香港交易及結算所有限公司以及香港聯合交易所有限公司對本公佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 ANXIAN YUAN CHINA HOLDINGS LIMITED * 安賢園中國控股有限公司 （於百慕達註冊成立之有限公司） 00922 （股份代號： ） 截至二零二三年三月三十一日止年度 全年業績公佈 全年業績 董事會欣然宣佈本集團於本年度之綜合業績，連同截至二零二二年三月三十一日止 年度之比較數字如下： ...

Market Overview - The funeral service industry in China had a market size of RMB 257.7 billion in 2020, up from RMB 236.1 billion in 2019, with projections to reach RMB 411.4 billion by 2026[7]. - The ongoing urbanization and aging population in China are expected to drive greater demand for funeral services[7]. - The funeral service industry in China is supported by a cultural foundation that values high-quality funeral services as an expression of filial piety[7]. Company Performance - The overall performance of the group saw a slight decrease compared to the previous year, but the flagship project in Zhejiang continued to demonstrate stability[12]. - The group recorded a net profit of approximately HKD 33,510,000, a decrease of about HKD 1,474,000 compared to the same period last year, primarily due to a reduction in gross profit and financing costs[13]. - Revenue decreased from HKD 156,096,000 to HKD 142,952,000, reflecting a 7% decline in the total number of sold burial plots[13]. - Gross profit fell from HKD 106,876,000 to HKD 99,879,000, a decrease of HKD 6,997,000[13]. - Profit before tax was HKD 46,752 thousand, compared to HKD 53,063 thousand in the previous year, indicating a decrease of approximately 12%[70]. - Net profit for the period was HKD 33,510 thousand, slightly down from HKD 34,984 thousand, representing a decline of about 4%[77]. - Total comprehensive income for the period was HKD (69,314) thousand, a significant decrease from HKD 47,370 thousand in the prior year[77]. Financial Metrics - Financing costs decreased from HKD 2,263,000 to HKD 780,000, mainly due to the repayment of bank loans[17]. - As of September 30, 2022, the group's net asset value was approximately HKD 914,613,000, down HKD 89,306,000 from March 31, 2022, primarily due to currency depreciation[17]. - The current ratio of total liabilities to total assets was 0.26 as of September 30, 2022, compared to 0.25 on March 31, 2022[18]. - The total employee cost for the period was approximately HKD 19,933,000, slightly down from HKD 20,248,000 in the same period last year[29]. - The group had a net cash inflow of approximately HKD 50,027,000 during the period, compared to HKD 44,524,000 in the same period last year[17]. - The total cash and cash equivalents at the end of the period was HKD 241,488,000, down from HKD 302,875,000 at the end of the previous year, a decrease of approximately 20.3%[98]. - The retained earnings as of September 30, 2022, were HKD 329,781,000, an increase from HKD 365,164,000 in the previous year[92]. Shareholder Information - The company has issued a total of 2,221,363,150 ordinary shares as of September 30, 2022[41]. - Master Point Overseas Limited holds 1,273,530,616 shares, representing 57.33% of the company's issued share capital[44]. - The company reported a mid-term dividend of HKD 0.5 per share for the six months ended September 30, 2022, down from HKD 0.9 per share for the same period last year[35]. - The interim dividend declared for the six months ended September 30, 2022, is HKD 0.5 per share, down from HKD 0.9 per share for the same period in 2021[143]. Corporate Governance - The company has complied with applicable corporate governance codes, with some deviations noted[55]. - The board of directors has only held one regular meeting during the reporting period to review and discuss annual performance and operational performance[56]. - The company has confirmed that all directors have complied with the standards set out in the code of conduct for securities transactions during the reporting period[61]. Strategic Initiatives - The company is advancing its "digital funeral" initiatives, enhancing online memorial services to integrate electronic memorials and online offerings[8]. - The company is focusing on emotional service and cultural funerals as its core strategy, integrating technology to enhance service delivery[12]. - The company plans to continue developing existing projects and enhancing brand value, focusing on green burial and ecological concepts[13]. Community Engagement - The company emphasized its commitment to corporate social responsibility and cultural promotion through various charitable activities and public events[12]. - The company is actively responding to government calls and ensuring community needs are met while adhering to pandemic prevention measures[8]. Operational Insights - The company has only one reportable operating segment, which is the cemetery business, with no further segment analysis provided[116]. - The group has no significant litigation or contingent liabilities as of September 30, 2022[20][24]. - The group has no significant post-reporting period events that could impact its operations[36].

