Stock Code: 01448
Fu Shou Yuan International Group Limited
2020 Annual Results
March 2021
These presentation materials have been prepared by Fu Shou Yuan International Group Limited (the “Group”) and have not been independently verified.
No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the
information presented or contained in these presentation materials. The Company will not accept any liability whatsoever for any loss howsoever arising
from any information presented or contained in these presentation materials. The information presented or contained in these presentation materials is
current as of the date hereof, unless indicated otherwise, and is subject to change without notice and its accuracy is not guaranteed. The Company does
not provide any undertaking to update any such information subsequent to the date hereof.
These presentation materials contain certain “forward-looking statements”. These forward-looking statements include but not limited to projections, targets,
estimates and business plans that the Company expects or anticipates will or may occur in the future. Certain statements, such as those include the words
or phrases “potential”, “estimates”, “expects”, “anticipates”, “objectives”, “intends”, “plans”, “believes”, “will”, “may”, “should”, and similar expressions or
variations on such expressions may be considered forward-looking statements. These forward-looking statements are made based on the operating
conditions, strategies and other circumstances of the Company and are subject to known and unknown risks and uncertainties that may be general or
specific. Readers should note that a variety of factors, many of which may be beyond the Company’s control, affect the performance, growth trends and
actual results of the Company. These factors include, but are not limited to, exchange rate fluctuations, market shares, peer competition, environmental
risks, changes in social, political, legal, financial and regulatory frameworks, international economic and financial market conditions and other risks and
factors beyond the control of the Company. Due to these factors, the future actual operating results of the Company may differ materially from these
forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on any of the Company’s
forward-looking statements. The Company declares that, the Company and any associated companies, directors, officers, employees, consultants or
representatives of the Company assume no obligation to update or revise any forward-looking statement that is contained in these presentation materials
as a result of new information, future events or otherwise. None of the Company, or any of its associated companies, directors, officers, employees,
consultants or representatives is making any representations concerning the future performance of the Company, or is responsible for any losses arising
from reliance on the forward-looking statements contained in these presentation materials.
These presentation materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any offer to buy or
subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any
contract, commitment or investment decision whatsoever.
Disclaimer
1
• Total revenue reached RMB 1,893 million, representing an increase of approx. 2.3% YoYSteady Revenue Growth
• Net profit attributable to owners of the Company amounted to approx. RMB 620 million, up 7.2% YoY
• Net profit margin increased 0.3pp YoY to 40.0%
• EBITDA margin reached 56.3%, up 2.1pp YoY
Continuous Growth in Profitability
• Gearing ratio went down 0.9pp to 1.0%
• Net cash was approx. RMB 2.167 billion, providing strong financial support for the Company’s
strategic expansion
Solid Balance Sheet
• M&A Projects: 3
• Multiple Funeral Projects and Completed Projects
• Multiple Ongoing Projects
Good Prospect of Outreach Initiatives
• Basic EPS for 2020 is approx. RMB 27.4 cents
• Final dividend of 8.81 HK cents representing an increase of 4.6% YoY;
Dividend payout ratio is approx. 29.2%
Steady Dividend Policy
• Customer centric, proactively optimized the business operations, product mix, sales channel, revenue contribution from different regions and financial structure to enhance the long-term value
Proactive Optimization and Adjustment
Results Overview
2
Business Performance
3
Policy & Market
Policy Market
Upgrading demands for better quality death care services
Sustainable urbanizationprocess
Traditional culture with a core of filial piety
Largest population in the world
Rapid aging trend
Industry rectification creates fresh operation environmentThe national actions taken to rectify the funeral industry are fundamentallyconducive to the standardization and healthy development of the industryand create a more equitable operating environment and room for growth for
the company.
Separation of Supervisory role and operator role brings new opportunitiesThe government provides basic services, encouraging socialcapital to participate in selective death care services, bringmore development opportunities for the company.
The government is returning to the service role, giving market more vitalityThe government is reducing examination and approval, givinginnovation more space, while providing more service, well-balancing the regulation and liberalization.
Regulations on Funeral Management (Revised Draft for consultation)The issuance of Regulations can effectively solve the problems in the industryand enforce the institutionalization, marketization and normalization of theindustry, will provide the Group with a favorable environment forcompetition, and more room for sustainable development.
