FOSUN refocuses on core sectors

Chinese multinational conglomerate Fosun International (0656) will now focus on two key sectors - biotech and healthcare and entertainment and tourism - after disposing non-core assets to repay its debt over the past few years.

Chairman Guo Guangchang said the conglomerate must now shift to lighter assets in the sectors and also focus on winter tourism business.

Once dubbed the Shanghai Hutchison, Fosun once went on a global spending spree buying into pharmaceuticals, healthcare, fashion, consumption, tourism, finance, property, natural resources, technology and manufacturing.

Its purchases included French resort brand Club Med, English Premier League club Wolverhampton Wanderers and Portugal's biggest bank Millennium BCP.

But the rapid expansion hurt its liquidity, with Moody's lowering its credit rating in the Hong Kong-listed firm by one notch to "negative" in 2022.

Guo also confessed that some assets acquired in the past couldn't be developed sustainably.

He said its biggest progress last year was the disposal of Fosun's 60 percent stake in Nanjing Nangang for 13.58 billion yuan (HK$14.8 billion).

Guo said it is now "very difficult" for business operations, but he believed the "worst was over."