Financial Performance - The company recorded a net profit of approximately HKD 71.3 million for the year, down from HKD 81.3 million in the previous year, representing a decrease of about 12.3%[22]. - Total revenue increased to approximately HKD 310.9 million, up from HKD 298.7 million in the previous year, marking a growth of about 4.0%[22]. - Gross profit rose to approximately HKD 222.7 million, compared to HKD 214.9 million in the previous year, reflecting an increase of about 3.3%[22]. - The sales volume of burial plots at Zunyi Dashenshan decreased by 38%, leading to a revenue drop to HKD 32.8 million from HKD 43.5 million in the previous year[22]. - Total revenue for the year was approximately HKD 310.9 million, an increase from HKD 298.7 million in the previous year[23]. - Sales of burial plots and niches amounted to approximately HKD 284.8 million, up from HKD 270 million in the previous year, reflecting a growth of about 5.3%[23]. - The profit before tax for the same period was HKD 108,006,000, compared to HKD 114,163,000 in the prior year, indicating a decrease of about 5.4%[106]. - The net profit attributable to the company's owners was HKD 73,125,000, down from HKD 80,295,000 in the previous year, reflecting a decline of approximately 8.1%[106]. - The company's total equity attributable to owners rose to HKD 965,288,000, up from HKD 897,186,000, marking an increase of approximately 7.6%[106]. Strategic Initiatives - The company aims to further explore brand value and enhance corporate image while promoting the modernization and ecological transformation of the funeral industry[22]. - The company plans to continue expanding its funeral service offerings and develop an integrated operational service model[22]. - The company plans to expand its market presence by entering two new provinces in China by the end of 2023, aiming for a 25% increase in market share in those regions[41]. - A strategic acquisition of a local competitor is in progress, expected to enhance service offerings and increase operational efficiency, with a projected impact of 5% on overall revenue growth[41]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of HKD 100 million allocated for this purpose[200]. Sustainability and Community Engagement - The company actively promoted eco-friendly burial methods, transitioning new cemetery areas towards ecological and artistic designs, which received recognition from various sectors[11]. - The company initiated the construction of the "Cangjing Garden," the first facility in the western region to support the "Life Crystal" service, enhancing green burial initiatives in Yinchuan[11]. - The group emphasizes sustainable development, focusing on environmental sustainability, respect for human rights, and community development[192]. - The company has actively engaged in community life education and public welfare activities, enhancing its brand effect and corporate image[19]. - The company aims to improve community engagement through a budget of HKD 10 million for social welfare initiatives[200]. Digital Transformation - The company launched the "Cloud Memorial" platform during the early stages of the COVID-19 pandemic, enhancing online memorial services and improving user experience[8]. - The company has successfully implemented remote memorial services such as "cloud memorial" and "proxy memorial" to meet social needs during peak periods[19]. - The company is focusing on enhancing digital services, with a target to increase online service usage by 30% over the next year[41]. Governance and Compliance - The board of directors emphasizes the importance of good corporate governance practices for maintaining investor confidence and the group's sustainable growth[109]. - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with the updated principles[109]. - The company has established a remuneration committee to review and determine the compensation of directors and senior management based on their responsibilities and the company's performance[74]. - The audit committee is responsible for monitoring the integrity of financial reporting and overseeing the relationship with external auditors[142]. - The company has complied with applicable laws and regulations without any significant violations during the year[103]. Future Outlook - The company provided a positive outlook for 2023, projecting a revenue growth of 10% to 12% based on current market trends and user engagement[41]. - The company reported a stable revenue growth of 10% year-over-year, reaching HKD 1.2 billion in 2022[200]. - User data indicates a 15% increase in active users, totaling 3 million by the end of the fiscal year[200]. - New product launches are expected to contribute an additional HKD 200 million in revenue[200]. - The company is investing HKD 50 million in R&D for new technologies aimed at enhancing service quality[200].