Better life requires high quality death care servicesThe report of the 19th National Congress pointed out that the maincontradiction now is between the people's growing demand for a betterlife and the unbalanced and inadequate stage of development. Thedignified, highly regulated quality death care service is also an importantpart of a better life.
Five Factors Drive the Market Upward
4
Goals & Strategies
Goal: Being a Respected Company of 100 Billion Market Value.
Strategy: Growth Strategy Driven by Dual Engines - "Organic Growth + Outreach Initiatives”
Outreach Initiatives by Integration StrategyOrganic Growth by Differentiation Strategy
Regional expansion (horizontal integration)
Industry chain expansion (vertical integration)
• M&A Projects: 3
➢ 80% of Fuze project in Jinsha County of Bijie City, Guizhou Province in June 2020;
100% of Harbin Mingxiyuan Cemetery of Heilongjiang Province completed in
August 2020;
95% of Hailin Jinggang Industrial Co., Ltd. In Lanzhou City of Gansu Province
completed in November 2020.
• Multiple Funeral and Completed Projects
➢ We entered into a contract of funeral service project in Ruichang City, Jiangxi
and selective funeral service project in Chaohu City, Anhui Province;
Xuancheng cemetery project, Qinzhou cemetery project, Hubei Tiansheng
cemetery project, Zheng’an funeral parlor in Guizhou Province, Funeral facilities
in Gaoyou City, Changfeng funeral project etc. have commenced operation in
2020.
• Multiple Ongoing Projects
➢ Funeral projects in Linquan county, Cemetery projects in Qihe County,
Shandong Province, Funeral projects in Chaohu City, Anhui Province and
Binzhou Funeral and Cemetery project, Shandong Province.
We have expanded from Shanghai to 45 cities in 18 provincial-level regions
Listed company withabundant cash reserve
Comprehensive service capability
The well-knownbrand
Innovation on product & services
Advanced business philosophy
Largest professional team in China
5
6
Gansu: Cemetery 1
Henan: Cemetery 3
Hubei: Cemetery 1
Chongqing: Cemetery 2,
Funeral 4
Guizhou: Cemetery 2,
Funeral 2Guangxi: Cemetery 2
Regional Expansion (horizontal integration)
(横向一体化)
Beijing:Design Company 1Heilongjiang: Cemetery 1Jilin: Invest. Cemetery 1Inner Mongolia: Cemetery 1Liaoning: Cemetery 3
Design Company
Cemeteries
Funeral Facilities
New Sites
Land consumed of 2020:36,348 m2(-8.2%YOY)
Total saleable cemeteries area:2.44million m2(+6.1%YOY)
Our business covers 45 cities of 18 province-level regions
28 cemeteries (+2 under custody operation)
and 28 funeral facilities in total
✓ Capture market and optimize layout, continued
presence in the blank provinces
✓ Plough deep into the original area and elaborate
synergy effect
✓ Explore various collaboration modes and
comprehensive cooperation with the
government
Shandong: Cemetery 2,Funeral 2Jiangsu: Cemetery 1,Funeral 5Shanghai: Cemetery 2,Funeral 1Zhejiang: Funeral 3Fujian: Funeral 2Anhui: Cemetery 3,Funeral 6Jiangxi: Cemetery 4,Funeral 3
7
Customer-centric and optimize industrial layout (vertical integration)
Turning cemetery to garden and garden to home,we bring peace to customers. Each cemetery is abrilliant combination of landscape culture,sculptural art and geomancy, with past sages to beworshiped by generations to come, making it anurban humanity memorial park to inherit wisdom,convey warmth and propagate belief.
Turning farewell to beautiful moment toelaborate a deep reverence for life. weprovide more than 30 personalized serviceitems including farewell ceremony and wakeceremony as well as continuous innovation onnew service items to heal customers’ grief.
The automated environmental-friendlycremation machine developed andmanufactured by the Group have wonthe procurement by government. Suchmachines have been installed in Group’sfuneral parlors and operating smoothly.Machines sold to external funeralparlors are welcomed by the market.
Our Pre-need Contract are helping more andmore elderlies to plan for death care ahead oftime. Fu Shou Home Life Care CommunityService Centre located near communities. TheCooperation with insurance company wasreached and the “Green Life Services”, aninsurance contracted product has beenlaunched .
Landscape, facility and product design services areprovided to ourselves and the peers as well. Suchsegment optimizes the overall layout by elaboratingsynergetic effect among other segments andestablishes brand position among peers.
