Revenue and Profitability - Total revenue from cemetery-related services reached RMB 56,931 thousand, with cemetery sales contributing RMB 37,566 thousand, maintenance services RMB 5,495 thousand, and funeral services RMB 6,259 thousand[1]. - Revenue recognized at a point in time amounted to RMB 43,825 thousand, while revenue recognized over time totaled RMB 13,106 thousand[1]. - For the year ending December 31, 2023, the company reported a pre-tax profit of RMB 26,185,000, compared to RMB 28,518,000 in the previous year, reflecting a decrease of approximately 8.2%[39]. - The company generated revenue of RMB 6.3 million from funeral services for the year ending December 31, 2023, which was not reported in the previous year[51]. - Revenue from funeral services amounted to RMB 45.2 million, accounting for 79.4% of total revenue for the year ended December 31, 2023[84]. - The company's net profit decreased by 20.1% to RMB 17.6 million in 2023, with a net profit margin dropping to 30.9% from 48.2% in 2022[99]. - Revenue for the year ended December 31, 2023, was RMB 56,931 million, an increase from RMB 45,738 million in 2022[127]. - Gross profit for the year ended December 31, 2023, was RMB 47,752 million, compared to RMB 34,125 million in 2022[127]. - Profit attributable to owners for the year ended December 31, 2023, was RMB 17,602 million, down from RMB 22,030 million in 2022[127]. Expenses and Costs - The company’s revenue from cemetery maintenance services was RMB 82,676,000, an increase from RMB 75,897,000 in the previous year, representing a growth of approximately 8.5%[48]. - The total employee costs for the year amounted to RMB 8,583 thousand, an increase from RMB 6,488 thousand in the previous year[182]. - Administrative expenses increased by 32.3% to RMB 12.3 million in 2023, up from RMB 9.3 million in 2022, mainly due to an increase in employee costs[65]. - The sales and service costs for 2023 were RMB 9.2 million, a decrease of 21.0% from RMB 11.6 million in 2022[61]. - The company’s total tax expense for the year was RMB 8,583,000, compared to RMB 6,488,000 in the previous year, indicating an increase of approximately 32.3%[39]. Cash Flow and Liquidity - As of December 31, 2023, the company had cash and bank balances of RMB 235.0 million, indicating a strong liquidity position[59]. - Cash and cash equivalents increased by RMB 53.7 million, from RMB 181.3 million on December 31, 2022, to RMB 235.0 million on December 31, 2023, primarily due to operating cash inflows[100]. - Cash and cash equivalents increased to RMB 234,986,000 as of December 31, 2023, from RMB 211,284,000 in 2022[136]. - The debt-to-asset ratio was 30.9% as of December 31, 2023, compared to 30.5% in 2022, indicating stable liquidity[105]. Assets and Liabilities - As of December 31, 2023, the company reported trade payables of RMB 7,312,000 and other payables of RMB 5,484,000, compared to RMB 5,785,000 and RMB 3,871,000 respectively in the previous year[47]. - Non-current contract liabilities increased from RMB 707 million as of December 31, 2022, to RMB 772 million as of December 31, 2023, due to an increase in customer prepayments received during the year[103]. - Total liabilities increased to RMB 80,579,000 as of December 31, 2023, compared to RMB 73,855,000 in 2022[138]. - The net asset value attributable to the owners of the company was RMB 227,794,000 as of December 31, 2023, up from RMB 210,192,000 in 2022[138]. Strategic Plans and Market Expansion - The company plans to continue expanding its one-stop funeral services in Langfang, which includes various offerings such as ceremonies and memorial services[28]. - The company aims to expand its market presence in the Beijing-Tianjin-Hebei metropolitan area, focusing on acquiring or investing in funeral service providers and cemetery operators[53]. - The company believes that integrating funeral and cemetery services will provide a significant competitive advantage and ensure smooth processes throughout each stage[28]. - The company plans to invest approximately RMB 85 million in the construction and development of operational burial sites in the Beijing new airport area, with funding expected to come from shareholder loans at an interest rate of 6.9%[58]. - The company is actively supporting local government urban development plans by providing funeral services and collective storage for ashes, which may enhance revenue sources[54]. - The company plans to continue developing its joint cemetery project with Langfang New Aviation City Real Estate Development Co., aiming to strengthen its market position in the Langfang and Beijing-Tianjin-Hebei metropolitan area[195]. - The company intends to expand its service range from solely providing funeral services to offering comprehensive funeral and burial services, including various price points and professional services[197]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.01 per share, equivalent to approximately RMB 0.009 per share, subject to shareholder approval[41]. - The proposed final dividend is HKD 0.01 per share, totaling approximately HKD 10 million, subject to shareholder approval[117]. - The group did not declare or propose any dividends for ordinary shareholders for the year ended December 31, 2023, consistent with the previous year[184]. Financial Reporting and Standards - The company has implemented new international financial reporting standards effective from January 1, 2023, which may impact financial reporting[142]. - The group expects no significant impact from the newly adopted International Financial Reporting Standards on its consolidated financial statements in the foreseeable future[157]. - The group’s financial position and performance were not significantly affected by the new International Financial Reporting Standards and their amendments adopted this year[154].

Joint Venture and Project Development - The joint venture company is expected to complete relevant approval procedures within 2023 and will begin land acquisition for the Cemetery JV Project thereafter[1]. - The estimated total development cost for the Cemetery JV Project is approximately RMB 50 million, with additional administrative, labor, and miscellaneous costs estimated at RMB 4 million[3]. - As of June 30, 2023, the Group had no capital commitments related to cemetery assets, consistent with December 31, 2022[5]. Financial Performance - The unaudited revenue of the Group for the six months ended 30 June 2023 was approximately RMB 30,666,000, representing an increase of RMB 6,870,000 or 28.9% compared to RMB 23,796,000 for the same period in 2022[55]. - The profit attributable to owners of the Company for the Period was RMB 13,952,000, which is an increase of RMB 212,000 or 1.5% compared to RMB 13,740,000 for the same period in 2022[55]. - Gross profit for the same period was RMB 26,430,000, representing a gross margin of 86.2%, up from RMB 15,401,000 in 2022[59]. - Profit before tax increased to RMB 19,084,000, compared to RMB 17,396,000 in the previous year, reflecting a growth of 9.7%[59]. - Profit and total comprehensive income attributable to owners of the Company was RMB 13,952,000, slightly up from RMB 13,740,000 in 2022[59]. - Basic earnings per share remained stable at 1.4 RMB cents for both 2023 and 2022[59]. Revenue Breakdown - For the six months ended June 30, 2023, total revenue amounted to RMB 30,666,000, with sales of burial plots contributing RMB 25,009,000[112]. - The revenue from cemetery maintenance services was RMB 2,960,000, while the provision of funeral services generated RMB 2,697,000[112]. - Revenue from burial services represented 81.6% of total revenue for the six months ended 30 June 2023, down from 89.7% in 2022[194]. - Revenue from cemetery maintenance services was RMB 2,697,000 for the six months ended 30 June 2023, compared to RMB 2,448,000 in 2022[195]. - Revenue from funeral services was RMB 2,960,000 for the six months ended June 30, 2023, with no revenue reported in 2022[196]. Cost Management - The company reported a decrease in cost of sales and services to RMB 4,236,000 from RMB 8,395,000 in the previous year, reflecting improved cost management[59]. - The Group's cost of sales and services decreased by 49.5% from approximately RMB 8.4 million for the six months ended 30 June 2022 to RMB 4.2 million for the six months ended 30 June 2023[199]. - Salaries and other benefits for the Period amounted to RMB 972,000, an increase from RMB 819,000 in the same period last