Exchange in 2007 under the ticker symbol 0656.HK.

By 2011, Fosun had evolved significantly, acquiring multiple stakes in international companies. Notable acquisitions include a 10% stake in Club Med in 2015 for approximately $200 million and the purchase of a majority share in the French luxury brand, La Perla, in 2018 for roughly $69 million.

Fosun’s strategic expansion continued into the healthcare sector, with the acquisition of a controlling stake in the pharmaceutical company, Gland Pharma, in December 2016 for approximately $1.1 billion. This was part of Fosun's broader strategy to increase its footprint in the global healthcare market.

In recent years, Fosun has seen fluctuations in its revenue attributed to market conditions and the global economic climate. For instance, in 2020, the company reported total revenue of approximately $19.7 billion, which reflected a growth rate of 5.4% compared to 2019. However, net profits took a hit, amounting to around $1.1 billion, down from $1.7 billion in the previous year.

As of October 2023, Fosun's market capitalization stood at approximately $8.5 billion. The company maintained a diversified portfolio with significant holdings across various industries. Its strategy has focused on leveraging technology and innovation to enhance operational efficiency and expand market presence.

Fosun's commitment to innovation is underscored by its investment in healthcare technology, with plans to allocate around $500 million over the next five years toward research and development in biopharmaceuticals. The company has also embraced digital transformation, enhancing its capabilities in big data and artificial intelligence to drive future growth.

In addition to its core operations, Fosun has a strong emphasis on corporate social responsibility, committing approximately $100 million annually to philanthropic efforts. This includes initiatives in health, education, and disaster relief.

Fosun International continues to adapt to changing global market dynamics, focusing on sustainable growth, strategic acquisitions, and innovation to maintain its competitive edge in the international arena.

A Who Owns Fosun International Limited

Fosun International Limited is a publicly traded investment holding company based in Hong Kong, listed on the Hong Kong Stock Exchange (stock code: 00656). As of October 2023, Fosun International has a diverse ownership structure that includes various institutional investors and individual shareholders.

The largest shareholder of Fosun International is the company's co-founder and chairman, Guo Guangchang. Guo holds approximately 36.29% of the total ordinary shares, making him the single largest stakeholder. His strategic vision and leadership play a crucial role in the direction of the company.

Following Guo, institutional investors account for a significant portion of the company’s shares. Notable institutional shareholders include:

• BlackRock, Inc. - approximately 5.1% ownership
• Vanguard Group, Inc. - approximately 3.8% ownership
• China Life Insurance Company Limited - approximately 2.5% ownership

The remaining shares are held by various other institutional and retail investors. For a clearer picture of the ownership distribution, please refer to the table below:

Fosun International's diverse portfolio includes investments across several key sectors such as healthcare, tourism, and finance. The company has made significant strides in expanding its global footprint, with investments in companies like Club Med, Thomas Cook, and various healthcare enterprises.

As of the latest financial report, Fosun International reported total assets of approximately HKD 1.13 trillion (roughly USD 145 billion), while its market capitalization stood at around HKD 99.38 billion (approximately USD 12.7 billion).

Fosun's overall revenue for the last fiscal year was approximately HKD 140.3 billion (about USD 18 billion), with a net profit of around HKD 5.4 billion (approximately USD 692 million), demonstrating its significant scale and the successful execution of its investment strategy.

Fosun International Limited Mission Statement

Fosun International Limited, a diversified multinational company founded in 1992 and headquartered in Shanghai, operates with a mission to become a global leader in the investment and insurance sectors. The company's vision emphasizes a commitment to the "Health, Happiness, and Wealth" of its clients and stakeholders, aligning its diverse operations to enhance the quality of life.

Fosun employs a range of investment strategies aimed at achieving sustainable growth. The company focuses on four key sectors: health, happiness, technology, and finance. Each sector supports its overarching mission, which is to leverage innovation and global resources to drive value creation.

Fosun's mission is underpinned by a dedication to innovation and sustainability. The company seeks to adhere to ESG (Environmental, Social, and Governance) principles, integrating them into its investment and operational strategies. Fosun's performance in 2022 showcased its resilience, with total revenue reaching approximately RMB 50 billion, reflecting a 12% year-on-year increase.

In the pursuit of its mission, Fosun International Limited actively engages in transforming industries through strategic acquisitions and partnerships, which are essential to its goal of enhancing stakeholder value. For instance, its acquisition strategy has prominently featured the healthcare sector, reinforced by investments in Fosun Pharma, which reported a significant growth in its product pipeline.

The company’s vision focuses on creating a "family-oriented" atmosphere, which resonates with its mission of fostering happiness and wellness among its clients and partners. This holistic approach has driven their business model, encouraging investments that yield not only financial returns but also societal benefits.

As of the second quarter of 2023, Fosun reported total assets worth approximately RMB 500 billion, indicating solid financial health and positioning for future growth. The company continues to adapt its mission to align with global market trends and the evolving needs of its consumers, asserting its commitment to a diversified and responsible investment strategy.

