Financial Performance - Total revenue for the year 2023 was approximately RMB 2,628.0 million, an increase of 21.0% compared to the previous year[2] - Net profit attributable to the company's owners for 2023 was approximately RMB 791.2 million, up 20.1% year-on-year[2] - Basic earnings per share for 2023 were RMB 34.8 cents, a 20.0% increase from the previous year[2] - Operating profit for 2023 was RMB 1,372.2 million, compared to RMB 1,030.3 million in 2022[3] - Revenue from cemetery services increased to RMB 2,165,253 thousand in 2023, up from RMB 1,748,898 thousand in 2022, representing a growth of 23.8%[9] - Funeral services revenue rose to RMB 397,886 thousand in 2023, compared to RMB 359,427 thousand in 2022, a 10.7% increase[9] - The company's profit attributable to owners increased to RMB 791,240 thousand in 2023, up from RMB 658,596 thousand in 2022, a 20.1% growth[11] - Revenue for 2023 reached RMB 2,628.0 million, a 21.0% increase compared to 2022[32] - Net profit for 2023 was RMB 975.9 million, up 20.4% year-on-year[32] - Shareholders' attributable profit and comprehensive income grew by 20.1% to RMB 791.2 million[32] - Total revenue for the year reached RMB 2,628.0 million, a 21.0% increase year-over-year[49] - Net profit attributable to the company's owners was RMB 791.2 million, up 20.1% compared to the previous year[49] - Cemetery services revenue accounted for 82.4% of total revenue, reaching RMB 2,165.3 million, a 23.8% increase year-over-year[51][52] - Funeral services revenue increased by 10.7% to RMB 397.9 million, with a 11.5% rise in average selling price[57][58] - Sales of经营性墓穴 (operational cemetery plots) increased by 25.3% to RMB 1,958.3 million, with a 23.6% increase in sales volume[53] - Comparable cemetery plots saw a 25.2% increase in revenue, driven by a 23.3% rise in sales volume and a 1.5% increase in average selling price[55] - Newly acquired or constructed cemetery plots contributed RMB 1.6 million in revenue, with lower average selling prices compared to comparable plots[56] - Funeral services from comparable facilities increased by 10.1%, despite a 2.3% decrease in service volume, due to a 12.8% rise in average selling price[58] - The company's total revenue for the year was RMB 2,563.139 million, with Shanghai contributing 49.2% (RMB 1,262.184 million), followed by Liaoning at 7.4% (RMB 188.694 million)[60] - Other service revenues included RMB 29.4 million from professional design services, RMB 10.7 million from construction services (EPC), and RMB 31.8 million from cremation machine sales and related services[61] - Operating expenses accounted for 47.8% of total revenue, an increase of RMB 114.5 million or 10.0% compared to the previous year, reflecting improved operational efficiency[62] - Employee costs increased by RMB 42.7 million or 9.2%, primarily due to the normalization of operating incentives and salary levels, as well as costs from newly acquired or established companies[62] - Marketing and sales channel costs increased by RMB 5.7 million or 13.3%, driven by the resumption of marketing activities and industry exhibitions to meet deferred market demand[63] - Operating profit increased by RMB 341.9 million or 33.2%, with the operating profit margin for cemetery services rising from 56.4% to 60.2%[64] - Cemetery services contributed RMB 1,304.277 million in operating profit, with a profit margin of 60.2%, while funeral services contributed RMB 64.413 million with a margin of 16.2%[65] - The company's cemetery services saw increased sales and prices, particularly in newly established cemeteries in Nanchang, Jiangxi and Lanzhou, Gansu, driving overall profit margin growth[66] - Funeral services revenue rebounded as high-value-added services resumed post-pandemic, with innovative services like bathing and embalming gaining acceptance, contributing to increased sales and marginal benefits[66] - Other services division recorded an operating profit of RMB 1.8 million, primarily from design and construction-related income, partially offset by R&D investments in cremation machines and Fushou Cloud[66] - Interest expenses for bank loans amounted to RMB 2.1 million, while interest expenses for loans from non-controlling shareholders decreased to RMB 0.9 million from RMB 1.1 million[67] - Interest income and non-listed cash management product income totaled RMB 62.2 million, a 40.5% increase year-over-year, and government subsidies increased by 12.2% to RMB 29.8 million[69] - Income tax expenses rose by 61.9% to RMB 455.6 million, driven by increased taxable income and withholding taxes on dividends distributed to overseas holding companies[70] - Net profit attributable to the company's owners increased by 20.1% to RMB 791.2 million[71] - Net cash generated from operating activities increased by 40.8% to RMB 1,222.5 million, driven by higher revenue and strong cash generation capabilities[73] - Net cash used in investing activities was RMB 481.8 million, primarily due to investments in fixed deposits, cemetery land purchases, and acquisitions of subsidiaries and funeral facilities[73] - Net cash used in financing activities was RMB 387.5 million, mainly due to dividend payments to shareholders and repayment of loans[74] - Bank balances and cash increased to RMB 2,295.5 million as of December 31, 2023, up from RMB 1,942.2 million in the previous year[75] - The company's asset-liability ratio stood at 3.5% as of December 31, 2023, compared to 0.5% in the previous year[76] - The