Continuous upgrading to expand business to achieve win-win in economic and social benefits
HONG KONG — Fu Shou Yuan International Group Limited (“Fu Shou Yuan” or the “Company” together with its subsidiaries, the “Group”, stock code: 1448.HK), the largest death care services provider in the PRC, has its interim results for the half year ended June 30, 2017 (the “Period”) announced on August 11, 2017.
In the first half of 2017, Fu Shou Yuan recorded significant growth with its extensive expansion in business coverage, even the slowdown in Chinese economic growth pace. The Group’s revenue amounted to RMB 770.2 million during the Period, representing an increase of 20.1% compared to the same period in 2016, which was primarily driven by the growth in burial services. Gross profit increased 21.7% to RMB 616.2 million, and gross profit margin further increased to 80.0%. Net profit was RMB 296.2 million, representing an increase of 27.1% compared with the same period in 2016, of which profit and comprehensive income attributable to shareholders was RMB228.8 million, representing an increase of 28.6% compared to the same period last year. The Board proposes an interim dividend of HK 3.24 cents per share to reward all investors for their support.
In the first half of 2017, the Group continued to invest in landscape and cultural construction of existing cemeteries, while striving develop core business and expand business distribution proactively. In early 2017, the Group completed to acquire 80% equity interest of Luoyang Xiaohe Cemetery. The projects in Bishan District of Chongqing Municipality and in Xuancheng City of Anhui Province have been under construction during the Period, and relevant facilities are expected to put into operation by the end of year 2017. On April 18, 2017, the Group won a public bidding and entered into a framework agreement in relation to the establishment of Gaoyou Funeral Service Center under the “BOT” model. As at June 30, 2017, the Group owned up to 14 cemeteries in operation, and were operating up to 11 funeral facilities. The Group also generated revenue by providing management services to three small cemeteries. Its business footprints have been extended to 17 cities in 10 provinces or municipalities in the PRC, making a good foundation for future development.
The Group obtained accredited environmental testing and authoritative recognition of national expert level on the self-developed environmental-friendly cremation machine in 2016. The first batch of products have been exported to Mongolia and Russia in December 2016. During the Period, the Group have been focusing on marketing the environmental-friendly cremation machine all around China, with mass production ready to roll. The Group believe the environmental-friendly cremator business would be able to make considerable contribution to the Group’s business in future. Fu Shou Yuan has been developing the pre-need contract for funeral services, with 562 pre-need contracts signed during the Period, exceeding the total of last year.
The Group have adhered to a mission of “people-oriented, taking root in culture”, and actively participated in various social welfare activities, covering cultural and educational, public relief, charity poverty alleviation, environmental protection and other field since its establishment, achieving high recognition among the community. In the 6th Chinese Charity Festival held in the first half of 2017, the Group won the “2016 Group Charity Award” and “2016 Charity Innovation Award”. The Group’s “Culture and Education Committee” and “Fu Shou Yuan Life Service College”, have been introducing, advocating and implementing advanced funeral concepts worldwide, with the aim of training more professionals for corporate and industry development in a long run.
Mr. Bai Xiaojiang, Chairman of the Board and Executive Director of Fu Shou Yuan International Group Limited, said “Looking forward, the Group will seize the opportunity brought to death care industry by the urbanization and aging population in China. On one hand, through product and service innovation, operating management enhancement we aim to improve competitiveness and promote existing business in a wholesome pace. On the other, through mergers and acquisitions as well as participation in government funeral cooperation projects, we are to integrate industry resources and expand our business portfolios, in order to better our service to the society and realize greater social and economic benefits.”