Fu Shou Yuan International : 1H2021 Results Announcement

Fu Shou Yuan International Group

Limited

Stock Code: 01448

2021 Interim Results

August 2021

Disclaimer

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.

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Results Overview

Quick Revenue

Recovery

Solid Profitability

Solid Balance Sheet

Good Prospect of

Outreach Initiatives

Proactive Optimization

and Adjustment

• Total revenue reported RMB1.142 billion, representing an increase of 55.6% compared to the corresponding period
• Profit before taxation amounted to approx. RMB 606 million, up by 56.4% YOY
• Net profit amounted to approx. RMB 456 million, up by 48.2% YOY
• Net profit attributable to owners of the Company amounted to approx. RMB 367 million, up by 48.4% compared to the corresponding period
• Operating profit margin reached 49.5%, up by 0.9% compared to the corresponding period
• Gearing ratio decreased to 0.9%
• Net cash was approx. RMB 1.840 billion, providing strong financial support to the Company's strategic expansion
• M&A Projects: 2 projects' acquisition agreements were entered into (1 completed in August, 1 in progress)
• Cooperation Projects: 5
• Ongoing Projects: 3
• We appointed an experienced external professional consultancy firm to conduct systematic rationalization and improvement in relation to our strategies, main business procedures and organizational structure.

Steady Dividend Policy	• Basic EPS for 1H2021 is approx. RMB 16.1 cents
	• Interim dividend of HK5.64 cents per share and dividend payout ratio is approx. 29.7%

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Business Performance

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Policy & Market

Policy

Better life requires high quality death care services

The report of the 19th National Congress pointed out that the main contradiction now is between the people's growing demand for a better life and the unbalanced and inadequate stage of development. The dignified, highly regulated quality death care service is also an important part of a better life.

The government is returning to the service role, giving market more vitality

The government is reducing examination and approval, giving innovation more space, while providing more service, well- balancing the regulation and liberalization.

Separation of Supervisory role and operator role brings new opportunities

The government provides basic services, encouraging social capital to participate in selective death care services, bring more development opportunities for the company.

Industry rectification creates fresh operation environment

The national actions taken to rectify the funeral industry are fundamentally conducive to the standardization and healthy development of the industry and create a more equitable operating environment and room for growth for the company.

Regulations on Funeral Management (Revised Draft for consultation)

The issuance of Regulations can effectively solve the problems in the industry and enforce the institutionalization, marketization and normalization of the industry, will provide the Group with a favorable environment for competition, and more room for sustainable development.

Market

Five Factors Drive the Market Upward

Traditional culture with a core of filial piety

Largest population in the

world

Rapid aging trend

Upgrading demands for better quality death care services

Sustainable urbanization process

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