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Fu Shou Yuan Announced 2022 Interim Results: Deepening "Internet+ Death Care Service" , Toward Healthy and High Quality Development
HONG KONG, Aug 20, 2022 - (ACN Newswire) - Fu Shou Yuan International Group Limited ("Fu Shou Yuan" or the "Company" together with its subsidiaries, the "Group", stock code: 1448), a leading death care services provider in the PRC, announced its interim results for the six months ended 30 June 2022 (the "Period").
In the first half of 2022, the Omicron variant came in fiercely. In order to cut off the transmission chain as early as possible, many places across the country pressed the slow-forward button and pause button to balance public health security and Economic social movement in a "dynamic zero-COVID policy". Under the severe and complex situation of epidemic prevention, the Group maintained stable development in the first half of 2022 and recorded total revenue of RMB 906.4 million. Net profit amounted to RMB327.0 million, of which profit and total comprehensive income attributable to owners was RMB261.1 million. The Board declared an interim dividend of HK5.64 cents per Share to the Shareholders in appreciation of their trust and support.
Officially launched the "Digital Cemeteries . Huixin Valley", Deepening integration of "Internet+ death care service"
"Internet+ death care service" has gradually become a new trend in death care industry. The R&D and application of digital cemetery is the deepening integration mode of traditional transformation. In the first half of 2022, Fu Shou Yuan International Group officially launched the "Digital Cemeteries . Huixin Valley" project which, based on the upgraded platforms of "Online Tombsweeping", "Online Blessing" and "Online Memorial", is a brand-new digital integrated service facility that is beautiful in the landscape, sophisticated in technology and rooted in culture. With the concept of intensification and ecology, the project effectively solved the contradiction between the scarcity of resources and the need for passing away in peace through the digital carrier of spiritual services.
Empowered by digital facilities, Huixin Valley Project introduced a new concept for next generation's cemetery products, taking a solid step to develop our contemporary cemetery of humanistic memorial into digital life park of the future. The park not only increased land utilization rate through stereoscopic space design, but also, through the innovation of crystal tombs, bridged the gap between tomb cemetery and art, making a quantum leap from physical product to an emotional one. In addition, empowered by a series of technology, including intelligent interactive screens, digitalized Nine Ceremonies and other intelligent tomb-sweeping services as well as digital backup of online cemetery, Huixin Valley is preliminarily equipped to enter the "Metaverse", enriching and innovating the form of commemorative carrier, opening a new dimension of life commemoration.
In addition, against the backdrop of regular epidemic prevention and control, the Group continued to expedite the completion and optimization of the series of online products. Firstly, the Group carried on the empowering of management innovation technology on the corporate end, as Fu Shou Yun, a wholly-owned subsidiary of the Company, completed a property management system driven by digital twins. Secondly, we continued to optimize and improve cloud memorial services by completing the transformation from "online tomb-sweeping" to "online memorial", with the service platform upgraded to version 3.2. During the Qingming Festival (Tomb-Sweeping Day), customer usage of the service platform amounted to over 100 million, hitting a record high.
EPC model is widely implemented Acquisitions are progressing steadily
During the Period, Temshine, a wholly-owned subsidiary of the Company, gradually implemented the EPC model across the Group. The implementation of EPC model fully demonstrates the advantages of Group's internal resources integration, which significantly reduced the communication cost between design and construction, increased management efficiency of the whole process of the engineering program and minimized uncontrollable factors. Looking ahead, the refining EPC model can also provide service to projects outside of the Group, and gradually develop professional agent construction business for burial and funeral facilities. With the growing demand for constructing burial and funeral facilities in the PRC, the establishment and development of EPC model is a positive driving force of and serves strategic value for exploring new service content of the Group in the future and driving increase in new values.
In the first half of the year, the Group has completed the acquisition of the remaining 10% equity interest in Liaoning Guanlingshan Cultural Landscape Cemetery Co., Ltd.*, and the Group now has 100% equity interest in the project. The Group has also completed the second capital injection in Zhuolu Longhui Tianfu Yuanbaoshan Development Management Company Ltd.* ("Zhuolu Yuanbaoshan"), after which the Group's shareholding in this project has reached 51%. In addition, we have continuously explored the B2B business collaboration model, and successfully rolled out a couple of cooperative or service outsourcing projects.
Pre-need contract business reached a new high
Eco-friendly cremation machine innovative and goes abroad
In relation to the funeral services business, we continued to focus on anti-corrosion cosmetics, body SPA, environmental-friendly paper coffins and ceremony services, devoted to promoting services regarding the remains, innovating services, improving technology and cultural connotations, to fulfill the differentiated and diversified service demands of clients and lead the development of the industry. At the same time, we further expanded and optimized the scope and process of centralized procurement, and actively promoted the strategy of cultural and creative products. Through cultural and brand empowering of traditional funeral equipment, the Group successfully pushed forward the transformation from "practical products" to "cultural and creative products", thus improving customers' consumption experience and satisfaction.
Pre-need contract services help the Group to lock in customers earlier and brings a stable customer base to the funeral and cemetery segments. Although the volatile situation of the COVID-19 outbreak during the Period has brought various challenges to the pre-need contract business, it still reached a new high with a total of 7,834 signed contracts in the first half of 2022, representing an increase of 17% over the same period of last year (the same period of last year: 6,694 contracts).
The Group's eco-friendly cremation machine business integrates R&D, design, in-house production, comprehensive support and after-sales service to produce smart and eco-friendly cremation equipment and exhaust gas purification treatment systems. During the Period, we focused on the innovation and environmental-friendliness of products. Through self-development and collaborated research with Shanghai Jiao Tong University and Tongji University respectively, which introduced big data artificial intelligence and fuzzy control technology, we continued to improve and enrich the product quality and functions of the "Jiesheng" smart and eco-friendly cremation equipment and exhaust gas purification treatment systems. On the other hand, as a part of our effort to expand the overseas market, the Group has further entered into sales cooperation agreements for several cremators, exhaust system and some ancillary equipment, which made "Jiesheng" go abroad to promote its products in the global market.
Mr. Bai Xiaojiang, Chairman of the Board and Executive Director of Fu Shou Yuan International Group Limited, said, "At present, the development of Fu Shou Yuan has entered a new stage, upgrading from an integrated death care service provider to an integrated life service operator. Under the huge demand and market prospect of funeral and life services, with the industry-leading operation concept, multi-engine driving and scale expansion strategy, Fu Shou Yuan will further make efforts in the fields of service extension, technology guidance, cultural innovation and so on, to meet the diversified and differentiated service needs of various customers, especially at the spiritual level, and is committed to the sustainable, healthy and high-quality development of the enterprise. Fu Shou Yuan will continue to uphold the corporate tenet of "human-oriented and culture-rooted", support the inheritance of traditional culture by providing services for the benefit of the people with its strengths in life services. Fu Shou Yuan will strive to explore a new development mode of the industry in the future, stick to social responsibility, help improve funeral facilities, promote green funeral reform, realize the harmonious coexistence between people and the environment, strive for a better life for people, and create better returns for our Shareholders."
Source: Fu Shou Yuan International Group Limited
Sectors: Daily Finance
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