Fosun International Announces 2023 Interim Results: Leveraging Innovation to March Towards High-quality Development
On 31 August 2023, Fosun International held its 2023 interim results presentation. Centering on high-quality development, Fosun International had an in-depth exchange on corporate strategy, operational indicators, innovation progress, global operations, ESG and other issues of external concern. According to the interim results announced on 30 August, in the first half of 2023, Fosun achieved total revenue of RMB97.06 billion, representing a year-on-year increase of 10.9%; industrial operation profit surged 66% (excluding the effects of asset disposed) year-on-year to RMB3.37 billion; profit attributable to owners of the parent was RMB1.36 billion. Meanwhile, Fosun continued to optimize its capital and asset structure, and maintained sufficient liquidity. Compared with the same period in 2022, the Group’s total debts at the consolidated level dropped significantly by more than RMB40.0 billion; total debts to total capital ratio further dropped to 51.8%. Its high-quality and robust performance and financial indicators have laid a solid foundation for Fosun to further seize new opportunities for high-quality development.
“It is very clear that we have won out over the cycle and Fosun’s liquidity pressure has been well managed. We will focus on the development of businesses where we boast clear competitive advantages. Development is the key solution to all issues.” Guo Guangchang, Chairman of Fosun International, said, “Since the beginning of this year, China has continued to issue favorable policies, especially the introduction of the 31-measure guideline to bolster private economy, providing guidance for the high-quality development of private enterprises. We believe that as the economy continues to recover, Fosun, which is committed to innovation-driven development and global operations, will set sail again and embark on a new phase of high-quality development.”
The first batch of the “world’s firsts” and “China’s firsts” achieve breakthroughs
Innovation has always been the “core engine” that drives the development of Fosun and the key to leading Fosun towards high-quality development.
The interim results announcement shows that Fosun’s long-term accumulation of technology innovation capabilities is continuously being transformed into batches of the “world’s firsts” and “China’s firsts” industrial achievements. HANSIZHUANG (serplulimab injection), the first biopharmaceutical innovative drug self-developed by Shanghai Henlius, has been approved for three indications in China, and has become the world’s first monoclonal antibody drug targeting PD-1 for first-line treatment of extensive-stage small cell lung cancer; HANQUYOU (trastuzumab injection) has been accepted by the U.S. Food and Drug Administration (FDA) for the marketing authorization application (MAA) in the U.S., and it is expected to become the first domestic biosimilar approved in China, the U.S. and Europe.
Founded in 2010, Shanghai Henlius is an innovative biopharmaceutical platform under Fosun. At that time, Fosun proactively deployed the biopharmaceutical industry and remained committed to the path of independent innovation. After 13 years of accumulation, Shanghai Henlius, as a Chinese technology innovation enterprise, has opened up a new world in the international biopharmaceutical field. At present, Shanghai Henlius has launched five self-developed products on the market, reaching more than 40 markets around the world and benefiting more than 450,000 patients. In the first half of 2023, Shanghai Henlius accelerated the commercialization of core commercial products such as HANSIZHUANG and HANQUYOU, driving Shanghai Henlius’ revenue to grow 93.9% year-on-year and helping Shanghai Henlius turn profitable for the first time in half a year, with a net profit of RMB240 million.
Innovation is inseparable from the continuous investment of capital, talents and technology. Data shows that in recent years, Fosun has continued to step up its R&D investment. Fosun invested RMB4.2 billion in technology innovation in the first half of the year, representing a year-on-year increase of 20%. Fosun’s continuous investment in technology innovation has allowed it to reap results in various fields.
In June 2023, Fosun Kite’s first CAR-T cell therapy Yi Kai Da (ejilunsai injection) obtained conditional approval from the National Medical Products Administration (NMPA) for marketing for the treatment of second-line indications, at present, such Yi Kai Da has come into use in hospitals in Hubei, Anhui, Guangdong, Henan and other provinces and cities, bringing hope of cure to more lymphoma patients who have failed first-line immunochemotherapy or relapsed.
Intuitive Fosun’s headquarters and industrialization base project, which started construction in August last year, is accelerating the localized production of international cutting-edge medical devices. In June this year, Intuitive Fosun’s application of the “Thoracic And Abdominal Endoscopic Surgical System” (domestic da Vinci robotic surgical system) has obtained the domestic medical device registration approval by the NMPA indicating that the domestic da Vinci robotic surgical system will soon be launched. In the future, Intuitive Fosun’s base with a total investment of more than RMB700 million will gradually realize “Made in China, Joint Research & Development, Global sales” of the da Vinci robotic surgical system and other robotic system.
