Fosun International Limited (656) Earnings Call Transcript & Summary

[Interpreted] Dear analysts and investors and rating agencies and media friends, good morning, everyone. I'm [ Hiwei Bo ]. Welcome to Fosun International 2019 Annual Results Announcement. And today, we are very honored to have our Chairman, Mr. Guo Guangchang; and also Executive Director and also Co-Chairman of Fosun International, Mr. Wang Qunbin; Fosun International Executive Director, Co-CEO, Mr. Chen Qiyu; Fosun International Executive Director, Co-Chairman and CEO, Mr. Xu Xiaoliang; Fosun International Executive Director, Senior Vice President and CFO, Mr. Gong Ping. Well, today, we are also very honored to have the Co-CFO, Mr. Zhang Houlin; and also deputy CFO, Mr. [ Zhu Wenxian ], also with us today; and also Co-CFO, Mr. Zhang Ligang. And next, we would like to invite Mr. Gong Ping to review our annual results.

[Interpreted] Well, thank you, and I would also like to thank all the other members and executives. And welcome, and we would like to welcome all our shareholders for this annual results announcement. First of all, I would like to share with you what happened to Fosun International in 2019. First of all, the financial highlights. During 2019, we have hit a record high to get to RMB 143 billion for total revenue, up by 31%. The profit attributable to owners of the parent amounted to CNY 14.8 billion, up by 10%. In terms of industrial operating profit, up by 21%, you can see this going up. Also, in 2019 for Fosun International and on top of the interim dividend, you can see that the dividend amounts to HKD 0.4 per share. And then you can see that over the past 4 years, the CAGR of dividend per share is 24%. In terms of the leverage ratio, you can see it has been reduced to 53.5%. And then also, you can see that all together, HKD 24 for the adjusted NAV per share, the ROE went up by 12.8%. And you can see we make continued efforts on our 3 segments: health and happiness and wealth. And you can see, they made a very good contribution, and you can also see that 31% increase. And for health, 40% (sic) [ 14% ] up year-on-year. And for the happiness segment, up by 50%, so happiness segment is a very great contributor. For wealth, up by 20%. So it is driven by the internal business and also the external M&A. For Fosun product mix, it can be divided into 8 business lines. And we have our pharmaceutical manufacturing, R&D; medical and health services; medical equipment and diagnoses for health. For happiness, we can further divide it into brand consumption and tourism and culture. For wealth, household finance accounts for more than 50%, and we also have corporate finance and investment. And then for Fosun International, as an innovation-driven consumer group, we continue to consolidate our business. And you can see, top 5 subsidiaries include Yuyuan, Fosun Pharma, Fosun Tourism Group, Fidelidade and Peak Reinsurance. And for these 5 subsidiaries, we have also seen great improvement. And the average growth in revenue is more than 50 -- or 22%, and they contributed 81% of the total revenue. And then next, let's take a look at the growth of the profit in different segments. First of all, for the happiness, you can see it is really and very splendid increase. You can see 24% increase from the happiness business, particularly FOLIDAY last year. And we can also see this almost doubled, and that is around 97% increase in the FOLIDAY business. And for the health business, last year, you can see that CNY 1.56 billion particularly contributed by our Fosun Pharma. And therefore, the wealth business, you can see more than CNY 2.6 billion for the insurance. And you can also see 9% increase year-on-year. And then for the finance and also for the investment, we can see the contribution is also huge. And at the same time, while we have and see the continuous improvement on the profit, we also put a lot of emphasis on the stable growth. So we want to see a very balanced business and also a very healthy balance sheet for Fosun International, and we have also put a lot of emphasis on the stable business. And by the end of last year, you can also see in terms of leverage ratio hitting 53.5%, lower from 53.7%. And currently, we think that this is a very good and also very sound leverage ratio. And also in terms of the foreign and local currency, so you can see it is around half-half. And also in terms of the debt, you can see 60 percentages, 40% in terms of the long-term and short-term debt. And I think it is really very good balance. And then we can also see that 5.06% of the debt. And in terms of liquidity, we can see the average cost of the debt is 5.06%. So we will continue to have our flexible debt mixture. And also over the past years, you can see the growth and also the rapid growth for profit. For example, in terms of the CAGR, you can see that is 23% over the past 8 years. And also for the EPS, 80% (sic) [ 18% ] for the CAGR. And for the book value per share, the CAGR is 16%. In terms of the growth of the profit, EPS and also the book value, so that is a very stable growth. We also put a lot on emphasis on the efficiency over the past 4 years. And you can also see that in terms of the stable ROE, that is a 24% CAGR of the dividend payout per share in 2019, you can see, ROE is around 12.8%. Compared with the past 5 years, you can see it is also very stable. Previously, it was around 13% for ROE. Now it is 12.8%. And also, our target is 50% (sic) [ 15% ] for our all subsidiaries. We would like to put more emphasis on the product competitiveness and also branding and R&D and also refined management. We believe that we are able to fulfill this ROE target. And we also have a stable dividend payout, and you can see by the end of March, you can see 20% for the dividend payout ratio. Yes, that is also very brilliant. Therefore, in terms of the financial highlights, and I would also like to share with you more information about some other highlights. And in 2020, in Q1, we continue our financing to optimize on our bond financing structure. As we all know that over the past 3 months and for our macroeconomic context, there are a lot of challenges. And despite that, we have also completed several rounds on our financing. For example, for our subsidiaries, we have successfully issued CNY 15.46 billion for our bonds, and the average cost in financing is 3.87%. And also CMBS for Atlantis is excluded, which is 5%. Even for the 5% for the Atlantis, the term is still very long. So overall speaking, in Q1 in the financing market, our performance was pretty good. It also shows the confidence by the investors upon the Fosun International in terms of the financing in the international market, and we also have very good management for the capital. So this is the financial highlights for Fosun International in 2019. Next, I would like to invite Mr. Chen Qiyu, Co-CEO, to share with us our corporate development and also the prospect.

[Interpreted] Well, thank you. Thank you, Mr. Gong Ping, Next, I would like to share with you the business review. Well, for Fosun, over the past years of growth and for more than 2 decades, and currently, it is already our Phase 3 for our strategic focus. So from the start-up period from 1992 to 2010, and in the start-up period, we have completed our industrial operation. And from 2010 to 2019, we continued to move into the industrial layout and the innovation for our investment. And then since 2019, we put more emphasis on the strategic focus and the innovation-driven consumer group, and we are going to take a deep root in health, happiness and wealth, these 3 segments. And based on these key segments, we would like to build our good brands, good products and good enterprises in order to provide the services, including the health, happiness, wealth and for the global families. And we would like to take the leadership in ROE and also the sustainable growth of operating income. And then we have also seen the history of the developed economies. For example, the growth of GDP per capita and especially after USD 12,000 per capita, you can see the segments of health and happiness and wealth growing very dramatically especially for those developed countries. So the history proves the growth of health and happiness and wealth sectors. And in China, many cities and provinces, they have already exceeded USD 12,000. And then for a lot of cities in China, they have also exceeded USD 8,000 per capita and also trying to hit USD 12,000 per capita. So going forward, we believe that it is a very huge potential in the health and happiness and wealth. So we are very confident about that. In 2020, our key word for Fosun is focus. So in our annual meetings and conferences, we put a lot of emphasis on focus in order to improve our business competitiveness and also ROE. Talking about the focus, it can be divided into 4 parts. First of all is strategy focus: global family, C2M, innovation in order to come up with the ecosystem synergy. Secondly, the industry focus, and based on our health and wealth and happiness, we will continue to focus on the industrial operation. And we hope that we can take the leadership in the products and enterprise and brand in order to develop and also achieve a high ROE. And we will continue to select our operations and segments to achieve this target. Then thirdly, investment focus. And we are also going to change our strategies for the buyout. And we would like to put more focuses on the industrial reinforcement in order to do more strategic merger and acquisition. And going forward, we are also going to be more innovation-driven in order to find more growth potential in the future. Then in terms of the focus on the regions, China is still our core region to take a deep root, of course, and we have our presence in different regions, and they will continue to be our focus. And then we have developed our pyramid asset structure. And for our asset structure, it can be divided into fundamental one, high-growth one and innovation-driven assets. For the fundamental assets, it is about safe and stable. And usually speaking, they are the industrial leaders in the sector. They are able to contribute sustainable profits and cash flow. And therefore the high-growth assets, like Fosun Pharma and also FOLIDAY, they have high-growth assets. They have their leadership in products and teams, and they will continue to build a very good product. So our target for those high-growth assets is about 50% in ROE, and we are also looking forward to high profit growth. And at the same time, they need to have the innovative industrial integration capabilities. And then in terms of the innovative-driven assets, they will be our future leadership. We will focus on long-term potential and competitive investments in innovation-driven sector. Well, for Fosun in terms of our business management, in order to drive our business, we have also come up with our own system. It is referred to as an FBS in order to support our industrial operation and investment. These 2 drivers, and we would like to accurately, precisely to find our focal points. First of all, we would like to focus on the innovation barrier, and we would also to find this fast market growth with high potential in these areas. We need to have our winning potential, and we need to have the potential for globalization and through the VC and acquisition and also licensing and also joint venture and other methodologies in order to enter into those innovative and potential areas in the health and wealth and happiness. And we will continue to build on our excellent teams and come up with our incentive mechanism, empower our talents and also the continuous investment in R&D because we believe that our R&D should represent 30% of our profit before tax because we want to make more investment on innovation and also business development in order to optimize our product line and also our operation. And we need to build our BD and marketing capabilities, both online and off-line, and also the optimization of the supply chain management. By a host of measures, we would like to empower and also take the leadership. And then for different product portfolio. And on top of our self-improvement, we would also like to have the ecological empowerment on the Fosun platform, our middle office and platform and harmonization of the data, integration of the data with our clients and suppliers. For the product mix, internally, externally, we need to be more interrelated, and we need to improve on our branding capabilities and also the branding and also marketing inside and outside our brands and also the supply chain optimization and also empowerment online and off-line for different scenarios. So in this way, for Fosun, we are able to empower our ecological enterprises, and then we can have the brilliant ecosystem. And then for our health care business, our focus will be 2 dimensions. So one is the innovation leadership. And secondly, it is about our ecological synergy based on the health service ecosystem. For these 2 dimensions and also in our health care business, we will make continuous improvement on these 2 dimensions. And then in terms of for the innovation leadership, take our pharmaceutical industry, for example. Over the past 3 years, you can see our investment on the R&D is increasing. And you can see independent research, international collaboration, innovation incubation and VC investment. So actually, they have the synergies with each other. Indigenous innovation, Henlius, Fochon and Fosun Funchuang, we have launched one of our innovative product lines. Regarding international collaboration, for example, Gilead and Kite, we actually have a Fosun Kite. We also have Intuitive Fosun that have been established. We have brought in wonderful products with BioNTech mRNA product that we're cooperating with so that we bring those potential opportunity for brand-new vaccine to the Chinese market. So in terms of the medical health care ecosystem building, on the service side, we leverage the resources as well as on the side of insurance. And we combine those resources with Internet technology because the pharmaceuticals and the health care network as well as the senior care, we have a lot of off-line brick-and-mortar networks as well and how can we combine the resources. And we're improving our insurance product portfolio as well. Regarding insurance in China, we're going to focus on the development of the health care insurance. So we improve our service capabilities and combine them with insurance, then we leverage technology and Internet, so we can launch more crossover sort of integrated ecosystem-based products to serve our C-side customers. Fosun Pharma is a typical core company under Fosun Group. After 2 decades of development, we aim to become a first-class company on the mainstream health care stage of the world. We have drug-making as well as medical device diagnostics, and we are innovating. We try to follow the strategy of intelligence-driven and internationalization. So as a listed co, I'm sure our dear investors already gained a lot of insight into the development trajectory of Fosun Pharma. Then the core competency, we must build. There are 3 successful factors for core competitiveness. First, to be deeply rooted in China domestic market, to gain insight into the rule of the game and to have wonderful sales system built and with knowledge about the local regulatory system. Second successful factor is going to be how can we build preliminary established international R&D system in China and in the U.S. We ramp up on investment of R&D systems, in the meantime, in India, Israel and Europe where we have R&D capacity for drug and device development. Today, we have the globalized innovation capacity. So 24/7, from the cutting-edge forefront of technology and different regions where there's competitive innovation capacity, we're able to pull off continuous R&D in 24/7 fashion. Third, we have created a global resources network with global horizons we've adopted. We have the globally deployed BD teams, the marketing systems and also the VC network. Last year, at Fosun, there was a biopharma VC in the angel investment alliance conference already. There are over 10 alliance members who joined Fosun. So on this basis, we're continuously bringing in the brand-new globally advanced biotech that are a fit with the Chinese market. We're continuously bringing them into China. The next, the health care sector, 3 different businesses with different styles, but they are all very successful. First, the Wanbang Pharma. The leader of Wanbang Pharma, as you can see, serves, let's say, as a CEO and President of Fosun Pharma currently. Mr. Wu Yifang, who is a veteran expert in the pharmaceutical industry for 3 decades, started his career with Wanbang, responsible for marketing, serving a role as President and Chairperson of the Board at Wanbang. Years ago, Wanbang was a SOE. Then [ Fosun Chemi ] acquired this business. With Fosun, he began to build a team and to pull up marketing reform. So Mr. Wu is directly in charge of the marketing reform campaign at Wanbang Pharma. And there has been a mighty marketing system that is coming to being, on top of which not only Wanbang's growth is wonderful, there is also strong capacity of M&A that has been shaped. So from within, through Wanbang integration, smarter portfolio businesses managed to achieve rapid growth in the meantime. Based on the marketing team, there is, let's say, those great transplantation of external capabilities along the lines of BD. So for 10 years in a row, there is a growth by a factor of 10. The growth -- annualized growth rate of Wanbang is 28%. The development of hero products is a great success as well. For example, the uric acid lowering drug marketed, again, the annual revenue has been great. Second business I'd like to introduce to you is Henlius. So this is a greenfield development model starting from scratch. For example, Scott Liu and Dr. Jiang Weidong in '09 achieved agreement with Fosun and started to create the business in 2010, created multiple #1 records in China. Last year, the launch of the first biosimilar in China, thanks to the great exploratory hard efforts of Henlius, last year, it was listed in Hong Kong Stock Exchange. And Dr. Zhang Wenjie joined Henlius last year, a veteran expert in industrial operations. Now Dr. Zhang serves the role of President of Henlius Biotech, assisting Scott Liu on a new journey in the next decade. The third business also is very special. It's Fosun Care. For example, Starcastle Senior Care. Starting from 0 into 1, now there is a wonderful model for senior care. And now efforts are on our way, trying to achieve the journey from 1 to n. Fosun Care stands a good chance to become a front-runner in the senior care and rehabilitation industry in China. And years ago with Fortress under the JV model, Starcastle came into being after 2 years since the founding, and the occupancy ratio of the residents become 90% in Shanghai, Suzhou, Ningbo, Beijing, Tianjing and other cities. The model has been successfully replicated in -- let's say, several years ago, Fosun repurchased the shares of Fortress. So now we completed the loop. The leader is Mr. Dong Yan with industrial experience of over 18 years and joined Fosun years ago and assumed historic responsibilities, managed to build a team have been running, so made great contribution to the strong momentum of growth of Fosun Care. And Wang Yuke, since the inception of Starcastle, she was around. So now she serves the role as President of Fosun Integrated Care Group and President of Starcastle, a wonderful team member working with Mr. Dong. Now the beds are numbered at over 4,000. There is going to be a master planning for the future as well. So the health care sector growth is geared towards the long term. We talk about innovation, service industry, insurance, especially health insurance and senior care, all those are very important. We're very confident about our future development. The next Co-CEO, Mr. Xu Xiaoliang, who is going to take over and deliver the next part of the presentation.