Financial Performance - The group recorded a net profit of approximately HKD 34,984,000, an increase from HKD 29,981,000 in the same period last year, representing a year-on-year increase of about 17%[14] - Revenue increased to approximately HKD 156,096,000 from HKD 139,968,000, marking a year-on-year growth of about 11.5%[14] - Gross profit rose to HKD 106,876,000, up from HKD 82,059,000, reflecting a year-on-year increase of approximately 30.3%[14] - Net profit attributable to the company's owners was HKD 35,383,000, compared to HKD 29,026,000 in the previous year, reflecting a growth of 22%[76] - Total comprehensive income for the period was HKD 47,370,000, compared to HKD 59,037,000 in the same period last year, showing a decrease of 19.7%[80] - Basic and diluted earnings per share for the period were HKD 1.59, down from HKD 1.96 in the previous year[76] - Net cash flow from operating activities for the six months ended September 30, 2021, was HKD 60,690,000, up from HKD 51,785,000 in the same period last year, representing a growth of 21.9%[94] - The total comprehensive income for the six months ended September 30, 2021, was HKD 870,866,000, reflecting a substantial increase from the previous period[91] Expenses and Costs - Selling and distribution expenses increased by 36% to HKD 15,204,000, primarily due to higher promotional activity costs[15] - Administrative expenses rose to HKD 39,225,000 from HKD 30,844,000, mainly due to increased cemetery-related costs and employee benefits[16] - The cost of sold inventory decreased to HKD 39,197,000 from HKD 47,727,000, a reduction of 17.5%[109] - Employee benefits expenses (excluding directors and key management personnel) rose to HKD 17,818,000, an increase of 13.2% from HKD 15,736,000[109] - Financing costs totaled HKD 2,263,000, an increase of 18.3% compared to HKD 1,913,000 in the previous year[110] Assets and Liabilities - As of September 30, 2021, the group's net asset value was approximately HKD 961,201,000, an increase of about HKD 25,156,000 year-on-year[16] - Non-current assets totaled HKD 801,228,000 as of September 30, 2021, slightly up from HKD 800,141,000 as of March 31, 2021[83] - Current assets amounted to HKD 585,851,000, an increase from HKD 541,276,000 at the end of the previous fiscal year[83] - Total liabilities were HKD 425,078,000, compared to HKD 405,362,000 as of March 31, 2021, indicating a rise in financial obligations[84] - The company's equity increased to HKD 961,201,000 from HKD 936,045,000, reflecting a solid financial position[84] Cash and Cash Equivalents - The group had cash and cash equivalents of approximately HKD 302,875,000 as of September 30, 2021, compared to HKD 255,936,000 on March 31, 2021[17] - The total cash and cash equivalents at the end of the period increased to HKD 302,875,000, compared to HKD 235,802,000 at the end of the previous period, marking an increase of 28.5%[94] Shareholder Information - The company announced an interim dividend of HKD 0.009 per share for the six months ended September 30, 2021, up from HKD 0.008 per share for the same period in 2020, representing a 12.5% increase[47] - Master Point Overseas Limited holds a significant stake of 1,273,530,616 shares, representing 57.33% of the total issued shares as of September 30, 2021[55] - The total number of issued ordinary shares as of September 30, 2021, is 2,221,363,150[57] Employee Information - The group had 12 employees in Hong Kong and 302 employees in China as of September 30, 2021, down from 364 employees in China as of March 31, 2021, indicating a reduction of approximately 17%[22] - As of September 30, 2021, the total employee cost for the group was approximately HKD 20,248,000, compared to HKD 17,764,000 for the same period in 2020, reflecting an increase of about 8.3%[23] - The company’s employee benefits include stock option plans, which are granted at the discretion of the board based on performance evaluations[22] Corporate Governance - The company has complied with applicable codes of corporate governance, except for a deviation from code provision A.1.1[66] - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and internal controls[69] - There were no changes in director information that required disclosure under the listing rules during the six months ending September 30, 2021[65] Strategic Initiatives - The group continues to promote green burial practices and has organized various memorial activities, enhancing its social responsibility initiatives[10] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[76] - The company is exploring potential acquisitions to enhance its service offerings and market presence[167] - Research and development investment increased by 25% to support new technology initiatives[167] Future Outlook - The company provided a future outlook with a revenue guidance of 10% growth for the next fiscal year[167] - New product development includes the launch of two innovative services expected to contribute an additional 5% to revenue[167] - Market expansion plans include entering three new provinces in China by the end of 2022[167] - Customer satisfaction ratings improved to 85%, indicating a positive response to recent service enhancements[167] - The company plans to implement a new marketing strategy aimed at increasing brand awareness by 15% in the next year[167]

