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Fu Shou Yuan Announces 2015 Annual Results
Continuous Growth of Core Business; Extensive Strategic Cooperation across China
HONG KONG, Mar 22, 2016 - (ACN Newswire) - Fu Shou Yuan International Group Limited, announced its annual results for the year ended December 31, 2015.
2015 was the second full year of the Group after its listing. The Group continued to extend the business presence of its core business across the country. Although, China's economy has slowed down; the core business still managed to achieve robust growth due to the relatively limited impact from economic cyclical fluctuations on the death care industry, the Group's successful execution of its business expansion strategy and the continuous improvement of its internal management. During the year under review, the Group's revenue increased by 39.3% from RMB795 million for the year 2014 to RMB1,108 million, which was primarily driven by significant increase in revenue from burial and funeral services and the revenue generated from the new auxiliary business. The Group maintained a relatively stable gross profit margin of 77.6%, and the gross profit increased by 35.2% to approximately RMB859.8 million in 2015. The net profit was RMB365.2 million, representing an increase of 28.1% from RMB285.1 million in 2014, of which profit and total comprehensive income attributable to shareholders was RMB284.4 million, representing an increase of 23.5% compared with 2014. Fu Shou Yuan insists on sharing achievements with investors. The Board proposes a final dividend of HK $2.39 cents per share for 2015 to the Shareholders. Together with the interim dividend of HK $2.39 cents per share distributed during the year, the total dividend for the full year of 2015 is HK $4.78 cents per share, which is in line with the Group's committed dividend policy to reward all investors for their support.
Leveraging its capital strength after Listing as well as the advanced operation philosophy and extensive management experience in the death care industry, Fu Shou Yuan actively expanded its business to 15 cities across 10 provinces or municipalities in China. This year, the Group completed the acquisition of Guanlingshan Cultural Cemetery, Wuyuan Wanshoushan Cemetery, Anyang Tianshouyuan Cemetery and Changzhou Qifengshan Cemetery. One of the cemeteries in Huaibai City of Anhui Province was available for sale and one cemetery in Nanchang City of Jiangxi Province became ready for construction. Fu Shou Yuan also entered into cooperation agreement with Dafeng Funeral Home in Dafeng City, Jiangsu Province on jointly developing Dafeng Funeral Services Center. As at the end of 2015, the Group owned up to 14 cemeteries, and was operating 9 funeral facilities. At the same time, the Group generated revenue by providing entrusted management services to three small cemeteries. Those projects which were acquired successively since 2014 have started to bring in remarkable benefits to the Group, contributing sales revenue of RMB184 million during the period under review, accounting for 16.6% of total sales revenue of the Group during the period under review.
In addition, the Group took advantage of the policy opportunity of cooperation between the government and social capital (Public-Private Partnership or "PPP") to enter into strategic partnership with relevant local governments of Tai'an, Shandong and Bishan, Chongqing. The group believes that its unprecedented move of supplementing the government and private cooperation on"Build-Operate-Transfer" ("BOT") model to build funeral home, together with joint development of cemeteries, will set a good example for implementing strategic cooperation agreements with governments for other segments and will facilitate further breakthroughs in strategic cooperation of the Group with local governments in the PRC in the future. The Group has completed the construction of the production base for environment-friendly cremation machines in Guangde City in Anhui Province during 2015. It is believed that such cremation machines business will make considerable contribution to the business growth of the Group in the foreseeable future.
The Group has carried out multi-faceted strategic cooperation comprehensively to provide strong support to further develop in terms of scale, diversity and penetration. development of its business. During the Year under Review, the investment in the Group by Sunshine Life Insurance Co., Ltd.* has optimized the equity structure of the Group. The Group has also entered into a strategic cooperation with Service Corporation International ("SCI") of the United States, whereby both parties will join hands to propel development of the death care industry in the PRC and around the world. In addition, the Group has entered into strategic cooperation agreements with numerous banks in the PRC through which credit facilities and financial service support were secured so that the Company can strengthen its partnership with banks and diversify its financing channels. Meanwhile, the Group has established "Culture and Education Committee" and "Fu Shou Yuan Life Service College" to introduce, preach and implement the advanced international funeral concepts so as to train and reserve professionals for business expansion.
Fu Shou Yuan indorses the business philosophy of "Creating the most beautiful cemetery to pay tribute to the life" and actively responds to the international appeals from the death care industry. Despite achieving its commitment on profitability, and promote the transformation and upgrading of the industry modernization with innovative development, the group is also keen on shouldering social responsibility and the spirit of community contribution. So far, the Group established more than a dozen of large welfare projects, with total investment over RMB 160 million. The group builds cemeteries nurtured by culture and art, and insists in green concept that promotes city harmony, while recording precious historical city memories.
Looking ahead, Mr. Bai Xiaojiang, Chairman of the Board and Executive Director of Fu Shou Yuan International Group Limited, said "Fu Shou Yuan maintained healthy development along its organic and extensive growth path. Looking forward to year 2016, the Group will leverage its leading business strength, consolidation capability and capital strength to shore up its core competence and service standards while expanding the business scope of the Group to promote the Group's cutting-edge branding experience across the country. It will further increase the Group's brand value and promote modernized integration of China's death care industry in a comprehensive way. In addition to extending its business presence, the Group will implement more stringent integration and management on its acquired subsidiaries in order to create more synergistic effect with such subsidiaries to lay a solid foundation for the steady and sustainable growth in both business and revenue. Fu Shou Yuan will continue to pursue win-win strategy by delivering social benefits whilst seeking profit growth. It will continue to step up its efforts in supporting charity, implanting the culture of humanity, developing environmental-protection cause and cultivating the unique culture of the Group. We commit to operate Fu Shou Yuan, a living entity that carries memories and emotions, in an appropriate way, so as to reward all investors with the best results continuously."
Source: Fu Shou Yuan International Group Limited
Sectors: Daily Finance, Daily News
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