In 1992, with an investment of US$ 4,500, Guo Guangchang and four friends developed a medical product to test for hepatitis A. This was the beginning of a business empire. Six years later, in August of 1998, the company, Fuxing Industrial (600196), was listed on the Shanghai Stock Exchange. With investments concentrated in Shanghai, the company currently controls or has a stake in five listed companies: Fuxing Industrial, Yuyuan Shopping Center, Tianyao Holding Company, Lingrui Pharmaceuticals and Friendship Holding Company. In total, Fuxing Group boasts over seventy affiliates. Total sales revenue for Fuxing Group hit US$ 1 billion last year. The company has successful operations in the real estate, information, emerging software, and sports industries.
Guo Guangchang is currently chairman and president of Shanghai Fuxing High-Technology (Group) Co., Ltd., chairman of Shanghai Fuxing Industrial Inc., and chairman of Fudi (Group) Inc. These businesses focus on real estate, pharmaceuticals and retailing.
Guo describes his business philosophy this way: "Fuxing has always sought an investment model that involves both portfolio investments in other firms and capital investment in its own operations." Fuxing Group's business can be divided into three branches: stock market investments, industry operations and venture capital investments.
The company's stock market investment business tries to determine the cycle of numerous industries and identify investment opportunities, with other Fuxing Group branches as its major customers. Industry operation is comprised of the group's listed companies, with Fuxing Industrial at the core, which seeks to employ the best resources within industries to form core competencies. In Guo's opinion, the venture capital business is the cornerstone of Fuxing Group's business.
Fuxing Group can be described as a "quasi-family business", because the principal executives of the group are still the same team of Fudan graduates who have managed the company from the beginning. Similar backgrounds have made communication easy within the management team over the years.
Guo was born in 1967. He holds a bachelor's degree in Philosophy and a MBA degree from Fudan University. Guo started up Guangxin Science and Technology Consulting Company in 1992, and worked as the general manager of both Guangxin Science and Technology Development Company and Furui Real Estate Development and Operation Company at Shanghai. Guo was chairman and general manager of Shanghai Xingao High-tech (Group) Ltd. In 1993, Guangxin was renamed as Fuxin, which listed as Fuxin Real Estate in 1998 and obtained total investment of RMB 350 million (US$ 42.3 million).