Life Service Academy is theplanner of training, the promoterof innovation management, thedisseminator of the corporateculture, the manager of industryknowledge.
Pre-need services
Funeral services
Burial services Landscape design
✓ Increase the funeral services scope, enhance facilities and landscape design capability
✓ Explore the Death care + Internet
✓ Enhance collaboration between different segments and improve customer experience
Machinery
Life education
Death Care + Internet
8
Fu Shou CloudService Cloud
Industry Cloud
Management Cloud◼ Digital system construction within
the Group;◼ To improve business efficiency,
internal management standards, as well as to upgrade services, intelligent decision-making and other core capabilities
Industry Cloud◼ Technology empower the death care
industry;◼ To provide the entire industry with the
internet + big data comprehensive technology solution which enables the industry and share with the industry
Product Innovation
Channel Innovation
✓ VR site visiting✓ Online mall✓ Cyber marketing
Management Cloud
Industry Cloud
Fu Shou CloudService Cloud
Product Innovation
Channel Innovation
✓ Fu Shou Cloud Online tomb-sweeping
✓ Electronic obituary✓ Cloud blessing
2020 E-commerce Platform
No. of new customer: 72,653
No. of order: 12,259
Amount of order: approx. 2.90million RMB
✓ New Media Marketing
✓ Online mall✓ Cyber
marketing
✓ In 2018, the Ministry of Civil Affairs issued a notice on promoting the “Internet + Death care service”, the Group continued to layout in the
internet sector, the COVID-19 has brought development opportunities
Continuous Optimization on Product & Service – Burial Services
9
Burial Services 2019 2020 Fluctuation
(%)
No. of burial plots for ordinary business
13,539 13,083 -3.4%
Comparable cemeteries 13,526 12,074 -10.7%
ASP of burial plots for ordinary businessRMB’000
102.6 107.7 +4.9%
ASP of comparable cemeteriesRMB’000
102.6 112.6 +9.7%
Land-saving products
0
5000
10000
15000
20000
25000
JAN. FEB. MAR. APR. MAY JUN. JUL. AUG. SEP. OCT. NOV. DEC.
2019 2020
Monthly Revenue of burial services(RMB’000) Total revenue of burial services in 2020 recorded RMB1.58billion, up 1.8% compared to the corresponding period. Among them, revenue of burial services in 2H2020 recorded RMB960million, up 23.3% compared to the corresponding period, showing strong corporate resilience.
• In 2020, sales proportion of artistic burial plots
up 3.1pp, increased to 54.3%, while sales
proportion of customized burial plots decreased to
23.4%, down 1.2pp and that of traditional ones
down 1.1pp.
• We constantly innovate products and
proactively provide guide to the market. Increase
of ASP shows our continuous effort in the value of
products and services.
• The Group continues to strengthen own sales
team, to improve service systematism and
enhance consumption experience.
10
Continuous Optimization on Product & Service – Burial Services
Continuous Optimization on Product & Service - Funeral Services
11
Monthly Revenue of funeral services(RMB’000)
Funeral Services 2019 2020 Fluctuation
(%)
No. of customers 41,758 47,391 +13.5%
Comparable facilities 41,108 37,685 -8.3%
Average selling priceRMB: Yuan
6,153 5,337 -13.3%
ASP from
comparable facilitiesRMB: Yuan
6,193 6,064 -2.1%
0
500
1000
1500
2000
2500
3000
3500
JAN. FEB. MAR. APR. MAY JUN. JUL. AUG. SEP. OCT. NOV. DEC.
2019 2020
Total revenue of funeral services in 2020 recorded RMB253million, down 1.6% compared to the corresponding period. Among them, revenue of funeral services in 2H2020 recorded RMB151million, up 17.2% compared to the corresponding period. The decline in sales volume and sales narrowed down since 2Q and revenue began to rise rapidly QOQ in 2Q , while the ASP was diluted by newly acquired companies.
• As a long-term partner of the government, We have taken the
lead through diversified cooperation with government. By means
of our own advantage, we have accessed to more core funeral
service locations as well as occupied the resources. The
competitive strength and the cooperative ability further emerged.
• We offer over 30 funeral service items, including services as body
spa, mid-range and high-end paper coffins and cosmetic services
etc..
• New facilities mainly provide basic services at present. Along with
the increase of value-added services, the improvement of service
quality and the launch of marketing campaign, there is large
room for revenue growth in funeral segment.
