Fosun International Explained

Fosun International Limited
Type:Public
Industry:Conglomerate
Services:Diversified Investments
Revenue:[1] [2]
Revenue Year:2021
Profit Year:2021
Assets Year:2021
Num Employees:71,000[3]
Num Employees Year:2019
Parent:Fosun International Holdings

Fosun International Limited is a Chinese multinational conglomerate holding company.[4] Founded in 1992 by Guo Guangchang and four others, the company is headquartered in Shanghai and was incorporated in Hong Kong in 2004. Its Co-CEOs are Chen Qiyu and Xu Xiaoliang. Wang Qunbin joined Guo Guangchang as co-chairman in early 2020.[5] The company is located in over 35 countries and is one of the largest privately owned conglomerates in China. It was ranked 371st on the Forbes Global 2000 ranking in 2020.[6]

History

1990s

Fosun Group was founded in 1992 as the Guangxin Technology Development Company by five graduates[7] of Fudan University in Shanghai:[8] Guo Guangchang,[9] Liang Xinjun,[10] Wang Qunbin[11], Fan Wei[12], and Tan Jian . Fosun started its business by doing market research.[13] The major holding company of the group, Fosun High Technology, was incorporated in 1994 in mainland China. Then Fosun extended its business into the healthcare industry (as Fosun Pharmaceutical),[14] real estate,[15] [16] and steel etc.[17] [18]

2000s

In 2004, a new holding company of the group, Fosun International Limited was incorporated in Hong Kong. In July 2007, Fosun International was listed on the main board of the Stock Exchange of Hong Kong as SEHK:656.[19] [20]

2010s

During 2011, the three major growth engines of Fosun, industrial profits, investment profits and asset management profits rose rapidly, enabling Fosun to make strides toward its vision of becoming "a premium investment group with a focus on China's growth momentum".[21]

From 2010 through 2015, Fosun spent billions buying foreign firms in the healthcare, tourism, fashion, and banking industries in the US and Europe. These included France's Club Med, Britain's Thomas Cook Group,[22] Canada's Cirque du Soleil,[23] American clothing label St John, and Greek jeweler Folli Follie.[24] [25] At the end of 2014 Fosun acquired the US insurer Meadowbrook for around $433 million, marking the first full purchase of a US insurer by a Chinese company.[26] Fosun also purchased Australian oil company Roc Oil, its first acquisition in the petroleum industry.[27]

On 11 December 2015, the chairman of Fosun, Guo Guangchang, was reported missing. Guo however reappeared on 14 December 2015 at a Fosun board of directors meeting. During his disappearance, Fosun requested that trading of shares be temporarily suspended.[28] The Fosun board of directors issued a statement saying that Guo was assisting in a government inquiry which, in their opinion, did not present a “material adverse impact” on Fosun's finances or operations.[29]

On 21 July 2016, it was confirmed that Fosun had bought the English football club Wolverhampton Wanderers from its previous owner Steve Morgan for an estimated £45 million. Under Fosun's ownership, Wolves have progressed from being a mid table side in the Football League Championship (second tier of English football) to finishing seventh in the FA Premier League, reaching an FA Cup semi-final and qualifying for the UEFA Europa League.[30] [31] [32]

In 2016 Fosun began to invest in India.[33] Delhivery was one such investment made in 2017,[34] in addition to previous investments in MakeMyTrip, India's largest online travel company and Gland Pharma.[35] Fosun is also involved in the Indian real estate market.[36]

On 28 August 2019, Thomas Cook Group announced that the group "had agreed the main terms of a rescue package that will see Hong Kong’s Fosun Tourism take over its tour operations and creditor banks and bondholders acquire its airline"[37] In early November 2019, Fosun said it would purchase the Thomas Cook brand for £11m. The company viewed itself as a "potential saviour" by purchasing the name.[38]

2020s

In March 2020, the company acquired a 55.4% equity interest in French jewelry brand Djula.[39] They also signed an agreement in July 2020 with a high-end Italian jewelry group to develop the Damiani and Salvini brands in China.[40] In August 2020 the company bought a 30% stake in Jinhui Liquor for $262 million.[41]

