On March 10, the Fushouyuan International Group Limited (Fushouyuan) released a personnel change announcement, sparking renewed interest in the Chinese funeral industry, signaling the end of an era of exorbitant profits.
Fushouyuan recently issued a notice of “Non-Executive Director Resignation”. This is not the first time Fushouyuan has had personnel changes. Prior to this, Fushouyuan had announced a “President Change”, stating that Wang Jisheng would no longer serve as the company’s president. The announcement mentioned, “In order to further enhance the company’s operational efficiency, the company will establish a ‘Co-Chief Executive Officer’ system. Mr. Jin Lei (referred to as ‘Mr. Jin’, currently the General Manager of the Western Region of the group) and Mr. Ma Jianting (referred to as ‘Mr. Ma’, currently the Chief Financial Officer (CFO) of the company) have been appointed as Co-CEOs of the company.”
Regarding the high-level changes at Fushouyuan, an article published on March 10 by Jiedian Finance, a subsidiary of Beijing Chilicom Culture and Technology Co., analyzed that this move was primarily due to Fushouyuan’s first loss in its 12-year listing history, with a net loss of 260 million yuan in 2025. Fushouyuan hopes to change its situation of losses through management changes.
Influenced by the traditional Chinese culture of filial piety, funeral expenses are often seen as a measure of children’s filial piety. After the death of their parents, children often purchase expensive burial plots for them. Consequently, the prices of burial plots have remained high for a long time.
Being in the funeral industry, Fushouyuan has seen its profits soar. From 2020 to 2023, its revenue was 1.893 billion yuan, 2.326 billion yuan, 2.172 billion yuan, and 2.628 billion yuan, with net profits attributable to the mother company reaching 620 million yuan, 720 million yuan, 659 million yuan, and 791 million yuan respectively.
However, Fushouyuan’s “2025 Mid-Year Report” showed a net loss of 260 million yuan, while the average price of operating burial plots directly dropped from 121,200 yuan to 63,400 yuan.
Jiedian Finance analyzed the reasons for Fushouyuan’s losses. Firstly, the downgrade in consumption caused by economic decline is the main factor. Secondly, the withdrawal of tax and policy incentives has eliminated excess profits for funeral businesses at the local level. Additionally, over the years, companies have expanded through large-scale mergers and acquisitions. In the downturn of the industry, these assets have failed to achieve expected profits, resulting in substantial pressure from impairment of goodwill.
Jiedian Finance believes that Fushouyuan’s transition from profit to loss in 2025 signaled the end of the “golden age” where accumulating land and raising prices could guarantee success, marking the end of the era of exorbitant profits in the funeral industry.