[Interpreted] Hello, everybody. Following Mr. Chen Qiyu's remarks, in 2019, Fosun Group happiness sector of Fosun, I'd like to walk you through. In 2019, the happiness business, the yearly revenue reached CNY 67.5 billion. On a Y-o-Y basis, the growth is 50% plus profit of CNY 2.83 billion, Y-o-Y growth of 24%. It's fair to say in 2019, the happiness sector of Fosun centering around developing wonderful products, branding, contents, creating those wonderful brick-and-mortar scenarios as well as online platforms. Along all those different lines where we registered positive growth, the happiness platform as a whole, the main growth in 2019 was attributed to 2 important drivers. First, the Yuyuan Holding. In 2018, Yuyuan Holdings completed major restructuring. In 2019, after the major restructuring, it was a great new year. For already published 2019 business performance of Yuyuan Holdings, the annual revenue reached a historic new high, namely let's say, CNY 42.9 billion; profit, a new record high of CNY 3.2 billion. So after the restructuring, there is a new stride that Yuyuan Holdings has made. In 2019, Yuyuan Holdings, especially including landmarks, especially the Shanghai Yuyuan, which is an urban landmark of culture, there are great milestones achieved. In July 2019, Premier Li Keqiang visited during that time to Yuyuan and interested in the development of 16 time-honored brands. And in November 2019, during the second International Import Expo, Mr. Xi Jinping, President Xi actually received President Macron and his wife from France. So this is a very important host diplomacy that took place at Yuyuan because Yuyuan is a Chinese cultural landmark and acquired. So it's fair to say, in 2019, in Shanghai City, Yuyuan has been deeply rooted in this place and trying to build its development. In the meantime, across the whole nation, efforts are underway to create those new industrial and cultural marks and landmarks. In addition to organic growth for Yuyuan in 2019, the investment in M&A ramped up as well, especially vis--vis food. Right now, the third-largest, let's say, mushroom-based product-based Ruyi Group that was acquired then also hold controlling stakes of those important watch manufacturers, namely Shanghai-branded watch as well as high -- Seagull watch brand that are well acquired. So we lay a very strong basis for the future watch business. And online, based on the happiness families and membership, we also shore up our stockholding position because online and off-line, we try our best to build wonderful platforms to serve our households. Online and off-line in 2019, the position of Yuyuan is to create happy lifestyle intelligently to global families. Now we've already got a strong industrial basis. In the future, Yuyuan is going to be brought to full play. Another very important driver is Fosun Tourism Group. And since listing in 2018, then 2019 is the first complete year after listing, if you look at the scorecard of Fosun Tourism Group, it is wonderful. Especially profit-wise in 2019, the profit doubled and has thus created a historical new high. In addition, the new strategy has a very clear positioning for Fosun Tourism Group focused on leisure holiday business, trying to create an integrated resort and holiday group. So in terms of the resorts, which is the core, Club Med continue to play very important model replication role. Especially in China, the model like Club Med enjoys very bright prospect in 2019. In terms of operations, business expansion, Club Med managed further development. Especially the year of 2019, Fosun Tourism Group managed to create the landmark Atlantis Sanya. That was a complete year for Atlantis. The annual revenue is CNY 1.3 billion for Atlantis Sanya, which is like the aggregate of 7 to 8 hotels in total put together in the surrounding region. So this product is a leading brand. In addition, in the same year, on Chinese Tiktok, in terms of the content generation, 1.8 billion contents were created. It's -- indeed, it is a new tourism and landmark product in Southern China. Furthermore, the core concept of FOLIDAY has been launched under Fosun Tourism, calling on everybody to love and to live a beautiful life, to encourage more families, to enjoy and embark on a wonderful journey. In Taicang, Lijiang, different cities and places where the efforts are ramping up to promote the development of those new landmarks, a very solid basis has been built in the year of 2019. Regarding IP and content, the C-shows are evolving continuously and the Miniversity as well as Foryou Ski, which is actually a training camp for ski goers that we leverage Thomas Cook platform as well, trying to enlarge our membership and sales platform system as well. It is believed, through 2019 hard efforts, Fosun Tourism Group has managed to build a very solid foundation going forward. Thus, it's going to be a very important driver to push forward the development of the happiness sector development. I believe there are those important leaders working hard within the sector. There are 2 leaders I'd like to introduce to you. First, Huang Zhen, the Yuyuan Inc. CEO and President. Fosun Global Partner, Mr. Huang is a veteran expert in consumer goods for 23 years. He used to work for Jahwa Group, which is a very well-renowned consumer goods company in Shanghai. And Mr. Huang created from scratch a local Shanghainese brand, which is named Herborist, yes, Herborist, starting from scratch. So for a single product under this brand, the annual revenue achieved CNY 3 billion with a gross margin of 86%, which is wonderful. 3 years ago, Mr. Huang joined us, joined Yuyuan and leading the jewelry fashion group along a new journey of growth with Mr. Huang's leadership. So in the past 3 years, 2 original major brands, Yayi turnaround in terms of the profitability status. Laomiao, in the past 3 years, the CAGR is 24%. In 2019, the Laomiao business turnover exceeded CNY 20 billion. The profit close to CNY 500 million is, fair to say, very rapid growth at Laomiao Gold. Thanks to Mr. Huang's insight into the consumer goods industry and very experienced in industrial operation in this sector, the supply chain, R&D channels, so Mr. Huang has driven complete transformation in the reforms. In addition, the Yuyuan Board, Mr. Huang is the newest President with great leadership and with great insight into the consumer goods industry. As a Fosun Global Partner with his leadership, I'm sure Yuyuan is going to enjoy even better growth down the road. Another global partner under happiness sector is Yamada-san based in Japan. Yamada-san graduated from Cornell University in the United States earlier on in the U.S. international platforms as well as Japanese platforms based in the U.S. that he worked with, so worked and studied in the U.S. with insight into the Japanese market. In the meantime, Yamada-san is blessed with great global horizons. 5 years ago, Yamada-san joined our Japan IDERA platform. With his leadership over the past 5 years, IDERA, in terms of AUM as well as profit, registered threefold growth. In the meantime, starting from scratch, the J-REIT platform has been built. So for real, those asset management, property and REITs are effectively integrated. There is a forward positive loop that is coming to being. In addition, Yamada-san is very great at enablement and empowerment as a partner, as a Fosun Global Partner. The biggest Hokaido resort, Tomamu, has been introduced or connected with the Yuyuan industrial fund. And the Club Med has been bought into Tomamu resort as well. So under dual-engine growth model, Tomamu achieved very fast growth, JPY 1.7 billion gross profit, skyrocketed to JPY 4.7 billion now. There are new segments by acquiring Court (sic) [ Courts ], the leisure tourism management platform. We have already got over 7,000 guest rooms under management in 49-layer hotels in the portfolio of Court management system in Japan. So Yamada-san is leading the Japan team on a wonderful growth trajectory. It's fair to say this is a wonderful expert and a great Fosun Global Partner, deeply rooted in Japan. After that, let's look at the wealth ecosystem of Fosun. In 2019, it's fair to say in terms of operational revenue, there is a new high that we have achieved. Wealth, CNY 43.3 billion as to business revenue, the Y-o-Y growth of 20-plus percent and 8% for profit growth. So wealth sector, the very basis is actually insurance portfolio companies, which are cornerstones of the wealth sector. In 2019, the insurance and industries are well integrated. In terms of the senior care and health care, there is wonderful synergy extracted between insurance and industries. In the meantime, with our global asset allocation and investment, especially vis--vis OECD regions, there is effective synergizing. For example, insurance capital integrated with IDERA platform Japan by making overseas platform investment, and our insurance asset allocation is boosted big time. In 2019, some of the assets we exited on, we achieved wonderful ROE. And also thanks to the driver by the insurers, also our fintech has also been boosted, for example, NAGA and also the unicorn in Brazil and some other financial platform, for example, the acquisition of Guide. And for the insurance, our flagship is Fidelidade. And for Fidelidade, we can also say that in Portugal, undoubtedly, it is already the #1 in Portugal in terms of life insurance or the reinsurance in Portugal. At the same time, for Fidelidade, in 2019 with efforts, particularly, they have made a lot of breakthroughs. For example, they made investment in the largest Portuguese hospital, Luz Sade. I mean you can see the natural synergy between the insurance and hospital. And also, you can see, Fidelidade has also joined hands with other assets, and with Fosun, very good connection with Fosun's other assets. And also in terms of the digitalization for the auto insurance and also for the claim, the efficiency have been greatly improved, thanks to the digital transformation. And also last year, they have also acquired the fourth-largest Peru's insurance company, and they're also trying to capture the new opportunities. So we can say that for our wealth sector, Fidelidade is our leading flagship. Next, for our wealth sector, I would also like to introduce one of our new classmate who is also well seasoned in this business, Mr. Chen Guoping. For Mr. Chen Guoping, China's insurance sector, he has more than 23 years of experience. And he has also his own management system called Jinzhixia. Well, for the life insurance yes, one of the most important is the individual channels. And previously, it is based on our individuals who are very fragmented. Some are strong. Some are very weak. They will be taken away. And they will see a lot of ups, downs for the personal or individual channels. However, thanks to Mr. Chen Guoping's management system, that is a very good channel for the high retention and also very high revenue and also high performance. And it is dividing into larger groups with higher performance. Well, last year, thanks to the participation by Mr. Chen Guoping, you can also see great improvement for the Fosun's life insurance business. So Mr. Chen is a very good methodologist and also his leadership. And we believe that with his leadership, especially the excellent management system, we can see a better breakthrough with other business sectors. And here, for all our business sectors, as mentioned by Mr. Guo, we still need to try to come up with our own ecosystem because for all our businesses and sectors, thanks to the mobile Internet and AI, all the businesses should be restructured and they should all be integrated through C2M. So for all our businesses, we are trying to use a C2M model in order to use the industrialization to address the personalized demands. So this is about our ecological synergy. At the same time, we can also see the Chinese urbanization of version 2.0. So the families are going to upgrade their consumption. So that's why we need to have better industries and better brands and better products. So that's why we believe that a combination of the industry and urban landmarks will be promoted. So we would like to have better synergy between the industries and urbans to have more industrial benchmarks and urban benchmarks. So that's why we have our Hive City. And once we have our industries and also Hive Cities, then we need to set up our online and off-line platforms for our families, then we can empower each other, then we can multiply each other. So for all our Fosun classmates, this is our daily pursuit. And all in all, fundamentally speaking, it is reliant on our organization and also our talent, our people. So the most important assets is not just about the book values, it is also about our talent. Lastly, in 2019, we would like to build multidimensional, multi-sector and deep-rooted partnership. On the top level, we have more than 50 global partners. For our global partners, some are very excellent generals. They tend to capture the momentum. And some are our marshals, and they are also going to capture more momentum. And so that's why we would like to share our mission. So we will take a role A and a role B. We are going to complement with each other in order to develop a more agile organization. So that's why our Fosun Glocal Partnership is also a very important foundation. And all in all, it is also about the organization safeguard. In terms of the organization in 2019, we have our cooperation and competition, so we have 271. So the last 10% in the ranking will be changed or eliminated. And also for our different partnerships platforms, we are going to use rotation. And also in the wartime, we are also going to build our constant wartime mechanism. So in terms of the mechanism, the organization, this is also very essential for our culture and team building. Well, as Mr. Guo, our Chairman, said, for the management, so actually, there is -- it is not static. It is dynamic. It is always adaptable. And in different development phases, we are always evolving our mechanism in order to safeguard our agility and also flexibility for faster decision-making. And I know that you're also very keen to know because in the COVID-19 battle, Fosun is very responsive. And since the Chinese New Year in January 24, Fosun has organized the global battle against the COVID-19. In Phase 1, yes, that is the battle in China, we organized global supplies, so nearly 3 million units of medical supplies donated to different places in China. Now it is already in Phase 2. That is the global battle against the COVID-19. Just within less than 1 month, the Fosun has already organized 1 million units of medical supplies donated to those hard-hit areas. At the same time, in this outbreak, for Fosun, businesses and our industry can be better interconnected especially for the diagnostic devices. In the fastest time, we have received the government registration approval for the testing kit. And also, we have also been working with one of the top 3 vaccine companies. And that is in Chinese Mainland and Hong Kong and Macau region, and we have been granted the license for the medical technologies. And also in the whole process, many government and agencies praised Fosun. Just 2 weeks ago, Mr. Li Qiang, Shanghai's Party Secretary visited Fosun. And particularly, Mr. Li Qiang mentioned that as a private company in China, in this battle against the COVID-19, we are highly responsive and also take the leadership to fight against the COVID-19. And also for the Fosun's international organization is also quite capable. And through this COVID-19 battle, we are also very clear that on one hand, we have to fight against the COVID-19, at the same time, we would also like to make further development, and we are always going to be on the alert in order to fight the battle and also make further development going forward. So this is my brief presentation. Next, I would like to invite our Co-Chairman, Mr. Wang Qunbin, to give us more information about our future outlook.

