Fosun : Enters into a Strategic Cooperation with China Merchants Group

Fosun Group Enters into a Strategic Cooperation with China Merchants Group

2016-01-12

January 12, 2016, Hong Kong, Fosun Group has signed a strategic cooperation framework agreement with China Merchants Group at the Hong Kong headquartersof China Merchants Group. Mr. Li Jianhong, Chairman of China Merchants Group, Mr. Li Xiaopeng, President of China Merchants Group, Mr. Guo Guangchang, Chairman of Fosun Group and Mr. Liang Xinjun, Vice Chairman and CEO of Fosun Group attended the signing ceremony.

According to the agreement, both parties will optimizetheir strengths and establish a comprehensive strategic partnership through strategic synergy, strategic alliances, business cooperation and joint investments in order to advance their collaborations in areas including properties, finance, transportation and infrastructure, strategic emerging industries, etc.

Mr. Li Jianhong, President of China Merchants Group said, 'As one of the most globalized private enterprises in China, Fosun Group can highly complement China Merchants Group in various business areas, thus, today's agreement signing is timely and essential to both of us.Currently, we have started favorable co-operationsin property development and venture capitalinvestments. Through establishing a strategic partnership, both parties can better exploit their respective advantages, strengthen synergies, complement each another and foster mutual development. Signing of this agreement marks the first step towards our partnership, based on which we establish mechanisms for regular meetings of our senior executives and joint working groups to implement further collaborations.'

Mr. Guo Guangchang, Chairman of Fosun Group said, 'We are delighted to enter into a strategic cooperation with China Merchants Group, which is one of the longest-standing state-owned enterprises with best corporate governance standards in China. Fosun Group has established global advantages in industries including insurance, private banking, healthcare & happy lifestyle while China Merchants Group has competitiveadvantages in industries including integrated finance, property development, port, highways, energy transportation and logistics in China. We hope both parties can actively promote sharing and exploit synergies in each other's competitive resources based on principles of market operations, in order to deepen cooperation and enhance efficiency in collaborated projects.'

In October 2014, Mr. Liang Xinjun, Vice Chairman and CEO of Fosun Group was invited to attend 'Innovation in Industry and Finance Forum' organized by China Merchants Group. He explained Fosun's experiences in development strategies and synergies between industrial and finance operations. Mr. Li Xiaopeng, President of China Merchants Group indicated that China Merchants Group and Fosun Group have a solid background of integration in industry and finance and the willingness to actively use this advantage to achieve strategic targets. He therefore suggested that both parties could establish a comprehensive strategic cooperation agreement. Both parties then formeda working group and completed the draftingof theagreement.

Meanwhile, both parties have formed working groups in various business segments for comprehensive synchronization. Currently, China Merchants Shekou Industrial Zone Holdings and Fosun Property Holdings have begun to promote in-depth cooperation in the property sector including secondary projects, industrial resources, property financial and light-asset operations. Co-operationsin other business segments are also in process.