As China’s economic downturn deepens and spending remains subdued, even final resting places are not being spared, as leading cemetery and funeral service providers report slumps in revenue.
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Leading cemetery and funeral service provider Fu Shou Yuan reported a nearly 30 per cent year on year drop in revenue in the first half of 2024 to 1.1 billion yuan (US$154 million).
Its net profits plunged by more than 35 per cent to 299 million yuan, compared with 465 million yuan during the same period last year, according to its first-half financial report filed to the Hong Kong stock exchange at the end of August.
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The company’s Shanghai market, which accounts for nearly half of its total revenue, saw sales fall by more than 200 million yuan, while its market in the northeastern Liaoning province fell by nearly 40 per cent.
With the average price for a grave plot more than 100,000 yuan (US$14,054), Fu Shou Yuan attributed the sharp decline in earnings to a combination of last year’s exceptional performance following a strong release of pent-up demand following the coronavirus pandemic and the ongoing challenging economic environment.