year[33]. - Total staff costs for the six months ended June 30, 2023, were RMB 5,330,000, an increase from RMB 3,725,000 in the same period of 2022[127]. Asset Management - Total assets as of June 30, 2023, were RMB 276,897,000, an increase from RMB 261,597,000 at the end of 2022[60]. - The Group's investment property and cemetery assets were highlighted in the financial statements, indicating ongoing asset management strategies[37][38]. - The fair value of financial assets at fair value through profit or loss (FVTPL) was RMB 6,250,000 as of June 30, 2023, down from RMB 6,270,000 at December 31, 2022[26]. - The fair value of investment properties was determined using the direct comparison method, with leasehold land valued at RMB 3,802,000 and landscape facilities at RMB 7,139,000 as of June 30, 2023[175]. Cash Flow and Liquidity - Net cash generated from operating activities for the six months ended June 30, 2023, was RMB 18,978,000, significantly higher than RMB 6,843,000 for the same period in 2022, marking an increase of approximately 177%[64]. - Cash and cash equivalents at the end of the period reached RMB 229,655,000, up from RMB 91,716,000 at the end of the previous period, representing a substantial increase of approximately 150%[64]. - Current liabilities decreased to RMB 16,384,000 from RMB 18,243,000 at the end of 2022, indicating improved liquidity[60]. - The company received interest income of RMB 743,000 during the first half of 2023, up from RMB 432,000 in the same period of 2022, which is an increase of approximately 72%[64]. Shareholder and Governance - As of June 30, 2023, substantial shareholders with interests of 10% or more in the Company were disclosed, but specific names and percentages were not provided in the available data[9]. - The Company has established an audit committee to oversee financial reporting, internal controls, and risk management, consisting of three independent non-executive directors[21]. - The Company is incorporated in the Cayman Islands and has a stock code of 6966[19]. Future Outlook and Strategy - The management discussion and analysis section provides insights into future strategies and market expansion plans, although specific details were not included in the provided content[48]. - The company continues to focus on expanding its market presence within China, leveraging its existing service offerings[93]. - The Group's identifiable assets and liabilities are substantially located in the PRC, indicating a strong domestic focus[93].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 45,738,000, representing an increase of 4.1% from RMB 43,949,000 in 2021[13]. - Profit before tax for 2022 was RMB 28,518,000, up from RMB 24,908,000 in 2021, indicating a growth of 14.4%[13]. - Net profit margin improved to 48.2% in 2022, compared to 41.3% in 2021[17]. - Earnings per share increased to RMB 0.022 in 2022 from RMB 0.018 in 2021, a rise of 22.2%[19]. - Profit and total comprehensive income for the year increased by 21.5% from RMB 18.1 million in 2021 to RMB 22.0 million in 2022, with a net profit margin increase from 41.3% to 48.2%[107]. - Gross profit for 2022 was RMB 34.1 million, a decrease from RMB 36.4 million in 2021, resulting in an overall gross profit margin of 74.6% compared to 82.8% in 2021[96][97]. - The gross profit margin for the burial business decreased to 72.7% in 2022 from 82.2% in 2021, while the cemetery maintenance services margin increased by approximately 2.6% year-on-year[98]. Assets and Equity - Total assets as of December 31, 2022, increased to RMB 302,290,000 from RMB 279,139,000 in 2021, reflecting a growth of 8.3%[15]. - Total equity attributable to owners rose to RMB 210,192,000 in 2022, up from RMB 188,162,000 in 2021, marking an increase of 11.7%[15]. - As of December 31, 2022, the company had bank balances and cash of RMB 211,284,000, indicating a strong liquidity position[75]. - Cash and cash equivalents increased by RMB 108.1 million to RMB 181.3 million as of 31 December 2022, primarily due to a net cash inflow of RMB 100.0 million from investing activities[109]. Liquidity and Financial Ratios - Current ratio improved to 14.3 in 2022, compared to 10.5 in 2021, indicating better liquidity[17]. - Gearing ratio decreased to 30.5% in 2022 from 32.6% in 2021, suggesting a reduction in financial leverage[17]. - The gearing ratio as of December 31, 2022, was 30.5%, down from 32.6% in 2021, reflecting a healthier liquidity position for the Group[132]. Revenue Sources - Burial services represented 89.2% of the Company's revenue for the year ended 31 December 2022, slightly down from 89.7% in 2021[34][39]. - Revenue from cemetery maintenance services was RMB 5.0 million for the year ended 31 December 2022, an increase from RMB 4.5 million in 2021[36]. - Revenue from cemetery maintenance services reached RMB 5.0 million in 2022, up from RMB 4.5 million in 2021, representing an increase of approximately 11.1%[40]. - Revenue for the year ended December 31, 2022, was RMB 45,738,000, with sales of burial plots contributing 58.7% of total revenue[88]. Business Strategy and Expansion - The company plans to continue expanding its cemetery maintenance services and related offerings in the future[21]. - The Company plans to enhance its comprehensive service capability in the Jing-Jin-Ji region and continue to innovate in cemetery operations and services in 2023[31][37]. - The Group aims to strengthen its market position in Langfang and expand its business in the Jing-Jin-Ji megalopolis through strategic partnerships and selective acquisitions of death care service providers[43][45]. - The Group plans to launch various product types at different price points and enhance its funeral services to meet diverse customer needs[49]. - The Group is focusing on the burial services market in the Jing-Jin-Ji megalopolis, particularly in Beijing, where affordable burial plots are increasingly scarce[61]. - The Group plans to invest more marketing resources to serve neighboring cities and collaborate with local funeral service providers to improve service accessibility[63]. Projects and Developments - The Company successfully won the bidding for the outsourcing project of extended burial services at Langfang Funeral Parlor, contributing to local burial services[26][29]. - The JV Cemetery Project is a major development initiative that will facilitate the Group's market consolidation and expansion in Langfang[44][49]. - The joint venture cemetery project is a major development initiative, with ongoing efforts to obtain government approvals for construction amid the complexities of urban planning[70]. - By the end of 2022, the Group has developed several specific plans for the cemetery project, focusing on design optimization and compliance with governmental requirements[74]. - The Group has engaged professional firms for the overall design and planning of the cemetery project, addressing various aspects such as safety, environmental control, and marketing[74]. Governance and Management - The Board consists of seven Directors, with three being female, reflecting a gender ratio of approximately 54:23 in the workforce as of December 31, 2022[171]. - The Company has appointed three Independent Non-executive Directors (INEDs), representing more than one-third of the Board, ensuring compliance with the Listing Rules[180]. - The Board has implemented a Board Diversity Policy with measurable objectives to enhance diversity in skills, industry knowledge, and other qualities among Directors[170]. - The Company has a code of conduct for Directors regarding securities transactions, ensuring compliance with the required standards[178]. - The Nomination Committee is responsible for reviewing Board composition and assessing the independence of independent non-executive Directors[189]. Social Responsibility - The Company has been actively involved in social and public welfare activities, promoting positive energy in society and gaining recognition from various sectors[27][29].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA WAN TONG YUAN (HOLDINGS) LIMITED 中 國 萬 桐 園（ 控 股 ）有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6966） 全年業績公告 截至2022年12月31日止年度 中國萬桐園（控股）有限公司（「本公司」）的董事（「董事」）會（「董事會」）謹此提呈本公司及 其附屬公司（以下統稱為「本集團」）截至2022年12月31日止年度的合併財務業績，連同截 至2021年12月31日止年度的比較數字如下： 財務摘要 • 截至2022年12月31日止年度，本集團的收益約為人民幣45,738,000元（2021年：人 民幣43,949,000元），較2021年增加人民幣1,789,000元或4.1%。 • 截至2022年12月31日止年度，本公司擁有人應佔溢利為人民幣22,030,000元（2021 年：人民幣18,140,000元），較2021年增加人民 ...

