HONG KONG, Nov 28, 2014 - (ACN Newswire) - Anxian Yuan China Holdings Limited ("Anxian Yuan China" or the "Group;" HKSE: 0922), a leading cemetery developer and funeral service operator in China's Zhejiang Province, is pleased to announce its unaudited interim results for the six months ended September 30, 2014 (the "review period").
During the review period, Anxian Yuan China has achieved a revenue of approximately HK$46,715,000 (1H 2013/14: HK$ 31,747,000), a gross profit of HK$ 34,114,000 (1H 2013/14: HK$ 21,747,000). Gross margin remained at a high level of around 73%. During the review period, the company's profit attributable to owners skyrocketed nearly 585% to approximately HK$5,609,000 (1H 2013/14: profit of HK$819,000). Basic and diluted earnings per share were 0.09 cents respectively. Performance improved significantly during the period, mainly due to the lower costs of financing, business expansion and price increases by the cemetery.
During the review period, the Group's revenue was principally generated by the cemetery business. Some 592 tomb-sites were sold (1H 2013/14: 444), at an average price of about RMB63,000, an increase of 14.8% over last corresponding period (1H 2013/14: approximately RMB 54,000).
Financial Highlights (unaudited)
(HK$ '000) Six Months Ended September 30
2014 2013 Change
Revenue 46,715 31,747 +47.14%
- Sales of tombs 45,921 31,241 +46.98%
- Management fee income 794 506 +56.91%
Gross profit 34,114 21,747 +56.86%
Profit attributable to owners
of the Company during the period 5,609 819 +585%
Basic and diluted
earnings per share (cents) 0.09 0.02 +350%
Chairman of Anxian Yuan China, Mr. Shi Hua said: "The concept of 'being laid to rest' is deeply rooted within traditional Chinese culture. As China's aging population and per capita income significantly increases, Anxian Yuan China has actively grasped industry development opportunities presented by the parallel rise in the demand for cemetery services. Its Anxian Yuan has become the premier quality resting place of Zhejiang cemeteries. In October, the Group has successfully added an 100% stake of [Hangzhou Hao Le Tian Etiquette Services Company] to the listed company's platform and to laid a good foundation for developing one-stop funeral and related services in Hangzhou. In the next year, the Group intends to utilise the domestic and Hong Kong capital markets for securing financial support for the Group's development and to build the national reputation of its cemetery and funeral service brand."
The Group's main asset Hangzhou Anxian Yuan, focuses on its development and operations, including the operation and management of the cemetery, burial, funeral ashes services and funeral supplies sales. The property covers 647,715 square meters, including 147,000 thousand square meters alloted to the cemetery, including the tombs, green areas and supporting facilities. Currently the area of unused land covers 494,266 square meters, sufficient to develop 220,000 graves. Unlike ordinary cemeteries, Hangzhou Anxian Yuan is planning for its continued improvement. It currently comprises four main cemeteries: Cultural Park, Memorial Park, Loyalty and Filial Piety Park, and Ancestral Veneration Park, all providing a setting for serene remembrance, scenic visitation, heritage appreciation and peaceful repose. Hangzhou Anxian Yuan has adopted standardized management, best ecological practices, skilled gardening and art as integrated construction concepts, with the aim to build a unique cultural landscape and a tranquil spiritual home.
Meanwhile, Anxian Yuan China intends to launch the three funeral service brands "Paratown," "Paramall" and "Parangel" through an indirect shareholding O2O electronic commerce provider Shanghai An Bai Shi E-commerce Co., Ltd. It is the first company to provide online-offline personalized funeral services in the center city of Shanghai, filling the customer demand to create tombstones. In the internet age, "Paratown" section services will not only provide a range of funeral planning services, but also introduce online ordering of funeral supplies and online real cemetery visiting reservations, striving to lead the upgrading and development of Chinese funeral services.
The Chairman of Anxian Yuan China, Mr. Shi Hua has more than 14 years of industry experience. An experienced management team provides insight into the latest trends in China's funeral industry, ensuring Anxian Yuan China continued leadership in the industry. Hangzhou Anxian Yuan as China's leading eco-cultural cemetery is also the first choice of many celebrities and final resting place of revolutionary martyrs, such as John Leighton Stuart, Zhu Lesan and other cultural personalities and Zhang Tianwen, Wang Wei and other martyrs.
Because of the limited supply of available land for cemeteries, coupled with the complex regulatory and zoning restrictions, barriers to entry into the Chinese cemetery services industry are very high. Anxian Yuan China's greater competitive advantage is due to its expert knowledge and extensive industry experience. In addition, in line with the Chinese government's recent implementation of the open-door policy, the Group has set up an investment subsidiary, the "Paratown" funeral planning store, mainly engaged in planning funeral services, to further promote the development of funeral services and business development in the Yangtze River Delta region of China, to achieve the Group long-term strategic goals.
Mr. Shi Hua concluded: "With the continued steady growth of China's economy, and improvement of people's quality of life, the demand for high quality consumer tombs and funeral service requirements will increase in tandem, a boon for the industry environment of Anxian Yuan China. Going forward, the Group will apply the successful business model to other rapidly developing cities in China, through investment, equity participation, strategic partnership, franchise contract, etc., to strengthen trade and industry to more closely work together with insurance and pension institutions and medical and healthcare institutions. We will actively seize the opportunity to accelerate development, while pursuing excellence in funeral services in advancing with the times, and write a new chapter in the Chinese funeral industry."
Contact:
Strategic Financial Relations (China) Limited
Ms. Winnie Lau
Tel：+852 2864 4876
E-mail：winnie.lau@sprg.com.hk
Ms. Jennifer Ran
Tel：+852 2864 4839
E-mail：jennifer.ran@sprg.com.hk
Topic: Earnings
Source: Anxian Yuan China Holdings Limited
Sectors: Daily Finance
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