[Interpreted] Thank you, Mr. Xiaoliang. Well, ladies and gentlemen, our shareholders and also our friends, good morning, everyone. And talking about the outlook and also for all our Fosun classmates, we are always keeping in our mind our mission. So we would like to make a difference by serving families worldwide to create happier lives of families worldwide. Our vision is always to take deep root in China and create a global happiness ecosystem, fulfilling the needs of 1 billion families in health and happiness and wealth. So we want to build ourselves firmly into an innovation-driven consumer group. That's why for us and for our global family clients, we are going to serve these global families with more products and services and with innovation in health, happiness and wealth sectors going forward for Fosun. We will continue to focus on our 4 core strategies. Our first of core strategy is our deep industrial operation plus investment in the capital markets. These are our twin drivers in order to enable our products and services in each respective industry to be the leaders, and we also would like to expect a high ROE. Second strategy is always our C2M model, and we have also put a lot of emphasis on the C2M model. And next, we will continue our globalization. And fourthly, we will continue to keep innovation-driven in order to develop best-in-class products. And under the current circumstances in this pandemic, when we take a look at our future outlook, we would like to share with you more our characteristics and highlights for Fosun. First of all, for Fosun, especially, our fundamental assets are still very stable and also safe, and they can continue to contribute stable profits and cash flow. And for Fosun's high growth in assets, we'll continue to develop and contribute the performance growth. Our Fosun's innovative assets offer great potential to drive the future. From all these perspectives, we believe that our current value is still underpriced. And because our innovative assets, we will continue to show their value. So we believe that we have more potential to grow our value. And by the end of March, our PB is 0.55 and PE is 5.05. Dividend yield is 4.58%. So you can see, that is a very long-term potential for investment. Secondly, for Fosun, we will continue to focus on the balance between the investment in assets and optimize our balance sheet, and we will also use multiple funding sources and also low-cost cash in order to capture value investments. And we also have our global high-quality investment teams. We believe that we are able to capture this new momentum in this downward cycle. We believe that we can seek more investment opportunities. For example, we can increase the controlling interest investments in order to strengthen our capabilities and operations in the existing areas. And we'll continue to raise and capture established VC and PE funds. We would like to capture more opportunities in cutting-edge technologies and innovation. Thirdly, we will also focus on the industrial operation in existing areas. And we will also continue to develop the leading and world-class products and brands, and we would like to have a higher ROE, particularly at this moment. And after the outbreak, we will also see the changes of the lifestyle, especially the online and also the family as our core value initiative. We hope that when the market rebounds, we will continue to restructure and evolve our business mix. And we would also like to mobilize our global business in order to introduce more IP, intellectual property. For example, our cooperation globally, especially, as we mentioned, in our collaboration in vaccine development together with BioNTech. And we would also like to develop our own ecosystem. Fourthly, at this moment, we continue to fight against the pandemic to provide support. Our Chinese experience and also the global technologies can be shared with the government institutions across the world. We hope that across the world, we can also build our positive global brand image in order to further develop our Fosun's global business. So we continue to practice our values, self-improvement, teamwork, performance and contribution to society. Thank you.

[Interpreted] So I would also like to share with you some of my observations. Last year, it was not an easy year, and I would like to thank all Fosuners and I would like to all the customers and clients and our investors and the shareholders, we have achieved a very good result last year. Well, last year was different, and this year is more difficult. And for this COVID-19 outbreak, and for everyone, including Fosun, there are a lot of pressures in our tourism industry, our retail business and our fashion business. They will all be suffering, but that is already the fact. However, on the other side, for a good organization or for good guys, please do not miss any crisis, especially the opportunities for our further growth because in the crisis, a good enterprise can test yourself and improve yourselves. Otherwise, you will always be in the comfort zone without an improvement or you don't have this urge for improvement. Thanks to this pandemic and our Fosun capabilities, our organization has been greatly promoted and busy. In this perspective, we are still the beneficiary. For example, in terms of globalization, we have our global capacity. In the past, actually, we do not consolidate global resources on one thing. But now this time, you can say we consolidate our resources for one thing. For example, in Phase 1, with global -- our global capabilities to fight COVID-19 in China. In the second phase, we mobilized our Chinese production and resources to support the global battle against the virus. In this global battle, I think this is the test and also the improvement, our capabilities and also our global capabilities. I think this is an improvement for Fosun. And next, in terms of the product, we have accelerated our pace. For example, our diagnostic testing kit. And currently, it is already being registered and also certified by CE. It is growing. And also for the ventilators in Sweden, and it is already growing in production. And for this outbreak, I think the final solution is about a vaccine. We have very profound industrial operation. For example, we are working with a German company, and I think it is already well done. And I think this is highly expected. And I believe that for the vaccines, I think the final product will be one of the best. And also ventilators and also our testing kits, they are all well done. And also for our fashionable face masks, they are protective masks, and also it is about health and also fashion. And I'm also very optimistic of those products. And also in this pandemic outbreak, we can also see that the organizational improvement is also very important. And from the top level, we have made the restructuring, and we have 2 co-CEOs and we have 1 more co-Chairman. And you can see, we have a more robust organization in the top level. And we can also see that we have our war-time mechanism. And in the presentation, they all talk about people going forward in our future communication and our core people. So they are all our generals. They are all our war-time generals, and not just to me. Maybe you don't like me anymore. Yes, I will share with you more about our talents. We have a lot of good talent and leaders in our group. And just Mr. Wang also mentioned, and we put a lot of emphasis, a very stable finance. We have sufficient cash flow. Of course, there are a lot of crisis from the outbreak. This is also the prime time for us to make more investments and development. In a nutshell, during crisis, our organization is healthier. We have a better position to act. And we have brought to full plate our global capabilities. The C2M, case studies and to the test kits, we have clarified our understanding, and we accelerate our online as well as family orientations. So the product routes for future development have been clarified, although in 2020 there will be some impact on our profitability and operations. But if we manage to secure a positive growth in 2020, we're going to be blessed with even better future going forward. Thank you.

[Interpreted] All right. Thanks to our management team members, and also thanks to all those investors on the other side of the camera. Thank you for your support and care. We have many investors who have put forward questions for this event. We have multiple channels. First, you can dial in or the screen, the chat box where you can put forward your questions directly. Second, we also have the China and English con call system, so you can use the con call as well to ask your questions. In the back office, we have already collected some of the questions.

[Interpreted] First question comes from Daiwa Securities, the Chief Analyst, Leon Qi. So the Chief Analyst of Daiwa Securities is interested in a question which you're interested in, I'm sure. What is the overall impact of the pandemic on Fosun business? How Fosun is supposed to seize the opportunities amid the pandemic? What countermeasures will be taken? Second, for the 3 sectors, health, wealth and happiness, what will be the implications, respectively, for the 3 sectors? What new inspiration Fosun can draw from this pandemic? And what are the future plans? We're going to invite the co-CEO, Mr. Chen Qiyu, to respond to this very question.

[Interpreted] All right. Yes. Investors may put forward a similar question to many companies, not only Fosun. The current impact as well as the future impact of the pandemic on our business operations, what will be the future plans? And to sum up, just like Mr. Guo mentioned, during the pandemic, as long as you're a business operating on the market out there, there is no way for you to steer away from the implications. For Fosun, if you look at the industrial spend we cover and the geographies, there are certain characteristics to the business we do. For sure, there is impact. Second, when it comes to Fosun, I would like to say the impact may be subject to different characteristics due to different regions and geographies and sectors. For example, during Spring Festival, right, just like during January and February, the impact mainly occurred in China. Since March, if you look at tourism and Yuyuan, our operations are gradually recovering. But to which extent, if you look at Fosun Tourism Group prior to the pandemic, the Fosun Tourism Growth -- Group was at its peak with wonderful business indicators even as of the end of February. If you look at our revenue and EBITDA, we scored some positive growth as of the end of February, which was no easy job. And currently, Atlantis, for example, last week, the occupancy rate of the guest rooms already returned to 67%, very robust recovery. For Yuyuan, during Spring Festival, the business operations were dealt with a heavy blow, of course. But now the Yuyuan business is recovering. Our proprietary outlets within Yuyuan Mart have recovered the operations to the extent of 70% recovery already. And during the China pandemic, the overseas business was normal, but now the overseas operations are being affected vis--vis the resort business. There may be a slightly big impact. But in other businesses overseas, the impact may happen to varying extent. Of our financial businesses, the impact is lesser. So we have a broad span of different industries. If you look at the annual statement, we have adequate cash. There are 2 implications based on adequate cash. First, we can survive very well despite the heavy burden and pressure. The first priority for any business under distress is to survive, right, in order to lay a foundation for future development and thrive. Second, with the cash flow, there are opportunities to consolidate those undervalued industries. I think going forward, there will be opportunities to bolt on those industries, which are undervalued based on M&A. I still remember, after '08 financial crisis, in the pharmaceutical industries, there were several major M&As. For example, Pfizer acquired Wyeth, and Roche acquired Genentech, right? That happened after '08 financial crisis. For example, the marriage between Roche and Genentech, there was -- that was relationship that was rumored on for years already, but it was finally the opportunity. And then second, for this pandemic, it is a reflection of our quick response capability. First, if you look on our anti-pandemic countermeasures, I'm sure you're impressed with our mobilization of the global resources immediately. Earlier on, we're one of the first in China to bring those global resources and supplies back into China in huge volume. If you look at protective gown, for Fosun alone, the import during that period amounted to over 10%. So we were acting quickly. Now we're on stage 2 for anti-pandemic because now how can we governize global resources and to help those overseas markets. Stage 1, a lot of what we did was pro bono. But second stage, some of the things we do to fight the pandemic are commercial as well. Third stage, we're blessed with a very robust health care sector capabilities and industrial capacity. So as we're fighting the pandemic, we stand a good chance to score positive performance. Product-wise, the nucleic acid testing kits or ventilators and the negative pressure ambulances in China, so on and so forth. And lately, we have organized a lot of China manufacturing products like masks and supplies. We're developing those tech and fashionable protective masks and the development of a vaccine, the drugs and our proprietary health care institutions. We also have Sinopharm, which is the strongest pharmaceutical drug distribution retail network in China. So the health care sector, our industrial capabilities are very important cornerstone for us to fend off those impacts of the pandemic. Previously, just like Mr. Guo mentioned, we need to move online and to serve the family business and focus on health sector. So those are 3 very important routes we're going to adopt for the future for Fosun. In light of the pandemic, in the near term and mid- and the long term, if you look at the health care sector for Fosun, there are several important messages. First, health services and health insurance, how can we migrate them online? Because now efforts are underway to promote the Fosun health plus Internet health care platform and system because previously, at our hospitals, the Internet presence was rather limited. There was no volume. But now this time around, during pandemic, we took the initiative to organize an online pro bono counsel for patients online. Wonderful results achieved. Right now, we're preparing for the upcoming May massive scale 5/15 Family Day online diagnostic and health counsel event online. We hope by so doing could we shore up further our online Internet health care capabilities. We also launched HMO Internet health care product, which can be well synergized with our insurance products. Still along the line of health care regarding the development of innovation capacity, we aim at the long run that antiviral drugs and therapies will be a new area of future direction of growth for Fosun Pharma. In antiviral arena, we're going to find out about more opportunities of the products. Then mRNA technological platform, which is emerging but very important industrial and tech platform, our collaboration with BioNTech. In China region, BioNTech is collaborating with Fosun and with Pfizer outside of China. So following the Intuitive JV and the Fosun Kite, the JV with Kite, following that 2 deals, this is the third one that we're cooperating with a global leader. So going forward, we're going to capture more global BD cooperations opportunities. In the meantime, solid efforts are underway to further promote the development of our global industrial capabilities. Health care sector, medical device and diagnostics, globalization and overseas market capabilities were weak. But now with this round of measures we've taken, our global capabilities have been improved this time as a result. Our industrial footprint will be further boosted in the medical device and health care sector, as a whole, globally. Then as we know that we also focus on the online migration for retail. So we can improve the rapid growth of the retail in the happiness sector by migrating some important things online. If you look at jewelry, gold, fashion industry, if you're watching our progress lately, we are doing some M&As, trying to improve our product portfolio, mainly focused on Laomiao. But around fashion and jewelry, we will enrich our brand and product portfolio. This is also true for cosmetics, where we're trying to improve and enrich product portfolio. If you look at tourism, we're going to give more rise to the important concept of safety and security because this pandemic is going to have a long-term psychological impact on future travelers. So safety is going to be very important. Fosun enjoys a strong brand image. We're going to explore around for more tourism resources than tech plus fashion. Facial masks, how can you combine tech with fashion? These themes, a small product, but how can you combine these 2 elements. We need to come up with an influential and a massive-scaled product line so that we can build a bridge between happiness and health and wealth. We're going to focus more on the theme of health. In China market, health insurance represents an emerging sector, so this is one area where we're going to ramp up our efforts. Then the family-focused insurance product is also priority. And tech plus finance, the online finance capability, is going to be a focused battleground as well. Then asset allocation, we need to capitalize on the volatility of the capital market. Right now, how can we spot opportunities in the long term for those extraordinary allocation opportunities? In terms of smart manufacturing, the high dividend payout financial assets [indiscernible], how can we seize the opportunities to make adjustment for long-term asset allocation?

