Strengthen Fosun’s Focused Strategy With Evolution of the Organization

Dear Fosuners,

At our annual meeting in January, I had said that 2019 was hard, and 2020 could be even harder. Yet I did not expect to encounter the novel coronavirus crisis in early 2020. First of all, I would like to take this chance to thank all the Fosuners across the world for your contribution to the fight against the epidemic.

The world is in an era of rapid change. The constant evolution of technology promotes the continuous improvement of human living standards. In the meantime, the frequent occurrence of black swan events has posed constant challenges for the enterprises. Nevertheless, identify opportunities in challenges and seize opportunities arising from changes are the core strengths of Fosun.

For Fosun, I remain optimistic that we will see rapid and steady growth in the next decade. Our priority at this stage is to achieve strategic focus. Fosun is dedicated to becoming a technology-driven consumer group. The task is arduous and important. It is for this reason that I hope Wang Qunbin to take the role as Co-Chairman and spare more time from the complicated routine affairs, so that he can devote more energy to the Company’s top-level planning, strategy formulation and team development with me. We will jointly solidify the global presence of Fosun and ensure the Group’s stable business development.

At the same time, we also witnessed Chen Qiyu and Xu Xiaoliang’s outstanding achievements in our three major businesses of health, happiness and wealth as the Co-Presidents of the Company. They have accumulated extensive experience in their industry fields. In the future, I hope they can continue to contribute to the Company’s industry operations while further expanding their boundaries. As the Company’s Co-CEOs, they should completely take over the daily business operation and management of the whole company, and assume more responsibilities for the development of Fosun.

Fosun has established an effective corporate governance structure and a systematic operational management system. Our stable core management can also better lead and safeguard Fosun's future development. Based on such solid foundation, the change of positions and the adjustments to job duties are accompanied by more responsibilities, which also showcase Fosun's determination and confidence in its focused strategy.

Fosun's core asset is always “Talent”. The steady development in the next ten years will not be achieved without the establishment and improvement of our talent pool. Fosun’s global partner, as the Company's highest-level talent pool, is a major organizational protection for the implementation of the Company's strategy and the sustained and stable development of results performance. The goal of global partners is not just to be a general, but to further enhance global leadership and become a supreme commander. 

We have numerous talented global partners. They have different characteristics, with some from different industries, some from various functional lines, and others from the management team of our core enterprises. In my understanding, the standard of a general is to specialize in certain fields and able to break new ground for the Group in their familiar fields. However, as a supreme commander, our global partners should not only master the expertise in the industry, functions, investment fields, but also boast a forward-looking big-picture thinking.

The emergence of more supreme commanders entails an organic job rotation system in the Group and the industry. The purpose of job rotation is to actively push boundaries and achieve the evolution of capabilities through continuous learning and trial. The significance of job rotation lies in that it can help us further complete the transformation from “appointing the suitable employees to the relevant positions according to the established strategy” to “finding competent leaders to lead the team”. In addition, it can also help improve the competence of our senior executives, and truly nurture an elite management team with profound industrial experience and global vision.

While Fosun is dedicated to developing and strengthening its industry operations, we also spare no efforts to enhance our human resources and financial management systems. As such, in this job rotation process, we hope our CFO Gong Ping and CHO Pan Donghui, as the first batch of Fosun’s global partners, can capitalize on their extensive experience and accumulation in the industry to further improve our global industry operation capability and accelerate our strategic transformation to a technology-driven consumer group. I also hope that after Xue Linnan (being re-designated as the Vice Chairman of Fosun Hive from CFO of the Company) and Mu Haining (being re-designated as the Vice Chairman of Fosun Technology and Financial Group from CHO of the Company), take over the responsibilities of industry operations, they can drive the horizontal and vertical integration and synergetic development of inter-industry business and resources, based on the Group’s core strategy and vision.

Though the work is not easy, those who dare to pursue their dreams are the happiest. Despite the unusual start of the new decade, and thanks to the wisdom and diligence of all Fosuners, I am fully confident we are set to create more excellent products that can fulfill the needs of families in health, happiness and wealth in the coming decade, with a view to creating happier lives for families worldwide!

Thank you.

Guo Guangchang

21 February 2020