Financial Performance - The unaudited revenue of China Wan Tong Yuan (Holdings) Limited for the six months ended June 30, 2022, was approximately RMB 23,796,000, representing an increase of RMB 3,051,000 or 14.7% compared to RMB 20,745,000 for the same period in 2021[10]. - The profit attributable to owners of the Company for the same period was RMB 13,740,000, an increase of RMB 6,085,000 or 79.5% compared to RMB 7,655,000 in the previous year[10]. - Revenue for the six months ended June 30, 2022, increased to RMB 23,796,000 from RMB 20,745,000, representing a growth of 9.9% year-over-year[20]. - Gross profit for the same period decreased to RMB 15,401,000 from RMB 17,396,000, a decline of 11.5%[20]. - Profit before tax rose to RMB 17,396,000 from RMB 10,610,000, reflecting a growth of 64.5%[20]. - Basic earnings per share increased to 1.4 RMB cents from 0.8 RMB cents, a growth of 75%[20]. - The Group's profit and total comprehensive income increased by 79.5% from RMB 7.7 million for the six months ended June 30, 2021 to RMB 13.7 million for the six months ended June 30, 2022, with a net profit margin increase from 36.9% to 57.7%[136]. Dividends and Equity - The Board does not recommend the payment of an interim dividend for the Period[10]. - Total equity attributable to owners of the Company was RMB 201,902,000, up from RMB 188,162,000, an increase of 7.3%[24]. - The Group's total equity increased to RMB 201.9 million as at 30 June 2022 from RMB 188.2 million as at 31 December 2021[136]. Cash Flow and Assets - The net cash generated from operating activities was RMB 6,843, a significant improvement compared to a cash outflow of RMB 21,783 in the same period of 2021[28]. - The company reported a net cash increase of RMB 18,368 in cash and cash equivalents, compared to a decrease of RMB 32,909 in the prior year[28]. - Total assets as of June 30, 2022, amounted to RMB 227,813,000, compared to RMB 214,452,000 at the end of 2021, an increase of 6.2%[22]. - As of June 30, 2022, cash and cash equivalents stood at RMB 91,716, down from RMB 110,469 a year earlier[28]. Operational Strategies - The Company continues to focus on enhancing its operational efficiency and market presence[10]. - The management discussion highlights key operational strategies and market trends impacting the Group's performance[10]. - The Group plans to expand its business scope to include funeral services and enhance its cemetery operations through innovations like "Cloud Tomb-sweeping" services[139][140]. - The Group aims to strengthen its market position in Langfang and expand into the Jing-Jin-Ji megalopolis through strategic alliances and acquisitions[139]. Revenue Sources - For the six months ended June 30, 2022, total revenue was RMB 23,796,000, with sales of burial plots contributing RMB 21,348,000 and cemetery maintenance services contributing RMB 2,448,000[35]. - Revenue from burial services represented 89.7% of the Group's total revenue for the six months ended 30 June 2022, compared to 89.2% in 2021[130]. - Revenue from cemetery maintenance services was RMB 2,448,000 for the six months ended June 30, 2022, an increase from RMB 2,234,000 in 2021[131]. Expenses and Costs - Administrative expenses for the period were RMB 3,406,000, while finance costs amounted to RMB 3,917,000[48]. - The Group's distribution and selling expenses decreased by 4.7% from RMB 3.6 million to RMB 3.4 million for the same period[134]. - The Group's administrative expenses increased by 4.5% from RMB 3.8 million to RMB 3.9 million for the six months ended June 30, 2022[134]. Investments and Loans - A loan agreement was established with China VAST for a principal amount of RMB 100 million at an annual interest rate of 12%[126]. - The loan was fully repaid by China VAST in July 2022 after the original repayment date was extended for 24 months[128]. Compliance and Governance - The financial statements were reviewed in accordance with International Accounting Standard 34, ensuring compliance with relevant provisions[12]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the period, confirming compliance with applicable accounting standards and legal requirements[177]. Market Trends and Future Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of B% based on current market trends and user engagement[182]. - The company is considering strategic acquisitions to bolster its market position, with a focus on companies that align with its core business objectives[182]. - Future guidance indicates a commitment to sustainable practices, aiming for a J% reduction in carbon footprint by the end of the fiscal year[182].

Financial Performance - Revenue for 2021 was RMB 43,949,000, an increase of 13.3% from RMB 38,891,000 in 2020[8] - Profit before tax for 2021 was RMB 24,908,000, a slight decrease of 1.2% compared to RMB 25,215,000 in 2020[8] - Profit and total comprehensive income attributable to owners of the Company for 2021 was RMB 18,140,000, up from RMB 17,541,000 in 2020, representing a growth of 3.4%[8] - The profit attributable to shareholders for the year was RMB 18.1 million[26] - The Group's revenue for the year ended December 31, 2021, was primarily generated from the sale of burial plots, columbarium units, and other burial-related services[79][80]. - Burial plot sales reached RMB 30.4 million, accounting for 69.1% of total revenue in 2021, up from RMB 29.6 million and 76.1% in 2020[81] - Sales of columbarium units increased significantly to RMB 4.9 million, representing 11.1% of total revenue, compared to RMB 1.7 million and 4.3% in 2020[81] - The provision of other burial-related services generated RMB 4.2 million, making up 9.5% of total revenue, an increase from RMB 3.5 million and 9.0% in 2020[81] - Gross profit for 2021 was RMB 36.4 million, up from RMB 32.9 million in 2020, with a gross profit margin of 82.8% compared to 84.6% in the previous year[89] Assets and Liabilities - Total assets as of December 31, 2021, were RMB 279,139,000, an increase of 10.2% from RMB 253,376,000 in 2020[10] - Total liabilities as of December 31, 2021, were RMB 90,977,000, up from RMB 83,354,000 in 2020, reflecting an increase of 9.7%[10] - Total equity attributable to owners of the Company was RMB 188,162,000 as of December 31, 2021, compared to RMB 170,022,000 in 2020, marking an increase of 10.7%[10] Cash Flow and Financial Position - Cash and cash equivalents decreased by RMB70.6 million to RMB73.2 million as at 31 December 2021 from RMB143.8 million as at 31 December 2020[99] - Inventories increased from RMB18.6 million as at 31 December 2020 to RMB23.8 million as at 31 December 2021, mainly due to the increase of tombstones[101] - Prepayments and other receivables increased from RMB9.3 million as at 31 December 2020 to RMB36.0 million as at 31 December 2021, mainly due to advance payment for land demolition of RMB30.0 million[102] - Trade and other payables increased by 95.1% from RMB6.1 million as at 31 December 2020 to RMB11.9 million as at 31 December 2021[103] Operational Highlights - Burial services accounted for 89.7% of the Company's total revenue for the year ended 31 December 2021, up from 89.4% in 2020[39] - Revenue from cemetery maintenance services was RMB 4.5 million for the year ended 31 December 2021, compared to RMB 4.1 million in 2020[41] - The Company successfully won the bidding for columbarium settlement services in the Langfang Airport Economic Zone, contributing to local economic development[30] - The Company established an intelligent cemetery management system to enhance digital management and improve service efficiency[29] - The Company plans to enhance its comprehensive service capability in the Jing-Jin-Ji region in 2022, focusing on cemetery operation and funeral services[35] Strategic Initiatives - The Group aims to strengthen its market position in Langfang and expand its business in the Jing-Jin-Ji megalopolis through strategic initiatives[43] - The planning and tendering for the joint venture cemetery project with Langfang Xinhangcheng Real Estate Development Co., Limited has been completed, marking it as a major development project for the Group next year[50] - The Group plans to selectively acquire or enter into strategic partnerships with other death care service providers, focusing on high-demand areas in wealthy provinces[51] - The Group will enhance its cemetery environment and diversify service offerings to meet various customer needs, including launching products at different price points[54] Governance and Compliance - The Company has appointed three Independent Non-executive Directors (INEDs), representing more than one-third of the Board, ensuring compliance with Listing Rules[144] - All INEDs confirmed their independence during the year, adhering to the required standards[146] - The Company has established a Nomination Committee responsible for reviewing Board composition and assessing the independence of INEDs[148] - The Articles of Association stipulate that one-third of Directors must retire by rotation at each annual general meeting[150] - The Company has adopted a code of conduct for Directors' securities transactions, ensuring compliance with the required standards[141] Risk Management - The Board has conducted a review of the effectiveness of the risk management and internal control systems and considered them effective and adequate[199] - The risk management and internal control procedures include comprehensive budgeting, information reporting, and performance monitoring systems[199] Dividend Policy - The Company has adopted a general dividend policy aimed at providing shareholders with dividends from the Group's profit attributable to shareholders in any financial year[140] - The Board considers actual and expected financial results, economic conditions, business strategies, and liquidity position when proposing dividend payouts[140]