Financial Performance - The company recorded a net profit of approximately HKD 81.3 million in 2021, an increase from HKD 52.5 million in 2020, representing a year-on-year growth of about 55.5%[18]. - Total revenue for the company was approximately HKD 298.7 million in 2021, compared to HKD 287 million in 2020, indicating a growth of about 4.3%[18]. - The gross profit increased by approximately HKD 33.7 million, primarily due to higher sales prices of new premium burial plots and better cost control[18]. - The company's total assets as of March 31, 2021, were approximately HKD 1.34 billion, up from HKD 1.07 billion in 2020, reflecting an increase of about 25.4%[19]. - Cash inflow for the year was approximately HKD 165.5 million, significantly higher than HKD 47.8 million in 2020[20]. - The company has cash and cash equivalents of approximately HKD 255.9 million as of March 31, 2021, compared to HKD 77.7 million in 2020, marking an increase of about 228.5%[20]. - The company reported a revenue of HKD 298,742,000 for the year ended March 31, 2021, representing an increase of 4.1% compared to HKD 286,990,000 in the previous year[107]. - Profit before tax was HKD 114,163,000 with a tax expense of HKD 32,872,000, resulting in a net profit of HKD 81,291,000, which is a 54.8% increase from HKD 52,535,000 in the prior year[107]. Strategic Initiatives - The company plans to establish Zunyi Dachenshan as a benchmark enterprise in Guizhou province within three years, promoting green burial concepts[10]. - The company is actively responding to local government initiatives for green and high-end development in Yinchuan, promoting ecological burial practices[10]. - The company plans to continue promoting modernization and ecological reforms in the funeral industry, aiming to establish itself as a benchmark in the sector[17]. - The company aims to enhance its service offerings by exploring innovative and diversified funeral services to meet customer needs[17]. - The company is focused on integrating traditional cultural elements into its services, promoting a unique funeral culture brand that reflects national values[17]. - The company is expanding its market presence through innovative product structures and personalized ecological burial methods[9]. Corporate Governance - The board consists of six members, including three executive directors, one non-executive director, and two independent non-executive directors, failing to meet the requirement of at least three independent non-executive directors[101]. - The company has established a remuneration committee to review and determine the remuneration of directors based on their responsibilities and the company's performance[74]. - The company has maintained a strong independent element in its board composition, with over one-third of the directors being independent non-executive directors[118]. - The board is responsible for leading and overseeing the company's affairs, with clear division of responsibilities between the board and management[122]. - The company has appointed Hong Kong Lixin Dehao CPA Limited as its auditor for the fiscal year ending March 31, 2021, following the dismissal of Ernst & Young[105]. - The company has arranged appropriate directors' and officers' liability insurance for its directors and executives[97]. Environmental and Social Responsibility - The company is actively promoting green burial concepts and updating its "green policy" to balance sustainable development and environmental protection[191]. - The company adheres to all environmental regulations and has not faced any significant violations related to environmental protection during the reporting period[191]. - The company has established a sustainable development strategy that includes environmental sustainability and respect for human rights and social culture[182]. - The company is committed to strict monitoring of harmful gas emissions from its cremation services to minimize environmental impact[197]. - The company planted 109,237 trees in the reporting year, a significant decrease from 148,216 trees planted in the previous year, aimed at reducing its carbon footprint[198]. Shareholder Engagement - The company encourages shareholders to submit written requests for special meetings to address specific matters[174]. - The company has a structured approach to addressing shareholder proposals and resolutions during annual general meetings[175]. - The board is committed to providing timely and comprehensive information to shareholders regarding the company's performance and financial condition[160]. - The company emphasizes effective communication with shareholders to enhance investor relations and ensure transparency in business performance and strategies[171]. Employee and Management Development - The company emphasizes the importance of management talent and service personnel training, implementing a comprehensive training program to enhance staff quality[11]. - The company is focused on the transformation of management practices, moving from basic operational capabilities to excellence in service quality[11]. - Employee headcount included 12 employees in Hong Kong and 364 in China as of March 31, 2021, compared to 13 and 285 respectively in 2020[23]. - Total employee costs for the year were approximately HKD 46,300,000, compared to HKD 45,000,000 in 2020[24].