In 2022, after has been severely hit by the effects of the COVID-19 pandemic and China's extreme lockdown policies, the Shanghai-based conglomerate divested many of its key assets to avoid defaulting on its short-term debts. By October 2022, Fosun announced that it would sell as much as $11 billion of assets within the next 12 months, amid efforts to bolster both its balance sheet and investor confidence.[42]

Response to COVID-19 pandemic

During the coronavirus pandemic of 2020, Fosun Pharmaceuticals partnered with German biotech firm Biopharmaceutical New Technologies (BioNTech) to produce and distribute the COVID-19 mRNA vaccine BNT162b2.[43] [44] The company also donated medical supplies to several countries during the COVID-19 pandemic.[45] [46]

Business structure

Fosun has a wide array of business activities, including investing in other firms, managing a number of private equity funds, and entering joint ventures.

Equity investments

Fosun has invested in a number of businesses throughout different sectors, such as asset management, insurance, and industrial operations.

Asset management

Banking

Entertainment

Fashion

Formerly named Fosun Fashion, the fashion sector of Fosun's business is now named Lanvin Group.[52]

Food and drink

Industrial operations

Insurance

Investment

Media

Private hospitals

Real estate

Retail

Technology

Tourism

Fosun-managed private equity funds

Joint ventures

Former equity investments

Shareholders

The major shareholder of Fosun International was a Hong Kong incorporated company Fosun Holdings,[68] which was a wholly owned subsidiary of British Virgin Islands incorporated company Fosun International Holdings. Three founders of Fosun International, Guo Guangchang, Liang Xinjun and Wang Qunbin, owned 64.45%, 24.44% and 11.11% respectively in Fosun International Holdings.[68] Fan Wei, another founder, withdrew his stake in Fosun International Holdings in September 2015.[68]