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section details the company's fundamental information, including board composition, key advisors, and significant personnel changes during the reporting period [Corporate Information](index=3&type=section&id=Corporate%20Information) This section details the company's fundamental information, including board composition, key advisors, and significant personnel changes during the reporting period - The company underwent several personnel adjustments on March 29, 2021, including resignations and new appointments of executive directors, authorized representatives, and the company secretary[5](index=5&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) For the six months ended June 30, 2021, the Group's revenue increased year-on-year, but profit attributable to owners of the company decreased, with the Board deciding not to declare an interim dividend [Financial Highlights](index=5&type=section&id=Financial%20Highlights) For the six months ended June 30, 2021, the Group's revenue increased year-on-year, but profit attributable to owners of the company decreased, with the Board deciding not to declare an interim dividend Key Financial Indicators for H1 2021 | Indicator | Six Months Ended June 30, 2021 (RMB '000) | Six Months Ended June 30, 2020 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 20,745 | 19,096 | +8.6% | | **Profit Attributable to Owners of the Company** | 7,655 | 8,654 | -11.5% | - The Board does not recommend the payment of an interim dividend for the period[9](index=9&type=chunk)[10](index=10&type=chunk) [Report on Review of Condensed Consolidated Financial Statements](index=6&type=section&id=Report%20on%20Review%20of%20Condensed%20Consolidated%20Financial%20Statements) This section presents the auditor's review report on the condensed consolidated financial statements, confirming their compliance with applicable accounting standards [Report on Review of Condensed Consolidated Financial Statements](index=6&type=section&id=Report%20on%20Review%20of%20Condensed%20Consolidated%20Financial%20Statements) Deloitte Touche Tohmatsu reviewed the company's condensed consolidated financial statements for the six months ended June 30, 2021, concluding no matters suggesting non-compliance with IAS 34 in all material respects - Auditor Deloitte issued a standard unqualified review conclusion, affirming the financial statements comply in all material respects with International Accounting Standard 34 (Interim Financial Reporting)[18](index=18&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the period, revenue increased 8.6% to RMB 20.745 million and gross profit rose to RMB 17.396 million, but profit attributable to owners decreased 11.5% to RMB 7.655 million due to foreign exchange losses and higher finance costs Key Profit or Loss Items (RMB '000) | Item | H1 2021 | H1 2020 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 20,745 | 19,096 | +8.6% | | Gross Profit | 17,396 | 15,919 | +9.3% | | Profit Before Tax | 10,610 | 11,609 | -8.6% | | Profit Attributable to Owners of the Company | 7,655 | 8,654 | -11.5% | | Basic Earnings Per Share (RMB cents) | 0.8 | 0.9 | -11.1% | [Condensed Consolidated Statement of Financial Position](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2021, total assets increased to RMB 261.033 million, primarily due to higher non-current prepayments, with net assets growing to RMB 177.677 million while total liabilities remained stable Key Financial Position Items (RMB '000) | Item | June 30, 2021 (RMB '000) | December 31, 2020 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 261,033 | 253,376 | +3.0% | | Non-current Assets | 65,763 | 35,876 | +83.3% | | Current Assets | 195,270 | 217,500 | -10.2% | | **Total Liabilities** | 83,356 | 83,354 | 0.0% | | **Net Assets** | 177,677 | 170,022 | +4.5% | [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2021, the company reported a net cash outflow of RMB 21.783 million from operating activities, with investing and financing activities also showing outflows, significantly reducing period-end cash and cash equivalents to RMB 110.469 million Key Cash Flow Items (RMB '000) | Item | H1 2021 (RMB '000) | H1 2020 (RMB '000) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (21,783) | 7,037 | | Net Cash from Investing Activities | (10,810) | 485 | | Net Cash Used in Financing Activities | (316) | (225) | | **Net Decrease in Cash and Cash Equivalents** | (32,909) | 7,297 | | **Cash and Cash Equivalents at End of Period** | 110,469 | 197,473 | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section outlines the financial statements' basis and policies, noting revenue from cemetery sales and maintenance, a significant increase in non-current prepayments for a new project, and a post-period loan to an associate - The company primarily engages in the sale of burial plots and columbarium niches, other funeral-related services, and cemetery maintenance services, with all revenue derived from China[31](index=31&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - Non-current prepayments and other receivables significantly increased from **RMB 8 million** to **RMB 37.256 million**, mainly due to a **RMB 30 million** prepayment for demolition works for a new cemetery project, which was refunded on August 11, 2021[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - Subsequent to the reporting period, on July 2, 2021, the company provided a one-year loan of **RMB 100 million** at an annual interest rate of **12%** to China Hongtai, an entity controlled by the controlling shareholder Ms. Zhao Ying[127](index=127&type=chunk)[129](index=129&type=chunk) [Management Discussion and Analysis](index=31&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operational and financial performance, strategic outlook, and progress against business objectives [Business and Financial Review](index=31&type=section&id=Business%20and%20Financial%20Review) In H1 2021, revenue grew 8.6% to RMB 20.7 million, and gross profit increased 9.3%, but net profit declined 11.5% to RMB 7.7 million due to foreign exchange losses, while the company maintained a 31.9% gearing ratio H1 2021 Performance Review | Indicator | H1 2021 (RMB million) | H1 2020 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 20.70 | 19.10 | +8.6% | | Gross Profit | 17.40 | 15.90 | +9.3% | | Gross Margin | 83.9% | 83.4% | +0.5pp | | Net Profit | 7.70 | 8.70 | -11.5% | | Net Profit Margin | 36.9% | 45.3% | -8.4pp | - The primary reason for the decrease in net profit was foreign exchange losses[141](index=141&type=chunk) - As of June 30, 2021, the Group's gearing ratio (total liabilities/total assets) was **31.9%**, indicating a sound liquidity position[141](index=141&type=chunk) [Prospects](index=34&type=section&id=Prospects) The Group plans to consolidate its Langfang market position and expand into the Beijing-Tianjin-Hebei region by extending funeral services, offering collective ash storage, pursuing strategic alliances, and advancing cemetery joint ventures, despite pandemic-related delays - The company plans to consolidate and expand its business through four key strategies: (1) expanding funeral services; (2) deepening penetration into the Beijing-Tianjin-Hebei market; (3) providing collective ash storage services; and (4) seeking strategic alliances and acquisitions[145](index=145&type=chunk) - The cemetery joint venture project is one of the Group's key future development projects, but plans for strategic alliances and acquisitions have been delayed due to the pandemic[154](index=154&type=chunk)[156](index=156&type=chunk) - The company will strengthen its Langfang market position by upgrading 'cloud memorial' online services, diversifying services, and increasing promotional efforts[151](index=151&type=chunk) [Comparison of Business Objectives with Actual Business Progress](index=36&type=section&id=Comparison%20of%20Business%20Objectives%20with%20Actual%20Business%20Progress) This section compares the company's stated business objectives from its prospectus with actual progress, particularly regarding market consolidation, service expansion, and use of proceeds [Business Objectives Progress](index=36&type=section&id=Business%20Objectives%20Progress) This section compares the company's prospectus business objectives with actual progress as of June 30, 2021, showing good progress in Langfang market consolidation but delays in funeral service expansion and Beijing-Tianjin-Hebei market penetration due to the pandemic, with the cemetery joint venture project in planning - **Consolidating Langfang Market Position**: New services like flowerbed burials and tree burials have been designed and offered, and the cemetery entrance and some facilities have been upgraded[161](index=161&type=chunk) - **Expanding Funeral Services**: Promotion plans for services like farewell halls were delayed due to pandemic-related gathering restrictions, but relevant personnel have been recruited and trained, and funeral vehicles purchased[169](index=169&type=chunk)[172](index=172&type=chunk) - **Deepening Beijing-Tianjin-Hebei Market Penetration and M&A**: Collaboration has begun with ten Beijing funeral service providers, but further marketing activities are on hold due to the pandemic; plans to establish a Beijing operating store are not yet complete, and the cemetery joint venture project has commenced