Financial Performance - The company recorded a net profit of approximately HKD 29,981,000, an increase of about HKD 23,565,000 compared to the same period last year, driven by a revenue increase of approximately HKD 41,653,000[10]. - Revenue for the period was approximately HKD 139,968,000, compared to HKD 98,315,000 for the same period last year, reflecting a significant growth[10]. - The company reported a net cash inflow of approximately HKD 151,825,000, compared to HKD 15,939,000 for the same period last year[11]. - The company reported a profit attributable to owners of the company of HKD 16,020,000 for the six months ended September 30, 2020[82]. - The total comprehensive income for the period was HKD 59,037,000, compared to a loss of HKD 27,919,000 in the previous year[68]. - The company reported a net cash flow from operating activities of HKD 51,785,000 for the six months ended September 30, 2020, compared to HKD 39,460,000 for the same period in 2019, representing a 31.5% increase[80]. - The company’s total comprehensive income for the period was HKD 16,020,000, reflecting the overall financial performance during the reporting period[82]. Revenue and Sales - The company sold 1,541 burial plots during the period, an increase from 1,334 burial plots sold in the same period last year[10]. - Total revenue from China reached HKD 139,968,000 for the six months ended September 30, 2020, up from HKD 98,315,000 in the same period of 2019, indicating a growth of 42.3%[93]. - Sales of burial plots and niches contributed HKD 126,970,000, up 43.3% from HKD 88,586,000 in the previous year[102]. Assets and Equity - As of September 30, 2020, the company's net asset value was approximately HKD 870,866,000, up from HKD 680,328,000 as of March 31, 2020[10]. - Non-current assets totaled HKD 775,880,000 as of September 30, 2020, an increase from HKD 758,110,000 as of March 31, 2020[70]. - Current assets increased to HKD 487,386,000 from HKD 310,919,000, showing a growth of 56.7%[70]. - Total equity increased to HKD 870,866,000 from HKD 680,328,000, representing a growth of 28.0%[72]. Cash and Cash Equivalents - The company has cash and cash equivalents of approximately HKD 235,802,000 as of September 30, 2020, significantly up from HKD 77,657,000 as of March 31, 2020[11]. - The company’s cash and cash equivalents increased by HKD 151,825,000 during the period, compared to an increase of HKD 15,939,000 in the previous period[80]. - The company’s cash and cash equivalents rose to HKD 235,802,000, up from HKD 77,657,000, indicating a significant increase of 203.5%[70]. Share Capital and Rights Issue - The company completed a rights issue on July 30, 2020, raising approximately HKD 131,500,000, with a total of 1,332,817,890 shares issued at a subscription price of HKD 0.1 per share[20]. - As of September 30, 2020, the total number of issued ordinary shares was 2,221,363,150, an increase from 888,545,260 shares on March 31, 2020[20]. - The net proceeds from the rights issue completed on July 30, 2020, amounted to approximately HKD 131,501,000 after deducting related expenses of about HKD 1,780,000[18]. - The company’s total issued share capital increased significantly due to the rights issue, reflecting a strategic move to enhance capital structure[18]. Dividends - The interim dividend declared for the six months ended September 30, 2020, was HKD 0.008 per share, compared to no dividend for the same period in 2019[24]. - The company declared an interim dividend of HKD 0.008 per share, compared to no dividend declared for the same period in 2019[125]. Debt and Liabilities - The debt-to-asset ratio at the end of the period was 0.31, down from 0.36 on March 31, 2020[12]. - The group had bank loans of HKD 133,558,000 as of September 30, 2020, down from HKD 141,578,000 as of March 31, 2020[146]. - The actual interest rate for secured bank loans was 4.75% with maturity between October 2020 and July 2021[138]. Employee Costs - The total employee cost for the period was approximately HKD 17,764,000, down from HKD 19,351,000 for the six months ended September 30, 2019[17]. - Employee benefits expenses (excluding directors and key management personnel) amounted to HKD 15,736,000, a decrease of 9.0% from HKD 17,293,000 in the previous year[104]. Corporate Governance - The company has made changes to its board of directors, with Mr. Yao Hong resigning and Ms. Hong Lianfang appointed as an independent non-executive director effective October 19, 2020[38][53]. - The company has not complied with the listing rules regarding the minimum number of independent non-executive directors on the board and the audit committee prior to the appointment of Ms. Hong Lianfang[52]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls as of September 30, 2020[58]. Social Responsibility and Initiatives - The company has engaged in social responsibility initiatives, including donations to welfare organizations during the pandemic, earning recognition as a "Caring Enterprise"[8]. - The company aims to promote green funerals and modernize the funeral service industry in China, aligning with cultural and environmental values[9]. - The company has initiated remote memorial services such as "cloud memorial" and "proxy memorial" to adapt to the ongoing public health situation[8]. Strategic Investments - The company is exploring several potential strategic investment opportunities following the termination of a memorandum of understanding with Fuyang Tianshou Garden[18]. - The company has approximately HKD 81,490,000 in unutilized net proceeds from the rights issue earmarked for potential strategic investment opportunities[22].

