Fu Shou Yuan Clinches Strategic Cooperation Framework Agreements with Shenyang City and Jinzhou City of Liaoning Province

Dec 23, 2014 10:43 JST

Source: Fu Shou Yuan International Group Limited

Making Strategic Moves into Northeast China Market by Leveraging Supportive Government Policies

HONG KONG, Dec 23, 2014 - (ACN Newswire) - Fu Shou Yuan International Group Limited, the largest provider of death care services in the PRC, is pleased to announce that the Group has entered into strategic cooperation framework agreements with the Municipal Governments of Shenyang and Jinzhou of Liaoning Province on 19th December. According to the agreements, the Group will forge a closer cooperation with the two cities on the construction projects of local cemeteries and funeral parlours. This is another strategic move of the Group in Liaoning Province, following the announcement to acquire 70% equity interest in Liaoning Guanlingshan Cultural Landscape Cemetery Co., Ltd in November for a consideration of RMB279.3 million, and marks the significant expansion of Fu Shou Yuan into the death care service market in Northeast China.

Fu Shou Yuan Clinches Strategic Cooperation Framework Agreements with Shenyang City and Jinzhou City of Liaoning Province

The cooperation leverages on the favorable policy of Public-Private Partnership ("PPP") introduced by the Chinese Government, which is to introduce private capital into public services and infrastructure projects that the government bears responsibility and are feasible for market operation. Such win-win model can enhance operation efficiency and service quality of enterprises as well as maximizing social benefits and investment return. As Liaoning Province is a representative area of China's death care industry applying PPP and market-oriented restructuring, such development will facilitate the further integration of death care service companies owned or operated by the local government with private capital. Through the strategic cooperation with the Group, the Municipal Governments of Shenyang and Jinzhou will engage Fu Shou Yuan's professional team in the operation of local death care services market in order to jointly develop the local death care industry.

Fu Shou Yuan, as one of the representative enterprises of Shanghai, attended the "Shanghai Enterprises in Liaoning" trip jointly hosted by the Municipal Governments of Liaoning Province and Shanghai City, and discussed with the Liaoning Municipal Government on further cooperation. Leveraging on the existing resources of Shenyang city and Jinzhou city, Fu Shou Yuan will work closely with local institutions on the construction, reconstruction and expansion projects of cemeteries and funeral parlours to deepen the reform of local death care services as well as contributing our advanced experience and resources to the local cities. In return, the local government will offer incentives in project approval and tax breaks. Moreover, through the trip, the Group can have a more in-depth understanding of the northeast China market and establish close relations such region, thereby making a solid strategic step to enter the Northeast market.

Mr. Bai Xiaojiang, Chairman and Executive Director of Fu Shou Yuan, said: "We are very honored to join the trip to Liaoning as one of the representative enterprises from Shanghai. The opportunity to forge a strategic cooperation with Shenyang city and Jinzhou city of Liaoning Province is not only a high recognition of the brand of Fu Shou Yuan, but also a huge boost of the image of China's death care industry. As Northeast China has long been the Group's key strategic market, we will continuously expand cooperation with Northeast China by seizing the great opportunity of the government policy of PPP. We plan to invest in local death care services reform and introduce our advanced experience and culture into the region. It has been a year since the Group was listed on the Hong Kong Stock Exchange. We will adhere to our established strategies to promote the healthy and sustainable development of death care services in Northeast China with our professional service, team and management. It is also our vision to promote our successful experience on PPP to other major densely populated areas in China. We wish to encourage a positive, healthy, civilized and peaceful traditional Chinese culture during the process of market expansion."

Source: Fu Shou Yuan International Group Limited
Sectors: Daily Finance, Daily News