planning[174](index=174&type=chunk)[180](index=180&type=chunk)[182](index=182&type=chunk) [Use of Proceeds from the Global Offering](index=43&type=section&id=Use%20of%20Proceeds%20from%20the%20Global%20Offering) The company's net proceeds from its GEM listing were approximately RMB 36.4 million, with RMB 17.5 million unutilized as of June 30, 2021, primarily for 'expanding funeral services' and 'deepening Beijing-Tianjin-Hebei market penetration and M&A', expected to be used in H2 2021 Details of Use of Proceeds (RMB million) | Objective | Intended Use (RMB million) | Utilized as of June 30, 2021 (RMB million) | Unutilized (RMB million) | | :--- | :--- | :--- | :--- | | Consolidating Langfang Market Position | 14.60 | 14.60 | 0 | | Expanding Funeral Services | 9.10 | 2.00 | 7.10 | | Deepening Beijing-Tianjin-Hebei Market Penetration and M&A | 12.70 | 2.30 | 10.40 | | **Total** | **36.40** | **18.90** | **17.50** | - The unutilized **RMB 17.5 million** proceeds are held as short-term deposits in licensed banks in Hong Kong[231](index=231&type=chunk) [Other Information](index=45&type=section&id=Other%20Information) This section provides additional disclosures, including foreign exchange risks, contingent liabilities, director updates, post-reporting period events, and major shareholder information [Key Disclosures and Shareholding](index=45&type=section&id=Key%20Disclosures%20and%20Shareholding) This section details foreign exchange risks, contingent liabilities, director updates, post-reporting period events, and major shareholder holdings, including a post-period RMB 100 million loan to an associate and the controlling shareholder's 70% stake - On May 7, 2021, the company entered into a loan agreement with associate China Hongtai, providing a principal loan of **RMB 100 million** at an annual interest rate of **12%** on July 2, 2021[238](index=238&type=chunk)[240](index=240&type=chunk)[242](index=242&type=chunk) - Ms. Zhao Ying, the company's Chairwoman and Non-executive Director, is deemed to have an interest in **700 million** shares (representing **70%** of the total share capital) indirectly held through The Hope Trust, a discretionary trust established by her[247](index=247&type=chunk)[248](index=248&type=chunk) [Corporate Governance](index=51&type=section&id=Corporate%20Governance) The company complied with the Listing Rules' Corporate Governance Code during the period, and its audit committee, composed of three independent non-executive directors, reviewed and approved the interim financial statements - The company has complied with the Corporate Governance Code, and the audit committee has reviewed this interim financial report[276](index=276&type=chunk)[278](index=278&type=chunk)

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides core corporate and management information, including board composition, key appointments, and significant executive changes in March 2021 [Corporate Information](index=3&type=section&id=Corporate%20Information) This section outlines the company's core corporate and management information, including board composition, key appointments, and significant executive changes in March 2021 - The company's Board of Directors comprises one non-executive director, three executive directors, and three independent non-executive directors, with established Audit, Nomination, and Remuneration Committees[4](index=4&type=chunk) - Subsequent to the reporting period, the company underwent several personnel changes on March 29, 2021, including Mr. Huang Guangming's resignation as Executive Director, the appointment of Ms. Wang Wei and Mr. Huang Peikun as Executive Directors, and Ms. Li Minghui succeeding Mr. Deng Junwen as Authorized Representative and Company Secretary[4](index=4&type=chunk) [Financial Summary](index=5&type=section&id=Financial%20Summary) This section presents a five-year summary of core financial performance, balance sheet, and key ratios, highlighting 2020's revenue and profit decline alongside improved financial stability [Five-Year Financial Data Summary](index=5&type=section&id=Financial%20Summary) This section provides a five-year summary of core financial performance, balance sheet, and key ratios, highlighting 2020's revenue and profit decline alongside improved financial stability Five-Year Performance Overview (As of December 31) | Metric | 2020 (RMB'000) | 2019 (RMB'000) | 2018 (RMB'000) | 2017 (RMB'000) | 2016 (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 38,891 | 63,377 | 43,385 | 38,617 | 31,179 | | **Profit Before Tax** | 25,215 | 33,316 | 35,300 | 13,895 | 20,716 | | **Profit for the Year Attributable to Owners of the Company** | 17,541 | 23,551 | 28,247 | 7,123 | 16,193 | Five-Year Assets and Liabilities Overview (As of December 31) | Metric | 2020 (RMB'000) | 2019 (RMB'000) | 2018 (RMB'000) | 2017 (RMB'000) | 2016 (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 253,376 | 235,344 | 220,963 | 176,060 | 135,808 | | **Total Liabilities** | 83,354 | 82,863 | 92,033 | 87,633 | 80,660 | | **Total Equity Attributable to Owners of the Company** | 170,022 | 152,481 | 128,930 | 88,427 | 55,148 | Five-Year Key Financial Ratios and Indicators | Metric | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Current Ratio** | 12.1 | 9.3 | 5.2 | 2.4 | 1.7 | | **Gearing Ratio (%)** | 32.9 | 35.2 | 41.7 | 49.8 | 59.4 | | **Return on Total Assets (%)** | 6.9 | 10.0 | 12.8 | 4.1 | 11.9 | | **Net Profit Margin (%)** | 45.1 | 37.2 | 65.1 | 18.5 | 51.9 | | **Earnings Per Share (RMB)** | 0.018 | 0.024 | 0.028 | 0.009 | 0.022 | | **Net Asset Value Per Share (RMB)** | 0.170 | 0.152 | 0.129 | 0.108 | 0.074 | [Chairman's Statement](index=7&type=section&id=Chairman%27s%20Statement) Chairwoman Zhao Ying reviews 2020's stable operations despite the pandemic, highlighting innovative services and a key cemetery project win, while outlining future M&A-driven expansion in the Jing-Jin-Ji region and Asia [Chairman's Address](index=7&type=section&id=Chairman%27s%20Statement) Chairwoman Zhao Ying reviews 2020's stable operations despite the pandemic, highlighting innovative services and a key cemetery project win, while outlining future M&A-driven expansion in the Jing-Jin-Ji region and Asia 2020 Operating Performance | Metric | Amount | | :--- | :--- | | **Revenue** | RMB 38.9 million | | **Profit Attributable to Shareholders** | RMB 17.5 million | - To address the pandemic, the company focused on optimizing and upgrading **'Cloud Memorial Services'**, introducing online and proxy memorial services, achieving innovative service model enhancements[30](index=30&type=chunk)[33](index=33&type=chunk) - In June 2020, the company successfully won the bid for the Beijing New Airport (Langfang Area) Resettlement Zone Cemetery project, establishing a joint venture in July to advance its construction and operation, further solidifying its market position in Langfang and the Jing-Jin-Ji region[31](index=31&type=chunk)[33](index=33&type=chunk) - Future strategy will focus on **M&A opportunities** in the Jing-Jin-Ji region and Asia, increasing asset allocation in the core funeral and interment business to drive more stable profit growth[36](index=36&type=chunk)[38](index=38&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's 2020 core business in Langfang, dominated by funeral and interment services, highlights competitive advantages, and outlines strategic plans for market consolidation and expansion [Business Review](index=10&type=section&id=Business%20Review) This section reviews the Group's 2020 core business in Langfang, dominated by funeral and interment services (89.4% of revenue), highlighting competitive advantages and optimism despite pandemic challenges - The company's core business is funeral and interment services (including sales of burial plots and columbarium niches), accounting for **89.4% of total revenue** in 2020, with cemetery maintenance services contributing **10.6%**[41](index=41&type=chunk)[43](index=43&type=chunk)[84](index=84&type=chunk) - The company's core competitive advantages include: - **Strategic Location**: Deep roots in Langfang, familiarity with the local market, and geographical advantage within the Jing-Jin-Ji metropolitan area - **Comprehensive Services**: Offering diverse, customizable funeral and interment services to meet varied customer needs, including innovative 'Cloud Memorial Services' - **Brand Reputation**: Operating under the 'Wantongyuan' brand, emphasizing professionalism and social responsibility - **Management Team**: Possessing an experienced and stable management team[44](index=44&type=chunk)[49](index=49&type=chunk)[51](index=51&type=chunk)[55](index=55&type=chunk) [Outlook and Strategy](index=12&type=section&id=Outlook) The Group plans to consolidate and expand its market position through four key strategies: developing a joint venture cemetery, strengthening the Langfang market, expanding to one-stop funeral services, and exploring the Jing-Jin-Ji region's potential - The company will prioritize the development of its **joint venture cemetery project** with Langfang Xinhangcheng Real Estate Development Co., Ltd., to consolidate and expand its market position in Langfang and the Jing-Jin-Ji region[58](index=58&type=chunk)[62](index=62&type=chunk) - The company plans to consolidate the Langfang market by upgrading cemetery environments, introducing diverse pricing products, utilizing online platforms for promotion, and undertaking government-related relocation and ash storage services for urban development[65](index=65&type=chunk)[67](index=67&type=chunk)[69](index=69&type=chunk) - The Group will expand from single funeral and interment