Business Development and Strategy - The flagship project, Zhejiang Anxian Garden, successfully completed its annual marketing plan, transitioning to eco-friendly and artistic burial practices, which received widespread recognition[10] - The company plans to establish the Dazishan Ecological Cemetery as a benchmark enterprise in Guizhou province within three years, promoting burial reform and green burial concepts[12] - The company has enhanced its service offerings, including comprehensive facilities for funeral services, which have been well-received by local governments and communities[12] - Anxian Garden has actively participated in various patriotic education and cultural memorial activities, significantly increasing its influence in the national and global funeral industry[11] - The company has upgraded its online platforms to enhance service delivery, promoting convenient memorial services such as "cloud memorials" and online personal memorial halls[16] - The company emphasizes talent development and professional training for its staff, establishing a unified service system known as "Anxian People" to ensure long-term operational stability[15] - The company has built and opened multiple cultural memorial halls, integrating the preservation of civilization with the remembrance of historical figures[16] - The company has adopted a "green ecological" burial philosophy, advocating for environmentally friendly and low-carbon burial practices[16] - The company has actively engaged in promoting green burial concepts, aligning with national trends in the funeral industry[10] - The company plans to continue promoting green burial practices and expand its quality burial services and cultural concepts across more regions in China[22] - The company has successfully implemented a modernized and ecological approach to funeral services, responding to the increasing demand driven by urbanization and aging population trends in China[20] Financial Performance - The company recorded a net profit of approximately HKD 52,500,000 for the year, a significant increase from HKD 17,000,000 in the previous year, representing a year-on-year growth of over 200%[25] - Total revenue for the year was approximately HKD 287,000,000, up from HKD 223,100,000 in the previous year, indicating a growth of about 29%[25] - The company achieved a pre-tax profit of approximately HKD 80,800,000, compared to HKD 40,800,000 in the previous year, reflecting a 98% increase[25] - Sales from burial and niche sales amounted to approximately HKD 266,600,000, compared to HKD 199,600,000 in the previous year, marking a growth of about 33%[26] - The company reported a net cash inflow of approximately HKD 47,800,000 for the year, a turnaround from a cash outflow of HKD 10,400,000 in the previous year[27] - The debt-to-asset ratio at the end of the year was 0.36, down from 0.40 in the previous year, indicating improved financial stability[30] - The company's total assets as of March 31, 2020, were approximately HKD 1,069,000,000, a slight decrease from HKD 1,098,700,000 in the previous year[26] Investments and Acquisitions - The company has made significant investments in its core projects, including the Zhejiang Anxian Garden, which has received international quality certifications[21] - The company acquired an additional 1.62% stake in Zhejiang Anxian Garden, increasing its ownership to 100%[43] - A memorandum of understanding was signed for a potential investment of RMB 90,000,000 in Fuyang Tian Shou Garden Management Co., with the company investing RMB 24,000,000[44] - The company raised approximately HKD 21,900,000 from the placement of 148,000,000 new shares at HKD 0.15 per share to improve financial conditions and working capital[39] - The company proposed a rights issue to raise between HKD 32,200,000 and HKD 133,300,000, with a subscription price of HKD 0.10 per share[49] Corporate Governance - The board has decided not to recommend any dividends for the year, consistent with 2019[46] - The company has not reported any pending litigation as of March 31, 2020, similar to the previous year[80] - The company’s main business is investment holding, with details of subsidiaries' operations provided in the financial statements[69] - The board of directors remains unchanged during the year, ensuring continuity in governance[84] - The company has a total of six independent non-executive directors, enhancing its governance structure[82] - The company’s financial performance and key indicators are discussed in the Chairman's report and Management Discussion and Analysis sections[70] - The company has not made any donations during the year, maintaining a consistent policy from the previous year[77] - The company’s property, plant, and equipment changes are detailed in the financial statements, reflecting ongoing asset management[79] - The company’s bank and other borrowings details are provided in the financial statements, indicating financial health and liquidity management[81] - The company maintained a sufficient public float of at least 25% of its issued shares throughout the year[118] - The company confirmed compliance with applicable laws and regulations without any significant violations during the year[123] Audit and Risk Management - The Audit Committee consists of three independent non-executive directors, ensuring independence from the company's auditors[165] - The Audit Committee is responsible for reviewing the integrity of financial statements and overseeing the relationship with external auditors[166] - The Audit Committee monitors the company's financial reporting and internal control systems, ensuring effective risk management[166] - An independent review of the internal control and risk management systems was conducted, leading to the adoption of recommended improvements to enhance effectiveness[197] - The external auditor, Hong Kong Li Xin De Hao CPA Limited, was paid a total of HKD 1,010,000 for audit and non-audit services, including HKD 840,000 for audit services and HKD 170,000 for advisory