On June 6, Fosun Group held a series of activities such as the annual general meeting in Hong Kong. At the Fosun Forum held in the afternoon, the two co-presidents of Fosun Group Chen Qiyu and Xu Xiaoliang led Fosun’s global partners and some senior executives representing companies within the system to share their insights on their respective companies and industries, and from Analyze from their respective perspectives how to intelligently build Fosun's C2M happiness ecosystem with family users as the center.
The following is the speech of Chen Qiyu, co-president of Fosun Group at the forum. With academic rigor, he explained Fosun's major strategic adjustments this time, which is worth reading carefully.
Strategic thinking continues to evolve
Thank you for coming! I am here on behalf of Fosun’s board of directors and management to report on Fosun’s new strategic upgrade.
Fosun Group was founded in Shanghai in 1992, and this year marks its 25th anniversary. In the course of these 25 years, we have gone through two rounds. The Chinese talk about one round for 12 years. After two rounds and 12 years, we enter the third round.
In the first round, we actually started from scratch and started a solid business, starting with medicine and real estate. Fosun Pharma went public in 1998 and Forte went public in Hong Kong in 2004, which is also the result of a successful start-up of a company. At the same time, during this period, we also acquired Yuyuan Mall and Nanganglian. When this round was completed, Fosun had the above four main businesses. This is Fosun in 2004.
The second round started in 2005. We experienced the overall listing of Fosun Group, experienced the global financial crisis, built Fosun's global investment capabilities, and then began to develop the tourism industry and insurance business. This is the embryonic form of a round of Fosun that Fosun has formed until 2016. In this round, everyone sees more of Fosun's investment capabilities.
However, in the future, we propose “to focus on family customers and intelligently build a global happiness ecosystem rooted in China”. This is Fosun’s third and fourth 12-year long-term vision. At the same time, we will “gather growth forces to serve global family customers”. Wisdom to create a healthy, happy and prosperous happy life" as the mission. Our strategy is to gather talents, products, technology and other resources, graft China's dynamics, continue to innovate, and focus on the happy lifestyle needs of global family customers, to deepen the three industries of health, happiness and prosperity. Through in-depth industrial operation, integration and investment, Come to wisdom to create Fosun's C2M happiness ecosystem.
The new mission reflects our evolving strategic thinking, which is a natural result of the ever-changing global and China's macro and micro environments. We used to put more emphasis on investment groups rooted in China, integrating global resources, and global asset allocation to intelligently create a happy ecosystem. Now we are further optimizing and focusing it to intelligently create a happy ecosystem with family customers as the center. Fosun's industry has accumulated to this day and has a very solid industrial foundation in the fields of health, happiness and wealth, a very good market layout, and a very good brand and reputation.
More emphasis on in-depth industry operations
In this strategic evolution, more emphasis will be placed on improving capital and industrial efficiency. In the future, we will put more emphasis on in-depth industrial operations. For example, in the fields of health, happiness, and abundance, through in-depth industrial operations, we will become a leading brand and innovative company in various fields, and become operational efficiency, return on assets, and customer loyalty. The best company. At Fosun, we have initially formed such a business framework. Starting from the customer-centric demand, we have formed three core industries: health, happiness, and prosperity.
At the same time, a very important level of support will be formed around the core industries. First of all, the technology industry. Technology leadership will be an important direction for Fosun's core industries. In addition to technological innovation in the medical field, this technology is more about the in-depth application of Internet technology, big data, and artificial intelligence technology in the health, happiness, and affluent industries. We make deep use of advanced technology, implant core industries, improve operational efficiency, optimize processes, and improve the communication environment with customers. Industrial finance will better serve our operational capabilities in the three sectors of health, happiness and wealth. For example, we have established a financial leasing company related to the health sector in the health sector to promote the development of the health sector; consumer financial products promote the development of affluent industries. The other is to build a supply chain, which is a very important competitiveness among the core industries of health, happiness, and abundance in the future.
Fosun’s real estate business has evolved and upgraded to the version of the hive city. It is no longer simply taking residential development as the core content of real estate. We take the construction of the real estate hive city with cultural tourism, finance, and health hive as the mainstream direction, integrate modern technology, and integrate the industry. The elements are deeply rooted to further enhance the competitiveness of the industry.
At the outer layer, Fosun continues to fulfill its social responsibilities. In addition to focusing on its own sustainable development, it also pays attention to customers, employees, supply chain and society, fulfills our commitment to the environment, and is also committed to the protection of the entire society and the natural environment. And optimization. Therefore, we will participate in the in-depth development of resources, the upgrading of the environmental protection industry, the investment in intelligent manufacturing, the improvement of industrial efficiency, and the reduction of social costs. In these respects, we will assume greater responsibilities. The environment is better, the water is clearer, the sky is bluer, and the air is better. I believe that our healthy, happy, and prosperous future generations will have a better life. We are a whole industry chain layout, focusing on the whole industry chain process such as innovative research and development, medical services, medical circulation, medical equipment, health management, maternal and child industry, and elderly care, to create a complete series of solutions for family customers.
