The group’s new marble trading business has made considerable profit contribution.
Sino-Life Group Limited (“Sino-Life”), a leading funeral services provider in Greater China, on Tuesday announced its interim results for the six month ended 30 June 2011.
For the six months ended 30 June 2011, the Group achieved a considerable 17.5% rise in turnover to RMB36.2 million mainly attributable to the Group’s newly added business, marble trading, which commenced operation in April 2011. Turnover derived from provision of funeral services and marble trading reached RMB29 million and RMB7.2 million respectively, accounting for 80.1% and 19.9% of the Group’s total revenue. China continues to be the main growth driver to the Group with turnover derived from China (including Hong Kong) and Taiwan accounted for approximately 70% and 30% of the Group’s total revenue.
In the period under review, the Group has been actively expanding its market share in Mainland China. Both Rongchang County Funeral Parlour and Lian Hua Tang commenced operation in January 2011. Lian Hua Tang is able to offer cremation services and other packages through collaboration with Jiang Nan Funeral Parlour, thereby achieving synergies. With its strategic location and sizeable space, Lian Hua Tang can provide high quality one-stop funeral services for the residents in the densely-populated Nanan District, Jiangbei District and Yuzhong District within Chongqing, the largest city in China.
In January 2011, the Group’s office in Hung Hom, Hong Kong, was officially opened and promoted its new product “Complete Lifetime Service Deed” as well as other funeral-related services. The Group is the first listed company in Hong Kong specialising in funeral services. in February 2011, the Group has also been granted a license by the Director of Food and Environmental Hygiene to carry on the business of an undertaker of burials in compliance with the Undertakers of Burials Regulation.
In addition, to enhance the greater public’s knowledge of funeral services and related products and services, as well as to boost standards of the industry through exchanges with industry players, the Group participated in the Hong Kong Senior Fair from 20 to 22 May. As a result, the Group significantly strengthened its brand awareness and visibility and its innovative “Complete Lifetime Service Deed” also gained wider recognition within the community.
New management contracts for funeral service centres, parlours and cemeteries are under negotiation in provinces adjacent to Chongqing. The Group also intends to expand into other regions with huge potential, such as Southeast Asia. Supported by the increasing educational efforts of the Group and understanding about the “Complete Lifetime Service Deed” in Hong Kong, and with the increasing number of senior citizens aged over 60, there is considerable scope for development of the deed business.
The Group has acquired a 55% stake in an enterprise which was mainly engaged in the trading of marble used in the construction of buildings and gravestones in April 2011, which has immediately brought a satisfactory contribution to the Group. Moreover, as there are more than 4,000 cemeteries in China, the management believes that the number of cemeteries will continue to grow with surging demand. In addition to construction of cemeteries, marble is also widely utilised in other applications. Hence, the Group expects that the marble business will greatly broaden the Group’s income stream, according to a Sino-Life report.
Mr Liu Tien-tsai, Chairman of Sino-Life, said, “We have been able to maintain overall turnover growth with our aggressive and innovative strategies. The new marble trading business has even made an immediate profit contribution to the Group. As the number of cemeteries keeps increasing in China, we believe this new business has promising prospects and adds synergies as well as provides strong growth momentum, as it is set to become a new growth driver for the Group. We will continue to develop our funeral services business while devoting more efforts to expand the marble trading business in the second half of the year, aiming to further consolidate our market share in Mainland China”.
Do you know more about this story? Contact us anonymously through this link.