services related to a rights issue[200] Future Outlook and Guidance - The company provided guidance for the next fiscal year, projecting revenue growth of BB% and aiming for a total revenue of $CC million[57] - New product launches are expected to contribute to revenue, with an estimated impact of $DD million in the upcoming quarter[57] - The company is investing in new technology development, allocating $EE million towards R&D initiatives to enhance service offerings[57] - Market expansion plans include entering new regions, with a target of increasing market share by FF% in the next year[57] - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry[57] - Operational efficiency improvements are projected to reduce costs by GG%, enhancing overall profitability[57] - The management team emphasized a commitment to sustainability, with plans to invest $HH million in eco-friendly initiatives[57] - The company aims to strengthen its brand presence through targeted marketing campaigns, with a budget of $II million allocated for the next fiscal year[57]

Financial Performance - The group recorded a net profit of approximately HKD 6,416,000, a decrease of about HKD 2,868,000 compared to the same period last year[11]. - Revenue for the period was approximately HKD 98,315,000, slightly up from HKD 97,904,000 in the previous year[11]. - The company's net profit for the period was HKD 6,416,000, a decrease of 30.4% from HKD 9,284,000 in the previous year[62]. - Basic and diluted earnings per share for the period were both HKD 0.91, down from HKD 1.24 in the prior year[62]. - Gross profit for the same period was HKD 66,240,000, down 3.83% from HKD 68,887,000 year-over-year[62]. - Total comprehensive income for the period was HKD (27,919,000), compared to HKD (56,315,000) in the previous year, indicating an improvement of 50.5%[65]. - The company reported a total comprehensive income attributable to owners of HKD (25,295,000) for the period, compared to HKD (51,815,000) in the previous year, showing an improvement of 51.2%[65]. - The income tax expense for the period totaled HKD 7,242,000, an increase of 41.7% from HKD 5,108,000 in the previous year[139]. Cash Flow and Liquidity - The net cash inflow for the period was approximately HKD 15,939,000, compared to a net cash outflow of HKD 5,248,000 in the previous year[13]. - As of September 30, 2019, the group had cash and cash equivalents of approximately HKD 49,190,000, an increase from HKD 34,999,000 as of March 31, 2019[13]. - Net cash flow from operating activities for the six months ended September 30, 2019, was HKD 39,460,000, a significant increase from HKD 5,477,000 for the same period in 2018[81]. - The cash and cash equivalents increased by HKD 15,939,000, contrasting with a decrease of HKD (5,248,000) in the prior period[81]. - The ending cash and cash equivalents balance was HKD 49,190,000, up from HKD 38,796,000 year-over-year[81]. - The initial cash and cash equivalents balance was HKD 34,999,000, down from HKD 47,836,000 at the beginning of the previous period[81]. Assets and Liabilities - The group's net asset value as of September 30, 2019, was approximately HKD 622,713,000, down from HKD 658,092,000 as of March 31, 2019[12]. - The company's non-current assets totaled HKD 766,494,000 as of September 30, 2019, a decrease from HKD 813,673,000 as of March 31, 2019, reflecting a decline of about 5.8%[68]. - Current assets increased to HKD 308,699,000 from HKD 285,037,000, marking an increase of approximately 8.3%[68]. - Total liabilities increased to HKD 181,694,000 from HKD 164,349,000, which is an increase of approximately 10.6%[68]. - The company's equity attributable to owners decreased to HKD 586,844,000 from HKD 610,966,000, a decline of about 4.0%[72]. - The company had total borrowings of HKD 191,084,000 as of September 30, 2019, with a significant portion being secured loans[155]. Employee and Operational Metrics - As of September 30, 2019, the group had 13 employees in Hong Kong and 334 employees in China, a decrease from 346 employees as of March 31, 2019[22]. - Total employee costs for the period were approximately HKD 19,351,000, compared to HKD 18,965,000 for the six months ended September 30, 2018[23]. - The group regularly reviews employee compensation and benefits, including stock option plans[22]. Shareholder Information - The board did not recommend any dividend payment for the period, consistent with the previous six months[29]. - As of September 30, 2019, the total number of issued ordinary shares was 740,545,260[31]. - Master Point Overseas Limited held 180,000,000 shares, representing 24.31% of the total shares[34]. - Major shareholders included Yan Zulun with 44,644,000 shares (6.03%) and Huang Weichun with 40,000,000 shares (5.40%)[34]. Strategic Initiatives - The group is actively promoting green ecological funerals to align with national policies and industry changes[8]. - The market size of the funeral service industry in China is projected to exceed RMB 150 billion by 2025[7]. - The group continues to focus on enhancing brand value and optimizing corporate social value in its operations[8]. Acquisitions and Investments - The group completed the acquisition of an additional 1.62% equity in Zhejiang Anxian Garden, increasing its ownership to 100% as of September 30, 2019[25]. - The company acquired property, plant, and equipment at a cost of HKD 618,000 during the period, significantly lower than HKD 5,893,000 in the same period last year[143]. Financial Reporting Standards - The company has adopted the Hong Kong Financial Reporting Standard 16, which requires all leases to be capitalized as right-of-use assets and lease liabilities on the balance sheet[98]. - The company has applied a simplified transition approach to the adoption of HKFRS 16, adjusting the opening balance of retained earnings as of April 1, 2019[105]. - The company did not adopt any new or revised Hong Kong Financial Reporting Standards that had a significant impact on the financial statements for the period[87].

