Market Overview - The scale of China's funeral services market reached RMB 169.5 billion in 2015 and is expected to expand to RMB 521.2 billion by 2030, with a stable CAGR forecast [13]. - By the end of 2024, the population aged 60 and above in China is projected to exceed 300 million, accounting for 22% of the total population [13]. - Annual deaths in China are expected to sustain between 10.93 million and 12.22 million from 2025 to 2030 due to the accelerating aging trend [13]. - China's urbanization rate is projected to approach 68% by 2025 and exceed 73% by 2030, contributing to rising per capita disposable income [13]. Company Performance - The Group recorded a revenue of approximately HK$98.5 million for the six months ended 30 September 2025, a decrease of 3.7% compared to the previous period's revenue of approximately HK$102.3 million [35]. - The gross profit ratio decreased from 72.6% in the previous period to 68.4% for the current period [35]. - The Group's earnings before interest and tax was approximately HK$1.2 million, down from approximately HK$29.4 million in the previous period [35]. - The Group recorded a loss of approximately HK$10.1 million for the period, compared to a profit of approximately HK$18.2 million for the six months ended September 30, 2024 [39]. - Total revenue decreased to approximately HK$98.5 million, down from approximately HK$102.3 million for the six months ended September 30, 2024, primarily due to a VAT payment of approximately HK$4.8 million related to the cemetery business [40]. - Gross profit decreased to approximately HK$67.4 million, a decline of 9.8% compared to approximately HK$74.3 million for the same period last year, attributed to a 13% decrease in the average selling price of burial plots [40]. Operational Developments - The Group has achieved phased results in operation compliance, service improvement, product innovation, and brand building during the reporting period [21]. - The Group aims to optimize its product structure and service systems by promoting the integration of technology and the funeral industry [29]. - The Group is committed to enhancing operational efficiency and compliance awareness amid industry transformation and market challenges [30]. - Digital empowerment in the post-pandemic era is accelerating the upgrading and transformation of funeral services, injecting new growth momentum into the market [16]. - The "Unlimited" digital life experience space launched during the Tomb-sweeping Festival received widespread acclaim, integrating technologies like holography and AI with funeral services [24]. Financial Condition - The Group's financial condition remains robust, with overall business objectives progressing on track, laying a solid foundation for high-quality development [21]. - As of September 30, 2025, the Group's current ratio was approximately 2.17, down from approximately 3.42 as of March 31, 2025, due to a decrease in current assets [55]. - The gearing ratio at the end of the period was approximately 0.27, compared to approximately 0.24 as of March 31, 2025 [55]. - Total assets increased to approximately HK$1,308.7 million, while net assets decreased to approximately HK$949.5 million as of September 30, 2025 [58]. - The Group's net cash outflow was approximately HK$38.4 million for the period, compared to a net cash outflow of approximately HK$16.9 million for the six months ended September 30, 2024 [54]. Employee and Administrative Costs - Total staff costs for the Period amounted to approximately HK$19.3 million, an increase from approximately HK$17.7 million for the six months ended September 30, 2024 [79]. - Administrative expenses rose slightly from approximately HK$36.7 million to approximately HK$37.5 million, driven by increased maintenance costs and tax surcharges [43]. - Selling and distribution expenses increased significantly from approximately HK$12.0 million to approximately HK$31.9 million, mainly due to additional VAT and wage expenses [42]. Shareholder Information - The issued share capital of the Company remained unchanged at 2,221,363,150 Shares during the period [57]. - Master Point Overseas Limited holds 1,273,530,616 shares, representing 57.33% of the total issued shares [99]. - The total number of ordinary shares in issue as of September 30, 2025, is 2,221,363,150 [94]. - The shareholding structure indicates that Master Point Overseas Limited is an associated corporation due to its ownership of more than 50% of the issued share capital [92]. Compliance and Governance - The Audit Committee, comprising three Independent Non-executive Directors, has reviewed the financial reporting process and internal controls without disagreement on accounting treatments [132]. - The company has complied with all applicable code provisions of the CG Code throughout the six months ended September 30, 2025 [131]. - The company confirmed compliance with the Model Code for Securities Transactions by Directors throughout the reporting period [136]. Revenue Breakdown - Revenue for the six months ended September 30, 2025, was HK$98,499,000, a decrease of 3.9% from HK$102,307,000 in the same period of 2024 [141]. - Sales of tombs and niches increased to HK$88,560,000, up 2.1% from HK$86,712,000 year-over-year [186]. - Burial services revenue decreased significantly to HK$5,787,000, down 46.3% from HK$10,770,000 in the previous year [186]. - Management fee income fell to HK$4,152,000, a decrease of 13.9% from HK$4,825,000 [186]. Cash Flow and Investments - For the six months ended September 30, 2025, the company generated cash from operations amounting to HK$40,078,000, an increase of 29.5% compared to HK$30,957,000 for the same period in 2024 [151]. - The company incurred net cash flows used in investing activities of HK$73,737,000, compared to HK$45,209,000 in the prior year, reflecting increased investment expenditures [151]. - The company experienced a net decrease in cash and cash equivalents of HK$38,373,000, compared to a decrease of HK$16,897,000 in the same period last year [153].
安贤园中国(00922) - 2026 - 中期财报