External links

Notes and References

  1. News: Fosun International Announces 2021 Annual Results: Total Revenue Increased by 18% to RMB161.29 Billion, Striving to Pursue Steady and Sustainable Development . Yahoo! Finance . 23 March 2022.
  2. News: Sundarkumar . Amruth . Fosun Reports 26% Profit Jump in 2021 . BondEvalue . 25 March 2022.
  3. Web site: Archived copy . June 2020 . June 20, 2020 . 27 June 2020 . https://web.archive.org/web/20200627081150/https://ir.fosun.com/static-files/93b4a5da-8531-4ee3-ae2a-32a6cbe48fe1 . dead .
  4. Web site: BLANK . www.fosun-international.com . 2008-02-06 . dead . https://web.archive.org/web/20150924014910/http://www.fosun-international.com/en/company/ . 24 September 2015 . dmy-all .
  5. Web site: Zhao . Shirley . Fosun Names Co-Chairman, Picks Two Presidents as Co-CEOs . Bloomberg . 27 February 2020 . 21 February 2020.
  6. Web site: 2020 Forbes Global 2000 . Forbes . 20 June 2020.
  7. Web site: Fosun loses one more founding member. 2017-03-31. EJ Insight. en-US. 2020-02-10.
  8. Web site: Life on the go for Fosun Group CEO. 31 May 2012. Fosun. 10 February 2020.
  9. Web site: Fosun chairman Guo Guangchang: Farmer's son with a streak of enterprise. hermes. 2015-12-21. The Straits Times. en. 2020-02-10.
  10. Web site: Liang Xinjun, Billionaire Co-Founder Of China Investment Firm Fosun, Departs As CEO. Flannery. Russell. Forbes. en. 2020-02-10.
  11. Web site: Wang Qunbin. Forbes. en. 2020-02-10.
  12. Web site: Fan Wei. Forbes. en. 2020-02-10.
  13. Web site: Fosun: What you need to know about the Chinese conglomerate set to take a majority stake in Thomas Cook. Taylor. Ian. 19 July 2019. Travel Weekly. 2020-02-10.
  14. News: Bhalla. Mohit. China's Fosun emerges as the fourth contender for cash-strapped Fortis healthcare. 2018-04-18. The Economic Times. 2020-02-10.
  15. News: Babar. Kailash. Fosun invests 800 crore in realty venture with Ahuja Constructions. 2019-09-20. The Economic Times. 2020-02-10.
  16. Web site: London Real Estate Chinese Buyers Fosun International. 2018-10-06. The Real Deal New York. en-US. 2020-02-10.
  17. Web site: Fosun Group's Guo Guangchang: Marrying Chinese Momentum to Global Resources. Equity. Private. Management. Strategic. Knowledge@Wharton. en. 2020-02-10. China.
  18. Book: Zhang. Wenxian. A Guide to the Top 100 Companies in China. Alon. Ilan. 2010. World Scientific. 978-981-4291-46-0. en.
  19. Web site: SubChina's Warren Buffett' caught up in Beijing probe. Anderlini. Jamil. 11 December 2015. www.ft.com. 2020-01-22.
  20. Web site: Fosun International (SEHK:656) - Share price, News & Analysis. Simply Wall St. en. 2020-01-22.
  21. Web site: Fosun International Limited Annual Results 2011. March 2012. Media.corporate-ir.net. 29 January 2020.
  22. News: Britain's Thomas Cook soars after China's Fosun buys stake. 2015-03-06. Reuters. 2020-02-03. en.
  23. News: Cirque du Soleil sells majority stake to U.S., Chinese investors. 2015-04-20. Reuters. 2020-02-03. en.
  24. News: Bloated but still bingeing. The Economist. 0013-0613. 15 June 2016.
  25. News: China's Fosun joins bidding war for Portuguese hospital operator. 23 September 2014. BBC News. 23 September 2014.
  26. https://www.reuters.com/article/us-meadowbrook-ins-m-a-fosun-intl-idUSKBN0K81MH20141231 China's Fosun to buy U.S. insurer to help finance acquisition spree
  27. Web site: Fosun Edges Out Competitor for Australia's Roc Oil . The Wall Street Journal . 4 August 2014 . 14 April 2017.
  28. https://www.bbc.co.uk/news/business-35068463 Chinese tycoon Guo Guangchang reported missing.
  29. News: Another turn of the screw. The Economist. 30 December 2015. 0013-0613.
  30. News: 2019-05-18. Wolves qualify for Europa League after Man City win FA Cup. en-gb. BBC Sport. 2020-07-19.
  31. News: Fosun Group Takes Over Wolves. Wolverhampton Wanderers. 21 July 2016.
  32. Web site: Wolves bought by Chinese conglomerate Fosun International for £45m . . 21 July 2016 . 30 July 2016.
  33. Web site: Pani . Priyanka . Fosun eyes Indian start-ups with $200-m fund . The Hindu Business Line . 24 February 2020 . 12 October 2016.
  34. Web site: Gooptu . Biswarup . Ganguly . Payal . Delhivery secures $30M from Fosun International . ETtech.com . 24 February 2020 . 23 May 2017.
  35. Web site: Biswarup Gooptu . Payal Ganguly . ET Tech . Delhivery secures $30M from Fosun International . . 23 May 2017 . 23 May 2017.
  36. Web site: sharma . Ravi Teja . Enter the dragon: China's Fosun International plans to invest $1 billion via realty private equity platform . The Economic Times . 24 February 2020 . 15 September 2016.
  37. Web site: Chinese poised to acquire world's oldest travel firm as Thomas Cook agrees key rescue terms. . 28 August 2019 . 28 August 2019.