[Interpreted] All right. Thank you very much, Mr. Chen. We welcome the following questions. The next several questions, one of which is about the following topic put forward by [ Wu ] from [ Jinsheng Assets ]. C2M and industrial operation, how can you achieve synergy? What are those specific actions you have taken to implement your C2M strategy? Another question is from Haitong Securities representative. Going forward, what will be your plan to leverage the core IP of Fosun to extract more synergy for your family household business? How can you do more marketing toward those households, the families and the consumers? Mr. Xu, co-CEO, will respond.

[Interpreted] The C2M of various industries, there are 3 dimensions. First of all, industries, there is supposed to be the physical reaction, so to speak, meaning for you, yourself, how can you shorten the distance from C to M? How can you make your supply chain more flexible? How can you meet the individualized needs of your customers? Along these lines, different industries are working hard to achieve this goal. But the core, to answer this question, is you need to ramp up your R&D, the design on your product side. Second, supply chain. How can you turn it into one that is more flexible? Third, your end channels. How can you connect the dots between online and off-line? So industries are working hard along those lines, as I mentioned. Second, C2M. In addition to physical reaction, we can pull off chemical reaction between industries with synergy in mind. Just like I mentioned, within Fosun ecosystem, there are a myriad of such cases already like the synergy between insurance and health care. For example, Fidelidade. In Luz Sade, the hospital site, there is one for product synergizing. Between health care and senior care, we also have synergizing as well. Then international overseas IPs connected with the China supply chain. For example, on our table, there is the latest Wolverhampton football club face masks. This is a typical Wolverhampton football club IP-based mask. This is a football club, right? Not good at manufacturing masks whatsoever, but it doesn't matter. China's supply chain empowered the football club with this product quickly. So the Wolves football club now enjoys the very cool masks, which are produced in China but with the Wolves IP. This is a WOW product in U.K. Now tech-wise, there is a chip built in. The chip, it is -- the National Health Commission approved this chip. This is not only able to protect yourself from the particles or particulates but as well virus and bacteria. So this is a wonderful integration. This is like a chemistry. Then third, which is more important, the ecosystem-based reaction. The families and households-based members in our ecosystem, it is through online and off-line member service platform that we stick them around with us and then we can extract more synergy down the road. So those efforts are well underway for each industry. We need to achieve those chemical and ecosystem reactions. Given the big IP of Fosun, we are an innovation-driven family's consumer group. This is our positioning. Our core clientele is the global households. For families across the globe, every year, we have a major IP event slated for May 15 every year, the international family day. So on that day, Fosun organize this carnival for families globally. Right now, we're making active preparations for the 2020 upcoming May 15 International Families Day on which we're going to select under our group all those family-related products, on top of which wonderful brands, on top of which wonderful industrial groups. And those industrial groups are able to pull off C2M implementation. So we select those wonderful products that on May 15, our 5/15 International Families Day, directly, we can build a connection with our global households. Again, based on a family big IP of Fosun, we can have close interaction with more and more families. Those are some of the plans. Thank you again for your question.

[Interpreted] Thank you, Mr. Xu. The third question comes from Morgan Stanley analyst, Ling. The question goes like why not increase dividend payout to increase the dividend yield? So the midterm payout of dividend in 2019, will that continue? And this question was also raised by other analysts as well. Then other questions are focused on the repo or repurchase. So Alex Gong, our CFO, please respond.

[Interpreted] Yes. Many investors are interested in those questions. First, in the past 5 years, if you look at our dividend payout policy, in the past 5 years, the dividend payout has been growing steadily every year over the past 5 years, the continuous growth, so 20% year in, year out. The profit growth have been 18% in the past 5 years, meaning, our company -- under very prudent financial policy, our company is improving the dividend payout. Second, we think we can issue more dividend this year. This year, it is already pretty handsome, over HKD 0.4. For most assets, just like Mr. Guo mentioned, along the lines of value estimate, we would like to take advantage of each event or even crisis to upgrade our whole strategy and organization each time around. So in terms of dividend payout and capture of a reinvestment, and since some of the assets are undervalued due to the crisis, how can we seize the opportunity? This is going to be very important for us. Then the 2020 midterm dividend payout, we're still having discussions. The jury is still out. The second question is about repurchase. It's fair to say, in recent 2 to 3 years, cumulatively, we have spent over HKD 1 billion for repo, which worked positively for market cap management. But on the other side, the stock's liquidity will be compromised. So we try to strike a balance between those 2. At the recent time, then we will do the buyback, for example, for the buyback. And if the share price is going to fall to some point or if the share trade income pricing is lower than our net value in terms of the liquidity and value and also the price, we tend to -- if we are able to create more values for the shareholders, at that point, we will plan to do this purchase and buyback.

[Interpreted] Okay. Thank you. So next, the fourth question from Guotai Securities, Yi Ming Jiang asks, for Fosun International and we have the new division of the management, and you also talked about the focus will be the industrial operation and investment. Can you also share with us some of your criteria standard for the operation? And can you also share with us about the rotating mechanism? How about this progress? So Mr. Wang Qubin, our Chair -- our co-Chairman can share with you our observation.

[Interpreted] First of all, I would like to thank Yi Ming Jiang. Thank you for your question. And first of all and for the adjustment, our job responsibilities is going to promote our industrial operation at the same time, and we would also like to bring into play our capabilities, our investment, through this adjustment of job responsibilities. Mr. Guo is still playing the core role. For me, as the co-Chairman, I'm going to continue to support Mr. Guo for the top-level design and also the strategic planning. And I'm also going to allocate more time for the team building and talent and also corporate culture. And also for our 2 co-CEOs, for both of them in Fosun, they have really been working with us for a long time. And in terms of industrial operation and particularly in the front line, they are growing from the front line. So previously, as the co-Presidents, they have already made a lot of achievements. Now as the co-CEOs, they can better promote the organization for better industrial operation. For example, for Mr. Qiyu, every day and in the daily meeting he is dedicating to the online promotion and also the 5/15 Family Day and also [indiscernible]. And also, for example, promoting the fashion face masks, et cetera. So for both co-CEOs, they are taking the leadership to promote the business. And also for our CFO (sic) [ VP HR ] and CEO, and Mr. Pan Donghui and Mr. Gong Ping, they are very familiar with the frontline business with a lot of achievements. And with these new roles, they can continue to promote our finance and also HR business lines, which is also beneficial for our business improvement. At the same time, we would like to build our capabilities of investment. They are still very important. So that's why we have also set up our Chief Investment Officer, for example, Mr. Gong Ping, Li Gao and Jian Hualong, they are our co-CIO in order to boost our investment capabilities. So those are our 3 drivers in order to achieve our final targets. And then in terms of the operating numbers, we pay more attention to our product mix and also branding. We hope that in their respective sectors, they can be the leaders, #1 or #2, in their own sectors for different products and brands. And next, we hope that our ROE for different subsidiaries can hit above 15%. And we would like to make more investments on R&D, and also the success rate and also the output of innovation are also very important. And next for Fosun International, we also hope that our industrial profit can make more contribution. And next -- and in terms of rotation and the rotation and group level and also frontline and mid-office and back office. And I can give you some example. For example, our co-CFO, and for example, he was Zhang Ligang, he was the CFO at [indiscernible]; and also [indiscernible] from our Fosun Group now, and he is working at the [indiscernible]. So you can see the rotation between the group and the subsidiary. For the rotating mechanism, it is going to be a very important Fosun mechanism, which will be on the ongoing basis. Thank you.

[Interpreted] Thank you, Mr. Wang. So next question from Haitong Securities, Zhang Xiangwei, who has 2 questions. First of all, for the COVID-19 vaccine development, can you disclose some milestones and when the vaccine can be developed and when it can be used? And second, how about the success and probability of the vaccine? And also next, for the biotech license to the COVID-19 vaccine, how about the clinical progress? And also, what are the advantages of mRNA technologies? Well, there are some sensitive questions because you know that -- and we have the different regulations from different jurisdictions. Mr. Chen Qiyu, our co-CEO, to answer this question about the vaccine.

[Interpreted] Well, talking about the vaccine, it is already under the spotlight across the globe, and the governments have also put a lot of emphasis around the vaccine development. Take the BioNTech, for example. And when we talked with BioNTech, before we signed the agreement with them, actually, we are also talking with the Chinese authorities, including CFDA. And actually, before we signed the agreement with BioNTech, we already talked with the Chinese local government. We want to know the requirements. We are also evaluating whether our partners can achieve these technological requirement. Until now, all these technological progresses and documentations and discussions are very positive. At this moment, according to the information announced by BioNTech, it is hopeful that by the end of April, and they would like to do the clinical trial in the U.S. and in EU, particularly in EU, and after our signing with them. At this moment, we would like to speed up the experiment for the virus testing. So we are already making preparation for the importing and other preparations, and we hope that the preparation can be accelerated. We hope that we can proceed with the Phase I clinical trial. Of course, we have already a very detailed schedule, not just for us but also in Germany because naturally for the German authorities and also for the Chinese and the National Medical Products Administration, they are all very interested. We hope that in the shortest time, we are able to launch this vaccine. For the mRNA, currently, it is still a brand-new technology or platform. However, for the mRNA, actually, at the earliest stage, currently, there are 3 players, Magenta, BioNTech and CureVac. For these 3 players, in the past, they already put a lot of time for development. They have already developed some products for the clinical trials. In terms of safety and security, it has been already tested at the preliminary stage. Of course, the clinical trials are still ongoing. Currently, we are still very optimistic and confident. In terms of the technological specifics, in terms of the preparation and also the production processes, they will be relatively easy. So that's why for the mass production, once it is approved, so it is quite feasible for the mass production. And they don't need any assistance or auxiliary materials, so the production procedures will be relatively easy for us and for the German partner and also for the CDC and the Chinese authorities. We are working together in order to expedite the clinical trial of this new vaccine.

[Interpreted] Well, we are running out of time. The last question. That is for an unknown investor from online. The question is, going forward for Fosun, are you going to make -- and planning for future, are you going to make adjustment for the balance between investment and exit? Another question from CICC, Yuan Xue. And for the pandemic outbreak, particularly for H&A and your Fidelidade and European business, what are the impacts? So the last question can be answered by our CFO, Mr. Gong Ping.

[Interpreted] So let me answer the first question about the balance of investment and exit, especially for our future investment strategies. For Fosun International, as always, we would like to put emphasis on the balance between investment and exit. This is one of our disciplines. For the cost and for the balance of investment and exit, the ratio is 1:1.5. It is always in very good equilibrium. And at this moment and in this world, for a lot of assets and their value, their prices started to fall. So while we are working on the business operation, we will continue to put emphasis on our very important capabilities in our gene, that is investment. But we will be more focused, and our investments can be divided into different levels. First of all, the value investment. It is always our bottom line. And the second focus is about the industrial reinforcement for the upstream and the downstream industries and also to replenish and to reinforce our value chain, so for the Yuyuan and also our Fosun Pharma section, you can see our focus. So that is also our investment capabilities. And thirdly, that is about exploration incubation, VC, especially for our health care. And fourthly, for our investment strategies, especially for our portfolio companies, including our financial companies and also insurance companies. And we also make some financial investments. For example, fixed income and also the equity and also alternative investments. So our investments and strategies is always our value investment and then is the industrial reinforcement and also our venture capital. And also in 2020, due to the macroeconomic uncertainties and also the undervalued assets, I believe that there will also be more opportunities before us. And our -- Fosun's track record is still very reliable. So these are all our strengths. Next, the second question is about the Fidelidade and also the impact on our insurance business. For Fidelidade, in our insurance sector, it is our flagship. And of course, the outbreak in Portugal hit more than 5,000 confirmed cases. Of course, for our insurance agents, they have been impacted in terms of the normal operation. Because according to WHO, it is already a pandemic in terms of the medical expenses, and the reimbursement is exempted. So we are all responsible for the testing expenses, which are low. In terms of the fatality and mortality and also for Fidelidade, most of them is about the health, excluding the mortality. So in terms of the medical reimbursement and claims, they are still relatively low. But of course, going forward, we will make evaluation. And also for the asset side for Fidelidade, well, in the insurance business and Fidelidade, it's still a role model in terms of the fixed income portfolio, accounting for more than 70% and then the equity investment and also the real estate investments of some benchmark or landmark real estate. So currently, for fixed income and real estate investment, so they are less impacted by this volatility, especially for the fixed income investment. They are investment grade. So -- because you can see that there are a lot of requirements for the hedging. So that's why it is relatively neutral or a little bit even positive for our investment-grade income -- or fixed-income investment. Although there is some impact, we are still resilient. Of course, there are still a lot of uncertainties. So we will keep an eye on that. And our management, we will to continue to monitor that.

[Interpreted] Thank you, Mr. Gong Ping. So this is the end of our annual results announcement this morning. So finally, I would like to invite our Chairman, Mr. Guo, to give us any concluding remark.

[Interpreted] Well, talking about the start-up and also entrepreneurship over the past 28 years, we have already encountered a lot of turbulence and ups and downs and even crisis. Overall speaking, in each crisis, we became stronger. And also personally speaking, following all these events and incidents, I have also learned a lot. So we can see that everything is the best-in-class arrangement. Thanks to these events. Of course, we sympathize with, yes, everyone who have been affected. And we can share the pains and also the suffering of all these people or families that are affected. We will go all out to support them. But at the same time, we are also feeling very fortunate in this country, and we have so many growth opportunities. And we also have this organization, and we are able to help others. At the same time, we are also able to work to grow. Well, I also firmly believe that I'm also very fortunate and even very happy. And for all my Fosun classmates, I'm very proud of you. And in this battle against the virus, particularly our medical staff, and I think they should be remembered. And with all that, you are not going to be remembered. Actually, from the bottom of your heart, this is what we are supposed to do in the crisis. You brave your way. And at this time, my feeling is that I think I have a shared feeling. Let's work hard together. Past is going to be past. Then after that, we are going to be stronger, and the world will be better.

[Interpreted] Thank you, Mr. Guo. So the next is that at 11:30 to 1:00, and now we are going to see the live streaming of our good products. You can scan our QR code and maybe some good information for you. And also Mr. Guo and Mr. Xu, they will also be our anchors to sell the products from 1:00 P.M. And in the afternoon session, our business segments, including our health, wealth and happiness, and different business leaders and managers will give us more presentation. So in the afternoon session, please continue to stay tuned with us. I would like to thank all our directors once again.