12
Supportive Policies: To speed up ecological development of industry, environmental testing is more stringent while all non-compliant cremation machine will be gradually replaced throughout the country
Patent Advantage: Obtained national invention patent, acquired market approbation from domestic and overseas
Good sales status: During the period, the Group achieved breakthrough in government procurement, sold and installed 19 sets and achieved operating revenue of RMB50.1 million for the Year The contracts not yet delivered amount to 14 sets.
Broader geographic coverage:Expanded pre-need
services to 10 provinces, 21 cities nationwide
Growing sales volume:In 2020, we signed 5,906
pre-need contracts, increased 21.2% compared to
the corresponding period
Government Procurement and recognition: In
2020, we won 40+ batched of collective
procurement by government institutions at all levels
and social organizations
Strategic cooperation: In April 2020, cooperate
with Aeon Life Insurance Company to work together
with the “Insurance + Life Care” business and jointly
launch an insurance contracted product named
“Green Life Service”.
Design services layout:In 2020, we offered the professional design services to cemeteries and funeral parlors throughout the nation
Strong design skills: We have provided services regarding overall planning, construction drawings and interior decoration design for over 400 cemeteries and more than 30 funeral parlors
Awards and Achievements: As anexperienced, original and professional design company in the industry, we have won many international and domesticawards.
.
Environmental-friendly Cremation 设计服务Pre-need Services Landscape Design
Continuous Growth of Strategic New Business Units
Sustainable Development
13
SUSTAINABLE
DEVELOPMENT
LAYOUTLife education
Environmentally
friendly
Technology
Innovation
Public welfare
History heritage
Environment
• Landscape cemetery, land-
saving and ecological
• Green funeral, changing
the customs
• Environmental cremation,
energy saving and
efficiency
• Lean operation, energy
efficiency management
Social
• Talent training, empowering
development
• Charity donation, Anti-
epidemic and disaster relief
• Caring for People’s livelihood,
Implementing charity
• Industry communication,
boosting innovation
Governance
• Updating the terms for the
Compliance Committee,enhancing governance
• Establishment of the Sustainable
Development Committee,
formulating strategies
• Diversified board members,
scientific decision-making
• Three-tier risk management and
internal control system,
strengthening compliance
Financial Performance
14
(RMB Million) 2020 2019 Change
Revenue 1,892.5 1,850.6 +2.3%
Profit from operations 927.9 869.3 +6.7%
EBITDA(1) 1,066.2 1,004.3 +6.2%
Net profit 757.3 735.3 +3.0%
Profit attributable to Owners of the Company 620.1 578.6 +7.2%
Operating profit margin 49.0% 47.0% +2.0pp
EBITDA margin 56.3% 54.3% +2.0pp
Net profit margin 40.0% 39.7% +0.3pp
ROE 15.6% 17.0% -1.4pp
ROIC 28.6% 32.1% -3.5pp
Basic earnings per share (RMB cents) 27.4 25.9 +5.8%
Dividend per share (HKD cents) 8.81 8.42 +4.6%
Dividend payout ratio 29.2% 29.0% +0.2pp
Financial Overview
(1) EBITDA = profit from operations + depreciation and amortizations + share based payment expenses.(2) ROE= Net profit during the period/(total equity at the beginning of the period + total equity at the end of the period)(3) ROIC=(net profit-(interest income - interest expenses + exchange gains)*(1-effective tax rate) )/ average invested capital as of period beginning and end; Invested capital=total equity +loans from non-controlling shareholders of subsidiaries + bank borrowings-bank balances and cash-time deposits-current financial assets.(4) Dividend payout ratio is calculated by reference to the profit attributable to owners of the company, RMB/HKD currency ratio and dividend payout amount in HKD. It is estimated that we will keep a relatively stable dividend payout ratio in the future. And we will also review and assess the dividend policy periodically.
15
(3)
(2)
(4)
Continuous Growth in Revenue and Further Improvement in Structure
2019
Shanghai
50.5 %
Others 10.6%
Anhui 9.9%
Henan 6.3%
Chongqing
3.7 %
Liaoning 10.0%
Optimization of revenue contribution from different regions:For the first time, we entered Heilongjiang and Gansu Province. The
contribution to the burial and funeral revenue of Shanghai decreased to 46.9% (last year 50.5%), The Group continued to rely less on
our business in Shanghai and continued to optimize our business footprint across the nation. Meanwhile, with the ease of COVID-
19, the signs of sales recovery of 2H2020 was clear. E.g. increase rate of the revenue contribution from Chongqing recorded 13%
and that of Jiangsu recorded 26%.