In the happiness sector, we give priority to the development of the tourism and leisure industry, actively promote the development of the culture and entertainment industry, and form a happy closed loop. In the affluent sector, we will pay attention to the closed-loop consumer finance of household customers' life insurance, property insurance, health insurance, wealth management, consumer credit, etc., and will actively help Chinese people in this field.
Four dimensions of Fosun's strategy
Fosun’s strategic map has four dimensions. The first is fund raising and investment. Our funds come from group-level funds, industrial company-level funds, and funds from third-party funds under management. In the investment of these funds, the first focus is on the layout of core industries, that is, the layout of healthy, happy, and affluent industries. Second, lay out innovative investment around core industries, that is, more venture capital capital is used for industrial investment related to core industries. We have carried out a series of venture investment arrangements in China and in Silicon Valley, Boston and the United Kingdom and Israel. Since Fosun has a heavy insurance asset allocation, it must comply with the insurance asset allocation. The honeycomb city is also an important direction of our capital investment. On the one hand, it creates value and on the other hand supports industrial development. In addition, on the periphery, we will pay attention to the fields of environmental protection, resources, and smart manufacturing.
The second aspect of Fosun's strategic dimension is region. We are still China's driving force. This is two-way. First of all, it is the needs of the Chinese market. We will introduce products and services that are suitable for the needs of Chinese people in China's future consumption upgrades from the United States, Europe, Southeast Asia and other global markets. We will also export China's industrial advantages, R&D advantages, and manufacturing advantages to the global market.
The third is the industry, which focuses on the health, happiness, and affluent industries, and will still follow the logical development of endogenous growth, external expansion, and integrated development. The last dimension is to strengthen empowerment, especially in terms of talents, brand, and technology to empower the invested enterprises to add value and create value.
Fosun has entered a new strategic era
Fosun’s big health industry has initially formed a whole industry chain ecosystem. It has formed core industries in product R&D and manufacturing, medical and health service formats, and technological innovation models. It has formed cross-cutting businesses in finance and real estate, closely surrounding The core C-end users have gradually evolved from patients, doctors, and hospitals to healthy consumers, mothers and babies, and the elderly. Such a rich three-dimensional and all-round C-end user is the core focus of the long-term development of the big health industry in the future. Around the C-end, a large number of innovation and service barriers will be formed.
In the implementation of the big health industry strategy, there are three competitive advantages. One is our innovation drive. We have formed a technological innovation drive capability. We invest more and more innovative resources in pharmaceutical, medical big data, and artificial intelligence to enhance the competitiveness of our core products. , Integrate industrial resources. We will form a closed-loop service advantage in medical services, medical insurance, health management, elderly care services, and the Internet, and at the same time strengthen our technological innovation advantages.
Second, in terms of industrial business, we emphasize the entire industry chain and the strategy of single business leadership. We have formed a leading advantage in the Chinese market in the pharmaceutical business, research and development of macromolecular biosimilar drugs, medical services, drug distribution, and retail. Position: We also have a leading medical institution in China in the field of private hospitals; Sinopharm, invested by Fosun, ranks first in the Chinese market in drug distribution and retail; and is rapidly improving in the fields of medical equipment and medical and health services.
The third is to shape the closed loop of the big health service end. We focus on the needs of the family and create a closed loop of the health service end. In the fields of medical services, retail, Internet maternal and child platforms, health management, medical insurance, etc., we will fully coordinate and deepen the resources of family customers. Dig, achieve the ultimate, and provide family customers with healthy, happy and affluent solutions.
Fosun's big health industry has very strong empowerment and integration capabilities, which have been very well verified by the industry. In terms of empowerment, the core focus is on the C-end, and for the companies we invest in, on the one hand, we will export the C-end customer resources to strengthen and accelerate the growth and layout of the industrial sales market. At the same time, C-terminal capabilities are used to support industrial innovation and technology research and development, and lead the direction of technology research and development. In terms of integration, we continue to introduce Internet + products, insurance + products, and medical + products, and integrate industrial resources through these three + products.
In the happiness industry, we have created a prototype of a global industry-wide ecosystem. After the privatization of our core company Club Med, a very good momentum of development has been formed in China. Chinese tourists have become the most important source of Club Med in the world. In China, new resorts have been developed the fastest, quickly forming a population of 1.3 billion Chinese people. Atlantis will open at the end of this year and will be China's best integrated holiday resort. We have deployed a series of online and offline industrial resources around this industrial chain. We believe that the happiness industry with the tourism industry as its core will soon form a beautiful and fast-growing industry for Fosun.
In terms of enhancing empowerment and value-added in all aspects, actively promote the strategy of one fosun, unify culture, unify talent mechanism, unify information system, unify customer resources, to continuously empower and add value to the enterprises we invest in. Portugal Insurance has achieved rapid development after Fosun participated in the investment, and such cases abound in the Fosun system.
On the basis of 25 years of development, Fosun has entered a new strategic era. It will focus on family customers and actively and intelligently create a global happiness ecosystem to make families more happy and happy.
Thank you for listening, and I hope that Fosun’s strategy will be continuously guided and revised by everyone to create greater value for our shareholders. Thank you!