[Interpreted] And our banking and our rating agency, our dear brands. Good afternoon. My name is [ Liu Yue Bo ]. I'd like to welcome you all to our 2019 business performance release event afternoon session. Yes, indeed, in 2020, there is a out of a sudden pandemic, which has dealt a blow to everybody. But Fosun assumed great social responsibilities and anti pandemic efforts. Today, it is a great honor to have with us Mr. Li Haifeng, Senior VP of Fosun International to walk us through the stories of Fosun to fight the pandemic.

[Interpreted] All right. Dear shareholders and partners from Fosun International, our dealer partners and our dear friends from the press, good afternoon. It is my great privilege to have this opportunity on this occasion of the anti-pandemic campaigns of the world. We will have a cloud-based interaction this morning. We just concluded successfully the 2019 business performance release of [indiscernible]. Now both home and abroad are faced with very complicated situations. However, despite that, in 2019, Fosun International scored very positive performance for our development of the Fosun 2020 and beyond. We're full of confidence as we are working hard, forging ahead. Out of blue, there is the novel coronavirus pandemic that has hit the whole world. At Fosun, Mr. Guo, Mr. Wang, Mr. Chen as well as the leadership of the Fosen Board, starting from January 23, Fosuners of the world begin to act quickly to fight the pandemic. Up to now, as of today, it is 70 days already. So first, I have a video clip for your information through which we can review the past 70 days journey, what we have done as Fosuners to fight the pandemic. [Presentation]

[Interpreted] Yes. Let's fight the pandemic together. And through this video clip, as we know, how can we pull our strength around? It is a reflection of the great efforts made by Fosuners on a battleground against the pandemic, quick response, quick action. So as a Communications Chief for the anti-pandemic efforts of Fosun, I was asked the question as to why Fosun is so enthusiatic about doing so. I'm sure you may have similar question in your mind. The next, I'm going to spend 10 minutes walking through some of the efforts that we have been engaged in, in 4 perspectives or thoughts we have, based on the efforts we made. So first, the actions originated from the Fosun gene and culture and DNA. If you're familiar with the history of development of Fosun, upon founding the company back in 1992, throughout the past 20 years-plus, Fosun has managed to seize those rounds of rounds of opportunities since the start of the reform in this country, for example, steel, the commercial trade, retail, pharmaceuticals and tourism, so on and so forth. In different points in time when we came into those industries, those are one -- those industries were at a low ebb of development. For example, in light of the Asian financial crisis in 1997, we seized the opportunity of the SOE reform, then we invested in Yuyuan Mart. We successfully got inroads into the retail sector. The Yuyuan Holdings became stronger and larger, which is now acquired for Shanghai City. A second example is after '08 financial crisis, we actually did a countercyclical maneuver. We acquired Club Med that was already downhill. And we worked hard to expand the China market for Club Med. We successfully turned it around. It's fair to say that Fosun, in the DNA of this company, has this spirit to identify opportunities amid crisis. So it is because of the values and operational philosophy that we started to fight the pandemic globally. As we know that in January, the epicenter in China -- on January 23, before the peak occurred in this country, Fosun started to initiate global anti-pandemic campaign. And couple of days later, the first team that we've sent for had already arrived in Wuhan City to support the Wuhan Jihe Hospital owned by Fosun Pharma. Three days after that, the first batch of international supplies shipped to China, and that's when China was in most dire need of medical supplies. So we anticipated those moments ahead of time, then we enabled quick actions with calmness than those of very important DNA running in the blood of Fosun. Second, we think that this global fight against COVID-19 is a wonderful endorsement for Fosun's globalization strategy. Upon viewing this map, you may have a direct view or understanding that since January 23, continuously, on stage 1, we continuously shipped 3 million pieces of various types of medical supplies to China. Our global sourcing network covered Asia, Europe and Oceania and Americas, so on and so forth. Those medical supplies very quickly were delivered to Shanghai. Then it is through the Wuhan base and the Shanghai base that we quickly shipped those supplies to the frontline, namely the very epicenter of the pandemic, namely Wuhan City and other cities in Hubei Province. So the quick response of Fosun and our ability to coordinate for those resources globally has been acknowledged positively by the leadership of this country. For example, a leader from Shanghai government visited Fosun saying, "I heard Mr. Guo talk about the overseas industry presence. I was not that impressed. However, given the pandemic that has occurred, then we bear witness to the globalization level and a globalization capacity of Fosun." So Fosun globalization capabilities are part and parcel of the capabilities of Shanghai and China as a whole. Great endorsement from the government leadership. So meaning that our global integration resources are very prudent for China's reform. And this ability of Fosun to integrate resources across the globe following listed in Hong Kong stock market. This is a great result of Fosun's continuous efforts to advance globalization. In U.K., we own a Premier League football club, namely the Wolves. In France, who have Lanvin, a garment fashion brand. In Portugal, we have Fidelidade. In Japan, we have IDERA, which is a leading asset management house. As we can see, across different geographies, different business models, different segments across the globe, we're able to combine China momentum with global resources. So under the model of twin driver promotion that we successfully combine what we do in China with the rest of the world. So great results we have achieved for fighting the pandemic, which is a great embodiment of Fosun's globalization strategy. Over the past 13 years, we do the right thing. We do those things we need to accumulate over time our experience is for. I'd like to share with you the following, that in the next round, in the following 13 years, Fosun globalization drive will be further expanded, not only covering developed economies but also developing economies like Africa, India and Brazil, so on and so forth. So the global status of Fosun will further improve. As a token for China private sector players on the world stage, China and Fosun will not only be the participant of China's globalization, but also Fosun aims and aspires to become a frontrunner. And then next, we have already started Stage 2 for fighting the pandemic. We helped those who helped us on Stage 1. As of yesterday, the command center already shipped goods to France, India, Portugal, Spain, Macau, a whole host of countries and regions. Altogether, 15 overseas countries and regions for which we shipped 2.5 million various types of protective suits as well as masks and nucleic acid testing kits, so on and so forth. So as a globalized player, Fosun assumes great responsibility. We also answer positively the call of President Xi Jinping to build a community of a shared future for mankind. So indeed, this effort made by Fosun is a testament to the great efforts and standing of the Chinese companies as a whole to help the world fight the pandemic, not only those portfolio companies within Fosun Group. We adopt the ecosystem thinking and we galvanize the forces of those public good organizations, those social organizations as well and those individuals from the society. For example, Glory Foundation, Tencent Foundation, [indiscernible] foundation, Cgroups Alumnus Body, so and so forth, and various social organizations and individuals participated in a dedicated fund proposing to fight the novel coronavirus outbreak. Then we also have the humanitarian global campaign. This humanitarian campaign to fight pandemic are well received and supported by Tencent and other companies and entrepreneurs who wanted to actually donate in kind and in money and actively engage. So on my phone, every day, we have countless number of messages and calls coming in trying to pitch in. Yes, indeed, those actions are making active contribution to our global fight against the pandemic, which touched the heart of the Fosuners. So this donation campaign, led by Fosun Foundation, engage multiple stakeholders, which is a token is a collective contribution made by China. So I'd like to say this time around, through our efforts, we have come up with a wartime mechanism to further continuously evolve in terms of our organization. So many people may ask what benefits Fosun has got through those anti-pandemic efforts. Half month ago, 150-plus partners of Fosun participated in a 2020 global partner discussion seminar, and we reviewed the anti-pandemic journey of Fosun. We think the most important result this time is if we manage to further promote the organization evolution, including a wartime state, wartime mechanism, and we are fighters, we are warriors, we fight and we achieve, and we make a difference. We have already come up with the whole system for that. Going forward, we're quickening our actions to score positive performance and results in order to return favor of our investors for your trust you put in us. So dear investors, those are some of the thoughts in my mind. I think the global pandemic fight cannot be separated from our operational performance. Now we actually adhere firmly to our globalization strategy and we have boost our morale. We have galvanized our forces. It is believed we're going to have a successful journey in 2020. Thank you.

[Interpreted] Thank you. Mr. Li Haifeng. Yes, indeed, throughout the journey, there are many moments that impressed us and touched us. This is a reflection of the globalization strategy for Fosun. Next, we're going to start to talk about the health sector. Next, we would like to find to the President and the CEO of Fosun Pharma, Mr. Wu Yifang. And today, we have also -- very honored to have the Senior VP and also the President of Global R&D Center, Hui Ai-Min. And he's going to share with us his presentation from the United States and online. And after that, Mr. Scott Liu, the CEO of Henlius, will also share with his presentation from the States online. And later on, we will also invite Mr. Liu Yi from Beijing, the VP from Fosun Pharma. And our fifth presenter today will be Mr. Zeng Ming Guang, the President of Fosun United Health Insurance. First of all, I would like to give the floor to Mr. Wu Yifang to share with us in the presentation on Fosun Pharma.

[Interpreted] Dear shareholders and investors and media friends and also our online friends, good afternoon. For Fosun Pharma and on the 30th of March, we just released our 2019 results. And we are very honored and also very pleased today to share with all of you the following presentations. In terms of financial results in 2019, you can see we have more than CNY 28 billion, up by 14% and the total profit is more than CNY 4.5 billion. And you can also see that the net profit after one-off gain is more than CNY 2.2 billion, up by nearly 7%. And you can also see pharmaceutical represents around 76%. So pharmaceutical is our core business. And over the past years and in terms of our growth, and you can see we have overcome a lot of difficulties in terms of the policy pressures. And we have also successively transformed our strategies for Fosun Pharma step by step and we are already fully driven by innovation. And judging from those financial results, and you can also see, in terms of operating cash flow, it's very healthy, particularly in this great and uncertain backdrop, the healthy cash flow is very crucial. And later on -- and let's also take a look at what happened in the past in terms of the business and the highlights. And also, together with our shareholders and the media, and you can also take a look at our competitiveness. And first of all, competiveness in R&D. Our R&D is growing very dramatically in the last year. And the investment on R&D grew up by nearly 40%. Globally speaking, and we have more than 5,000 R&D staff. And in terms of the CNY 3.4 billion investment and 2/3 in our invested on innovation currently, and you can see we have developed innovative projects and also on '21 and by our similar projects, we're to get the more than 30. And you can also see all these R&D products of high barrier and also high value. And also in terms of our pipeline, you can see that we have a staggered life cycle. First of all, we have our internal R&D department. For example, Henlius and the Fochon. And also, we have different R&D units and evolved portfolio companies. And besides for Fosun Pharma, we're always very open for the international collaboration. We would like to be open to the outside world, and we would also like to embrace the world-leading scientists and also organizations for strategic partnership. For example -- and together, we have the CAR-T cell for our Fosun and Kite, and together with the German biotech that we would like to join hands and to develop mRNA vaccine to fight against COVID-19. That will be the ultimate solution. And also together with the U.S. and intuitive robotics, we have also collaborated with each other to set up the intuitive Fosun. So you can see we are working with those world-leading companies for the strategic alliance. Besides, by means of BD license, we have also introduced a lot of new drugs, and we have also set up our own incubation center as together with the world and the leading scientists and to work together, and they are also our partners. And inside our enterprise, we can work that together to create values, and we can also help them to fulfill their own personal values and to reap the benefits together. And also by means of VC investment. For example, in this row, I know it's only in Boston and also in UC Berkeley and also Oxford University, and together with these institutions, we have set up our VC funds. And these funds can also have very close connection with these leading institutions. That is it for the R&D. Then in terms of marketing. That is about the commercialization of the values. For all those research parties, through the sales and marketing, we can translate these research and findings into practice. Let's take the You Li Tong, for example. You can take a look at our Fosun Pharma's marketing capabilities, that is in the Febuxostat tablet. And so altogether, 3 players already launched this product. We are the second one. So actually, we have launched this as an original R&D products. And we also have our own patents. And we have also set up on the 4 high: hypertension, high-pressure and high lipid, and we have also proposed the hyperuricemia. So besides, we can also see that for the 95% of the gout cases in the male and 4/20 is the critical point. So we have also the 4/20 that is April 20, it is the international gout day. And we also promote the recognition of the public about the gout. And also for the marketing team, we also have HU, a unit for the hyperuricemia. And we have our OTC and the fundamental and the online marketing. And we have MCM, multiple channel for marketing. So this product can be promoted very rapidly. And over the past years, you can see that it is growing at a high speed. And we're also the leader in the market every year. And we have also done many screening of hyperuricemia for those people presented with hyperuricemia, and actually, altogether, we have 4 million cases. So you can also see the rapid growth in our revenue in the shortest period of time, and it is already more than CNY 1 billion. And in terms of product life cycle management, at the very beginning, we put emphasis on the rheumatology. We have set up our academic fundamental and then we started to work on all the clinical, yet evidence-based. Before the Febuxostat, our You Li Tong brand. And for the patients, especially for those with kidney problem, they can provide very good clinical benefit. Then our positioning hasn't promoted to the kidney. So currently, it is better promoted than the rheumatology. And also, we are together working with other experts to promote it in different departments. And step-by-step, we have evolved our position. First of all, it is the hyper -- in hyperuricemia and then -- and also for the protection of the heart and kidney, and we have different value propositions. And so all these marketing propositions, we are able to rapidly grow this brand. So currently, for Febuxostat, it is already the golden standard to cure the gout. And next for our shareholders and the media and also our online friends, let's take a look at our internationalization. Internationalization is one of our priorities. And in Phase I, we are thinking about globalization for China to introduce the global talents, technologies to be combined with China's momentum, that is the introduction from overseas into China. In Phase II, because of the globalization, we also go global, so that is China for global. Then in Phase III, and we are thinking about global-for-global. We are going to deeply engage in the division of the work in terms of the distribution R&D. And in manufacturing, we are going to have our global footprint. Then we are going to deeply engage in the supply chain and also the value chain. So that is about internationalization. In one case, in 2017, at the cost for more than USD 1 billion, we acquired Gland Pharma in India. For Gland Pharma -- so that is also the largest Chinese investment in India, and they also help us to get into the U.S. market and also the best-in-class products from Gland Pharma has also been introduced in China. Another case and that is our African footprint. Over the past years, and thanks for the [indiscernible] based products, we have launched in our branded. At that time, we just put emphasis in the English-speaking areas. And we have acquired Tridem, a French company, then we entered the private market and also the French-speaking areas. It has also complemented our footprint in Africa. Next thing is about strategy and outlook. So we have 4 main strategy. One is in innovation. That is our core. Next is internationalization. I have already talked about that. We are going to be deeply internationalized. Next is intelligentization. You can see that digitalization and 5G and online technology will be more widely used. And also for AI will also be greatly used for the drug development. Next is integration. And we would like to improve our organic improvement. And also, for our business strategy, we would like to continue to focus on our core business, and we are going to dispose of our noncore assets. For example, we have disposed in the United Family Hospital and [indiscernible]. We are going to continue to dispose these noncore assets and projects. And in the future, we will continue to comp our internal organic improvement in order to minimize this noncore. And we are also going to dispose and stop the investment on these minorities. So we are going to force the sustainability on the core business. And then going forward, and we hope that we can continue to be innovation-driven and also global allocation to ensure sustainability in the next 5 years. We hope that half of the contribution will be coming from our innovation. We also would like to grow our international business. We hope that LICA represent 40%. And with these twin drivers, we believe that the Fosun Pharma can continue to grow sustainably in order to create more values for our shareholders and make contribution and to our workers and to our shareholders and to the society. So this is my presentation. And for our shareholders and online friends, and thank you very much for listening.

