The Logic Behind Fosun’s “Weight-loss” Actions: To Focus on the Core Businesses and Deepen Innovation and Globalization

Over the past few months, successive “Weight-loss” actions by Fosun International (HKEX: 00656) have come under the spotlight in the capital market.

On the evening of 6 November 2022, Yuyuan Inc., a subsidiary of Fosun International, announced its proposal to transfer 654 million shares, or a 20% equity stake, in Zhaojin Mining Industry Co., Ltd. (“Zhaojin Mining”) to Jinshan (Hong Kong) International Mining Co., Ltd., a wholly owned subsidiary of Zijin Mining for a total consideration of HK$4.395 billion. In addition to Yuyuan Inc.’s previous stake reduction in Zhaojin Mining on the secondary market in September 2022, Yuyuan Inc.’s shareholding in Zhaojin Mining would be declined to 1.26%. On 19 October 2022, Fosun proposed to transfer 60% of the equity of Nanjing Iron & Steel United Co., Ltd. (“Nanjing Nangang”) to Shagang Group at a total consideration of no more than RMB16 billion.

Gearing up for Strategic Transformation

After its investment in both Nanjing Nangang and Zhaojin Mining for a long period of time, the successive proposed disposals of its equity stakes in the two companies are expected to generate a total of RMB20 billion in return of funds. Considering the proceeds from the disposals and the dividends received from the two companies over the past 20 years, the divestments have proven quite successful in terms of return on investment. However, we cannot simply explain Fosun’s recent disposal of its assets and partial equity stakes by an ordinary logic in investment.

Fosun’s divestments are aimed at effective debt control and enhanced capital security. Through an accelerating strategic business transformation and disposal of certain assets, Fosun is able to focus on its core business of fast-growing family consumption.

The market has viewed Fosun’s recent divestments favorably. A number of investment banks, including Morgan Stanley, Citi and Goldman Sachs, have issued research reports that support Fosun International in its recent moves and reiterated their “buy” ratings on the company. They expected Fosun’s disposal of its non-core assets in an effort to decrease its debt-to-equity ratio, mitigate the concerns about its liquidity, streamline its asset portfolio and focus on its core businesses. Citi mentioned in its research report that after a number of mergers and acquisitions, spin-offs and disposals of non-core assets, Fosun has become a more diversified conglomerate with an asset-light business model that is well-positioned to benefit from the increasing discretionary spending by Generation X in China. In Citi’s view, the successful disposal of shares in Nangang at the right price is the right thing to do as it will enable Fosun to redeploy its resources for better uses.

Fosun’s Successful Exit Strategy Creates “Win-Win”

The Shagang Group’s share price hike hit the limit to trigger suspension of trading on the stock market on the day when news about Fosun’s disposal of shares in Nanjing Nangang was released. Zijin Mining’s share price surge also hit the limit to trigger suspension of trading on the stock market when the word was out that it would acquire shares in Zhaojin Mining for a consideration of RMB4 billion.

According to people closed to Fosun’s disposal of Nanjing Nangang shares, there were nearly 20 prospective buyers who bid for the equity stake. Fosun gave preference to those potential partners who would facilitate the long-term development of Nanjing Nangang, hoping that the transaction would benefit all parties involved. In Zijin Mining’s public statement about its acquisition of Zhaojin Mining, Zijin Mining said that after it became the second largest shareholder of Zhaojin Mining, the two parties would be able to give their respective advantages full play, further consolidating and enhancing both companies’ positions in the global gold mining industry.

After its “Weight-loss” actions, Fosun will continue to grow and strengthen its well-established business segments, including health, happiness and wealth. For instance, Fosun will concentrate more resources on the research and development of innovative drugs by Fosun Pharma, the development of “Grand Yuyuan” and the growth of Shede Spirits, etc. In the long run, there is huge room for growth in China’s consumer market. Focusing on its main businesses and taking measures to consolidate its role in the real economy is undoubtedly a thoughtful decision made by Fosun on surmounting the volatility of an economic cycle.

Recently, Fosun Pharma, Yuyuan Inc., Nanjing Iron & Steel and Hainan Mining, which are the four listed companies under Fosun, held a joint presentation of their third-quarter results for 2022 at the Shanghai Stock Exchange. Guo Guangchang, Chairman of Fosun International, attended the presentation through a video conference and said that technology innovation and China’s opening-up to the global market at a higher level held the key to fostering a new development pattern. In order to grasp emerging opportunities, Fosun will “focus on its core businesses, deepen innovation and globalization”.

Topic: Press release summary

Sectors: Metals & Mining, Daily Finance

From the Asia Corporate News Network

Copyright © 2022 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

The Soundbridge Logic Opportunity Fund I Closes On $125 Million For Its First Music Technology, Entertainment, and Intellectual Property Venture Fund

“The unique nature of the fund combined with the experts involved in the organization, creates a tremendous investment opportunity for those interested in the entertainment and music industry,” commented Lawrence Goldfarb, a managing member and co-founder of Soundbridge, adding “the unique and collaborative process creates mutually beneficial opportunities for funders and founders in a cooperative and synergistic process rarely seen in traditional venture financing.”