  38. Web site: Thomas Cook brand sold to Club Med owner Fosun for £11m. 1 November 2019. BBC News. 2 November 2019. He said: "The acquisition of the Thomas Cook brand will enable the group to expand its tourism business building on the extensive brand awareness of Thomas Cook and the robust growth momentum of Chinese outbound tourism.".
  39. Web site: Spencer. Mimosa. 2020-03-27. Fosun's Jewelry Unit Yuyuan to Buy Majority Stake in Djula. 2020-09-21. WWD. en.
  40. Web site: Zhang. Tianwei. 2020-07-10. Fosun's Jewelry Unit Yuyuan Scores Damiani Group China License. 2020-09-21. WWD. en.
  41. Web site: Chinese conglomerate Fosun's Yuyuan to buy 30% stake in Jinhui Liquor for $262m. 2020-09-21. DealStreetAsia. en-US.
  42. News: 2022-10-25 . China's Fosun Aims to Sell $11 Billion of Assets in Next Year . en . Bloomberg.com . 2023-02-24.
  43. Web site: Fosun and BioNTech launch $135m vaccine hunt for coronavirus . 2024-03-20 . www.ft.com.
  44. Web site: Exclusive: Fosun and Germany’s BioNTech to Make Vaccine in China - Caixin Global . 2024-03-20 . www.caixinglobal.com . en.
  45. Web site: Flannery . Russell . Act Globally: China's Fosun International Guo Guangchang On Lessons From COVID-19 Pandemic . 2024-03-20 . Forbes . en.
  46. Web site: From China to the World, Fosun's Fight against COVID-19 Continues . 2024-03-20 . markets.businessinsider.com . en.
  47. Web site: Fosun Annual Report 2017. April 23, 2020.
  48. Web site: Chinesa Fosun confirma compra da gestora Rio Bravo. 29 July 2016. Valor.com.br. Valor Econômico. pt. 6 October 2016.
  49. Banco Comercial Português, S.A. informs about increased qualified holding of Chiado, an affiliate of Fosun. 11 September 2017.
  50. Web site: 2016 Interim Report. 22 September 2016. China Minsheng Bank. Hong Kong Stock Exchange. 20 November 2016.
  51. Web site: Fosun believed to be open to new Wolves investment. Edwards. Joe. www.expressandstar.com. 14 September 2019 . en. 2020-01-13.
  52. Web site: Lanvin Group has a lackluster pitch to luxury investors. Tiffany. Ap. Quartz. 2022-11-17. 15 September 2022.
  53. Web site: Fosun furthers efforts to tap fashion market - Chinadaily.com.cn. 宋静丽. global.chinadaily.com.cn. 2020-01-13.
  54. Web site: Kang. Xiaoxiao. Fosun Pharma bidding $22.5 mln for U.S. Saladax. https://web.archive.org/web/20130326212635/http://www.morningwhistle.com/html/2013/Company_Industry_0305/217415.html. dead. 26 March 2013. Morning Whistle. 3 April 2013. 5 March 2013. dmy-all.
  55. News: Fosun's sale of Gland Pharma to become India's biggest pharma deal: Report . 16 December 2022 . Business Standard . 13 December 2022 . en.
  56. Web site: Fosun subsidiary completes acquisition of 50% stake in Caribbean insurer NAGICO Holdings. www.chinagoabroad.com. 2019-05-26.
  57. Web site: Insurer jumps on Fosun move - Business - Chinadaily.com.cn. www.chinadaily.com.cn. 2020-01-13.
  58. Web site: miacom diagnostics GmbH teams up with Fosun Diagnostics, a Diagnostic Division of Shanghai Fosun Pharmaceutical Group . 14 July 2014 . Business Wire.
  59. Web site: Chinesa Fosun fecha compra de 70% da Guide Investimentos. valor.globo.com. 12 September 2017. Valor Econômico. 9 October 2019. pt.
  60. News: China's Fosun to buyout Forte Land for $320 million. 20 January 2011. Reuters. 2017-07-27.
  61. Web site: 126 Madison Avenue, aka Madison House, Tops-Out 62 Stories and 805 Feet Above NoMad. Young. Michael. 2019-06-04. New York YIMBY. en-US. 2020-01-13.
  62. Web site: Fosun Acquires Sydney Office Tower for $93M. 2015-01-27. Mingtiandi. en-US. 2020-01-13.
  63. Web site: China's Fosun Buys Second Tokyo Office Tower in Five Months. 2014-12-21. Mingtiandi. en-US. 2020-01-13.
  64. Web site: Fosun joins hands with Secret Recipe of Malaysia. 15 February 2014. Fosun. dead. https://web.archive.org/web/20160404124543/http://www.fosun.com/en/news/detail.html?id=1401. 4 April 2016. 4 April 2016.
  65. Web site: Fosun International Thinks Perfect World Is Perfect. Insider Monkey. en-US. 2020-01-13.
  66. Web site: £13M Investment in technology firm The Floow Limited. 6 March 2017.
  67. News: China Fosun dials up tourism push with $1.74 billion Atlantis Sanya luxury resort. 2018-04-28. Reuters. 2020-04-23. en.
  68. Web site: 2015 Annual Report. 28 April 2016. 19 November 2016. Fosun International. Hong Kong Stock Exchange.
  69. Web site: China Huarong Asset Management Co., Ltd. issues new shares for $2.4 Billion. www.iaireview.org. 2020-01-13.
  70. Web site: Liberty Mutual to Acquire Ironshore from China's Fosun for $3 Billion. 2016-12-05. Insurance Journal. en-US. 2020-01-13.

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