[Interpreted] Thank you, Mr. Wu. Next, I would like to invite the Senior Vice President and also the President of the Global R&D Center, Mr. Hui Ai-Min, who will give us the online presentation.

[Interpreted] Okay, let's begin. Yes, thank you very much for your support over the past 3 years. First of all, I would like to take you to take a look at our R&D of Fosun Pharma. As we all know, that for the innovation, it is a very long journey from clinical trial -- before the clinical trial, that is a very important milestone in 2019 for Fosun Pharma and also for our industrial enterprises. And we have submitted 5 applications, and excluding the Kite and Henlius, for these 5 of 8 applications have already been approved. And also, the application of the launch of the new drugs in 2019, we have also submitted 3 new drugs to be launched. For example, [indiscernible], it was applied last February. And in recent month, it will also be approved for launch. And also, ORIN1001, it was a small -- first-in-class and anti-oncological drug. In 2019, it was already entered into clinical trial. It has also been in the FDA's in the faster track. So for Fosun Pharma, this is the first in our own innovative drug in the FDAs and fast track. FN-1501, that is the target drug for the leukemia and it's also in the clinical trial. And it has also been certified by the FDA as an orphan drug designation. It is also Fosun's own innovation to be listed in the FDA's orphan drug. In addition to these small molecular drugs, for the cell therapy and also gene therapy, we have some breakthrough. For example, together with ReNeuron from the United Kingdom, we have also developed 2 brand-new stem cell therapies. Yes, one is for the cerebral and the stroke and other [ retinal ] disease. And also for the Shanghai Science and Technology Committee, we're also awarded as the Shanghai Municipal Lab Center for the stem cell therapy. And also, together with the U.S. mini vax we are working with the mini vax for the brain tumor vaccine for this stem cell and also for the tumor vaccine. And actually, it is of the same business model. And for Fosun Pharma, we have the horizon for the domestic R&D. So we can use the global data to launch the products in China. And also, we are familiar with the Fosun Kite last year, and we have completed the CAR-T product for the liver cancer. That is the registration of the clinical trial is already completed last year. And next, let's review some of our R&D track over the past 2 years. So let's take a look at some numbers. And first of all, it's a number of the applications of innovative drugs and also the application of launch. And from 2017, '18 and '19, in terms of the clinical trials, you can see 2, 5 then 8. And then 1, 8 and more than 20 for the new drugs. And also in 2019, we have seen the new breakthrough. It is not an adjustment about the increase of the numbers of the new drugs and clinical trials. For example, in 2019, for Fosun Pharma, in the United States and in Australia, we have organized the first international clinical trial FN-1501. And also in 2019, we have the first-in-class clinical trial, ORIN1001. And also, we have the first U.S. FDA fast-track designation and also orphan drug designation last year. Behind these numbers, you can also see the improvement of Fosun Pharma's R&D capabilities. And also, it's an evolution in 2018. And we have also strengthened our Fosun Pharma's clinical and also regulatory team in China in the same year in the United States. And we have also set up a clinical and the regulatory team. In 2019, we have started off our scientific committee, R&D management committee. And also at the end of last year, last December, we have set up our global R&D center. Well, for our pipeline, so that is referring to our industrial enterprises. So basically, they can be divided in 2 parts, one is oncology, the other is non-oncology. In oncology, we have 12 products already in or very close to the clinical stage. They're all innovative drugs. Most of them are self-developed. And so they are proprietary R&D projects, and 2 are the introduced products. Out of the 12 drugs, 3 have already or will enter into global regulatory clinical trial. So in the next 5 years and within the next 5 years, roughly 7 to 8 products and over 10 indications will be approved and marketed. For example, the Avatrombopag. This is to treat thrombocytopenia due to chemotherapy, then this is likely to be marketed in the next 2 years. Then by 2020 this year, 4 pipeline products will jump from a Phase I to Phase II. In terms of nononcology, we have the CNS, the diabetics, renal disease, the GI tract disease and rare diseases, so on and so forth. Those non-oncology projects, we have a lot of them on advanced clinical trial stage within the next 5 years. 12 to 13 drugs, close to 20 indications were being marketed. Oncology and nononcology put together in the next 5 years, we hope 20 drugs and 30 indications will be approved. Next, in the technology arena, in addition to small molecule, where we have wonderful presence, but also in large molecules, besides antibodies, we also have ADC, the antibody-drug conjugate. Then CAR-T and the stem cell therapy in terms of gene will have the mRNA technology in tumor vaccine. So genetic therapy, for example, in the past, it was understood as a DNA treatment, but now the RNA therapy in a cancer vaccine all belong to the realm of a genetic therapy. The next, our R&D strategy, the presence as well as evolution. In a nutshell, our strategy is to put patients in the center. And we think about the pain the patient suffer all the time, then we are oriented by clinical needs. We think about what kind of drugs that clinicians need to relieve the patients of their pain. We actively apply various types of high-tech as well to advance our R&D in order to strengthen Fosun Pharma, the center R&D capabilities as well as the managerial capacity to better coordinate pre-trial and during trial, home and abroad, in order to make the coordination happen in a better manner. Lately, we have put together a global R&D center. The top-level design has been basically completed. We have also improved our committee system. We have a science committee. We have R&D management committee, technological committee as well as clinical regulatory and registration assessment committee through various committees that we will try to manage our global R&D efforts. And of course, with those systems put in place, it is also necessary for us to make more optimization down the road. For example, we need to improve the project proposal system and the pipeline R&D programs value evaluation system as well as the life cycle management for products system. Furthermore, we need to actively shore up our internal R&D capacity and global R&D capabilities. In the meantime, we need to try various means to work with other partners to incubate, to bring in those wonderful projects and products from outside to reinforce our product pipeline. In addition, leveraging actively big data and the intelligence to transplant those tech with our R&D and managerial efforts. In terms of the technological platform development, small molecules, we have already built a scale. So going forward, we're going to focus more on first-in-class and best-in-class R&D. I mentioned PCG: protein therapy, cellular therapy and genetic therapy. We will ramp up efforts in a broad way to deepen our presence. In terms of disease area, oncology remains our priority. Within CNS, that is central nerve system, not only degenerative disease but also stroke and rare disease, metabolic disease, infection, those are priorities as well. Why oncology remains the priority of our priorities? This is due to the huge clinical needs. Although we have new anticancer drugs coming to being, however, prognosis of cancer patients is rather poor. In China, for instance, 5-year OS is only around 35%. Every year, in addition, a lot of people in China die of cancer. Due to the huge clinical demands, there is huge market potential as a result, not only in China but also the rest of the world. Of the past 1 decade or 2, the oncology market of the world has been growing continuously. The trend is likely to be kept going forward, our presence in oncology. For example, for human beings, over 100 types of cancer, we cover 2 dimensions in our strategy. First, those cancer types with high incidents. Yes, this is the first time that we cover high-incidence cancer types. Now from a Fosun perspective, we have already built a basic network, for instance, males Chinese people, lung cancer and among females it is breast cancer with the highest incidence. In hematological diseases, we have Han Li Kang and CAR-T, the blockbusters. We have already propelled for those hematology. Taking lung cancer, for example, we have multiple antibodies. We have multiple small molecules as well. In addition, we have diagnosis. We have Da Vinci Robotics. We have the minimally invasive smart R&D. This is like the multiple industry coordination efforts. Next, oncology. Another strategy we have, those tumors with Chinese characteristics. What does that mean? For example, liver cancer, gastric cancer, esophageal cancer, because these 3 types of cancers have the highest incidence mortality. But the mortality is not as high as in China in those western countries, meaning the global pharma do not really emphasize on drug R&D of these 3 cancer types. For example, gastric cancer and breast of cancer, and lung cancer -- especially lung cancer, breast cancer, FDA has approved 30 drugs. However, for liver cancer, esophageal cancer and gastric cancer, these are 3 cancer types China suffers heavily in particular. Then Fosun Pharma, as a leading R&D company, we need to face the challenges head-on because the number of drugs available is limited for China. We need to assume this challenge. This is an opportunity for us because the existing drugs are limited in number. We stand a big chance to put it off. So we can even build our power on a global stage. If you look at the COVID-19, already 840,000 confirmed cases, a lot of death as well. When the ending is going to happen? We have no idea. We do not have an active therapy. I think the silver bullet is going to be lined with vaccine R&D. So given the societal needs, Fosun Pharma is working with BioNTech Germany. Jointly, we are R&D-ing the mRNA vaccine against COVID-19. Since we started negotiation to agreement signing, that took only 6 months to make it happen. Why it is such a smooth journey? Out of 4 reasons, first, Fosun looks at the pandemic, assumed huge responsibilities. Then quickly and sharply, we came to understand the technical advantage of mRNA vaccine. Now very rapidly, we lock in on BioNTech, which boasts a wonderful mRNA technological platform. Last but not the least, our Fosun Pharma R&D capability and our quick responsiveness is applauded by the other side of the table. mRNA vaccine, compared to regular vaccines boast several advantages. Short R&D cycle, due of mechanism of action, the fluid immunology, in a cellular immunology, it does not take adjuvant. It is very safe. The process is straightforward. So far, it's scalable, that's why we choose mRNA. Why BioNTech? First, in this technological area, this is a leading company. And with other big top guns like Pfizer and Sanofi, they already have partnerships. There are several technology advantages. First, they boast diversified mRNA technological platform. For example, those self-amplification mRNA and a nucleotide mRNA, et cetera, they have 3 platforms. So we can do screening on all the 3 platforms at the same time. And thus, we've seen a higher chance of success. In addition, this company boasts a very potent -- those nanoparticle transfer system. For those products, they already conducted a clinical trial on a sample size of over 250 subjects, the mRNA oncology or tumor vaccine is the only one until now that has already demonstrated clinically efficacious result as a tumor vaccine. In a huge production capacity should this vaccine be marketed in the future, every week, they would be able to produce a lot of it. In addition, CAR-T and other types of vaccines, so on and so forth, we enjoy more potential for collaboration with this company in the future. So why we chose them? Those are the reasons I listed out beforehand. But this is a 2-way choice, right? They chose us as well, thanks to our prior track record. Also, thanks to our quick responsiveness and R&D capacity on the part of Fosun Pharma. As we negotiated with the other site, they presented those basic materials and information to us. Then 2 days after that, the Fosun Pharma R&D team already put forward a regulatory plan for registration and as well as the Phase I through Phase III clinical trial design proposal. So we were very professional. In addition, as they sent us the clinical trial filing dossier, the basic document, that our American team and the Chinese team, despite the time difference, spent only 1 day translating their dossier. Then quickly online, we filed the proposal of the project with China regulator CDE, Center for Drug Evaluation. Then 1 week after that Fosun Pharma, BioNTech and CDE tri-party meeting successfully convened. All those efforts pointed to the very professionalism and a quick responsiveness on the part of a Fosun Pharma R&D team. So all in all, this is a great partnership, the marriage of 2 strong sides. The 2 sides can have mutual complementarity strategically. And on March 15, both sites announced that BioNTech share prices increased by a factor of 3, as we know that's really big time since the announcement. Right now, the process is completed in a smooth manner. By the second half of April, the clinical trial will start in Germany. In China, we're talking with the regulator. We try to start it as soon as possible as well.

[Interpreted] Thank you, Dr. Hui. The next from Henlius, CEO of Henlius, Scott Liu, who is going to speak as well. Scott, something wrong with the camera. Therefore, we may not be able to get a direct visual on Scott through the camera. We can only hear his voice. All right. Shall we start? Well, it seems the camera now is working. Great. Scott, please. Yes, Scott, please, start your presentation.