Soundbridge Logic (“Soundbridge’) announced today it has closed on $125 million for its new proprietary strategy to streamline the valuation process between founders and investors in venture capital investing for music technology and entertainment companies and music and entertainment-related intellectual property. This is the first phase of capital raising for Soundbridge in its new collaborative funding process designed to yield a quicker turnaround to capital finance while fostering a mutually beneficial alignment of interests in the entertainment and music verticals, where intellectual property and technology meet. With most of its capital already spoken for, Soundbridge is already in the market raising capital for its Soundbridge Logic Opportunity Fund II.


The partners of Soundbridge Logic bring over 100 years of music industry experience and global investment expertise to its portfolio of investment companies. Founders of the company include veteran hedge fund manager Lawrence Goldfarb, multi-platinum musician Chad Taylor, award-winning songwriter, and co-producer Patrick Dahlheimer; Grammy nominated Jason Pittman and music producer Daniel Pollard. As a result the company has quickly gained traction with music and entertainment entrepreneurs and executives eager to avoid the pitfalls of traditional Silicon Valley venture models.


“The unique nature of the fund combined with the experts involved in the organization, creates a tremendous investment opportunity for those interested in the entertainment and music industry,” commented Lawrence Goldfarb, a managing member and co-founder of Soundbridge, adding “the unique and collaborative process creates mutually beneficial opportunities for funders and founders in a cooperative and synergistic process rarely seen in traditional venture financing.”


Soundbridge Logic executives believe that their investment model and industry expertise can build long-term alliances amongst and between its portfolios companies in the music and entertainment sectors. In addition, the fund’s unique business model will open new opportunities and foster the creation of new intellectual property that its portfolio companies would not otherwise have access to.



About Soundbridge Logic


Soundbridge Logic is a privately held investment company whose partners share a passion for bringing people together to connect founders and investors in the music, gaming, and entertainment industries. Unlike most other venture funds, the Soundbridge team is passionate about protecting content creators and founders by adopting and embracing new technologies, media platforms, and distribution systems. Their unique investment process connects the technology, distribution, creation, infrastructure, licensing, and products required to drive and define market-leading solutions within each defined category. According to Soundbridge Logic founders Lawrence Goldfarb and Chad Taylor, Soundbridge’s directive is to enhance and scale emerging platforms or disrupt an industry entirely by funding cutting-edge proprietary intellectual technology. For information about Soundbridge Logic, visit its website at



Quote Logic: Native Mobile App for Creating Instant Quotes for LED Lighting Industry to Launch

Lighting and Software industry experts come together to create a revolutionary quoting app poised to disrupt the way bids are created for both retrofit and design build projects. Quote Logic; See it. Quote it. Send it!

LAS VEGASOct. 25, 2021PRLog — Today, Quote Logic, a leading U.S. based No-Code software development company is gearing up to launch its newest product, a retrofit and design build software platform designed specifically for the lighting industry.

Introducing the Quote Logic app. This leading-edge application is designed to streamline proposal submittals, combining sales calls and job walks by enabling sales agents to do a walking audit of job sites quickly and effectively like nothing seen before. Lighting representatives will now walk job sites and collect all necessary site data, including snapping reference photos, while simultaneously building formal quotations for their clients directly from their cell phones.

Building small and large job proposals that include accurate and detailed ROI calculations for design build or retrofit LED lighting solutions has never been easier.  Within the included retrofit software platform, lighting professionals are now able to create bids for both new installations and retrofit projects.

Quotations can be instantly submitted along with useful product marketing literature such as spec sheets and sell sheets, as ready to e-mail PDF files directly from their mobile device before they leave the job site.

Unlike other quoting software for the lighting industry, Quote Logic has been designed as a lite and agile program poised to do much more for lighting manufacturers and lighting distributors than just take fixture counts and quote projects. “This has been a three-year development journey.  We have created a truly versatile, lighting industry mobile application.  An easy to use app that not only enables super-fast quoting, but also creates a lighting industry marketplace.

Our two-year road map includes the creation of a community hub that includes a social media platform where lighting professionals, electricians, distributors, and end users can all interact.  Users can post pictures of projects, ask questions, you name it. We basically are creating an environment where lighting industry manufacturers, lighting representative agencies, lighting distributors, lighting contractors and customers can openly ask and discuss anything they want related to the lighting industry,” says co-founder and CEO, Raul Klein.

“Our team is amazing!  Our 30+ years of experience and knowledge in both the traditional lighting industry and the recent evolution to LED lighting has led us to create this product using the most advanced, Next Gen No-Code 2.0 software platform available. We have the most effective software development team on the planet working on our application, specifically for the lighting industry,” says co-founder and CTO, Ivan Assenov.

The first iteration of the Quote Logic application ( is set for release by November 2021, with more enhancements, useful “bells and whistles”, and CRM integration capability quickly behind.  “There is nothing we aren’t willing to do for the lighting industry, and there is nothing that we can’t do with our product and team in place!” added Klein.


Quote Logic is a leading U.S. based software technology company ( focused on creating the most robust, simple, user friendly, and truly mobile Software as a Service (SaaS) project quoting platform for the lighting industry. Quote Logic’s ability to create leading edge NoCode Elements enable the platform to quickly and easily pivot while offering the ability to perform semi-customization to the app for individual user needs.