Shandong
4.5%
2020 2019
RMB’000 % of total revenue RMB’000 % of total revenue % changes
Burial Services 1,579,143 83.4% 1,551,394 83.8% +1.8%
Funeral Services 252,938 13.4% 256,928 13.9% -1.6%
Other Services 60,456 3.2% 42,252 2.3% +43.1%
Total 1,892,537 100% 1,850,574 100% 2.3%
Burial and funeral revenue contribution from different regions
16
Jiangxi 4.5%
2020
Shanghai
46.9%Others 13.7%
Anhui 9.7%
Henan 6.7%Jiangsu
4.4%
Liaoning 8.4%
Shandong
5.1%
Jiangxi 5.1%
2020% of 2020 revenue 2019
% of 2019 revenue
Fluctuation (%)
Staff costs 385.8 20.4 416.1 22.5 -7.3
Construction costs,
Consumed materials and goods225.6 11.9 214.4 11.5 +5.2
Depreciation & Amortization 136.7 7.2 123.2 6.7 +11.0
Marketing & sales channel
costs36.1 1.9 38.7 2.1 -6.7
Other operating expenses 180.4 9.5 188.9 10.2 -4.5
Total 964.6 51.0 981.2 53.0 -1.7
Effective Operating Expenditure
• Operating expenditure accounted for 51.0% of total revenue.The decrease in operating expenditure is mainly attributableto adjustments to business structure, effective cost controlunder the management for cost reduction and efficiencyenhancement and various concessionary policies benefittingthe Group.
• As a service provider, staff costs accounted for 40% of theoperating expenditure which has the highest weight in theexpenditure. During the Period, the staff costs decreased by7.3%. The decrease was mainly attributable to the combinedeffect of various social insurance concessions granted to theGroup and optimization of working structure andremuneration structure.
• Marketing and sales channel costs decreased by 6.7%. Suchdecrease was mainly attributable to the optimization of oursales channel, enhancement of our direct sales team andgradual reduction the reliance on external sales agents.
• Depreciation and amortization have increased thanks tonewly operated cemeteries and funeral facilities.
(RMB million)
53.0%
(RMB million)
、17
957.8
882.0
23.5
82.6
820.0
840.0
860.0
880.0
900.0
920.0
940.0
960.0
980.0
1000.0
2019 2020
Comparable New
Staff cost40%
Construction expenditure & materials
consumed23%
Depr.&Amor. 14%
Marketing & Channel
4%
Others19%
17
Robust Capital Structure
The Company has a robust capital structure and strong cash generation capabilities, which bring reasonable return to shareholders, and support its future development.
Strong operating cash flow(1) (RMB Million)
707.1
822.3
2019 2020
Gearing ratio(3)
(%)
2,346.9
2,167.2
2019 2020
Strong cash balance(4)
(RMB Million)
Capital investments(2)
(RMB Million)
18
Note: (1) Net operating cash flow=cash flow from operating activities-paid income tax + payment to acquire cemetery land. (2) Capital investments = M&A investment cash outflow+ investment cash
outflow in the acquisition of cemetery assets, fixed assets and intangible assets and etc. (3) Gearing ratio is calculated as total borrowings divided by total equity. Considering our low gearing
ratio, we prefer to adopt the debt financing to meet any further financing requirements. (4) Cash balance= bank balance and cash + term deposit + financial assets – total borrowings.
