Fosun CEO Liang Xinjun Steps Down, Citing Health Reasons

(Beijing) — Liang Xinjun, CEO and vice chairman of financial conglomerate Fosun International Ltd., has resigned, citing health reasons, after leading the company for 25 years.

The announcement was made in a statement to the Hong Kong Stock Exchange on Tuesday night.

Ding Guoqi, executive director and senior vice president, also stepped down to “devote more time to family commitments.”

Liang, 48, co-founded the company in Shanghai with Chairman Guo Guangchang and other members in 1992 and has helped turn the company into a global acquisitive conglomerate, whose businesses include Portuguese bank Banco Comercial Portuges and One Chase Manhattan Plaza in New York City. Wang Qunbin, another executive director, will replace Liang as CEO.

“Now, looking back, I’m thinking this is like climbing mountains,” Guo said in a letter to employees that addressed Liang’s resignation. “Sometimes I don’t consider if other people are tired. … All I have been thinking is that the team can walk farther together. But in reality, some team members now need to take a break.”

The resignations of Liang and Ding will have some impact on the company in the short term but “we have to turn bad things into good news,” Guo told reporters and analysts in Hong Kong on Wednesday.

The personnel reshuffle was announced shortly after the company released its annual earnings report. Its profit hit a record high of 10.27 billion yuan ($1.49 billion) in 2016, a year-on-year increase of 27.7%.

Fosun’s stock dropped 2.7% to HK$11.42 ($1.47) at the start of trading but bounced back to HK$11.88 at 2:20 p.m.

Contact reporter Chen Na (nachen@caixin.com)