Market Overview - The funeral service industry in China had a market size of RMB 257.7 billion in 2020, up from RMB 236.1 billion in 2019, with projections to reach RMB 411.4 billion by 2026[7]. - The ongoing urbanization and aging population in China are expected to drive greater demand for funeral services[7]. - The funeral service industry in China is supported by a cultural foundation that values high-quality funeral services as an expression of filial piety[7]. Company Performance - The overall performance of the group saw a slight decrease compared to the previous year, but the flagship project in Zhejiang continued to demonstrate stability[12]. - The group recorded a net profit of approximately HKD 33,510,000, a decrease of about HKD 1,474,000 compared to the same period last year, primarily due to a reduction in gross profit and financing costs[13]. - Revenue decreased from HKD 156,096,000 to HKD 142,952,000, reflecting a 7% decline in the total number of sold burial plots[13]. - Gross profit fell from HKD 106,876,000 to HKD 99,879,000, a decrease of HKD 6,997,000[13]. - Profit before tax was HKD 46,752 thousand, compared to HKD 53,063 thousand in the previous year, indicating a decrease of approximately 12%[70]. - Net profit for the period was HKD 33,510 thousand, slightly down from HKD 34,984 thousand, representing a decline of about 4%[77]. - Total comprehensive income for the period was HKD (69,314) thousand, a significant decrease from HKD 47,370 thousand in the prior year[77]. Financial Metrics - Financing costs decreased from HKD 2,263,000 to HKD 780,000, mainly due to the repayment of bank loans[17]. - As of September 30, 2022, the group's net asset value was approximately HKD 914,613,000, down HKD 89,306,000 from March 31, 2022, primarily due to currency depreciation[17]. - The current ratio of total liabilities to total assets was 0.26 as of September 30, 2022, compared to 0.25 on March 31, 2022[18]. - The total employee cost for the period was approximately HKD 19,933,000, slightly down from HKD 20,248,000 in the same period last year[29]. - The group had a net cash inflow of approximately HKD 50,027,000 during the period, compared to HKD 44,524,000 in the same period last year[17]. - The total cash and cash equivalents at the end of the period was HKD 241,488,000, down from HKD 302,875,000 at the end of the previous year, a decrease of approximately 20.3%[98]. - The retained earnings as of September 30, 2022, were HKD 329,781,000, an increase from HKD 365,164,000 in the previous year[92]. Shareholder Information - The company has issued a total of 2,221,363,150 ordinary shares as of September 30, 2022[41]. - Master Point Overseas Limited holds 1,273,530,616 shares, representing 57.33% of the company's issued share capital[44]. - The company reported a mid-term dividend of HKD 0.5 per share for the six months ended September 30, 2022, down from HKD 0.9 per share for the same period last year[35]. - The interim dividend declared for the six months ended September 30, 2022, is HKD 0.5 per share, down from HKD 0.9 per share for the same period in 2021[143]. Corporate Governance - The company has complied with applicable corporate governance codes, with some deviations noted[55]. - The board of directors has only held one regular meeting during the reporting period to review and discuss annual performance and operational performance[56]. - The company has confirmed that all directors have complied with the standards set out in the code of conduct for securities transactions during the reporting period[61]. Strategic Initiatives - The company is advancing its "digital funeral" initiatives, enhancing online memorial services to integrate electronic memorials and online offerings[8]. - The company is focusing on emotional service and cultural funerals as its core strategy, integrating technology to enhance service delivery[12]. - The company plans to continue developing existing projects and enhancing brand value, focusing on green burial and ecological concepts[13]. Community Engagement - The company emphasized its commitment to corporate social responsibility and cultural promotion through various charitable activities and public events[12]. - The company is actively responding to government calls and ensuring community needs are met while adhering to pandemic prevention measures[8]. Operational Insights - The company has only one reportable operating segment, which is the cemetery business, with no further segment analysis provided[116]. - The group has no significant litigation or contingent liabilities as of September 30, 2022[20][24]. - The group has no significant post-reporting period events that could impact its operations[36].
安贤园中国(00922) - 2023 - 中期财报