Caixin
Nov 11, 2017 02:42 AM
SOCIETY & CULTURE

Fosun Founder Guo Guangchang Steps Down From Tech Unit

“After the change, Guo will focus more on the business of the parent company and the group’s strategy setting,” Fosun Group said in a statement. Photo: Visual China
“After the change, Guo will focus more on the business of the parent company and the group’s strategy setting,” Fosun Group said in a statement. Photo: Visual China

Chinese billionaire Guo Guangchang, a co-founder of Fosun Group, stepped down as chairman and legal representative of the investment conglomerate’s steel and tech unit Shanghai Fosun High Technology Group.

Fosun High Technology’s business registration document showed that the company updated its management information on Nov. 8, replacing Guo as chairman and legal representative with Chen Qiyu.

Fosun High Technology is a wholly-owned unit of Fosun Group with businesses including steel manufacturing, pharmaceuticals, finance and real estate investment. Guo has been the chairman and legal representative since 1994.

Chen, 45, is currently executive director and co-president of Fosun Group.

Guo’s resignation from Fosun High Technology caught market attention, raising speculation that the 50-year-old billionaire may retire. As one of the five co-founders of Fosun Group, Guo ranks 22nd on the Forbes 2016 China Rich List with a net worth of $6 billion.

“I am still young and don't want to retire yet,” Guo wrote in response on his personal WeChat social media account. He also pointed out that he retains his post as chairman of Fosun Group.

In a statement to Caixin, Fosun Group said the leadership shuffle at Fosun High Technology is a normal personnel adjustment that will offer younger managers greater opportunity and responsibility. The change will neither affect Fosun High Technology’s business operation nor the company’s actual ownership, Fosun Group said.

“After the change, Guo will focus more on the business of the parent company and the group’s strategy setting,” the company said in the statement.

Established in 1992 as a real estate developer and pharmaceutical manufacturer, Fosun Group has grown into one of China’s largest private companies with a wide range of businesses covering real estate, financial services, mining, pharmaceuticals, retail and entertainment.

The company is also among a group of prolific Chinese acquirers along with Dalian Wanda and HNA Group. In recent years, Fosun Group has made investments in France’s Club Med resorts chain, Greek jeweler Folli Follie, Canadian entertainment company Cirque du Soleil and U.S. insurer Meadowbrook, among others. Fosun Group’s total assets exceed 500 billion yuan ($75 billion), according to the company website.

Contact reporter Han Wei (weihan@caixin.com)

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