[Interpreted] Our dear investor friends, our dear online viewers, good afternoon. It's my honor on behalf of Henlius to walk you through our business performance last year. For any biotech firm, if you look at the growth trajectory, there are 3 major milestones: first, product marketing; second, stock market listing; third, breakeven or turnaround to turn a positive cash flow. From those perspectives, throughout the past year, Henlius was blessed with multiple milestones. Our first product, Han Li Kang, successfully launched to the market. In September last year, when the market was poor, with poorer sentiment of investors, we IPO-ed successfully on Hong Kong Stock Market. So we completed 2 major milestones out of the 3 for any major biotech firm. Our R&D, production and sales business, last year, I'd like to walk you through them briefly. First, our mission and vision. Our mission: To improve patients lives by timely providing them with quantity in affordable protein therapeutics through technical innovation and operational excellence. Our vision is to be the most invested and admired biotech company. And we honor the principles like reliable quality, affordable innovation, biosimilars, plus bio-innovatives and a combo and a quality focus and a global footprints. Currently, the company history overview in key milestones. We have filed over 20 INDs, the first product already successfully marketed. In the meantime, we filed 2 NDA and 1 MMA. Right now, the pipeline clinical trial products, there are 18 of them in total. The full-time employee is close to 2,000, 42% of them hold master and a doctoral degrees. And our production capacity right now is 14,000 liters of products. Why we have come this far? Product development, and we begin with the biosimilars, and we are a leading player. It is through biosimilars marketing that we generate cash flow, that we strengthen our R&D, that novel drug development therein, including immunotherapy for oncology. As we continuously develop products, we have laid a very solid basis. Our core platform then R&D production, commercialization and the global registration capabilities are well shaped. So in addition to 01 Han Li Kang product, the first of its kind, the first biosimilar in China, which was already approved and marketed. In addition to that, we filed 3 applications, like 2 NDA and 1 EU EMDA, for which we're very proud because it's the first of its kind R&D in China and handled by EU regulator. So now the approval process is unfolding as we speak. Then we also have the RA rheumatoid arthritis indication. We also have Avastin biosimilar that completed MCRC clinical trial 3 recruitment then a post-R&D approval, 7 of them, including 4 innovation drugs and 1 combo. We have also initiated 12 clinical trials, the 8 PD-1 pivotal trials, those trials that can be used for product registration purpose. Then commercial cooperation. We've got great progress as well. We work with Kalbe, the largest pharma in Southeast Asia. We signed agreement, covering 10 countries, 3 indications. And then we signed agreement with over USD 600 million. Now rituximab, with Farma de Colombia, we achieved a strategic agreement. We give them exclusive commercial rights, 4 countries from South America, company growth will further do capacity planning and expansion. Base 2 broke ground in last June. The Songjiang base is close to be completed with construction. The FTE headcount increased close to 2,000. Then we listed on Hong Kong Stock Market at the end of September last year, and we are very proud. In addition to tumor targets, we also have anti-angiogenesis as well as immunotherapy targets. Altogether, close to 30 targets we cover, including biosimilars and novel drugs. So here, I'd like to mention, be it biosimilars or novel drugs for PD-1 and PD-L1 going forward, we can put them in a combo therapy to shore up clinical efficacy. The downside of PD-1 now is although it works against the 20 tumors, but ORR is low. The hot topic now, PD-1/PD-L1, on top of which we add a small molecule or chemical compound to increase the clinical efficacy to cure more patients. For that, we are prepared. We can combine PD-1/PD-L1 with close to 20 other agents, the combo therapy. Of course, Han Li Kang, that MabThera is the first biosimilar in China after 10 years of R&D. Last year, it was marketed successfully. It is one of the global-first 3 of its kind. It's very hard to complete R&D because the action mechanism, you need to understand the glycolization structure because all these are very important. Different glyco base then there is different bioactivity and hence, different manifestations clinically. It's technically complicated. We are proud we did it. We're approved the regulator in China and the first production approval letter for biosimilar. And then also for 02 and in 2010, we started to have our global footprint together with global pharma, and we are aligned with its global strategy. At the very beginning, we comply with the EU criteria because in China and even in the United States, there are no criteria for the biosimilar. And at the very beginning, there is an only EU criteria. And we follow the strictest criteria for the biosimilar including the manufacturing facilities. So actually, we comply with the Chinese and the American and also the European standards. And also in 2016, we have also obtained a pre-approval. And in 2017 and also in 2018, we also started to sign the licensing agreement with the European and American companies, including the third largest generic companies in the U.K. So currently, we are able to cover 73 companies. And also together with Cipla, we are also able to cover the Australia and New Zealand, of course, also currently in Malaysia and the Hong Kong region, et cetera. And also last year, and we have also applied for NMA (sic) [ NMPA ]. So actually, this is also a milestone, yes, because it represents that in China for global. So this is also a key milestone for Chinese medicine to go global. And we really expect that by the end of this year, we are able to obtain the EU approval and also for PD-1. So we have a combo and global combo is a combo. So it means that for biosimilar or for the innovative and the monoclonal antibody, including I/O targets and anti-angiogenesis targets and tumor-specific targets. And so that's why with this combo, the effector can be improved. And we're also very honored that for our R&D capabilities in terms of speed and quality and the cost of effectiveness. Because for the combo and for the mAb, if one monoclonal antibody is 100,000, then if we have 2, then it will be doubled. Then it will be too expensive. But if we can combine them together, it can become more cost effective. And then in terms of globalization, we have the global multi-center clinical trials. And currently, half of the R&D has also been in partnership with our global resources. And also GCP, GLP are also well aligned. So for GMP and GCP, we can also achieve the world-class -- and we can also enter the emerging markets by leveraging FDA and EMA approvals. And we also have the business development and partnership to have our global footprint. So this is our PD-1 mono and combo therapy. Here, you can see 8 or 9 clinical trials were conducted last year and also innovative and mAb and also the combo therapy. Until now for our PD-1, we already have 11 to 12 people to trial. And also in China for the liver and stomach and also lung cancer and also several cancer, et cetera, you can see, they are already in very good progresses. And also, we have very efficient R&D capabilities. And we have different development platforms. And also, LAMA, LABA and [ VSH ]. And also, you can see that we have fully human nature phase and display library, 1.5x2^10. And also now we are very confident that in the 4 or 6 months, we are able to develop in this antibody with very satisfactory testing procedures. And we also have a bio-specific antibody technology platform. And then in terms of manufacturing and clinical registration, then we can also see the preparation and the filling. And we already have developed our clinical medicine system, and also our quality system is also well developed. And also for [ PC ] and [ PV ], they have also in compliance with international standards. We believe that with this international and foundation certification, we are able to go global more efficiently. And also for the majority of our products are in-house developed. And in our pipeline, currently we have 30 and then totally different pipelines. And we can see around 80% to 90% of the pipelines are actually in-house developed. And in this period meeting, you can see we have a lot of early-stage product development, and we also have a preclinical and Phase I, II, III, et cetera. And I would like to highlight that for this immunological and then also [indiscernible] and [ VG ], et cetera, and this year and also next year, we are going to apply for more clinical trials. And next thing is about our Henlius strategy for strategies, and we always put emphasis on the quality. And also, HLX01, HLX02 will be our top priority. We hope that in the middle of this year an 02 product can be commercialized, and we hope that it can become our cornerstone. Well, in the global footprint, we will continue to work with these global partners and with business channels in order to explore the overseas market. At the same time, we're going to improve our capacity and also new processes, and we hope that the efficiency can be improved on the ongoing basis. And also, we would like to continue to cultivate our team, and we would like to optimize on our commercial operation and also the best-in-class talents. For our strategic partners, we have very good results, for example, in Cipla and also Cipla cable and pharma, Biosidus, and include DE COLOMBIA (sic) [ FARMA DE COLOMBIA ] in South America and also in Europe and in Africa, you can see we have a very good global partnership. And also, we, together with our Fosun Pharma, are also working very closely to explore and expand the market presence. And for example, in China, we have already entered the hospital list for reinvestment in 29 provinces out of 30 provinces in China. And in terms of manufacturing and also the economy of scale and technology innovation, for example, for our Xuhui facility, we would like to expand our 14,000-liter capacity to 18,000-liter. And then we are able to support our Hanlikang's commercial manufacturing. And we have already completed EMA, GMP on-site inspection. Next is our Songjiang plant number 1. And we have already completed the test production. And in the first half, we are going to launch the manufacturing. And then Songjiang plant 2, and we have already have our planning for the land use, and we expect that in the third quarter next year that we'll be fully into production. In addition to the adequate manufacturing, we're also very keen to use the new technologies. For example, we would like to adopt more single-use bioreactor technology in China. And we are also working on the new generation in order to shorten the processes in order to have better efficiency and also more cost effective. So currently, you can see everything is based on the international standard. And you can also see that we have approximately 70% of the headcount of the manufacturing department, who are able to do the global quality operations. And going forward, we would like to capitalize on our first-entrant advantages, thanks to our very strong team. And we are going to focus on, yes, the current market, but also a broader market. And we are already prepared for a very fierce competition. And also, we are also going to make more upgradation for our new product for all 3 series. And we continue to improve on our production capacity, and we are going to complete Songjiang plant 1 and Songjiang plant 2, and state of the art technologies will be used for better efficiency. At the same time, more investments will be used to develop innovative drugs. Globally speaking, we're going to conduct the clinical programs, whether for the biosimilar or bio-innovative. And in the EU and in the United States, we also want to find more partners, and then we can codevelop and also to develop the international markets together. And also, we would like to optimize our operations, not adjusted to ensure the global standards. And we would like to be recognized by more global partners in order to gain more international opportunities. And for biosimilar and innovative drugs, we are going to implement global registration and global commercialization to ensure ourselves going forward to all the international markets.

[Interpreted] Okay. Thank you very much. So both Mr. Hui and Mr. Liu are in the United States, they are still at midnight. So next, we would like to invite Mr. Liu Yi, Vice President of Fosun Pharma, and he's going to share with us presentation on our medical equipment.

[Interpreted] Well, can you see me? Okay. And dear friends and our shareholders and online friends, today, I'm very honored to have this opportunity to share with you the presentation on the Fosun Pharma's medical devices. In the health business, it is a very important part over the past years. We'll make efforts on all the competitiveness and also the internationalization to be combined with the China momentum. And in all dimensions, we have made a lot of progresses. In terms of products, for example, we have da Vinci surgical robot. And we can see that for the surgical domain, it is a very important robot. Well, in Mainland China and also in Hong Kong region, you can see we have already more than 150 installations, and the number of surgical cases is also surging. In addition to the da Vinci surgical robots and in terms of the cosmetic, we have also made a lot of new progresses. So you can see 15 products, for example, laser cosmetics. And then you can see -- and we have launched the [indiscernible] via the laser base and medical beauty. And also you can see for the plastic surgery, we have made a lot of breakthrough. And also for the global market, we have also launched the other new products. For example, the smallest and the breathing here, that is also registered in China for the breathing product. It will also be launched in China for the sleep and breathing product, so we believe that, and they can also support these types of patients. And also during the COVID-19 campaign, for example, [ Youlitong ] has also been applied for the mobile CT. It is not just used for the COVID-19, it is also very valuable for other types of medical operations. And also the negative pressure ambulance by means of ventilators, they are all very useful in this anti-COVID-19 campaign. And also for our medical device sector, in China, U.S. and Israel and also Sweden, so these 3 -- 4 R&D centers for our medical devices currently. And then we have also covered more than 90 countries and areas. In addition to the organic improvement, we have also mobilized the global resources in Fosun and to be connected with the state-of-the-art technologies in order to have more collaboration. So we are dedicated to improving our global competitiveness through these global operations. And also for our medical devices and also for our future planning, we have following highlights: first of all, the main track is the cardiology and neurology tumor, respiration and medical aesthetics. And you can also see that, these are all very hot in their areas, so that's why we believe that for these areas and also the demands are not fully met. And also, together with the current health care services and products, we can come up with a closed loop for all these 4 areas. It is also based on AI and also 5G and also digital health and robotic technologies. And currently -- and we can also see the POC and MC have also become the core technologies. So this is also our priorities for the technological integration going forward. And also in Fosun's ecosystem and also for Fosun's medical equipment, so we focus around different domains. For example, the clinical diagnostics and also for the health care services can be integrated. For example, for the cardiovascular and also for the diagnosis and treatment and in terms of different functions, we have improved the service qualities. And our product competitiveness, in terms of the medical solutions with different combinations, we can provide more timely solutions in a holistic manner. For example for the orthopedics and also imaging can also be combined. And also, together with the tourism and also senior care can also be combined to diversify the services. In addition to diversified services and also based on the medical devices, we are able to provide more health-related products and services. And for our medical device and future business and organic and also external and integration and also the combination and introduction by the global resources. And also our own evolution, we are going to improve our global competition. So this is the presentation on the Fosun Pharma medical devices. I can also be open for more questions later on. Thank you.

[Interpreted] Next, we would like to invite Mr. Zeng Ming Guang, the President of Fosun United Health Insurance.

