Fosun International hosted a call
A notice surfed on Fosun International (656.HK) website after 4pm local time,suggesting there would be a conference call at 6pm. Subsequently, a brief callwas hosted by two of the four founders, Mr. Liang Xinjun and Mr. WangQunbin. Shortly after the call, the notice disappeared on the website, whilemany versions of the transcripts emerged on news media. As a reminder,Fosun International is the parent company of Fosun Pharma, while Fosun Intlowns 39.83% of Fosun Pharma. The founder, Mr. Guo, owns 41.35% of FosunIntl, translating into 16.47% of the ownership of Fosun Pharma. Additionally,Mr Guo also holds 114,075 A shares of Fosun Pharma, representing 0.01% ofthe total issued A shares as of June 30, 2015.
Key messages from the call
The Vice Chairman, Mr. Liang Xinjun, articulated the following during theteleconference: , 1) he did not believe the company is in crisis mode; 2) Mr.Guo is in Shanghai, assisting an investigation of certain facts for theauthorities; 3) Mr. Guo is able to participate in decision-making of the companyby multiple approaches, including teleconference. Regarding the scope of theinvestigation, Mr. Wang responded that the investigation is mostly focused onthe personal side. Importantly, the company indicated there had been nodefault on any loans, and that unfinished projects are ongoing in an orderlyfashion.