services to **integrated one-stop funeral and interment services**, actively communicating with the government to broaden its service scope[71](index=71&type=chunk)[74](index=74&type=chunk)[76](index=76&type=chunk) - Leveraging its strategic location in Langfang, the company will increase marketing investment and channel partnerships in the Jing-Jin-Ji metropolitan area, particularly the Beijing market, to unlock greater market potential[77](index=77&type=chunk)[80](index=80&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) FY2020 saw a 38.6% revenue decline to RMB 38.9 million due to a high 2019 base, yet gross margin improved to 84.6%, administrative expenses fell 49.0%, and net profit margin increased to 45.1%, reflecting a robust financial position with a 32.9% debt-to-asset ratio 2020 vs 2019 Revenue Composition (RMB'000) | Revenue Source | 2020 Revenue | % of Total Revenue | 2019 Revenue | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Sale of Burial Plots | 29,595 | 76.1% | 30,228 | 47.7% | | Sale of Columbarium Niches | 1,682 | 4.3% | 24,886 | 39.3% | | Other Funeral-Related Services | 3,484 | 9.0% | 4,472 | 7.0% | | **Subtotal: Funeral and Interment Services** | **34,761** | **89.4%** | **59,586** | **94.0%** | | Provision of Cemetery Maintenance Services | 4,130 | 10.6% | 3,791 | 6.0% | | **Total** | **38,891** | **100.0%** | **63,377** | **100.0%** | - Total revenue decreased by **38.6%** year-on-year, primarily due to a **93.2% significant reduction** in columbarium niche sales in 2020, as a single client made a concentrated purchase of RMB **24.9 million** worth of columbarium niches in 2019[86](index=86&type=chunk)[87](index=87&type=chunk) 2020 vs 2019 Gross Profit and Gross Profit Margin | Business Segment | 2020 Gross Profit (RMB'000) | 2020 Gross Profit Margin | 2019 Gross Profit (RMB'000) | 2019 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Funeral and Interment Services | 29,133 | 83.8% | 47,436 | 79.6% | | Cemetery Maintenance | 3,760 | 91.0% | 3,178 | 83.8% | | **Total** | **32,893** | **84.6%** | **50,614** | **79.9%** | - Administrative expenses significantly decreased by **49.0%** year-on-year, from RMB **16.7 million** to RMB **8.5 million**, primarily due to approximately RMB **10 million** in one-off professional fees related to the GEM to Main Board transfer in 2019[105](index=105&type=chunk) - Profit for the year decreased by **25.5%** year-on-year to RMB **17.5 million**, but net profit margin increased from **37.2%** to **45.1%**[105](index=105&type=chunk) - As of the end of 2020, the Group's debt-to-asset ratio was **32.9%** (2019: **35.2%**), indicating a robust liquidity position[117](index=117&type=chunk)[122](index=122&type=chunk) [Corporate Governance Report](index=23&type=section&id=Corporate%20Governance%20Report) This report details the company's 2020 corporate governance framework, confirming compliance with Listing Rules, outlining board structure, committee functions, risk management, and shareholder rights, reflecting a commitment to high standards [Corporate Governance Practices](index=23&type=section&id=Corporate%20Governance%20Report) This report details the company's 2020 corporate governance framework, confirming compliance with Listing Rules, outlining board structure, committee functions, risk management, and shareholder rights, reflecting a commitment to high standards - The company has complied with all code provisions of the **Corporate Governance Code** throughout the year 2020[138](index=138&type=chunk)[144](index=144&type=chunk) - The Board of Directors comprises **seven directors**, including one non-executive director, three executive directors, and three independent non-executive directors, meeting Listing Rules requirements[140](index=140&type=chunk)[145](index=145&type=chunk) 2020 Board Meeting Attendance | Name | Position | Board Meetings | Audit Committee | Remuneration Committee | Nomination Committee | General Meetings | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhao Ying | Non-executive Director and Chairwoman | 4/4 | — | 1/1 | 1/1 | 1/1 | | Li Xingying | Executive Director | 3/4 | — | — | — | 1/1 | | Huang Guangming | Executive Director | 3/4 | — | — | — | 1/1 | | Zhang Yingkun | Independent Non-executive Director | 4/4 | 3/3 | 1/1 | 1/1 | 1/1 | | Wang Yongquan | Independent Non-executive Director | 4/4 | 3/3 | 1/1 | — | 1/1 | | Cai Hanqiang | Independent Non-executive Director | 4/4 | 3/3 | — | 1/1 | 1/1 | - The Board has established three committees: Audit, Remuneration, and Nomination, all chaired by or with a majority of independent non-executive directors to ensure their independence and effectiveness[184](index=184&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk)[194](index=194&type=chunk) - The Board has conducted an annual review of the Group's risk management and internal control systems, deeming them effective and adequate[216](index=216&type=chunk)[220](index=220&type=chunk) [Biographies of Directors and Senior Management](index=34&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section details the biographies of the company's directors and senior management, including their experience and education, noting significant board changes post-reporting period with new executive director appointments [Biographies of Directors and Senior Management](index=34&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section details the biographies of the company's directors and senior management, including their experience and education, noting significant board changes post-reporting period with new executive director appointments - **Ms. Zhao Ying**, 50, is the Non-executive Director and Chairwoman, also serving as a Non-executive Director of China Hongtai Industry Town Development Co., Ltd. (6166.HK)[237](index=237&type=chunk)[241](index=241&type=chunk) - **Ms. Li Xingying**, 42, is an Executive Director and Executive Vice President, with **17 years of experience** in the funeral and interment services industry[238](index=238&type=chunk)[242](index=242&type=chunk) - Post-reporting period personnel changes: Mr. Huang Guangming resigned as Executive Director on March 29, 2021. On the same day, Ms. Wang Wei (28, daughter of Chairwoman Zhao Ying) and Mr. Huang Peikun (58) were appointed as Executive Directors[246](index=246&type=chunk)[247](index=247&type=chunk)[252](index=252&type=chunk) - The three Independent Non-executive Directors, Mr. Zhang Yingkun, Dr. Wang Yongquan, and Mr. Cai Hanqiang, all possess extensive experience in finance, accounting, or law, and hold positions in multiple listed companies[253](index=253&type=chunk)[258](index=258&type=chunk)[269](index=269&type=chunk) [Directors' Report](index=41&type=section&id=Directors%27%20Report) This report reviews 2020 operations, confirming funeral services as the core business, with no dividend recommended, identifies key risks, details global offering proceeds utilization, explains project delays, and notes post-period director changes [Directors' Annual Report](index=41&type=section&id=Directors%27%20Report) This report reviews 2020 operations, confirming funeral services as the core business, with no dividend recommended, identifies key risks, details global offering proceeds utilization, explains project delays, and notes post-period director changes - The Board does not recommend the payment of a final dividend for the year ended December 31, 2020[294](index=294&type=chunk)[302](index=302&type=chunk) - Key risks faced by the company include: business concentration in a **single cemetery in Langfang**, making it susceptible to regional economic and policy impacts; and the funeral and interment industry being **strictly regulated**, with licensing and land supply limiting expansion[297](index=297&type=chunk)[306](index=306&type=chunk) - As of the end of 2020, purchases from the **top five suppliers accounted for 85.8%** of total purchases, with the largest supplier accounting for **53.5%**, indicating high supplier concentration. Conversely, no single customer contributed more than **10%** of revenue[324](index=324&type=chunk)[332](index=332&type=chunk) Summary of Use of Proceeds from Global Offering (RMB) | Intended Use | Amount Planned in Prospectus (million) | Actual Utilization as of End of 2020 (million) | Estimated Utilization in 2021 (million) | | :--- | :--- | :--- | :--- | | Consolidate Langfang Market Position | 14.6 | 13.3 | 1.3 | | Expand Funeral Services Business | 9.1 | 1.5 | 7.6 | | Jing-Jin-Ji Market Expansion and M&A | 12.7 | 1.8 | 10.9 | - Subsequent to the reporting period, the company announced several personnel changes on March 29, 2021, including the resignation and appointment of Executive Directors, Chief Financial Officer, and Company Secretary[453](index=453&type=chunk)[454](index=454&type=chunk)[457](index=457&type=chunk) [Independent Auditor's Report](index=64&type=section&id=Independent%20Auditor%27s%20Report) Deloitte Touche Tohmatsu issued an unmodified audit opinion on the 2020 consolidated financial statements, affirming their true and fair presentation in accordance with IFRS, with 'Revenue recognition for burial plot sales' identified as a key audit matter [Audit Opinion](index=64&type=section&id=Independent%20Auditor%27s%20Report) Deloitte Touche Tohmatsu issued an unmodified audit opinion on the 2020 consolidated financial statements, affirming their true and fair presentation in accordance with IFRS, with 'Revenue recognition for burial plot sales' identified as a key audit matter - Auditor Deloitte Touche Tohmatsu issued an **unmodified opinion (Clean Opinion)** on the company's 2020 consolidated financial