2019 2020
Others
M&A
269
1.9 1.0
2019 2020
189
118
753
80
634
No. of employees since 2013
1,211 1,307
1,627 1,724
1,836
2,237 2,349 2,345
2013 2014 2015 2016 2017 2018 2019 2020
68 9 10
15
22
2628
2013 2014 2015 2016 2017 2018 2019 2020
No. of funeral facilities in operation since 2013
710
14 1517
2022
28
2013 2014 2015 2016 2017 2018 2019 2020
No. of cemeteries in operation since 2013
97
139
161
181196
220230
244
2013 2014 2015 2016 2017 2018 2019 2020
Saleable cemeteries areas with land certificate since 2013
Unit: 0’000 sqm
18,230 20,131
26,573 29,237
32,892
49,000
55,297
60,474
2013 2014 2015 2016 2017 2018 2019 2020
No. of customers served since 2013*
Business Structure and Development since Listing
*Exclude public welfare plot and tomb relocation
19
Growth in Revenue and Net Income since Listing
611.8
795.1
1,108.0
1,267.7
1,477.2
1,651.3
1,850.6 1,892.5
2013 2014 2015 2016 2017 2018 2019 2020
RMB million
20
271339
489609
758 846
10041066
2013 2014 2015 2016 2017 2018 2019 2020
EBITDA and EBITDA margin
EBITDA(RMB million)
167230
284339
417488
579620
2013 2014 2015 2016 2017 2018 2019 2020
Net Profit margin and Net Profit attributable to the Owner of the Company
31.1% 35.9% 33.0% 35.4% 37.2% 37.3% 39.7% 40.0%44.20%
42.70%
44.2%48.0%
51.3% 51.2%54.30% 56.30%
EBITDA margin
Appendix
21
212,267
253,708
509,914
208,648
246,212 250,732220,207
90,71367,304 75,897
130,990
27,002 26,701
120,413
160,53549,342
42,096
22,472
29,412
206,104
44,646
5,3408,716 2,634
7,878
1,09451
182,365
S H A N G H A I H E N A N S H A N D O N G A N H U I C H O N G Q I N G L I A O N I N G J I A N G X I I N N E R M O N G O L I A J I A N G S U G U I Z H O U G U A N G X I H U B E I G A N S U H E I L O N G J I A N G
Saleable area Area sold
Extensive Land Bank to Support Future Growth
Unit: m2
36,348m2 of land consumed in 2020 ( 2019: 39,586 m2 )
Total saleable cemeteries area (2) with land certificate (1) reached approximately 2.44million m2
Notes: (1) Total land area with land use right certificate amounts to 3.987 million m2. (2) For land area available for sale, non-cemetery land use are excluded, such as business center, office building, scenery and trunk roads. (3) Allcemeteries are permitted to operate for 50 to 70 years. (4) The remaining saleable land in Jinzhou is in process of applying for the land use right.
22
1398.0
25.4 66.8
328.2
126.3
China Australia United Kindom United States Japan
Total population (in million)
2019 Population and Aging Rate(1) (2) Urbanization Rate in China
Statistics Related to Industry Development
China’s Total Number of Death (in million)
9.869.93
10.00
2017 2018 2019
Notes:
(1) Aging rate is calculated as population aged 65 or above divided by total population.
(2) Sources of Data: National Bureau of Statistics and World bank.
28,228
30,733 32,189
2018 2019 2020
人均可支配收入 (元)
6.7% 6.1%
2.3%
Rising Economy and per capita disposable income
11.5%
15.7%18.6%
16.2% 28.0%
Aging Rate
23
59.6%
60.6%
> 60.0%
2018 2019 2020
Improvement in Human Resource Management
—Internal Training
Actively promote
employee education
and development
—External Training
Actively promote
industry exchanges
1162 1255 1314 1278
499726 760 798175
256 275 269
2017 2018 2019 2020
Employee Breakdown by Segment
Burial Service Funeral Service Others
54
494
693
1108
47
492
670
1136
MasterDegree &
Above
BachelorDegree
Associate BelowAssociate
Employee Breakdown by Education
2019 2020
Life-Service Academy
Regularly hold the national modern cemetery training courses
Initiate public welfare courses in the college
Provide training for the government,association and enterprises
564
1428
357457
1467
421
<30 30-50 >50
Employee Breakdown by Age
2019 2020
24
Fu Shou Yuan, A leading company of death care services industry in China
Introduction of Company
History
• Founded in Shanghai in 1994, Fu Shou Yuan is one of the first private companies that enters into the PRC death care market
Area
• We provide premium death care services in 18 provinces and 45 cities within China and we are the largest death care service provider in China
Business
• We offer the most comprehensive services which cover 6 main segments in the industry chain: cemetery services,funeral services, funeral equipment, pre-need services,design service and Internet+
Brand
• Famous brand in death care service industry, with a great reputation among customers, peers and government
Benchmark
• Combining traditional culture with modern concept ,we provide multi-level and personalized comprehensive death care services. In each city we have entered, we are one of the best service providers as the benchmark in the industry
Asset• We possess the largest and the most professional team and extensive land bank
Concept
• “Converting cemeteries to urban cultural parks; Transforming farewells into beautiful moments” is our mission, and we’ll continuously innovate and lead the development of China’s death care service industry
25
➢ SOP
Continuously improving cemetery and funeral
SOP, the standards supporting rapid
expansion and replication,
➢ IT system
Through the construction of IT system, the
standardization of business process, the
systematization of management process and
the visualization of business results are
properly defined and become the IT
benchmark of cemeteries and funeral service
enterprises in China.
