Fuxing Yuan, a major cemetery operator and funeral service provider in China, has experienced a loss, marking the first such instance in a decade. The company, based in Shanghai, reported a loss of 261 million yuan (36.6 million USD) in the first six months of the year, a significant shift from its previous financial performance. This downturn is attributed to economic challenges, including inflation and reduced consumer spending. Revenue for the company decreased significantly, with a notable decline in revenue from burial services, including land sales, and funeral services. The company cites external challenges, including a cautious approach to post-mortem expenses by consumers and increased competition within the industry, as key factors contributing to the loss. The aging population in China, which previously fueled double-digit growth for the company, now faces pressures. The company is also facing challenges related to economic slowdown, property market decline, and uncertain employment prospects. In response to government efforts to encourage domestic spending, retail sales have shown modest growth, and the adoption of environmentally friendly and affordable burial options, such as scattering ashes at sea or in flower beds, has gained traction. The average selling price of burial plots has also decreased.