Easun Technology, Fosun’s core intelligent manufacturing enterprise, is the world’s leading provider of industrial automation and digital intelligent technology solutions. In the first half of 2023, Easun Technology independently developed core machine vision technologies to break the monopoly of the market, and that it was also capable of autonomously controlling and managing these technologies. It had developed software and hardware solutions that enabled the precise and intelligent matching of a vehicle body. The first set of relevant equipment in China was rolled out. In July this year, FFT, a subsidiary of Easun Technology, was recognized as a national specialized, sophisticated, distinctive, and innovative “little giant” for its continuous innovation capabilities.
Go global, global operations mutually empower industrial advancement
Going global to expand overseas business is an important aspect to achieve high-quality development.
The globalization journey of Fosun started in 2007 when Fosun International was listed in Hong Kong. After 16 years, its leading model of “global organization + local operations” has become more mature. It has established business presence in more than 35 countries and regions, and has more than 40 overseas brand enterprises and 100,000 employees worldwide.
Its interim results announcement shows that leveraging its strong global operational capabilities, overseas business has become an important driving force for Fosun’s development. In the first half of 2023, overseas revenue amounted to RMB44.09 billion, accounting for 45.4% of total revenue.
The results of the “mutual empowerment” of Fosun’s global operations have further emerged. Easun Technology, headquartered in Shanghai, China, recorded a significant increase in overseas orders. In particular, it saw robust growth in business operations in North America. New orders reached RMB1.38 billion in the first half of 2023, representing a year-on-year increase of 131.2%. Club Med, a French resort brand under Fosun Tourism Group (FTG), operates 66 resorts around the world. In the first half of 2023, Club Med achieved record-high performance, with business volume amounting to RMB7.94 billion, representing an increase of 32.2% over the same period in 2022. The first resort of Club Med’s new product line, Club Med Urban Oasis, is expected to open in Xianlin, Nanjing in the second half of the year.
With the empowerment of Fosun’s global ecosystem, more member companies and time-honored Chinese brands are accelerating their push to go global.
Since the beginning of this year, the campaign of “Shede Spirits Sharing Shede’s Wisdom with the World” has been successively held in seven countries including Italy, Germany, and France, and its star products have been exported to Europe, East Asia, North America and other places. Shede aged spirits and its oriental wisdom have received wide recognition from the overseas markets. Tuopai has become the global partner of Wolverhampton Wanderers F.C., a veteran team in the Premier League, establishing emotional and cultural resonance with fans around the world. Seagull Watch has expanded overseas markets through digital platforms, and the sales of many products have doubled year-on-year; Laomiao has partnered with famous French designers to promote Chinese jewelry products to the world with design as the universal language.
It is worth mentioning that since the 28th Yuyuan Garden Lantern Festival became widely known on overseas social media, the Yuyuan Garden Lantern Festival will make its overseas debut from the end of this year to the beginning of next year, the event will take place in Paris, France and Shanghai, China simultaneously to promote cultural exchanges between China and France.
Actively fulfill corporate responsibility to jointly build the Belt and Road
Founded 31 years ago, Fosun has always been adhering to the corporate values of “Self-improvement, Teamwork, Performance and Contribution to Society”. While creating business value, it actively fulfills social responsibility and examines its sustainable development capabilities and levels with high standards.
On the eve of the Spring Festival this year, the COVID-19 epidemic spread to vast rural areas in China. Fosun Foundation, together with Fosun Pharma and Genuine Biotech, carried out the “A Healthy Winter Action” campaign to donate Azvudine tablets to 250 counties and cities across the country, helping the grassroots weather the epidemic during the New Year.
Since its launch at the end of 2017, Fosun Foundation’s Rural Doctors Program has covered 74 counties in 16 provinces, municipalities and autonomous regions, supporting nearly 24,000 rural doctors and benefiting 3 million grassroots families. In February 2023, the Rural Doctors Program received the “Shanghai Charity Award”, the highest government prize in the field of philanthropy in Shanghai.
In addition to rural revitalization, Fosun combines its industrial advantages to continue to carry out public welfare activities in the fields of culture, education, art, youth entrepreneurship and employment.
As an official member of the global cooperative initiative for “malaria elimination” advocated by the World Health Organization (WHO), Fosun Pharma’s independently developed and manufactured Artesun (artesunate for injection) has entered Africa through the Belt and Road initiative and became a great example of China “assisting Africa in fighting against malaria”. To date, it has treated more than 56 million severe malaria patients worldwide. In June 2023, Argesun, the second-generation artesunate for injection became the first artesunate injectable with the WHO prequalification, which will further enhance the accessibility of innovative antimalarial drugs and save more lives.
Fosun’s outstanding performance in ESG has been recognized by many sectors of society and institutions at home and abroad. In June this year, Fosun International was listed among “China’s Top 100 ESG Listed Companies”, ranking fifth overall. Fosun International received a MSCI ESG rating of AA and was the only conglomerate in Greater China with such rating.
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