➢ Post-investment managing
mechanism
The regional expansion mechanism and the
incubator mode of mature enterprises to help
new enterprises have been established.
It solidifies the post-investment management
mechanism, realizes seamless connection
between pre-investment and post-investment,
and supports the group's pace of external
expansion.
➢ Improve the overall budget
management system
➢ Continuous optimization of
performance evaluation system
➢ Improved management mechanism
among Headquarter, Regions and
Subsidiaries
Improved the management system to enhance the operation and control capability
Mature
Profit
SOP
IT system
Newly Built
Efficiency
SOP
IT system
New merger
Result
Operational
upgrading
IT system
Unified Management System & Data Base @Cloud
FS
IT T
ech
.
Ma
rketin
g&
Sa
les
HR
Ad
min
.
Inte
rnal C
ontro
l
Cemetery business Funeral business Accounting system
Co
nstru
ctio
n
R&
D
Tra
inin
g.
Bra
ndin
g
Systematic decision makingVisualized BI platform Mobile collaborative OA
26
27
• 1994Established ShanghaiFu Shou Yuan
• 1999Commissioned by the China Funeral Association to provide regular training courses
• 2001Established Shandong Fu Shou Yuan
• 2002Acquired funeral facilities in Chongqing
Became the first Chinese company admitted as a member of the ACCA and the ICFA
Established Hefei Dashushan Cultural Cemetery
• 2006Media coverage by an industry journal in Australia attracted wide attention
• 2007Established Shanghai Nan yuan
• 2008Acquired Henan Fu Shou Yuan
Established Hefei Renben in Hefei City to provide funeral services
• 2012Acquired Maoshan Anling in
Liaoning
• December 2013Successfully listed on the HKEx , raising total proceeds of US$247 million; the first PRC death care services company to list in HK
Expanded funeral services business into Xiamen and Ningbo
• 2014Became a constituent stock of HSCIBegan production of cremation machinesAcquired Chongqing BaitaYuan,Guanlingshan Cultural Landscape Cemetery, Wanshoushan Cemetery and Shanting Xingtai Cemetery
• 2015Acquired Anyang Tianshouyuan, Changzhou Qifengshan and established strategic cooperation with Dafeng Funeral Parlor
• 2016Signed cooperation agreements with local government in Shandong Tai’an and Chongqing Bishan
Jointly built and operated a cemetery project with Anhui Xuancheng Municipal Government
• 2017Acquired XianheCemetery and Huazuyuan
Won BOT project for GaoyouFuneral Service Center
• 2018Acquired 6 cemetery projects and 5 funeral operation projects. tapped into 3 brand new areas in Guizhou, Inner Mongolia and Hubei
Participated in funeral and cemetery buyout fund, achieving more quality projects
• 2019Acquired 80% of TianxianCemetery and commence Hubei layout
Acquired 40% of Chongqing Baitayuan, making it wholly-owned subsidiary
Acquired the remaining 49% of Temshine and further improved design service segment layout
Formulating the “Belt and Road” Action Plan, advancing the development of Machinery Segment
Shanghai Fu Shou Yuan Charitable Foundation was launched on 2nd April,2019
1994 ~ 1999 2000 ~ 2012 2013~ Now
Founding Period
Exploring Period
• 2010Our humanities memorial museum was opened in Shanghai
Key Milestones
• 2020Acquired 80% of Fuze project in Jinsha County of Bijie City, Guizhou Province
Acquired 100% of MingxiyuanCemetery and commence Heilongjiang layout
近期奖项及成就
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2019 Nanchang Leading Enterprise in Service industry
Top 10 Charitable Projects for 2020Top 100 Excellent Enterprise for
Qingpu District
Outstanding ContributionAward of Shanghai Modern
Service IndustryOutstanding Person award
Best Learning ProjectAward
2019 Public Innovation AwardMost Socially Responsible
Listed Company
2020 Welfare Innovition
Spread Love, Expand Love, and let love last forever
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