pcsojackpotprize| Revenue and profit double increase, performance of listed companies in the funeral field picked up

As the annual reporting season of listed companies is coming to an end, what is the performance of listed companies involved in funeral business in the past year? As of May 7, Fucheng shares, a listed company with A shares, and Fushou Garden, a listed company with Hong Kong shares, have disclosed their 2023 annual reports. Beijing Business Daily reporter combed found that the performance of the two companies in the funeral business has improved to varying degrees. Among them, the revenue of Fushou Garden in 2023 increased by 21% compared with the same period last year, and its net profit increased by 20% compared with the same period last year.Pcsojackpotprize.1%. Fucheng shares 2023 funeral service business income rose 98% compared with the same period last yearPcsojackpotprize.33%. ExceptPcsojackpotprizeWith the recovery of revenue, the two companies have also maintained high profit margins. In the view of the industry, funeral and interment is not a completely market-oriented industry, in order to seek more industrial opportunities, some funeral enterprises have begun to make efforts to digitize and serve the whole industry chain, so as to seek new growth possibilities.

Revenue growth of funeral business

According to the annual report, the revenue of Fushou Garden in 2023 was 2.628 billion yuan, an increase of 21 percent over the same period last year, while the net profit of returning mother was 791 million yuan, an increase of 20.1 percent over the same period last year. Revenue from the funeral business of Fucheng shares, a listed A-share company, was 115 million yuan in 2023, an increase of 98.33% over the same period last year.

Talking about the reasons for revenue growth, Fushou Garden said in its annual report that the number of customers coming to the park increased in 2023, the cumulative and deferred funeral consumption demand was rapidly released, and the sales and service performance of operating tombs was significantly compensated. Bai Xiaojiang, chairman of Fushouyuan International Group, said that since Fushouyuan was listed 10 years ago, the average annual compound growth rate of operating income has reached 15.7%. At present, the company's overall profitability is good and the cash flow level is sound.

From a geographical point of view, Shanghai is the main revenue position of Fushou Garden. In 2023, it contributed 1.262 billion yuan in revenue to the company, accounting for 49.2%. Fucheng's main customers are concentrated in Beijing, Hebei and Tianjin. Its subordinate Lingshan Pagoda Mausoleum is located at the intersection of Beijing's "Seven Ring Road" and Beijing-Qin Expressway, with a total area of 765mu and about 125000 planned and designed tombs.

A high-margin business

In addition to revenue growth, high profit margins are also one of the priorities of the funeral industry. According to Fucheng's annual report, its funeral business had a gross profit margin of 80% in 2023. The operating profit margin of Fushou Garden in 2023 also reached 52.2%, of which the operating profit margin of cemetery service reached 60.2%.

From the annual reports of Fucheng shares and Fushou Garden, the company's high profit margins come from the cemetery sales business. Take Fushou Garden as an example, the service revenue of Fushou Garden Cemetery accounted for 82.4% in 2023. Among them, the number of operating tombs was 16385, with revenue of 1.958 billion yuan, an increase of 395 million yuan over the previous year. According to the data disclosed by Fushou Garden, the average unit price of operating tombs in Fushou Garden is 119500 yuan in 2023.

As of December 31, 2023, Fushou Garden has 34 completed cemeteries and 32 funeral facilities in operation across the country, covering more than 40 cities in 19 provinces, autonomous regions and municipalities directly under the Central Government.

In the view of people in the industry, the funeral field is not a completely market-oriented industry at present. As funeral-related enterprises, how to seek development in the limited market has become a common proposition.

Acceleration of industrial chain layout

A reporter from the Beijing Business Daily noted that as a rare funeral concept stock in the A-share and Hong Kong stock markets, Fucheng shares and Fushou Garden have been expanding the company's business territory in recent years.

In 2018, Fucheng acquired a 60% stake in the Tiande Fudi Mausoleum in Shaoshan, Hunan Province. In October 2021, the company was investigated for illegally taking deposits from the public. Fucheng shares also disclosed in the annual report the latest progress of the subsidiary involved in the case. In response to this case, the Shaoshan people's Court made a judgment of first instance at the end of 2023, which showed that Tiande Fudi Mausoleum Company and itsPcsojackpotprizeHe was accused to bear the corresponding responsibility.

Fushou Garden concentrated its efforts on digital funeral in 2023. A reporter from the Beijing Business Daily learned from Fushou Park that in the past year, Fushou Park has launched digital funerals, digital rituals and other products, which have served more than 5000 customers, and plans to expand the scope of service to 15000 people this year.

In the layout of the industrial chain, in addition to the cemetery service, the Fushou Garden has also been laid out in the pre-life service, design service and funeral equipment. Including helping customers sign living contracts; providing services such as overall planning, construction drawings and interior decoration design for cemeteries and funeral parlors; and developing new cremators. According to data, Fushou Garden helped clients sign 17707 contracts in 2023, an increase of 5.7 per cent over the same period last year.

Zhao Boyu, a reporter from Beijing Business Daily.