- Fosun International awarded the "2020 Global Fixed-Income Investor Relations" award by Institutional Investor Research
- Release Time: Mar 09, 2021
Institutional Investor Research, the world's leading investor relations research institution, notified Fosun International ("Fosun" or the "Company") on March 8, 2021 that Fosun ranked 2nd place in "Best Investor Relations - High Yield" and "Best Use of Debt - High Yield" in the Capital Goods/Industrials category of "2020 Global Fixed-Income Investor Relations".
A total of 1,114 fixed-income investors from more than 600 financial institutions across the globe took part in the selection in 2020, and 932 companies were nominated. Fosun International ranked 2nd among global high-yield companies for exceptional performance in debt investor relationship management and the issuance of overseas bonds.
An honor that recognizes Fosun’s financial transparency
As an innovation-driven conglomerate focusing on family consumption, Fosun offers and runs a host of widely known products and brands and continues to improve operational efficiency by enhancing the operational capabilities of its global core businesses. In doing that, the company has been unceasingly improving its financial statement disclosures, working out clear and effective financial strategies, communicating with investors in a timely manner to get them clued up on the financial standing of Fosun, and helping them make investment decisions in a timely and efficient manner.
In 2020, Fosun continuously optimized debt duration through effective means of debt management and kept investors abreast of financial updates in a timely manner. Fosun offered to repurchase four outstanding USD-denominated bonds in June, October and December 2020 and January 2021 respectively, thereby effectively extending the maturity of outstanding bonds and cutting financial costs. During the repurchase, Fosun convened several teleconferences for institutional investors, held close talks with major bond investors, and actively responded to questions raised by investors on the group company's financial statements in order to help investors make the right investment decisions. All these efforts clearly reflected Fosun's unwavering pursuit of open and transparent financial disclosures and have won the extensive recognition of investors and their confidence in Fosun’s credibility.
An honor that recognizes Fosun's zeal for strategic transformation
As a global company deeply rooted in China, Fosun has been upholding a globalization strategy driven by both Chinese and international markets and has introduced a string of world-class sectors into China with strategic foresight. The COVID-19 outbreak in 2020 compelled many industries to seek sustained and stable development under the mounting pressure, which made Fosun even more determined to optimize its asset allocation and focus on core sectors. In addition to adopting a variety of measures to fend off risks, Fosun quickly seized the opportunities created by the crisis and successfully shifted from exploring to optimizing regional, industrial, and investment strategies.
At the onset of the outbreak, Fosun quickly availed itself of its easy access to global resources and promptly sent protective supplies to the front lines of the fight against COVID-19, with the deed winning Fosun great praise from all sectors of society. Its subsidiary Fosun Pharma quickly mobilized resources and successfully developed the 2019-nCoV Nucleic Acid Detection Kit, which has been included in the WHO Emergency Use Listing (EUL) and approved for use by the European Medicines Agency, the United States Food and Drug Administration and the Therapeutic Goods Administration (TGA) of Australia.
Furthermore, building upon its deep expertise and strong innovation capabilities in the realm of big health, Fosun immediately applied itself to vaccine development after the outbreak. On February 27, 2021, the first batch of COMIRNATY (BNT162b2), the COVID-19 mRNA vaccine jointly developed by Fosun Pharma and BioNTech, arrived at Hong Kong International Airport from Frankfurt Airport in Germany. These doses were supplied to Hong Kong and Macau, with the doses for Macau being then transferred from Hong Kong International Airport to Macau via the Hong Kong-Zhuhai-Macao Bridge. On March 3, the very first injection of COMIRNATY vaccine was administered at Macau's Centro Hospitalar Conde de Sao Januario, marking the official launch of COMIRNATY vaccine in Greater China. According to a press release of the Hong Kong Special Administrative Region, from March 3, the Hong Kong Government started to inoculate citizens in the five vaccination priority groups with the COMIRNATY vaccine at seven community vaccination centers run by the Hospital Authority. On March 8, the Hong Kong Government announced it would further expand the vaccination priority groups to cover seven categories, i.e., employees working in the catering, tourism, public transport, property management, construction sites and schools, representing a total of 1.3 million Hong Kong residents.
An honor that recognizes Fosun's efforts in the rating sphere
Fosun has a dedicated rating team responsible for overseeing its key rating indicators and putting forward an array of recommendations and plans to shore up Fosun's sound development. In close collaboration with Fosun's investor relations team and financing team, the rating team personally takes part in various investor meetings to address and assuage investors' concerns over rating issues in the first place, and to continuously optimize, maintain and heighten Fosun's business and financial indicators.
In doing so, Fosun's rating team has built a bridge between bond investors and international rating agencies by elucidating the application of industry rating methodology to the company itself, drawing rating analysts’ attention to Fosun's industrial and regional highlights, and guiding investors to gain a better understanding of Fosun for prompt and effective investment communication.
An honor that recognizes Fosun's harmonious investor relations
Throughout 2020, Fosun has kicked off a series of large-scale conferences for international debt investors, including non-deal roadshows of its business performance in 2019 and in the first half of 2020, investor conferences on bond issuance, etc. Fosun has also held a number of small-sized meetings with institutional investors to deliver timely and detailed reports on its business and financial conditions, winning high recognition from the capital market.
In spite of the heavy blow of COVID-19 on the capital market in 2020, Fosun has leveraged its long-accumulated pool of quality investors and efficient market promotion to pride itself as the first non-real estate Chinese company to successfully issue a 4-year bond in June 2020, thereby reactivating the high-yield bond market and setting a stellar example for other Chinese high-yield bond issuers. Fosun completed the issuance of 5-year bonds in October and December 2020, and further issued a 6-year bond in January 2021. In the meantime, Fosun also actively extended the duration of existing bonds and provided investors with long-duration and non-real estate investment opportunities in the high-yield sectors. The relative stability in the secondary market throughout the year after the issuance of the bonds turned out to be a win-win situation for both Fosun and investors, which enhanced Fosun's good reputation and image in the capital market and shored up the sustained profitability of the investment portfolios held by international bond investors.
Whilst COVID-19 continues to pose daunting challenges to global bond investors and issuers, how do we forecast the dynamics of COVID-19 pandemic, make timely strategic adjustments, maintain good liquidity, efficient operations and international ratings, and actively and effectively communicate with debt investors? To deal with these questions, more demanding requirements were imposed on the investor relations team. Upholding the mission of "creating happier lives for families worldwide", Fosun will harness its unrivaled foresight and global resources to discover the best opportunities in this round of crisis, expedite asset optimization and industrial integration, and further its quest to become a world-class family consumption