Fu Shou Yuan Signs Cooperation Agreement with the People's Government of Taian City of Shandong Province

Jan 15, 2016 22:34 JST

Source: Fu Shou Yuan International Group Limited

Start Launch at Shandong Province Substantial Breakthrough on Strategic Cooperation with Regional Governments in the PRC

HONG KONG, Jan 15, 2016 - (ACN Newswire) - Fu Shou Yuan International Group Limited ("Fu Shou Yuan" or the "Company" and, together with its subsidiaries, the "Group", stock code: 1448.HK), the largest provider of death care services in the PRC, is pleased to announce that Shanghai Fu Shou Yuan Industry Development Co., Ltd. ("Shanghai Fu Shou Yuan"), an indirect wholly-owned subsidiary of the Company, signs the Taian Cooperation with the People's Government of Qiujiadian County in Taishan District of Taian City (or the "Qiujiadian County Government") and Taishan District Bureau of Civil Affairs (or the "Taishan Bureau of Civil Affairs") today.

Fu Shou Yuan Signs Cooperation Agreement with the People's Government of Taian City of Shandong Province

Pursuant to the strategic cooperation agreement entered into by the Company and the People's Government of Taian City, Shandong Province on January 16, 2015 (the "Taian Strategic Cooperation Agreement"), the Group entered into (i) a cooperation agreement with the People's Government of Qiujiadian County in Taishan District of Taian City (the "Qiujiadian County Government") in relation to the formation of an equity joint venture to invest in and operate a cemetery in Qiujiadian and (ii)an investment agreement with the Taishan District Bureau of Civil Affairs (the) in relation to the construction and operation of a funeral home in Taian City under the "build-operate-transfer"("BOT") model. This signing ceremony is substantial progress on last year's strategic agreement, as well as providing a good template of the implementation of strategic cooperation agreements signed with other regional governments. In the future, the group will continue to achieve substantial breakthroughs in strategic cooperation with local governments.

Pursuant to the cooperation agreement, Shanghai Fu Shou Yuan and Qiujiadian Government have agreed to form an equity joint venture, Taian Futai Development Co.,Ltd. (name subject to registration) ("Taian Futai") with registered capital of RMB40 million. Taian Futai will be held by a state-owned company under the Qiujiadian Government and Shanghai Fu Shou Yuan as to 35% and 65%, respectively and will be responsible for the development of the Qiujiadian County cemetery, with a planned area measuring 260 mu. It is expected that the completion of the formation of Taian Futai will take place in or around April, 2016.

The Taian cooperation actively complies with the implement of China's government policy on cooperation between government and social capital in PPP mode, and opened up the market of partnership between government and corporates. It is in favor of the Group's business development and expansion in Shandong Province, replicate the successful model of Fu shou yuan over the nation, enhance the reform and development of urban death care business and improve local people's livelihood. Furthermore, the BOT model is designed to drive further collaboration between funeral enterprises owned or operated by local governments and private corporations. The Taian Cooperation has set precedent to the BOT model and the Group expects such cooperation will lead to a series of similar collaboration projects of the Group with other regional governments in the PRC in the future.

Mr. Wang Yunpeng, deputy secretary and Mayor of Taian City said, "The cooperation between Taian City and Fu Shou Yuan International Group is an important move to accelerate the development of Death Care Service in Taian City. It is a powerful exploration on government-social force cooperation, and has a great significance to enhance death care service industry standards and promote the industrial development in Taian City."

Mr. Bai Xiaojiang, Chairman and Executive Director of Fu Shou Yuan said, "The Taian Cooperation marks the beginning of the full implementation of the Taian Strategic Cooperation Agreement, and has taken a key step on the practice of "peace and prosperity" our dream on death care. Utilizing past 20 years' successful experience in operations and management, Fu Shou Yuan will optimize maximum resources, work with the government departments at all levels to raise the overall development level of the death care industry in Taian City, to meet the needs of the public on quality death care service, to reach a win-win situation on social and economic benefits. In addition, through this project, the Group will be able to continue to promote government-social capital strategic cooperation, implant successful experience into other dense region in China, expand the Group's business, and to lead the death care industry to reform and develop in the country."

About Fu Shou Yuan International Group Limited

Fu Shou Yuan International Group Limited is the largest provider of death care services in the PRC, the leading player and consolidator in the death care services industry and a flagship death care services brand in China, with major products covering cemeteries, funeral, burial services, etc. The Group promotes humanity and culture with innovation, pragmatism, peaceful mind and sincerity to give a beautiful farewell to the one who passed away. Fu Shou Yuan began to operate a cemetery in Shanghai in 1994 and was among the first batch of private companies to enter the PRC death services industry and the first batch of PRC companies to introduce the advanced development and management method of cemeteries and funeral services from overseas. The Group offers tailor-made services to fulfill customers' needs of Chinese traditional burial services by employing modern technology and practices. The Group has a strong presence in major areas of China, including Shanghai, Anhui, Henan, Shandong, Liaoning, Chongqing, Fujian, Jiangxi, Jiangsu and Zhejiang.

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