Guo Guangchang: Keep Calm and Trust Fosun
rom 11 to 12 January 2022, Fosun held its annual conference, in which Guo Guangchang, Chairman of Fosun International shared his thoughts on Fosun as it turns 30 with“happiness” and “warmth” as the keywords.
Thank you all for the great efforts in 2021. The pandemic continued to affect our lives, the internal and external environments were complicated, the capital markets were in turmoil. Yet, Fosun achieved good results under such circumstances. We must give ourselves a round of applause for the extraordinary 2021.
We believe that winter is not just cold,it is also where a snowball could find wet snow and a really long hill; we believe that the future will be more challenging, but more opportunities awaits; we believe that the overseas market will recover rapidly and hope that the investment team and various industries are well-prepared; we believe that the power struggle among large countries will continue, but we believe that it will be well controlled. In the long run, we are still very optimistic about China's development. Fosun must continue to be rooted in China and adhere to its strategies of global headquarters and Global+Local twin driver.
This is very important for Fosun to be positioned as a global innovation-driven consumer group. Thirty years ago, we put forward the values of“Self-improvement, Teamwork, Performance, and Contribution to Society”, which is the most fundamental reason that led us to today, regardless of the obstacles we faced. In addition, Fosun's team, including myself, must deeply recognize and agree with our vision of“Creating Happier Lives for Families Worldwide” from our souls, which is precisely the objective of our development.
Happiness is to give warmth to others
There are many different definitions of happiness, such as financial freedom, a happy family, the company of friends, etc.However, in this winter, especially in the face of the pandemic, happiness is simply “warmth”.Our world is full of challenges and people have too many worries. Under such circumstance, what should Fosun do? To put it simply, Fosun should bring more warmth to the world.
Happiness can be a “train ticket”. The opening of the Hangzhou-Shaoxing-Taizhou Railway has made Shengzhou and Tiantai, which were not accessible by train, accessible by high-speed railway. Many friends took the initiative to call me to express their gratitude, they said it is now much easier to go home, and more convenient to visit their parents during the Spring Festival. This train ticket represents the warmth that Fosun has brought to the world.
Happiness can also be a vacation. In the past, many of our vacations were not quite as “carefree”, especially to the parents travelling with children. But since there is Club Med, with the help and company of GO team, everyone can have more time to relax during vacation. This is also a kind of warmth.
Happiness can be the protection for health.There is one thing I have always been particularly proud of: In Africa, our artesunate has saved tens of millions of lives from the dreadful disease of malaria. On this basis, we have further put forward the goal of “Building a Malaria-free World”. We want to spread this kind of health-related happiness and warmth across borders and to the world.
China’s first CAR-T cell therapy product Yescarta® was approved for launch, opening a new era of cell therapy in China
Happiness can also be a hope for a new life.Thanks to the achievement of technology innovation, our CAR-T therapy can now truly cure patients with malignant lymphoma.Many of our patients originally had only one to three months of survival, but with the use of CAR-T therapy, the complete remission has reached more than 60%, which is very prideworthy.
Thetwo core multiplier growth drivers to create heart-warming value
Fosun’s dream is not only to grow and expand its business rapidly. Everything that we do is to create value for our clients, to fulfil their needs, and to bring more warmth to this world. We have always said, we must “do the right things, difficult things and things that take time”. What are the “right things” then? From my understanding, the right things do not mean to make the most money, the right things are to use the least resources possible to create maximum value for our clients and the society.This kind of capability to create value is mostly driven by Fosun’s two core multiplier growth drivers: globalization and technology innovation.
In the current wave of deglobalization, Fosun's globalization capabilities have become very precious, so we must spare no effort to continue building Fosun's globalization capabilities. In the past, we used the term “strengthen our global footprint”, but now we are building global comprehensive capabilities, including global operational capabilities, global scientific research capabilities, and global fundraising capabilities.
Fosun aims to be a global enterprise rooted in China, so it must use global language and global standards to select a global team. We must give fair treatment to colleagues of different races and genders, building a global “winning” team that shares common cultural values.
In terms of technology innovation, the first to bear the brunt is hard technology innovation. In the Internet age, we are followers, striving to be the leaders in the process of learning. In the next wave of technology, we must invest in the future and strive to be the leaders.