[Interpreted] Dear investors and media friends, good afternoon. Today, I'm very honored to have this opportunity to introduce in the Fosun United Health Insurance. Fosun United Health Insurance, we were set up in January 2017. We are a professional health insurer. At that time, the background of our establishment was that because for the entire health insurance sector, which was growing very quickly, at that time, Fosun had a very holistic and health-care-related resources. And at this backdrop, we set up this Fosun United Health Insurance. We hope that we can have a very comprehensive ecosystem. At the same time, for the health insurance will also become a very critical part of this ecosystem. So this is a very professional health insurance company. Since the 2017 in January, over the past 3 years, at the end of last year, so it is already our third year, so we have made a lot of progresses. And in terms of product innovation, model innovation and service innovation and sales innovation, as a brand-new insurer, and we have accelerated our paces over the past 3 years. And you can see some of our statistics. First of all, in terms of products, and we have developed more than 100 products. And also in terms of medical network, including Fosun's internal medical network and external ones, we have more than 1,000 partners. And by the end of 2019, we have more than 1.3 million customers. In Beijing, Shanghai, Guangzhou, Sichuan, and Jiangsu, in these 5 key provinces, we have set up our branches. Thanks to the opening of these branches, we can say that for those insurance companies set up in the same period of time, we are growing the fastest over the past 3 years. And in 2017, yes, that was the first year, the revenue was CNY 59 million. In the second year in 2018, our revenue hit CNY 520 million last year, and we recorded CNY 1.81 billion. So you can see that the growth rate was more than 248%. And also for our whole company, over the past 3 months, you can see that in each milestone, we are moving forward very quickly. In terms of organization from Guangdong and Beijing and in Shanghai to Sichuan and Jiangsu. And each year, we would set up 2 branches. And also for our business growth, almost for every 2 or 3 months, we are going to see additional CNY 100 million. By June 2019, cumulative insurance premium income exceeded CNY 1.6 billion. So over the past 3 years of our growth, there are several points: first, about sales channel development, it is through the Internet; our group insurance; the bank; as well as individual. Altogether, 4 insurance channels are advancing quickly. The individual insurance channel is developing relatively slower than the other channels because the sales experience for agents are rather high. The Internet business, the banking insurance channel and group insurance channel in 2019, each 1 of the 3 occupies like 1/3 of the pie. And the Internet insurance, there is some renewal business that we have achieved. Similarly, it is higher share than the banking channel. But basically speaking, these 3 sectors occupy 1/3 each of the pie. And product-wise, this is a new company. This is a health insurance, so product innovation remains the most important development topic for us. We emphasize, in particular, on healthy people, the chronic disease people and the deceased population, the 3 types of people. In addition, the insurance products Internet, insurance products health care and insurance products drugs, those are different dimensions we're talking about. It is along those dimensions that we try our best to develop health insurance products. And several years ago, we launched the product of the long-term critical illness insurance. We also have disease insurance, and we also have products that are integrated with other products within Fosun Group. Third, tech innovation. The year of 2018, the IT investment exceeded CNY 15 million. In 2019, the number exceeded CNY 18 million. So we accelerate the online migration for various types of our business as well as intelligence as well as the IT-driven, like automation of claims settlement, the underwriting, et cetera. So it is through tech that we try to empower the business. In terms of the financial data, the 3-year premium income, which I already mentioned: ROI, CNY 22 million in 2017; and a CNY 50 million return on investment in 2019; and a 5.67%, the combined return on investment in 2019. Last year, we suffered a loss of CNY 42 million. That number is little different from the published information. Why? Because EY, Ernst & Young, did audited the risk adjustment. Total asset is CNY 1.9 billion. The net asset of over CNY 675 million. Going forward, Fosun United Health Insurance will focus in particular on our original strategy, for example, leverage fully the shareholder portfolio company resources. And we aim to provide our customers with one-stop health services, which is the direction to go for the future. What matters more is innovation ecosystem, the tech and synergizing. Those are 4 dimensions we're going to cover in particular. First, industrial synergizing. We're unsure, so we need to make sure we can secure our clients. How can we leverage the Fosun Group resources? Yes, indeed. In a more effective way, we want to synergize with portfolio companies within Fosun Group. We also have opportunities regarding business model innovation. As a commercial insurance, how can we strike for new type of a commercial model or business model with us? We shall also accelerate product innovation. Mr. Wu from Fosun Pharma talked about novel drug efforts, where there is lot of plans. How can we combine that novel drug development with insurance, which is a priority for what we do this year? Third, business synergizing, insurance, the medicine as well as drugs, how can we offer one-stop services to our customers? This is also very important point for this year. From a united insurance perspective, this year is like the second 3-year period for Fosun United Health Insurance. We hope in the second of 3-year plan, we want to become the first-tier player in the segment we fight in. How can we further upgrade our, let's say, operational model? Whether can we set up those region-based branch companies this year, we hope, in Shandong, Chongqing and Hunan where we can set up those provision-level branch companies. Innovation-wise, we want to come up with great business model with innovation in mind. And number four, we also leverage the Fosun Group level health care sector resources and make some efforts therein. Our 158% solvency ratio last year, this year, we're going to add to the capital. So we will actually be better, even in terms of ecosystem presence and building. We hope next year, we will begin to turn a profit. We hope, in 2022, we can initiate a plan for IPO. So we've produced a 10-year plan. And from, let's say, 2020 to 2022, this is a growth period. And into 2025, it's going to be the mature phase where we hope we can fully embody our core competitiveness with an established business model that will put us in a good position for IPO. Although we're a new company which was set up 3 years ago, but coming forward, within Fosun health care sector, we want to become a part, an important part of Fosun health care sector and make our due contributions.

[Interpreted] Thank Mr. Zeng. Yes, indeed, your time is up. The next, the health sector Q&A session.

[Interpreted] We have collected some questions. First, from Xingye Securities Analyst [ Joe Pepe ] asking a question about the, let's say, quality, consistency assessment. And what about the VBP, volume-based purchase? What is your strategy of GQCE and VBP? And again, in March, the COVID-19 new kit, asset testing kit, of Fosun Pharma has already approved according to EU CE mark and allowed to gain entrance to the European market. What is your expectation of the future sales in Europe?

[Interpreted] All right. Thank you, the analyst from Xingye Securities and also from HSBC. So I have 2 questions or that maybe the same question from 2 different organizations. Yes, the GQCE, 49 are ongoing but 16 out of the 49 already passed successfully. And in this year, a big chunk of those GQCE efforts will be approved successfully. Then class 3 VBP, we won 6 categories in the last 3, but we have won more than we have lost. For volume-based purchase or VBP in short, what we see is the pricing policy trend for generics in China, the era is gone when there was overpricing for generics. Going forward, the competition on a battleground of generics shall be based on cost, either you deliver high-value or you achieve low cost. Therefore, we will go out to be propelled along those lines. Currently, in terms of cost competitiveness, we are confident. Second, as for GQCE and VBP, the sales revenue impact, thereof, for us currently, we have propelled more novel drugs and biosimilars in our arsenal as well as chemical generics. We have a very enriched pipeline and a portfolio. We have one of a growth areas or drivers for our future business. Second, the coronavirus testing kit. Not long ago, we got the approval letter from the NMPA, which is the national regulator. We also got approved by EU CE. Now we're applying for, let's say, American certification and a WHO certification. Should those pass successfully as well, then we will deliver the testing kits to the world. Now we are putting together production forces for that kits, but there is huge demand. We're under pressure for production capacity. We hope it is through this testing kit that we can contribute to the pandemic fight in the world. We are very confident about the specificity and accuracy of our assay. Thank you.

[Interpreted] The next question is about the coronavirus vaccine. Dr. Hui, please. BioNTech authorized Fosun Pharma to develop the vaccine for coronavirus. What is the current status of clinical efforts? What will be the estimated overall investment once the vaccine is approved in the future? What will be your commercialization plan and profit-sharing plan? Third, the technical advantages of mRNA. Dr. Hui, do you copy?

[Interpreted] Yes. First, first question. Right now, the progress, this is a collaboration with German company. In addition, Pfizer from the States also comes in. This is a tripartite agreement. So the preclinical trial animal efficacy trial, as a matter of fact, has been ongoing smoothly in Germany. The vaccine, study vaccine, is produced and provided in Germany. In the middle of April, the vaccine will be in place and enter the clinical trial. As one other in Germany, they already achieved agreement with the regulator. According to the current progress, clinical trial will start by the second half of April. In the middle of April, the German company, BioNTech, will ship the vaccines to us. So if the inspection can get passed successfully and approved by the registration regulator, then by the end of April or beginning of May, in China, we hope, we can kick off the clinical trial as early as possible. For that, we're still negotiating with the regulator. Second, mRNA, the technical advantages of messenger RNA. There are 5 aspects. First, the R&D cycle is short because this technology is different from the traditional vaccines which ask for in vitro intracellular propagation. Nucleic asset, this is a in vitro synthesization process. The viral genetic sequence, the design and the manufacturing of the animal vaccine prototype, it only takes 40 days to 50 days, so short production cycle. Second, it is a nucleic acid vaccine. There's fewer mechanism of action. First, it stimulates the fluid immunology to generate neutralizing antibodies, to prevent the virus from getting in. Second, it can stimulate the cellular reaction of T-cells to activate the T-cells. So even though some virus has already gained entrance into a human body, the T-cells can be activated to kill the virus. So this is a dual mechanism of action. Third, the strong immunogenicity, unlike the traditional vaccines which ask for adjuvant, because in old days it took adjuvants, the additives, which may produce side effects. But this mRNA does not need adjuvant. Number four, there is no virus content. The microbial content is synthesized industrially. There is no virus. Therefore, it is safe. One more thing that matters, the process is straightforward, so the production capacity can be very good. BioNTech, which is our partner, weekly it is able to produce millions of vaccine units, millions of pieces. So this is very good for fighting the pandemic. There was one more question I missed.

[Interpreted] Commercialization. All right. I will respond. For COVID-19 vaccine, that messenger RNA vaccine, once it is up for grabs in the future, we will strengthen our existing vaccine channels to expedite the commercialization of this product in China. Now we have a vaccine business in our portfolio named [indiscernible], which is producing 3 types of vaccines right now, the rabies and the flu vaccines, and the business there is growing healthily. Going forward, we're going to leverage the existing channels to expedite the reach of these products in the terminal to enable quick access for our consumers and agents. Then production and manufacturing. Upon approval, within a short period of that, we may use or sell imported vaccine products first in China. In the meantime, we negotiate with BioNTech about the possibility to build a commercial base in China. So after a period of time, we may start domestic production of the vaccines in China to enable and ensure the strategic access which is very important. The bilateral collaboration agreement is pretty clear. You may have already read our announcement. This is a profit-sharing model. Going forward, BioNTech is going to share 35% of the gross profit of this product. Thank you for your question.

[Interpreted] Thank you, Dr. Hui and Mr. Wu. The next chief analyst, Victor from CICC. 2020, the all of a sudden COVID pandemic, any impact on Fosun United Health Insurance business? If the answer is yes, why there is an impact? Where it has impacted? What will be the future opportunities for Fosun United Insurance (sic) [ Fosun United Health Insurance ]? Mr. Zeng?

[Interpreted] All right. Thank you, the question from this investor. Yes, the pandemic hit us all of a sudden. As of the end of March, there is a continuous impact for sure due to the pandemic. Why? Because our clients and our sales reps are not that active during the pandemic. But the impact is not hitting us to a large extent because the first 3 months of this year that, cumulatively, new business order growth is not bad. There is still positive growth of the new order in our order book. Although it is not as fast as our original expectation before the pandemic, but we still enjoy handsome growth for our new order -- new business. Starting from April, the business sales have started a normal cycle. So you're right, I don't think we're going to be severely compromised by the pandemic. We can be on track to our original budgeting for this year, the whole year. But in a nutshell, technologically speaking, there are some implications for insurance industry, say, our customers, their consumption behavior is boosted because in the past, you had to educate your potential customers, right, in order for them to buy a policy. But now they are motivated to proactively buy insurance policies due to the pandemic. On the early stage of the pandemic, we promoted our products online. Those products were selling like hotcakes. Those were peak time of the pandemic. So the customer consumption behavior will change and is changing in our favor. Next, our ability to migrate online. We're a young company with less than 3 years of history. We have already made substantial investment online. So this is good for our business going forward. Third, we're pondering the issue as to the online migration for health insurance and offer insurance as a whole. What kind of implications it will have for reshaping further our business model? We're trying to think about it. Say, the online insurance marketing, the online health services delivery, we're thinking about them. There may be some big transformation for our industry down the road.

[Interpreted] Thank you, Mr. Zeng. And the final question, we invite Scott from Henlius to respond. Two investors asked a question. A part of it is about Henlius, signing agreements with overseas companies. So Scott, what is the overseas strategy for Henlius? Second, the latest announcement listed on the, let's say, Starboard. So I wonder, what is your thoughts of the Starboard listing?

[Interpreted] Well, for this issue, first of all, about the globalization and some of our ideas and on global strategies as early as 2010, we have already decided to go global because our mission and vision is to create values for the Chinese and then also the global customers and the patients. And so that's why I say aligned with the Fosun's global strategy. That is the one-decade effort. So we always talk about globalization, but that is quite difficult. The most difficult point is how we can ensure the quality can be certified by FDA because it is a very sophisticated process. It doesn't mean that you can be certified by FDA. It's not that easy. It's going to take many years. And also, we have engaged the experts, for more than 20 experts, and then also the groups and experts. So far, our quality system, actually, it can be subdivided into more than 4 processes. It's going to take years to accumulate these expertise. So in order to become global, you need to have the world-leading quality. We have already achieved this target. Next, we also worked with companies with global channels, for example, for the biosimilar for 01 and 02, and we already have our global partners. Going forward, whether for biosimilar or innovative drugs, we are going to work with the international players. For example, for biosimilar, so we are going to work with these American and European pharmaceuticals with the international channels. We are going to gently bear the R&D expenses. You know that the R&D expenses may amount to USD 100 million. And then we can give the license with each other, so we can share the benefits with these international players, whether in U.S. or Europe. So where we work with European players, they have the European market, we have the Chinese market. Then we can share the market in the United States. So we can have our global leading partners and also share the benefits. Because sometimes, it's impossible to send up the international market so quickly, so that's why we still have to leverage these players and with international channels. Then in terms of innovation, and in order to really work with them, you need to have your own expertise. So we are already working on our own expertise. And for example, for our -- on a monoclonal or for the biclonal, so currently, we have our own R&D competency because we have our international world-class innovation. And then we are able to work with this world-class partners. Then talking about the listing in Shanghai Stock Exchange, Starboard, approved by the Board, we would like to continue to make investments on R&D. And we would like to have enough funding to enhance our R&D as well as the expansion of our production facilities. Also, in order to echo the Starboard and also the Shanghai Science and Technology Committee, also, are really very supportive. So that's why we will continue to be driven by innovation. So we would like to be listed in the Starboard. Because in the past and in terms of the Chinese biosimilar, we are one of the unicorns. In terms of innovation and internationalization, we are already well positioned, so that's why we are very ambitious to be listed in the Starboard in Shanghai.

[Interpreted] Thank you, Scott. And today, I would like to thank you all for your participation in the presentation on the health sector. Well, thank you, Mr. Wu, Mr. Hui, Mr. Kau Liu (sic) [ Shi-Kau Liu ], Mr. Zeng. Well, next, we would like to invite our speakers from our happiness segment. We're very honored to have the Senior VP and also the Chairman and President of Fosun Tourism Group, Mr. Qian Jiannong. And we will also have Mr. Huang Zhen from Yuyuan; and also the co-President of Yuyuan and also the CIO, Mr. Shikun. Mr. Qian Jiannong, the Chairman and President from the Fosun Tourism Group.

[Interpreted] Our friends and our shareholders and also partners and also media friends, good afternoon. So before we start, we have also prepared a short video. Let's see. [Presentation]