On August 27th, A delegation of over 100 entrepreneurs from Guizhou Province led by Li Hanyu, Vice Chairman of the CPPCC Guizhou Provincial Committee and Chairman of Federation of Industry and Commerce and Long Chaoya, Deputy Director-General of Guizhou Provincial Commission of Economy and Information Technology and Director-General of SME Bureau visited Fosun Group and Fosun Pharma accompanied by relative staff of Shanghai Stock Exchange. They were received by Chen Qiyu, Vice President of Fosun Group and Chairman of Fosun Pharma together with directors in charge of various investment units of Fosun Group.

Mr. Chen Qiyu delivered a speech on the development of Fosun Pharma with the help of capital market, from a small enterprise to a big and strong group, and has kept improving its R&D and internationalization capacity.

Mr. Li Hanyu and Mr. Long Chaoya said that Fosun Pharma’s experience is very useful for reference to help private enterprises of Guizhou open their mind and broaden their horizons and realize a better development. Meanwhile, Fosun Pharma and the private enterprises of Guizhou may have business interest in each other. They can achieve mutual development through cooperation on business and learning from each other. They looked forward to the successful cooperation of both sides and achievement in the future.

Following is the summary of Mr. Chen Qiyu’s speech.
Fosun has started the exploration of pharmaceutical industry since the very beginning of establishing the business in 1992, though Fosun Pharma was founded in 1994. In 1998, Fosun Pharma was listed at Shanghai Stock Exchange with the support of Shanghai municipal government. From the angle of whole Fosun Group, It brought not only capitals but also great improvement of its brand and image which led to rapid development not only in Fosun Pharma but also in Fosun Group and other business units in the historical period of the end of the 90s.

After going public, Fosun Pharma achieved strategic transformation and leapfrog development through good interaction with capital market and difference sources of financing such as IPO, Allotment, Convertible Bond and H-shares issuance. Financing through capital market also helps the company invest in Sinopharm, the largest pharmaceutical distributor in China, which greatly promoted the development of Chinese pharmaceutical industry.

In 2012, Fosun Pharma was listed at Hong Kong and become a company both listed at Hong Kong and Shanghai. It is the successful listing experience in Shanghai Stock Exchange more than a decade ago and standardized management and transparency that made Fosun Pharma enter Hong Kong market. Fosun Pharma paid great attention on the standardized management and discipline since its establishment, which helped the company get all listing documents ready within two months from the initiation of preparation of going public in February 1998, and successfully listed after approved by China Securities Regulatory Commission in a short time.

More than a decade after going public, Fosun Pharma has kept improving its regulations and structures with the guidance of Shanghai Stock Exchange. It developed rapidly by following the requirements and rules of stock market to improve its management structure. The rules and requirements by Hong Kong Stocks did not baffle Fosun Pharma while going public in Hong Kong in 2012. Fosun Pharma received acknowledgement from international capital market and further improved the company’s brand and image as well as international reputation after successfully going public.

Going public at Hong Kong helped the financing of the company in one hand; in the other hand it helped the international development and innovation and R&D. In the beginning of this year, Fosun Pharma took two meaningful internationalization actions. Firstly, it acquired Alma Lasers, an Israeli company as well as world well-known cosmetic and medical lasers manufacturer. Alma Lasers is a leading enterprise of the segment market and maintains a rapid growth with annual turnover of nearly USD 100 million in 2012, and its business covers over 60 countries and regions including USA, Germany and Brazil. Secondly, the investment of the American company Saladax Biomedical made Fosun Pharma the single largest shareholder and had the authorization of the company’s product distribution and manufacture in China. The investment in overseas companies is closely connected to its presence in international capital market through going public at Hong Kong. Meanwhile, Fosun Pharma kept increasing its investment in innovation and R&D, which resulted in a growth rate of 61.58% in R&D expense comparing last year from the data of semi-annual report. In terms of drug R&D system, Fosun Pharma insists “the combination of generics and new drug” and keeps increasing investment in the “4+1” R&D Platform to build its innovation system and improve the R&D capacity.

After going public, Fosun Pharma insisted standardized management and has always paid attention to its social responsibilities. It focuses on employees and their sustainable development inside the company; meanwhile it continues to help those in need in the society.

In the past, Fosun Pharma always shared its experiences and lessons learned from the development of the company to its partner enterprises to help their development through cooperation. In the future, Fosun Pharma is willing to participate in the development of small and medium-sized enterprises and help more enterprises realize healthy and orderly development by contributing its intelligence and building a good platform.