company holds a comprehensive bank credit line of approximately RMB 15.5 billion as of December 31, 2023[75] Dividends and Shareholder Returns - The Board has recommended a final dividend of 6.86 HK cents per share and a special dividend of 21.39 HK cents per share for 2023[2] - The company declared a final dividend of 6.86 HK cents per share and a special dividend of 21.39 HK cents per share for 2023[30] - The board proposed a final dividend of HKD 0.0686 per share (previous year: HKD 0.0758) and a special dividend of HKD 0.2139 per share[86] - The final dividend is expected to be paid on June 28, 2024, and the special dividend on October 31, 2024[86] - Share transfer registration will be suspended from May 20 to May 23, 2024, for the annual general meeting[87] - Share transfer registration will be suspended from June 14 to June 18, 2024, for the final dividend[87] - Share transfer registration will be suspended from October 16 to October 18, 2024, for the special dividend[87] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 7,409.6 million, up from RMB 6,781.8 million in 2022[4] - Net asset value as of December 31, 2023, was RMB 6,573.9 million, compared to RMB 6,114.0 million in 2022[5] - The company's cemetery assets increased to RMB 2,074.7 million in 2023 from RMB 1,930.7 million in 2022[4] - Contract liabilities increased to RMB 494.4 million in 2023 from RMB 456.2 million in 2022[5] - The company's cash and bank balances stood at RMB 2,295.5 million as of December 31, 2023, up from RMB 1,942.2 million in 2022[4] - Cemetery assets grew to RMB 2,074,652 thousand in 2023, compared to RMB 1,930,650 thousand in 2022, a 7.5% increase[15] - Inventory for cemetery plots increased slightly to RMB 415,344 thousand in 2023 from RMB 407,299 thousand in 2022, a 2.0% rise[16] - Trade receivables (net of credit loss provisions) increased to RMB 139,113 thousand in 2023 from RMB 137,875 thousand in 2022, a 0.9% growth[17] - Property and equipment decreased to RMB 556,232 thousand in 2023 from RMB 571,861 thousand in 2022, a 2.7% decline[13] - Goodwill remained stable at RMB 1,129,049 thousand in 2023, compared to RMB 1,091,243 thousand in 2022, a 3.5% increase[14] - Trade receivables increased to RMB 139,113 thousand in 2023 from RMB 137,875 thousand in 2022, with a significant rise in receivables over two years but less than three years to RMB 29,292 thousand from RMB 2,810 thousand[18] - Bank balances and cash in foreign currencies increased to RMB 54,471 thousand in 2023 from RMB 22,553 thousand in 2022, with notable increases in HKD and JPY balances[19] - Non-listed cash management products surged to RMB 776,501 thousand in 2023 from RMB 487,883 thousand in 2022, indicating a significant increase in cash management activities[19] - The company invested in various cash management products with expected yields ranging from 0.10% to 3.80%, totaling RMB 776,501 thousand in 2023[21] - Fixed deposits increased substantially to RMB 367,746 thousand in 2023 from RMB 33,467 thousand in 2022, with fixed annual interest rates ranging from 1.50% to 5.47%[23] - Trade payables slightly decreased to RMB 306,832 thousand in 2023 from RMB 308,552 thousand in 2022, with the average credit period for purchasing goods being 181 to 365 days[25] - Contract liabilities for cemetery maintenance services increased to RMB 551,800 thousand in 2023 from RMB 509,523 thousand in 2022, reflecting higher prepayments for long-term maintenance services[26] - Contract liabilities and loss provisions for deferred tax assets amounted to RMB 72,682 thousand in 2023, up from RMB 61,444 thousand in 2022[29] Business Expansion and Acquisitions - The company divested its equity investment in Changchun Huaxia Cemetery for a total consideration of RMB 30,861 thousand, with full payment received in January 2024[22] - The company acquired 100% equity of Yan'an Hongfu, a funeral and cemetery integrated project, marking its first strategic foothold in Shaanxi Province[45] - The company established new project companies in Tianjin and Zhaoqing, Guangdong, and has invested in a project company in Qiandongnan, Guizhou, to drive future growth[45] - The company's business has expanded to over 40 cities across 19 provinces, autonomous regions, and municipalities, including Shanghai, Henan, Chongqing, Anhui, Shandong, Liaoning, Heilongjiang, Fujian, Zhejiang, Jiangxi, Jiangsu, Guangxi, Beijing, Guizhou, Inner Mongolia, Gansu, Hubei, Hebei, and Shaanxi[46] - The company acquired 100% equity of Yan'an Hongfu Cemetery for approximately RMB 41 million in June 2023[78] - The company has available cemetery land of approximately 2.85 million square meters as of December 31, 2023, up from 2.62 million square meters in the previous year[83] Innovation and Digital Transformation - The company launched the "3JI" innovative product, integrating "marking, commemorating, and recording" to enhance emotional value and technological services[32] - The company's digital transformation and "3JI" product launch were recognized as a "2023 Enterprise Typical Communication Case"[33] - The company launched the "3JI" product series in Shanghai and Zhengzhou, focusing on "marking, commemorating, and recording" to enhance customer experience[42] - The company developed a smart cemetery management system, covering functions from construction to property management, and implemented it group-wide[42] - The company is advancing digital transformation in funeral services, including virtual memorials