Chinese Tycoon Guo Seeks World’s Help in Battling Virus

(Bloomberg) --

Billionaire Guo Guangchang, the founder of Chinese conglomerate Fosun Group, appealed for help in his country’s efforts to contain the deadly coronavirus that has killed at least 213 people and infected more than 9,600.

China is facing a shortage of emergency supplies such as protective masks and decontamination suits because local factories that were shut for the Lunar New Year holiday don’t have enough time to crank up production, Guo said in an interview Thursday.

“China needs support and understanding of governments and friends around the world,” he said. With factories starting production, “I believe our supplies will increase very soon.”

The SARS-like virus has spread to countries including India and the Philippines since the outbreak was reported late last year. The World Health Organization declared a global emergency on Thursday, while airlines canceled flights into China, where authorities have restricted travel and locked down cities to help check the infection.

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Shanghai-based Fosun, through its global affiliates, has purchased 330,000 masks and 270,000 protective suits for use by front line medical staff in China, Guo said.

Nervousness surrounding the outbreak has already affected a raft of companies. Starbucks Corp. has closed more than half of its coffee shops in mainland China, while Toyota Motor Corp. is halting production in the country. Investors are now waiting to see what damage this will do to corporate earnings.

Fosun Tourism Group shares have slumped 12% this year in Hong Kong trading, about double the benchmark Hang Seng Index’s 6.2% decline. Fosun International Ltd., the broader group’s flagship, has declined about 7.4% in the period.

The health crisis is likely to have the biggest impact on tourism, and the longer it lasts, the more severe it will be, Guo said. With Fosun having half its businesses overseas, the virus will have negligible impact on the group’s revenue, he said, without elaborating.

“It will be mainly felt at our domestic businesses,” he said. “In a few months, the businesses will recover soon.”

In a statement this week, Fosun Tourism said revenue in mainland China will be “significantly affected in the near future.” The tourism business overseas, which accounts for 87% of revenue, still “maintains good momentum.”

Guo, who says Fosun’s businesses are focused on the verticals of health, wealth and happiness, told his executives earlier this month to expand in markets at home after years of snapping up assets overseas. The tycoon’s net worth is $4.4 billion, according to the Bloomberg Billionaires Index.

Globalizing Chinese Powerhouse Tells Its CEOs to Look Homeward

The group -- operating broadly under Fosun International, Fosun Tourism and Shanghai Fosun Pharmaceutical Group Co. -- controls overseas brands including Tom Tailor Holding SE, Lanvin, Wolverhampton Wanderers Football Club and Club Med. It also has insurance, tourism, banking and real-estate businesses.

Its 27 hospitals across China received eight confirmed patients infected by the virus, including five in Wuhan, the epicenter, Guo said.

To contact the reporter on this story: Shirley Zhao in Hong Kong at xzhao306@bloomberg.net

To contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, Dave McCombs

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