statements[460](index=460&type=chunk)[463](index=463&type=chunk) - The auditors concluded that the financial statements truly and fairly reflect the Group's financial position and performance in accordance with **International Financial Reporting Standards (IFRSs)**[460](index=460&type=chunk)[463](index=463&type=chunk) - A **Key Audit Matter** highlighted in the report is 'Revenue recognition for burial plot sales,' primarily due to its significant amounts and transaction volumes. Auditors performed procedures including understanding internal controls, examining sales agreements, and verifying transaction amounts and collections[467](index=467&type=chunk)[469](index=469&type=chunk)[470](index=470&type=chunk) [Consolidated Financial Statements](index=70&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, cash flows, and detailed notes, providing a comprehensive overview of its financial performance and health [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=70&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement shows FY2020 operating results, with total revenue at RMB 38.891 million, a gross profit margin of 84.6%, and profit for the year at RMB 17.541 million, despite a significant revenue decline 2020 vs 2019 Key Profit or Loss Statement Data (RMB'000) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 38,891 | 63,377 | | **Gross Profit** | 32,893 | 50,614 | | **Profit Before Tax** | 25,215 | 33,316 | | **Profit and Total Comprehensive Income for the Year** | 17,541 | 23,551 | | **Basic Earnings Per Share (RMB cents)** | 1.8 | 2.4 | [Consolidated Statement of Financial Position](index=71&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) This statement shows the company's financial position as of December 31, 2020, with total assets at RMB 253.376 million, total liabilities at RMB 83.354 million, and total equity at RMB 170.022 million, reflecting a solid financial foundation 2020 vs 2019 Key Statement of Financial Position Data (RMB'000) | Metric | 2020年12月31日 | 2019年12月31日 | | :--- | :--- | :--- | | **Non-current Assets** | 35,876 | 26,053 | | **Current Assets** | 217,500 | 209,291 | | **Total Assets** | 253,376 | 235,344 | | **Current Liabilities** | 17,911 | 22,560 | | **Non-current Liabilities** | 65,443 | 60,303 | | **Total Liabilities** | 83,354 | 82,863 | | **Net Assets/Total Equity** | 170,022 | 152,481 | [Consolidated Statement of Changes in Equity](index=73&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details changes in shareholders' equity for 2020, showing an increase from RMB 152.481 million at the beginning of the year to RMB 170.022 million by year-end, driven by profit and statutory surplus reserve appropriation 2020 Changes in Equity (RMB'000) | Item | Amount | | :--- | :--- | | **Total Equity as at January 1, 2020** | 152,481 | | Profit and Total Comprehensive Income for the Year | 17,541 | | Transfer to Statutory Surplus Reserve | — | | **Total Equity as at December 31, 2020** | 170,022 | [Consolidated Statement of Cash Flows](index=74&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) This statement details 2020 cash flows, showing a net cash inflow of RMB 8.985 million from operations, a net outflow of RMB 51.161 million from investing, and year-end cash and cash equivalents of RMB 144 million 2020 vs 2019 Key Cash Flow Statement Data (RMB'000) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash Generated From Operating Activities** | 8,985 | (5,485) | | **Net Cash (Used In)/Generated From Investing Activities** | (51,161) | 2,321 | | **Net Cash Used In Financing Activities** | (615) | — | | **Net Decrease In Cash And Cash Equivalents** | (42,791) | (3,164) | | **Cash And Cash Equivalents At Beginning Of Year** | 189,280 | 191,412 | | **Cash And Cash Equivalents At End Of Year** | 143,830 | 189,280 | [Notes to the Consolidated Financial Statements](index=76&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes to the financial statements, explaining accounting policies, revenue recognition, asset/liability breakdowns, and related party transactions, highlighting long-term contract liabilities from maintenance prepayments and disclosing director compensation Note 5: Revenue Recognition Over Time (2020, RMB'000) | Revenue Recognition Timing | Sale of Burial Plots, Columbarium Niches and Related Services | Provision of Cemetery Maintenance Services | | :--- | :--- | :--- | | At a point in time | 31,277 | — | | Over time | 3,484 | 4,130 | - Note 22: Contract liabilities are significant, reaching RMB **71.227 million** as of end-2020, with RMB **63.194 million** classified as non-current liabilities, primarily from customer prepayments for long-term cemetery maintenance fees[827](index=827&type=chunk)[828](index=828&type=chunk) Note 9: Total Remuneration of Directors and Chief Executive (RMB'000) | Item | 2020 | 2019 | | :--- | :--- | :--- | | Fees | 267 | 264 | | Salaries and other benefits | 596 | 705 | | Discretionary performance-related bonuses | 291 | 421 | | Contributions to retirement benefit schemes | 4 | 51 | | **Total** | **1,158** | **1,441** |

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides fundamental corporate details and administrative information [Financial Highlights](index=5&type=section&id=Financial%20Highlights) [Financial Highlights Summary](index=5&type=section&id=Financial%20Highlights%20Summary) For the six months ended June 30, 2020, the Group's revenue recorded a slight increase, while profit attributable to owners of the Company achieved a significant growth of 70.4%, and the Board decided not to declare an interim dividend Key Financial Indicators for H1 2020 | Indicator | For the six months ended June 30, 2020 (RMB) | For the six months ended June 30, 2019 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 19,096,000 | 18,803,000 | +1.6% | | **Profit attributable to owners of the Company** | 8,654,000 | 5,078,000 | +70.4% | - The Board does not recommend the payment of an interim dividend for the current half-year period[10](index=10&type=chunk) [Report on Review of Condensed Consolidated Financial Statements](index=6&type=section&id=Report%20on%20Review%20of%20Condensed%20Consolidated%20Financial%20Statements) [Auditor's Review Conclusion](index=6&type=section&id=Auditor%27s%20Review%20Conclusion) Deloitte Touche Tohmatsu reviewed the company's condensed consolidated financial statements for H1 2020, noting the scope is less than an audit and no audit opinion is expressed, and found no material non-compliance with IAS 34 - The auditor concluded that nothing has come to their attention that causes them to believe the condensed consolidated financial statements are not prepared in all material respects in accordance with International Accounting Standard 34 'Interim Financial Reporting'[16](index=16&type=chunk) - The review primarily involved inquiries of financial accounting personnel and application of analytical procedures, with a scope substantially less than an audit, thus no audit opinion is expressed[12](index=12&type=chunk) [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2020, the company's revenue slightly increased by 1.6% to RMB 19.1 million, with gross profit rising and gross margin improving, while profit before tax increased by 50.3% and profit attributable to owners of the Company grew by 70.4% to RMB 8.65 million due to lower administrative expenses Key Items from Statement of Profit or Loss (For the six months ended June 30) | Item (RMB Thousand) | 2020 (Unaudited) | 2019 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 19,096 | 18,803 | +1.6% | | Gross profit | 15,919 | 15,448 | +3.0% | | Profit before tax | 11,609 | 7,723 | +50.3% | | **Profit attributable to owners of the Company** | **8,654** | **5,078** | **+70.4%** | | Basic earnings per share (RMB cents) | 0.9 | 0.5 | +80.0% | [Condensed Consolidated Statement of Financial Position](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2020, the company's total assets increased to RMB 245 million, net assets rose to RMB 161 million, and a healthy financial position was maintained by increased net current assets and ample bank balances and cash of RMB 197 million Key Items from Statement of Financial Position (RMB Thousand) | Item | June 30, 2020 (Unaudited) | December 31, 2019 (Audited) | | :--- | :--- | :--- | | Non-current assets | 26,449 | 26,053 | | Current assets | 218,992 | 209,291 | | **Total assets** | **245,441** | **235,344** | | Current liabilities | 21,070 | 22,560 | | Non-current liabilities | 63,236 | 60,303 | | **Total liabilities** | **84,306** | **82,863** | | **Net assets** | **161,135** | **152,481** | | Bank balances and cash | 197,473 | 189,280 | [Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2020, total equity attributable to owners of the Company increased to RMB 161 million, primarily driven by the RMB 8.65 million profit recorded during the period - In the first half of 2020, equity attributable to owners of the Company increased from **RMB 152 million** at the beginning of the period to **RMB 161 million** at the end of the period, primarily driven by the **RMB 8.654 million** profit for the period[22](index=22&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In the first half of 2020, cash flow from operating activities turned positive, recording a net inflow of RMB 7.04 million, reflecting improved operational efficiency, with cash and cash equivalents increasing to RMB 197 million at period-end Key Items from Statement of Cash Flows (For the six months ended June 30, RMB Thousand) | Item | 2020 (Unaudited) | 2019 (Unaudited) | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 7,037 | (7,509) | | Net cash from investing activities | 485 | 1,850 | | Net cash used in financing activities | (225) | — | | **Net increase/(decrease) in cash and cash equivalents** | **7,297** | **(5,659)** | | Cash and cash equivalents at end of period | 197,473 | 185,753 | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Revenue and Segment Information](index=17&type=section&id=Revenue%20and%20Segment%20Information) The Group's total revenue primarily derives from sales of burial plots, columbarium niches, and other funeral-related services, which is the core revenue source accounting for nearly 90% of total revenue, and provision of cemetery maintenance services, all generated in mainland China Revenue by Business Segment for H1 2020 (RMB Thousand) | Business Segment | Revenue (RMB Thousand) | % of Total Revenue | | :--- | :--- | :--- | | Sales of burial plots, columbarium niches and related services | 17,135 | 89.7% | | Provision of cemetery maintenance services | 1,961 | 10.3% | | **Total** | **19,096** | **100%** | - All of the Group's revenue is derived from contracts with customers and generated in China[55](index=55&type=chunk)[56](index=56&type=chunk) [Event After the End of the Reporting Period](index=32&type=section&id=Event%20After%20the%20End%20of%20the%20Reporting%20Period) A significant transaction occurred after the reporting period: in July 2020, Langfang Wantong, a subsidiary, formed a joint venture with a third party to develop a new cemetery project in the Beijing New Airport (Langfang area), holding a 79% stake and contributing RMB 23.7 million - On July 6, 2020, Langfang Wantong, a subsidiary of the company, entered into an agreement with Langfang New Airport City Real Estate Development Co., Ltd. to establish a new company with a registered capital of **RMB 30 million** for the development of a public cemetery project in the Beijing New Airport (Langfang area)[132](index=132&type=chunk) - Langfang Wantong will hold a **79%** stake in the new company, contributing **RMB 23.7 million**, and will provide a shareholder loan of **RMB 30 million**, making the new company a non-wholly owned subsidiary of the Group[132](index=132&type=chunk) [Management Discussion and Analysis](index=33&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=33&type=section&id=Business%20Review) During the reporting period, the Group primarily engaged in sales of burial plots, columbarium niches, and other funeral-related services, which constituted 89.7% of total revenue, and provision of cemetery maintenance services - Funeral services constituted the largest component of the Group's revenue, accounting for **89.7%** of revenue for the six months ended June 30, 2020[136](index=136&type=chunk)[139](index=139&type=chunk) - Cemetery maintenance services, as part of funeral services, generated revenue of **RMB 1.961 million** during the period[137](index=137&type=chunk)[140](index=140&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) In H1 2020, the Group's revenue slightly increased by 1.6% to RMB 19.1 million, gross margin improved from 82.2% to 83.4% due to cost control, and net profit grew by 70.4% to RMB 8.7 million, mainly due to lower administrative expenses compared to 2019 which had non-recurring professional fees Financial Performance Summary (For the six months ended June 30) | Indicator | 2020 (RMB Million) | 2019 (RMB Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 19.1 | 18.8 | +1.6% | | Gross profit | 15.9 | 15.4 | +3.0% | | Gross profit margin | 83.4% | 82.2% | +1.2 p.p. | | Administrative expenses | 3.9 | 8.3 | -53.8% | | Profit for the period | 8.7 | 5.1 | +70.4% | | Net profit margin | 45.3% | 27.0% | +18.3 p.p. | - Administrative expenses significantly decreased by **53.8%**, primarily due to **RMB 5.3 million** in professional service fees and other expenses incurred in the same period of 2019 for the application to transfer from GEM to the Main Board[145](index=145&type=chunk) - Other income decreased by **42.1%**, mainly due to a **RMB 2 million** reduction in government grants[143](index=143&type=chunk) - As of June 30, 2020, the Group's debt-to-asset ratio (total liabilities/total assets) was **34.3%**, indicating a sound liquidity position[147](index=147&type=chunk) [Prospects](index=37&type=section&id=Prospects) The Group aims to consolidate its market position in Langfang and expand into the Beijing-Tianjin-Hebei metropolitan area, with key strategies including expanding business scope to funeral services, providing collective ash storage, and seeking strategic alliances and acquisitions, notably the recent public cemetery joint venture project - The Group's four key development directions are: (1) expanding business scope to provide funeral services; (2) deepening penetration into the Beijing-Tianjin-Hebei funeral services market; (3) offering collective ash storage services; and (4) seeking strategic alliances and acquisition opportunities[150](index=150&type=chunk)[157](index=157&type=chunk) - The Group will invest in the public cemetery joint venture project signed on July 6, 2020, located in the Beijing Daxing International Airport Economic Zone, which is a significant initiative to expand the Group's funeral and interment services[154](index=154&type=chunk)[158](index=158&type=chunk) [Comparison of Business Objectives with Actual Business Progress](index=38&type=section&id=Comparison%20of%20Business%20Objectives%20with%20Actual%20Business%20Progress) [Business Objectives Progress](index=38&type=section&id=Business%20Objectives%20Progress) The Group made progress in consolidating its Langfang market position by upgrading facilities and developing new burial areas, while funeral service expansion was delayed by pandemic restrictions, and market expansion saw collaborations and a successful bid for a public cemetery joint venture near Beijing Daxing Airport - Regarding the consolidation of the Langfang market, the main entrance and roads of the cemetery have been upgraded, and underground and mound-style family tombs have been designed and constructed, with the construction of Songyuan currently underway[163](index=163&type=chunk)[165](index=165&type=chunk) - Plans to expand funeral service business were delayed due to government restrictions on gatherings caused by the pandemic[169](index=169&type=chunk) - Significant breakthroughs were achieved in strategic acquisitions, with the successful bid for the public cemetery joint venture project on June 30, 2020, and the signing of the joint venture agreement on July 6[174](index=174&type=chunk) [Use of Proceeds from the Global Offering](index=44&type=section&id=Use%20of%20Proceeds%20from%20the%20Global%20Offering) The net proceeds from the GEM listing were approximately RMB 36.4 million, with RMB 12.7 million utilized as of June 30, 2020, and the remaining RMB 23.7 million primarily allocated for business expansion and strategic acquisitions, with most expected to be used in H2 2020 for the new public cemetery joint venture Details of Use of Proceeds (As of June 30, 2020) | Purpose | Planned Use (RMB Million) | Actual Use (RMB Million) | Unutilized (RMB Million) | | :--- | :--- | :--- | :--- | | Consolidating Langfang market position | 14.6 | 9.9 | 4.7 | | Expanding business scope (funeral services) | 9.1 | 1.2 | 7.9 | | Market expansion and strategic acquisitions | 12.7 | 1.6 | 11.1 | | **Total** | **36.4** | **12.7** | **23.7** | - The net proceeds reserved for strategic alliances and acquisition opportunities are expected to be fully utilized for the public cemetery joint venture project in the second half of 2020[181](index=181&type=chunk)[184](index=184&type=chunk) [Other Information](index=45&type=section&id=Other%20Information) [Interests of Directors and Substantial Shareholders](index=46&type=section&id=Interests%20of%20Directors%20and%20Substantial%20Shareholders) As of June 30, 2020, Ms. Zhao Ying, Chairperson, indirectly held 700 million shares (70%) through The Hope Trust, while substantial shareholder Fairich Trading Limited held 87.65 million shares (8.8%) - Ms. Zhao Ying, the Chairperson, is deemed to have an interest in **700,000,000** shares held by Taisheng International Investment Limited, representing **70%** of the total share capital[197](index=197&type=chunk)[198](index=198&type=chunk) - TMF (Cayman) Ltd., as trustee of The Hope Trust, is deemed to hold **700,000,000** shares (**70%**)[205](index=205&type=chunk)[208](index=208&type=chunk) [Corporate Governance](index=52&type=section&id=Corporate%20Governance) The Board believes that from listing to June 30, 2020, the company has complied with all applicable code provisions of the Corporate Governance Code, and the Audit Committee, comprising three independent non-executive directors, has reviewed the financial statements for the period - The company has applied and complied with all applicable code provisions of the Corporate Governance Code[231](index=231&type=chunk)[233](index=233&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period and considers them to be in compliance with applicable standards and adequately disclosed[232](index=232&type=chunk)[236](index=236&type=chunk)

萬桐園 China Wan Tong Yuan (Holdings) Limited 中國萬桐園(控股)有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號: 6966 Annual Report 2019 年報 Corporate Information 2 公司資料 Financial Summary 4 財務概要 Chairman's Statement 6 主席報告書 Management Discussion and Analysis 9 管理層討論及分析 Corporate Governance Report 22 企業管治報告 Biographies of Directors and Senior Management 33 董事及高級管理層履歷 Directors' Report 40 董事會報告 Independent Auditor's Report 63 獨立核數師報告 Consolidated Statement of Profit or Los ...