and digital family trees, to meet diverse customer needs[40] - The company is exploring carbon footprint assessments for tombstone products to align with national carbon neutrality goals[42] - The company is integrating traditional funeral services with modern technology, such as immersive digital halls and holographic projections, to enhance service offerings[42] - The company is leveraging digital and technological innovations to improve resource utilization and ecological harmony in cemetery management[42] - The company's subsidiary, Tianquan Jiajing, has successfully implemented the EPC model, significantly reducing communication costs and improving project management efficiency, contributing to cost optimization and process enhancement[43] - Tianquan Jiajing's design business has won multiple awards internationally, including the French NDA Design Award Gold, the American MUSE Design Award Gold, and the London Design Award Silver, showcasing its competitive strength[43] - The company has introduced innovative services in the funeral business, such as anti-corrosion, paper coffins, and high-end funeral vehicles, and has established training bases for cremation, anti-corrosion, flower arrangement, and bathing services[43] - The company has developed a VR environment system in Shanghai Fushouyuan and launched a digital human technology, which has been applied in funeral and burial scenarios, enhancing the technological experience of traditional ceremonies[44] - The company's cloud memorial product 5.0 has been officially released, with user retention, activity, and payment rates continuing to rise during the Qingming Festival, indicating growing user acceptance[44] - The company's pre-need funeral contract service has seen a 5.7% increase in signed contracts, reaching 17,707 contracts in the current year, compared to 16,759 contracts in the previous year[44] - The company has successfully developed a new cremator, JS3-II, which reduces cremation time and is expected to save more than 10% in energy consumption[45] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and confirms compliance during the year[89] - The audit committee reviewed the annual results and financial statements with management and external auditors[90] - The annual results announcement is published on the HKEX and company websites[91] Industry and Market Trends - China's urbanization rate reached 66.16% at the end of 2023, an increase of 0.94 percentage points from 2022, with 93.267 million urban residents[37] - The population aged 60 and above in China reached 296.97 million at the end of 2023, accounting for 21.1% of the total population, an increase of 16.93 million from 2022[37] - China's GDP in 2023 was RMB 126.0582 trillion, with a year-on-year growth of 5.2%[37] - Urban residents' per capita disposable income in 2023 was RMB 51,821, a nominal increase of 5.1% compared to 2022[37] - Urban residents' per capita consumption expenditure in 2023 was RMB 32,994, a nominal increase of 8.6% compared to 2022[37] - The cremation rate in China reached 58.8% in 2021, an increase of 3.1 percentage points from 2020[37] - Fushouyuan International Group is transitioning from a leading funeral service provider to a comprehensive life service operator[35] - The company aims to improve service quality and efficiency through digital transformation to meet growing customer demands[35] - The company expects the threshold for entering the funeral industry to increase, creating a more favorable competitive environment for its development[39] - In 2023, China's GDP reached RMB 126.0582 trillion, a year-on-year increase of 5.2%[41] - During the 2023 Qingming Festival, millions of people chose online memorial services, indicating a shift towards modernized funeral services[39] - The funeral industry is benefiting from China's aging population, urbanization, and rising disposable income, driving demand for diversified and high-quality services[40] Awards and Recognition - Fushouyuan International Group won the "2023 Green Sustainable Development Contribution Award" in June 2023 and the "2023 ESG Era Pioneer Listed Company Award" in November 2023[34] - The company won the "International Funeral Service Innovation Award" and expanded international partnerships in Europe and North America[33] - The company's brand value was evaluated at RMB 11.978 billion, ranking 239th in the "2023 China Innovation Brand 500 Strong" list[49] Public Welfare and Social Responsibility - The company hosted the second "Fushouyuan Public Welfare Festival," launching eight public welfare projects[33] - The company released 8 public welfare projects, including the "Family End-of-Life Care Plan" and "Thousand Yuan Afterlife Affairs," during the 2nd Fushouyuan Public Welfare Festival[48] Subsidiaries and Operations - The company's subsidiary, "Guizhou Tianyuanshan," was formerly known as Guizhou Tianyuanshan Funeral Service Co., Ltd., and has been a subsidiary since November 2017[95] - "Harbin Mingxiyuan," a cemetery located in Heilongjiang Province, is operated by Harbin Mingxiyuan Cemetery Co., Ltd., a subsidiary of the company[95] - "Hohhot Anyou Cemetery," located in Inner Mongolia, is operated by Inner Mongolia Fushouyuan Industrial Co., Ltd., a subsidiary of the company[95] - "Henan Fushouyuan," a cemetery in Henan Province, is operated by Henan Fushouyuan Industrial Co., Ltd., a subsidiary of the company[95] - "Hubei Tiansheng Cemetery," located in Hubei
福寿园(01448) - 2023 - 年度业绩