China Wan Tong Yuan (06966.HK) announced that the total amount of the company's profits and comprehensive income attributable to equity holders in the same period last year was about RMB 139.5 million. It is expected that in the six months ending on June 30, 2024, the company's profits and comprehensive income attributable to equity holders will be between RMB 70 million and RMB 80 million, a decrease of about 43% to 50%.
The decrease in profits is mainly due to (i) the decrease in sales revenue of cemetery plots due to a drop in demand for burial places; (ii) the increase in expenses such as travel, labor, and depreciation due to the expansion of funeral projects and extension of funeral services business; and (iii) the decrease in exchange gains compared to the same period last year due to a decrease in HKD deposits held, caused by fluctuations in exchange rates.