Another aspect of technology innovation is creative innovation, which includes strategy for boutiques. When discussing with colleagues from Fosun Hive, I said that I expect the tiles of any two buildings in Fosun Hive's works in the future should be different. We pursue product excellence and strive for perfection. We must create products that outperform others.
In the next decade, we continue to uphold the twin-driver strategy
In the next decade, we continue to uphold the “IndustryOperations +Industrial Investment” twin-driver strategy,leverage more resources with money, buy time and grow with money. We have this gene to seize and strengthen the twin drivers.
In terms of vertical platforms, we already have Fosun Health, Fosun Alliance, Babytree, Baihe Jiayuan, and Thomas Cook. In the future, although the scale of online business platform will become very large, it will develop in the direction of boutique stores and boutique department stores, just like offline business. Vertical platforms such as Fosun Health, Babytree and Dongjia will be the boutique stores of online business in the future.
Regarding investment, we must continue to strengthen various industries through investment and we must also use industrial capabilities to support investment, so that the two complement each other. Now there is a concept called CVC, but I think what we should do is EVC, the Ecosystem VC, which is to integrate our ecosystem with investment. While investing in the future, we also need to further increase the investment integrated with the Fosun ecosystem.
Two kinds of wealth, platform to empower dreams
One thing I have said a lot this year is that I hope everyone can gain something from Fosun. In terms of material wealth, we must provide everyone with a long-term, medium-term and short-term incentive mechanism and never make "empty promises", but then I added one more point that there are two kinds of wealth in the world: one is material wealth and the other is spiritual wealth.
The growth of spiritual wealth does not mean doing whatever you want and letting it be free, but to improve one’s ability. Do people who cannot fly have the freedom to fly? Do people who do not know how to dive have the freedom to dive deep? I hope that the wealth that you can obtain spiritually is to acquire the ability matching your dreams, allowing you to fly to the highest place and to dive deep to the bottom of the ocean. Through the empowerment of Fosun platform, this spiritual wealth enables everyone to transcend the limitations of their own personal abilities and reach higher heights, bringing warmth and freedom to the world.
Start afresh with a heart-warming organization and co-entrepreneurship
People say that dreams are great, but reality is cruel, but I think this is why we should provide warmth and support to those who strive to achieve their dreams in reality. Therefore, I hope that Fosun is not just an “iron legion” that can fight wars, but also a heart-warming organization. We must give Fosun's employees more warmth, better benefits, better remuneration, and better career paths.
We are very grateful to the colleagues who have made great achievements in the battle, the colleagues who have done an excellent job outside and have joined Fosun, and the colleagues who have worked diligently at Fosun for years. Even if there may not be immediate incentives for these colleagues at present, they will receive it sooner or later. Fosun is grateful to everyone, including the society at large.
We also need to make good use of the FES system (Fosun Entrepreneurship /Ecosystem System) and use the toolbox to help Fosun colleagues achieve good operation and management. In my opinion, FES is actually a blend of excellent managers and excellent management system. Although in terms of management, our segments are very different, such as biopharmaceuticals and real estate, we believe that there are many aspects in common, such as the top priority strategy, the introduction of good teams, and a good incentive system, and some of these things are instrumental, and standardized and systematic tools that can be developed. While some of our companiesmaylack technology, some leaders may lack enthusiasm and savviness, some companies may lack experience and tools. Since we have the FES system, we now have the tools, the ability, and a dedicated team to make up for the shortcomings of each team. In this system, we are developing Fosun's own management tools, so that Fosun's entrepreneurial team, scientists and geniuses can play their best role to strengthen Fosun's ecosystem.
We must also resolutely adopt the ABCrolemanagement mechanism, resolutely implement the coopetition mechanism and oppose factionalism. All of Fosun's resources, including myself, belong to Fosun. We must be ready to regroup at any time so that we can fight better.
Fosun is turning 30 this year. In the past 30 years, we have witnessed many failures and successes.In the 30th year, we propose "Co-entrepreneurship and Co-sharing" and a better incentive mechanism, so that all those who work hard for Fosun canenjoyFosun’s multiplier growth, share Fosun's value with customers, carry out more public welfare undertakings for the society, and we must practice the original corporate aspiration of “Self-improvement, Teamwork, Performance, and Contribution to Society”. We believe in the power of ecosystem, we believe in the power of organization, we believe in the importance of entrepreneurship, and we believe in the culture of sharing.