Project Development and Achievements - The flagship project, Zhejiang Anxian Garden, achieved steady growth and successfully completed its annual marketing plan for the fiscal year 2019[9]. - Yinchuan Fushou Garden has become a well-known cultural memorial park in the western region, receiving multiple industry honors and recognition[10]. - The operational success of Yinchuan Fushou Garden serves as a model for the company's business deployment in other regions[10]. - The newly established "Jingqun Garden" memorial square in Yinchuan has become a significant landmark and patriotic education base for the local police community[10]. - The company’s flagship project, Zhejiang Anxian Garden, continues to maintain a steady growth trend, becoming a leading ecological cultural cemetery in Zhejiang Province, recognized for its industry honors and social contributions[23]. Strategic Planning and Market Expansion - The company plans to transform the Zunyi Dashenshan Ecological Cemetery into a benchmark enterprise in Guizhou Province within three years, utilizing an ERP management system to enhance service processes[13]. - The company plans to expand its business into cities with promising market prospects and rich funeral service resources, collaborating with local governments and institutions to support funeral reform[23]. - The company is committed to enhancing its management practices by implementing systematic and modernized approaches across its cemetery operations[13]. Industry Trends and Demographics - The aging population in China is projected to exceed 200 million by 2020, with an annual death rate of approximately 7.1%, indicating a growing demand for funeral services[21]. - The company anticipates that the annual death toll could rise to around 25 million between 2040 and 2070, highlighting the increasing demand for funeral services in the future[22]. Financial Performance - The company recorded a net profit of approximately HKD 17,000,000, a decrease from HKD 17,300,000 in 2018, while revenue increased to HKD 223,100,000, up from HKD 206,600,000, representing an increase of about 8%[26]. - The company's gross profit was impacted by higher direct costs, resulting in a pre-tax profit of approximately HKD 40,800,000, down from HKD 54,800,000 in 2018[26]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in the last fiscal year, representing a growth of 15% year-over-year[52]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[63]. Corporate Governance and Compliance - The company has complied with applicable corporate governance codes throughout the year, with some deviations noted in specific areas[135]. - The board of directors has committed to maintaining high standards of corporate governance and transparency for the benefit of shareholders[134]. - The company reported no significant violations of applicable laws and regulations during the year[127]. - The company has established appropriate directors' and officers' liability insurance for its board and executive officers[125]. Internal Management and Employee Development - The company has implemented a series of internal training programs to enhance management mechanisms and cultivate a sense of ownership among employees, which is expected to improve overall operational quality[15]. - The total employee cost for the year was approximately HKD 46,200,000, an increase from HKD 44,200,000 in 2018[38]. Shareholder Information and Equity - As of March 31, 2019, the total number of issued ordinary shares was 740,545,260[97]. - Mr. Shi holds 22,178,000 shares, representing 2.99% of the total shares[95]. - The company has not reported any significant direct or indirect beneficial interests held by directors in any important transactions related to the group's business during the year[88]. Audit and Risk Management - The Audit Committee monitored the financial reporting system, risk management, and internal control systems, ensuring their effectiveness and compliance[179]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, with clear written terms of reference[170]. Social Responsibility and Community Engagement - The company actively promotes social value maximization while enhancing its brand image, participating in public cultural activities, and establishing significant memorial parks, such as the "Two Bombs and One Satellite" Memorial Park in Zhejiang[14]. - The company is committed to participating in various social welfare activities, promoting ecological civilization, and implementing green funeral development concepts[23].