1. Under the shell, Zhongfu landed in Hong Kong and issued additional reserve ammunition for development several times. Anxianyuan developed the mainland cemetery business through the backdoor of Zhongfu Holdings. After a reverse acquisition of Zhongfu Holdings, Mr. Shi Hua, the controller of Anxianyuan, became the largest shareholder of Zhongfu Holdings on September 18, 2012. As of the latest announcement, Shihwa and his family held a total of 24% of the company's shares (if the exchange rights held were added, their shares reached 38.4% of the total convertible share capital). 2. The funeral industry in China is a typical Chaoyang industry. Currently, the funeral service industry in China is broadly divided into body disposal, graveyard services, funeral services, and other product sales and services. According to estimates, the scale of China's funeral industry reached 46.52 billion in 2012; it is estimated that it will be close to 100 billion yuan in 2017.

Currently, there are five major characteristics of the funeral industry in China: 1) The population structure is seriously aging. 2) Demand for cemeteries is growing, and grave-entry rates vary widely across the country. 3) The industry is scattered, and there is a need for mergers and acquisitions integration. 4) Administration and land resources are scarce. 5) Consumption is divided in the industry. In the future, there is a possibility of upstream development 3. Anxianyuan will leave the burden of history behind and start making profits, and the group will enter a period of large-scale mergers and acquisitions of cemeteries all over the country. 1) While seeking administrative resources for the industry, Anxianyuan has formulated a strategic plan for merging and acquiring existing cemeteries in economically developed small and medium-sized cities in coastal provinces across the country and regions with poor funeral reforms. 2) The current scale of Anxianyuan has a large space compared to similar listed companies. As announced in its 2014 annual report, Fu Shou Yuan already has a marketable cemetery area of 1,388 million square meters; as of 2015/5/23, Anxianyuan Group cemeteries cover a total area of only 1.125 million square meters.

4. Transformation to provide a one-stop service for overall funeral services. Through the acquisition of shares in Langtai Hospital and the wholly-owned acquisition of Hangzhou Haoletian, An Xianyuan began to transform from a single company providing funeral services to a company providing integrated funeral services. The Group plans to expand its control over potential customers, starting with ICU hospice services and funeral ceremonies, and increase the revenue of the Group's main funeral business. Comparing with similar listed companies, Fushouyuan Funeral's business revenue already accounts for 14% of the Group's total revenue; we expect the Group's revenue to gradually increase.

5. The land reserves are sufficient, and the current valuation is low. As the mergers and acquisitions of Anhyun-won continue to advance, its land reserves are very sufficient. At the same time, due to the yearly rise in land prices in China and its recent deepening in the transformation of the entire industrial chain, we expect the Group's revenue to rise steadily in the future. The Group's market value as of 2015/6/12 was HK$966 million. Compared with the lower valuation of similar listed companies, there is still room for growth. Although its revenue will be affected in the next two fiscal years because the Group will stop selling low-margin public interest niches; however, the resulting increase in gross margin will continue to boost the Group's performance growth.

Risk warning: Land mergers and acquisitions are not as fast as expected; funeral service prices are limited by national policies