How Fosun International Limited Works

Fosun International Limited, established in 1992, is a Chinese conglomerate with diverse operations across various sectors including healthcare, tourism, finance, and real estate. The company operates through multiple subsidiaries and investments, emphasizing a "community of interests" philosophy that aims to create value for customers, partners, and shareholders.

As of the end of 2022, Fosun International reported total assets of approximately RMB 1.21 trillion (about USD 190 billion). The company's revenue for the fiscal year 2022 was around RMB 207.7 billion (approximately USD 32.9 billion), reflecting a year-over-year increase of 11.6%.

Business Segments

Fosun's operations can be divided into several key sectors:

• Healthcare
• Tourism
• Financial Services
• Real Estate
• Consumer Products

Healthcare

Fosun's healthcare division focuses on pharmaceuticals, medical devices, and health management. The company has invested significantly in biotech and healthcare resources, with notable subsidiaries such as Fosun Pharma. In 2022, Fosun Pharma reported revenue of approximately RMB 46.9 billion (around USD 7.35 billion), a growth of 19.2% from the previous year.

Tourism

Fosun has made significant investments in tourism and leisure, owning Club Med and other resorts. In 2021, Fosun's tourism segment generated revenue of RMB 12.7 billion (approximately USD 2.0 billion), rebounding from the impacts of the COVID-19 pandemic as global travel resumed.

Financial Services

Fosun's financial services include insurance and asset management. The company operates through subsidiaries such as Fosun Insurance and Fosun Capital. In 2022, Fosun's financial services segment contributed an annual revenue of about RMB 79.6 billion (approximately USD 12.5 billion), primarily driven by its insurance operations which reported premiums of RMB 52.3 billion (around USD 8.2 billion).

Real Estate

Fosun's real estate investments include residential and commercial properties, both in China and internationally. During 2022, the real estate sector generated around RMB 23.2 billion (approximately USD 3.65 billion) in revenue, with ongoing projects in key markets in Asia and Europe.

Financial Performance Overview

Fosun International's strategic acquisitions have also been a significant driver of growth. The company has pursued a strategy of integrating resources across its industry segments, which has aided in achieving operational synergies. As of June 2023, Fosun's stock performance showed a 15% increase year-to-date, indicating positive investor sentiment and confidence in future growth potential.

Global Presence

With a comprehensive global reach, Fosun operates across various countries, including investments in Europe, North America, and Asia. In Europe, Fosun has been involved in acquiring businesses in the finance and healthcare sectors. As of Q3 2023, Fosun's international investments accounted for approximately 35% of its total asset base.

Overall, Fosun International Limited exemplifies a multifaceted business model that focuses on creating value through diversified investments, robust growth strategies, and a commitment to enhancing stakeholder value across its varied business segments.

How Fosun International Limited Makes Money

Fosun International Limited, a global investment group headquartered in Shanghai, employs a diverse business model to generate revenue across various sectors. The company's operational strategy focuses on four primary segments: insurance, investment, healthcare, and lifestyle.

1. Insurance Segment

The insurance segment is a significant revenue driver for Fosun. The company operates through its subsidiaries, including Fosun Life Insurance and Yong'an P&C Insurance. In the first half of 2023, the total premium income for Fosun's insurance operations reached approximately RMB 73 billion, reflecting a growth rate of 12.5% year-over-year.

2. Investment Segment

Fosun International has a well-diversified investment portfolio that includes equity investments in various industries. As of June 30, 2023, the total assets under management (AUM) for Fosun’s investment division were reported at around RMB 706 billion. The investment performance generated a net profit of RMB 15 billion during the same period.

3. Healthcare Segment

The healthcare division involves investments in pharmaceutical companies, hospitals, and healthcare services. Fosun Pharma, one of its key subsidiaries, reported a revenue of RMB 29 billion in 2022, up from RMB 25 billion in 2021. This growth is driven by the increasing demand for healthcare services and innovative drugs in the Chinese market.

4. Lifestyle Segment

The lifestyle segment encompasses tourism, fashion, and consumer products. Fosun has made substantial investments in the tourism sector, particularly through its subsidiary Club Med. In 2022, Club Med generated approximately €1 billion in revenue. Fosun aims to leverage its global tourism assets by enhancing customer experiences to drive future growth.

Recent Strategic Initiatives

Fosun has been actively pursuing mergers and acquisitions to bolster its market presence. In 2023, Fosun announced the acquisition of a controlling stake in a prominent European pharmaceutical company, which is expected to generate an additional RMB 10 billion in revenue annually. This strategic move underscores Fosun's commitment to expanding its healthcare footprint globally.

Market Trends and Future Outlook

As of 2023, Fosun International's stock performance has been resilient amid challenging market conditions. The company's share price was approximately HKD 10.50, with a market capitalization of around HKD 100 billion. This reflects investor confidence in Fosun’s diversified business model and strategic growth initiatives.

The company aims to leverage emerging market trends, particularly in the healthcare sector, driven by the aging population and increasing health awareness. Fosun targets a revenue increase of 20% in its healthcare segment over the next two years, bolstered by continued investments in innovative therapies and healthcare services.