(Yicai Global) March 29 -- Liang Xinjun, chief executive and co-founder at Chinese multinational Fosun International Ltd. [HKG:0656], resigned for health reasons yesterday, just one day before the firm’s annual earnings report was released. Ding Guoqi, executive director, sent in his notice the same day.
During today’s release, the investment conglomerate’s co-founder, Guo Guangchang, said that every company is a football team and needs to win games their own way. When some players need a break, new players need to be brought in, he added, saying companies cannot always count on more experienced players to win the games and that Fosun will always be a passionate team.
The company’s profit crossed the CNY10 billion (USD1.45 billion) mark for the first time last year, after climbing 27.7 percent on the year. However, share prices of all of its subsidiaries fell today. Shanghai Fosun Pharmaceutical Group Co. [SHA:600196] closed 2.35 percent lower on the day after recovering from an intraday drop of 4 percent. Fosun International kept falling from morning highs and ended the day with a 2.26 percent gain.
In November 1992, Guo and Liang set up Guangxin Technology Consulting Co., Fosun’s predecessor, with registered capital of just CNY38,000 (USD5,516). The company was named after the two co-founders (‘Guang’ from Guo Guangchang and ‘Xin’ from Liang Xinjun).
The Fosun group is now an international conglomerate worth more than CNY430 billion.
Liang, 49, was the group’s vice chairman and chief executive, and president of Fosun International. He oversaw major investment projects in information technology and media firms, winning a number of international and regional awards including the Best CEO of Asia award, presented by Corporate Governance Asia in 2014.
“I think of myself as a man with just above average IQ, EQ and FQ,” the former executive wrote in his resignation email. When they started the company in 1992, he never imagined that it would become such a large, successful conglomerate. “It was something beyond my wildest dreams 25 years, even 10 years ago,” he said. “I’m really satisfied and look forward to seeing a more successful Fosun in the future.”
Guo said after Liang’s resignation was announced, that Liang initially suggested taking a break during a dinner one month ago. He was shocked by the decision and the pair talked it over for hours, but Liang still decided to leave.
Dubbed China’s Warren Buffett, Guo appeared at the annual earnings release meeting this morning with his new management team. “I was always looking forward to introducing our new-generation managers,” he said.